Navigating HRM practices in the Indian institutional context: multinational vs domestic enterprises in comparative perspective
Review of International Business and Strategy
ISSN: 2059-6014
Article publication date: 13 June 2024
Issue publication date: 28 June 2024
Abstract
Purpose
The role of distinct institutional context in shaping employment practices is particularly evident in emerging markets where institutional measures are often evolving and not yet fully established. This presents several challenges, particularly for multinational corporations (MNCs) operating in such contexts. This research paper aims to provide a comparative analysis of HRM practices, specifically recruitment and selection, internal career opportunities and performance appraisals between domestic and multinational companies in a large emerging economy, that is India.
Design/methodology/approach
In this study, survey-based data was gathered from a diverse sample of 252 companies, comprising both domestic enterprises (DEs) and MNCs, to collect comprehensive data on HRM practices. The aim is to provide a nuanced understanding of the variations in HRM approaches between DEs and MNCs, taking into account the unique institutional context of the Indian market.
Findings
Contrary to initial expectations, the study’s findings do not support the hypothesis that MNCs would prioritize more rigorous and effective HRM practices compared to DEs in the Indian context. Instead, the results reveal that DEs place a greater emphasis on effective HRM practices than their MNC counterparts, despite the latter’s international reach and operational success. These findings shed light on the distinctive HRM strategies used by MNCs and DEs when navigating the complexities of the Indian market.
Originality/value
This study contributes to the existing IB literature by providing a comparative perspective that emphasizes DEs proclivity for institutional entrepreneurship and change. Exploring the resource dynamics for both MNCs and DEs, the study showcases them as divergent adaptive navigators within (in)formal institutional logics, adept at navigating and influencing institutional structures and shaping distinct HRM practices. The findings challenge traditional assumptions about HRM priorities of MNCs and DEs.
Keywords
Acknowledgements
Statements and declarations: The manuscript (or parts thereof) has not been published or submitted for publication elsewhere, and that the manuscript will not be submitted elsewhere until the editorial process is completed or the manuscript is withdrawn by the authors.
No potential competing interest was reported by the authors.
The authors declare no financial or non-financial interests that are directly or indirectly related to this paper.
The data that support the findings of this study are available from the corresponding author upon reasonable request.
Citation
Melhem, M.J., Khassawneh, O., Darwish, T.K., Singh, S. and Alanezi, A.N. (2024), "Navigating HRM practices in the Indian institutional context: multinational vs domestic enterprises in comparative perspective", Review of International Business and Strategy, Vol. 34 No. 4, pp. 495-515. https://doi.org/10.1108/RIBS-12-2023-0142
Publisher
:Emerald Publishing Limited
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