Multinationals’ HRM policies and practices: do national institutions in less developed countries really matter?
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This study draws on the lens of institutional theory to explore how the coercive (regulatory), cognitive (culture) and normative institutional settings of a less developed host-country (LDC) impact MNE subsidiaries’ HRM practice configurations. The study found that the regulatory or coercive institutional profile of the host-country is both supportive and receptive to HRM practice diffusion, whilst the cognitive and normative institutional profiles are the sources of constraints to HRM practice diffusion in LDCs.
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