Research Handbook on the Globalization of Chinese Firms
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Research Handbook on the Globalization of Chinese Firms

Edited by Craig C. Julian, Zafar U. Ahmed and Junqian Xu

This comprehensive research Handbook encompasses an expansive range of perspectives on the globalization process of Chinese firms. Eminent global scholars provide contributions on a variety of topics, including: • industrial innovation; • technological innovation and learning; • the performance of Chinese international joint ventures,; • the global consumer; • Foreign Direct Investment (FDI) including barriers to FDI and FDI in China’s hinterland areas; • the globalization of Chinese business practices in Africa; • the Human Resource Management Transfer Process; • Corporate Information Disclosure in China’s Stock Market; and • the home employment effect.
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Chapter 10: HR strategy and practices in Chinese multinational companies

Jingqi Zhu and William Wei


Although there is a large collection of studies examining the transfer of organizational practices in multinational companies (MNCs) (for example Geppert and Mayer, 2006; Edwards et al., 2007; Gamble and Huang, 2009), significant gaps still remain in our understanding of the subject. In particular, there exists little knowledge about human resource management (HRM) practices in the MNCs from emerging economies such as China. Although that substantial research has been done on foreign-invested MNCs in China (Cooke, 2009), it was not until ten years ago that Chinese outward direct investment (ODI) and Chinese MNCs started to attract scholars' attention (for example Cai, 1999; Nolan and Zhang, 2002, 2003). Up to now, most extant studies have focused on exploring the microeconomic and institutional determinants of Chinese ODI (for example Buckley et al., 2007) and on portraying the distinct characteristics of Chinese MNCs as a 'latecomer' (Child and Rodrigues, 2005; Peng, 2005; Cooke, 2008). More recent studies have taken a further step by examining the relationship among motivation, entry mode and performance of Chinese investment (for example Chen and Young, 2009; Cui and Jiang, 2009; Deng, 2009). To date, what remains little explored is how Chinese MNCs manage their subsidiaries in a cross-national context, and how the organizational strategies and practices of these firms are constructed and implemented. As such, addressing this pertinent research agenda is the major focus of our chapter.

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