Firm Centred Perspectives
Edited by Mehmet Demirbag and Geoffrey Wood
Chapter 7: The application of MNC HR policies and practices in the luxury hotel industry: differences and similarities between transitional periphery versus developed economies
The literature on ‘Anglo-Saxonization’, which holds that, irrespective of institutional context, United States (US) multinational corporations (MNCs) exert a homogenizing and standardizing process on overseas operations based on human resources (HR) policies and practices, is being challenged by arguments suggesting the predominance of local institutional isomorphic forces. This chapter utilizes evidence from overseas subsidiaries of a US MNC luxury hotel chain operating in both developed economies and the transitional periphery of the Caucasus and Central Asia regions. Through a triangulation approach, this research looks at similarity and diversity according to Whitley’s defining national features of employment and work relations. The research reveals that HR policies and practices implementation was affected not only by the national labour law and the educational system, but also, as in the case of transitional periphery contexts, the powerful social ties resulting from deeply rooted local clan systems. These findings suggest that, contrary to ‘Anglo-Saxonization’, US MNCs are ‘partially’ institutionally rooted international actors responding to pressures from varying institutional contexts. This chapter contributes to the growing strand of international business research related to the transitional periphery capitalist archetype.
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