ABSTRACT

This chapter reviews the extant literature on the role that home and host country factors might play in influencing the adaptation of human resource management (HRM) in the subsidiaries of Emerging multinational enterprises (EMNEs) operating in advanced economies and present a future research agenda. Researchers have outlined the role of MNE's country of origin (COO) referring to the embeddedness of a multinational to their home country business systems including its employment relations (ER) and HRM. A considerable body of literature has focused on the host country's legal framework as a significant factor that can create strong pressures for the subsidiary of an MNE. Foreign firms are at a disadvantage when compared to local firms due to gaps in understanding caused by cultural variations impacting the firm's internal and external environment due to the ‘liability of foreignness’ (LOF). A growing body of literature has highlighted the important role that MNEs play in developing, transferring and sharing technology to their overseas affiliates.