Organization culture types and the replication of transferred human resource management practices in multinational subsidiaries in Nigeria

Abstract

Purpose: Given that institutional and cultural factors affect the transfer of HRM practices between multinational companies (MNCs) and their subsidiaries, the paper set out to investigate the explanatory mechanism for the replication of transferred HRM practices and the factors likely to influence the choice of transfer mechanisms. Design/methodology/approach: Using an exploratory qualitative approach, 40 interviews were conducted with senior managers and employees in two MNC subsidiaries located in the alcoholic beverage and oil industries in Nigeria. Findings: The findings suggest that organizational culture (OC) was the mechanism for MNC HRM replication and inhibition. In addition to explaining the mechanisms for HRM practice replication, the authors developed a conceptual framework to explain how clan and hierarchical OC influence the extent to which human resource (HR) practices are replicated or inhibited and how institutional and cultural factors influence the choice of OC. Originality/value: The study uncovered that MNCs deploy hierarchical OC to oversee the replication of transferred practices. Interestingly, the authors found that institutional and cultural environments were key factors that influenced the choice of mechanism for overseeing the replication of HR practices. The conceptual framework can help managers of MNCs to understand how to replicate transferred HRM practices in developing countries.