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Chinese MNCs ’ Preparation for Host‐Country Labor Relations: An Exploration of Country‐of‐Origin Effect
Author(s) -
Zhu Judith Shuqin,
Zhu Cherrie Jiuhua,
De Cieri Helen
Publication year - 2014
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.21613
Subject(s) - multinational corporation , business , ethos , country of origin , disadvantage , human resource management , industrial organization , economics , marketing , political science , management , finance , law
Numerous studies have demonstrated the existence of the country‐of‐origin effect and how this effect interacts with other factors in shaping multinational corporations’ ( MNCs ’) practices. However, there has been little investigation of different forms of country‐of‐origin effect, the mechanisms through which this effect occurs, or country‐of‐origin effect on MNCs from emerging markets. This study explores how country‐of‐origin effect manifests in Chinese MNCs ’ preparation for managing host country labor relations, an important area of human resource management ( HRM ). Based on a study of 21 Chinese MNCs , we argue that country‐of‐origin effect in relation to Chinese MNCs mainly manifests in two implicit forms, including transfer of management ethos and competitive disadvantage generated from the home base, rather than in the form of direct practice transfer as commonly suggested in the current literature. The major mechanism through which country‐of‐origin effect plays out is the mind‐set of managers, rather than formally established corporate control instruments. © 2014 Wiley Periodicals, Inc.