The determinants of line management internalisation of HRM practices in MNC subsidiaries

Abstract

In this study, we investigated factors that influence the attitudes of line managers towards HRM. Using a sample of the general managers of 123 subsidiaries, we tested whether the general manager's level of HRM internalisation – the extent to which he or she values and is committed to the subsidiary's HRM practices – is influenced by two sets of factors: the professional experience of the subsidiary HR manager and the external networking activities and perceived strategic HRM capabilities of the subsidiary HR department. The findings supported the hypotheses relating to the professional experience of the subsidiary HR manager. Furthermore, an inverted U-shaped relationship was found between the tenure of the HR manager in his or her current position and the HRM internalisation of the general manager. The level of perceived strategic HRM capabilities of the subsidiary HR department was also shown to have a positive influence.

Keywords:

• HRM process
• human resource management (HRM)
• internalisation
• line management
• multinational corporation (MNC)

Acknowledgements

We are grateful to the Finnish Funding Agency for Technology and Innovation (Tekes) (Dec. no. 53/31/08) and the Academy of Finland (Dec. no. 122402) for financing this research.