The Influence of Country-of-Origin on Human Resource Strategy of Multinational Companies in Developing Countries

2009

Human resources can be one of the company's sources of competitive advantage if it is managed effectively and efficiently. Taking this into considerations, MNCs are straggling in designing the human resource strategy that helps them to gain competitive advantage in host countries. In a globalized world however, multinational companies (MNCs) are in the complex pressure of finding appropriate balance between global, home country and local practices especially in the area of human resource management due to the fact that cultural contexts differ significantly among nations. According to theories of ethnocentricity, MNCs tend to transplant the dominant business strategic practices of the count…