An empirical study of transferring international strategic human resource policies into local subsidiaries in Bangladesh

Introduction: The implications of the rapid growth of emerging economies for IHRM (International Human Resource Management) research are significant in various ways, and their impact on the landscape of global business far exceeds their potential as locations for outsourced low-value aspects of MNC activities. Firms that adopt an explorative orientation seek to transfer HR policies, which are seen as successful in the parent, to affiliates. Literature review: One of the key roles of MNCs is to transmit capital, knowledge, ideas, and value systems across borders and consequently linking developed and developing economies in the global landscape. This impact is under-explored, and research in relation to IHRM practice would be useful here. Besides, recent studies on strategic international human resource management (SIHRM) have advocated the importance of strategic fit between firm‟s choice of IHRM orientations and the types of business strategies in their overseas operations of multinational corporations (MNCs). Methods: Data were obtained by using well-defined structured questionnaire. The sample consisted of 100 employees from a multinational consulting firm. Conclusions: The study indicated strong effect of inter-organizational relationship (IOR), headquarters governance (HG) on implementation (ImP) and internalization (InP) of human resource practices in the subsidiaries and change management (CM) also impacts the implementation of human resource practices. Results also indicated partial effect of human resource systems in subsidiaries (HRSS), and transfer process mechanism (TPM) on implementation and internalization of human resource practices and change management partially affects internalization of human resource practices. Recommendations: The findings are used to discuss the role that local business strategies play in the hybridization processes of American MNCs‟ business units in a cross-cultural setting. The propositions presented and suggestions for future research serve to aid further practical studies not only in service firm but also in manufacturing firm alike.