Strategic international human resource management or the ‘bottom line’? The cases of electronics and garments commodity chains in China

Abstract

This paper draws on frameworks developed by the strategic international human resource management (HRM) literature to analyse human resource practices in foreign-invested enterprises in China and their affiliates. It argues that such strategies can be best understood in the context of global commodity chains. Drawing on data from a study of 27 China-based enterprises in two industries, garments and consumer electronics, it contests that strategy is a good determinant of HRM policies. Moreover, most of the enterprises are following cost reduction strategies but with certain quality levels, based on standardized mature products and production processes. Industry sector is also important, as is the institutional milieu of China.

Keywords:

• China
• commodity chains
• electronics industry
• garments industry
• strategic international HRM

Notes

1. The research reported on here was funded by the UK's Economic and Social Research Council for a project titled Manufacturing Organization in Pacific Asia (L324253401).

2. The industries were chosen for a number of reasons. First, they were ubiquitous, found throughout the region. Second, they combined knowledge and labour-intensive production processes. Third, it was apparent that there was a regional division of labour in these industries.

3. The semi-structured schedule questionnaire is available from the authors on request.