Journal of International Management
5 (1999) 167–186
The impact of emerging markets on staffing the
A knowledge-based view
Michael G. Harvey a,*,1, Cheri Speier b,1, Milorad M. Novicevic a,1 a
Michael F. Price College of Business, University of Oklahoma, 307 West Brooks, Norman, OK 73019-4006, USA
Management Information Systems, The Eli Broad Graduate School of Management, Michigan State University, East Lansing, MI 48824, USA
As organizations become more global in their strategic orientation, the need for developing global managers becomes imperative. One of the distinguishing features of global organizations is to effectively manage global operations in a consistent manner but at the same time allow flexibility at the country level to effectively compete. Acquisition and sharing of tacit social knowledge necessary to work globally but with a contextual understanding of local markets require a unique set of management skills. The process of inpatriating host and third country nationals into the home country organization appears to hold significant potential in developing a pool of future global managers. This article presents a theoretical perspective to analyze the contextual factors influencing the staffing choice when to utilize expatriate and inpatriate managers in global organizations. © 1999 Elsevier Science Inc. All rights reserved.
Keywords: Global; Staffing; Knowledge-based; Expatriation; Inpatriation
Many experts thought that globalization was “approaching” the status of a strategic norm in the early 1990s, more recent evidence suggests that it is a strategic necessity in today’s business environment. Almost a decade later, there is a strong belief that markets and compe* Corresponding author: Tel: 1-405-325-3376; fax: 1-405-325-7688. E-mail address: email@example.com (M.G. Harvey)
Michael G. Harvey is a Puterbaugh Chair of American Free Enterprise. Milorad M. Novicevic is a PhD student at the Michael F. Price College of Business, University of Oklahoma. Cheri Speier is an Assistant Professor at the Eli Broad Graduate School of Management, Michigan State University. 1075-4253/99 $–see front matter © 1999 Elsevier Science Inc. All rights reserved. PII: S1075-4253(99)00011-3
M.G. Harvey et al. / Journal of International Management 5 (1999) 167–186
tition are viewed within an increasingly global context and that in the future much of this context will coexist in developing and emerging economies (Minehan, 1998). This increasing business globalization will necessitate significant adaptation of human resource processes and people, identifying those who can facilitate organizational adoption of global strategies while simultaneously responding to local markets/competition. The more geocentric the organizational strategic orientation, the more likely the need for a mixture of home, host, and third country nationals to compete successfully in a hypercompetitive global marketplace (Edström and Galbraith, 1994). Therefore, organizations must develop globally competent managers and protect them as core competencies, which allow the company to compete effectively in the global competitive arena (Minehan, 1998). There is a growing consensus that organizations that compete globally will be dependent on the architecture of their human resources to differentiate their efforts against global and local competitors. The organization’s global Human Resource Management (HRM) architecture, reflecting the quantity and quality of global managers, may be one of the most critical resources of an organization’s capability to compete globally (Bartlett and Ghoshal, 1994, 1995; Pfeffer, 1994; Ghoshal and Bartlett, 1997). Therefore, developing an adequate supply of “transnational” managers, who can effectively manage across national and subsidiary boundaries, becomes paramount to global organizations (Gregersen et al., 1998). These sophisticated global...
References: Aguirre, M., 1997. Multiculturalism in a labour market with integrated economies. Manage Decis 35 (7), 489–
Arnold, A., Quelch, J., 1998. New strategies in emerging markets. Sloan Manage Rev 40 (1), 7–20.
Barkema, H., Bell, J.H., Pennings, J., 1996. Foreign entry, cultural barriers, and teaming. Strategic Manage J 17,
Bartlett, C., 1986. Building and managing the transnational: the new organizational challenge. In: Porter, M.,
(Ed.), Competition in global industries
Bartlett, C., Ghoshal, S., 1992. What is a global manager? Harvard Business Rev Sept–Oct, 124–132.
Bartlett, C., Ghoshal, S., 1994. Changing the role of top management: beyond strategy to purpose. Harvard Business Rev 72 (6), 79–88.
Bartlett, C., Ghoshal, S., 1995. Changing the role of top management: beyond structure to purpose. Harvard Business Rev 73 (4), 86–96.
artmess, A., Cerny, K., 1983. Building competitive advantage through a global network of capabilities. California Manage J 35, 79–103.
Birkinshaw, J., Hood, N., Jonsson, S., 1998. Building firm-specific advantages in multinational corporations: the
role of subsidiary initiative
Black, S., Stevens, G., 1989. The influence of the spouse on American expatriate adjusunent in overseas assignments. J Manage 15, 529–544.
Bridging the Gaps: The World Health Report, 1995. World Health Organization, Geneva, pp. 37–38.
Caligiuri, P., Stroh, L., 1995. Multinational corporate management strategies and international human resource
practices: bringing IHRM to the bottom line
Caves, R., 1982. Multinational enterprise and economic analysis. Cambridge University Press, Cambridge, UK.
Child, J. 1997. Strategic choice, structure, organizations and environment. Organization Studies 18(1), 43–76.
Contractor, F.J., Kunda, S.K., 1998. Modal choice in a world of alliances: analyzing organizational forms in the
international hotel sector
Dadfer, H., Gustavsson, P., 1992. Competition by effective management of cultural diversity. Int Stud Manage
Organization 22 (4), 81–92.
