Manami Suzuki, Naoki Ando and Hidehiko Nishikawa
This paper aims to investigate three different orientations of recruitment (profession-sensitive, language-sensitive and interculture-sensitive recruitment) and their effect on…
Abstract
Purpose
This paper aims to investigate three different orientations of recruitment (profession-sensitive, language-sensitive and interculture-sensitive recruitment) and their effect on the foreign subsidiaries of multinational corporations (MNCs).
Design/methodology/approach
This study examines the relationship among three different orientations of recruitment and knowledge transfer from parent firms to foreign subsidiaries. Data are collected from local managers in MNCs’ subsidiaries operating in Japan using a questionnaire. The hypotheses are tested by using ordinary least squares resression (OLS).
Findings
The results of this study indicate that each of the three orientations of recruitment positively influences the knowledge transfer of MNCs. In particular, the positive effect of profession-sensitive recruitment is enhanced when foreign subsidiaries are established through acquisition. The positive effect of interculture-sensitive recruitment on knowledge transfer is also strengthened by offering professional training.
Research limitations/implications
This study is subject to several limitations. The sample size is small, and the data were collected from a single country. In addition, the respondents’ positions in an organizational hierarchy have not been taken into account. Despite these limitations, this study can be considered the first step toward future research on the relationship between different orientations of recruitment and intra-organizational knowledge transfer.
Practical implications
The results of this study indicate that not only profession-sensitive recruitment but also language-sensitive and interculture-sensitive recruitment are important for intra-organizational knowledge sharing. This study suggests that local employees with intercultural competence have the potential to improve subsidiary performance through knowledge sharing with parent firms if they are provided with professional training.
Originality/value
This study has empirically examined the complex mechanism of the three important factors (professional, language and intercultural competence) in recruitment and their influence on knowledge transfer. In particular, this study emphasizes language-sensitive recruitment and interculture-sensitive recruitment, which have received less attention than profession-sensitive recruitment in international business research. Moreover, this study focuses on the relationship between recruitment and knowledge sharing in a cross-border setting, which few studies in the human resource management area have examined.
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Manami Suzuki, Naoki Ando and Hidehiko Nishikawa
The purpose of this paper is to address intra-organizational communication between parent firms and foreign subsidiaries and examine how such communication effectively facilitates…
Abstract
Purpose
The purpose of this paper is to address intra-organizational communication between parent firms and foreign subsidiaries and examine how such communication effectively facilitates knowledge sharing between parent firms and their subsidiaries.
Design/methodology/approach
This study approaches the relationship between intra-organizational communication and the effectiveness of knowledge sharing from the viewpoint of foreign subsidiaries. The data have been collected from local managers in subsidiaries operating in Japan using a questionnaire survey. The hypotheses are tested by employing a robust regression model.
Findings
This study finds that intra-organizational communication between parent firms and foreign subsidiaries is positively associated with the effectiveness of knowledge sharing. The benefits from intra-organizational communication are greater for service firms than for manufacturing firms. Subsidiaries established through acquisition are found to enjoy a greater positive effect from intra-organizational communication than those established through greenfield investment.
Practical implications
The results of this study suggest that multinational corporations should facilitate intensive intra-organizational communication for knowledge sharing that can lead to the effectiveness of foreign subsidiaries. In particular, service firms should appreciate the value of communication. This study also indicates that foreign subsidiaries established through acquisition should promote communication with their parent firms for successful knowledge sharing.
Originality/value
This study demonstrates that the effect of intra-organizational communication on knowledge sharing differs among industries and among entry modes. This is the initial step to further investigations on the industry and the entry strategy effects of intra-organizational communication.