The impact of culture on HRM styles and firm performance:evidence from japanese parents, Japanese subsidiaries/joint ventures and South Asian local companies

The choice of what HRM practices to implement in their subsidiaries in emerging economies is an issue of central concern to multinational corporations (MNCs). On the one hand, a company may want to capitalize on labour costs and locational advantages that these economies may offer. On the other hand, the nature of emerging economies with relatively poorly defined managerial systems and little experience of elaborate, sophisticated human resource management (HRM) practices create a potential obstacle to success in such economies.