DeCieri, H., Dowling, P.J., (1993). Strategic human resource management in multinational enterprises. Theoretical and empirical development. In: Wright, P., et al. (Eds.), Research and theory in SHRM: an agenda for the
Demsetz, A., 1991. The theory of the firm revisited. In: Williamson, O.E., Winter, S.G. (Eds.), The nature of the
Dietrickx, I., Cool, K., 1989. Asset stock accumulation and sustainability of competitve advantage. Manage Sci
35 (12), 1504–1511.
Dowling, P., Welch, D., Schuler, R., 1999. International human resource management, 3rd Edition. South-Western College Publishing, Cincinnati, OH.
Edström, A., and Galbraith, J., 1994. Altemative policies for international transfers of managers. Manage Int Rev
Eriksson, K., Johanson, J., Majkgard, A., 1997. Experimental knowledge and cost in the internationalization process. J Int Business Stud 28 (2), 337–360.
Expatriate Manager Programs: Best in Class Study, 1997. Arthur Andersen and Bennett and Associates,
Fennell, M., Alexander, J., 1987. Organizational boundary spanning in institutional environments. Acad Manage
J 30 (3), 456–476.
Frey-Ridgway, S., 1997. The cultural dimensions of international business. Collections Building 16 (1), 12–23.
Galbraith, J., Kozanjian, R., 1986. Strategic implementation: the role of structure in the process. West Publishing,
St Paul, MN.
Gannon, M., 1994. Understanding global cultures. Sage Publications, Thousand Oaks, CA.
Garten, J., 1996. The big emerging markets. Columbia J World Business 31 (Summer), 6–31.
Garten, J., 1997a. Troubles ahead in emerging markets. Harvard Business Rev 75 (May–June), 38–50.
Garten, J., 1997b. The big ten: the emerging markets and how they will change our lives. Basic Books, New York.
Geringer, J., Herbert, L., 1989. Control and performance of international joint ventures. Journal of International
Business Studies 20 (2), 235–254.
Ghoshal, S., Bartlett, C., 1990. The multinational corporation as an interorganizational. Acad of Manage Rev 15
Ghoshal, S., Bartlett, C., 1997. The individualized corporation: a fundamentally new approach to management.
Grandstrand, O., Hakanson, L., Sjolander, S., 1993. Internationalization of R&D: a survey of some recent research. Res Policy 22, 413–430.
Grant, R., 1996. Toward a knowledge-based theory of the firm. Strategic Manage J, 17, 109–122.
Grant, R., 1997. Prospering in dynamically-competitive environments: organizational capability as knowledge
Gregersen, H., Morrison, A., Black, S., 1998. Developing leaders for the global frontier. Sloan Manage J 40 (1), 21–32.
Hall, R., 1993. A framework linking intangible resources and capabilities to sustainable competitive advantage.
Hambrick, D., Mason, P., 1984. Upper echelons: the organization as a reflection of its top managers. Acad of
Manage Rev 9 (2), 193–206.
Hamel, G., Prahalad, C.K., 1989. Strategic intent. Harvard Business Rev May–June, 63–76.
Harvey, M., 1993. Training inpatriate managers to succeed in the domestic organization. Fourth Symposium on
Cross-cultural Consumer and Business Studies
M.G. Harvey et al. / Journal of International Management 5 (1999) 167–186
Harvey, M., 1997a. Inpatriation training: the next challenge for international human resource management. Int J
Intercultural Relations 21, 393–428.
Harvey, M., 1997b. Dual-career expatriates: expectations, adjustment, and satisfaction with international relocations. J Int Business Stud 28, 627–658.
Harvey, M., Buckley, M., 1997. Managing inpatriates: building a global core competency. J World Business 32
Harvey, M., Speier, C., Novicevic, M., 1999. The role of inpatriation in global staffing. Int J Human Resource
Manage 10 (3), 459–476.
Hofstede, G., 1980. Culture’s consequences: international differences in work-related values. Sage, Newberry
Hutchins, E.L., 1991. Organizing work by adjustment. Organization Sci 2, 71–87.
Inkpen, A., Beamish, P., 1997. Knowledge, bargaining power, and the instability of joint ventures. Acad of Manage Rev 20 (1), 177–202.
Kamoche, K., 1996. Strategic human resource management within a resource-capability view of the firm. J Manage Stud March, 213–233.
Kobrin, S., 1988. Expatriate reduction and strategic control in American multinational corporations. Hum Resource Manage 27 (1), 63–75.
Kobrin, S., 1994. Is there a relationship between a geocentric mindset and multinational strategy? J Int Business
Stud 25 (3), 493–511.
Martínez, J., Quelch, J., 1996. County managers: the next generation. Int Marketing Rev 13 (3), 43–55.
McMillen, M., Baker, A., White, J., 1997. Cultural analysis, “good conversation” and the creation of multicultural
Michael, J., Hambrick, D., 1992. Diversification posture and top management team characteristics. Acad Manage
J 35 (1), 9–37.
Minehan, M., 1998. Futurist task force. HRM Magazine, November, 188–192.
MOW International Research Team, 1986. The meaning of working: an international perspective. Academic
Moynihan, M., 1993. The economist intelligence unit global manager: recruiting, developing and keeping world
Please join StudyMode to read the full document