Connectivity of Actors and Diffusion of Ideas in HR Systems Configuration Process in Multinational Subsidiaries in Indonesia
DOI:
https://doi.org/10.21632/irjbs.11.3.159-177Keywords:
Connectivity of actors, diffusion of ideas, HR systems, Indonesia, isomorphism, multinational subsidiariesAbstract
Human Resource (HR) literature tends to overlook the process of HR systems configuration. Researching the process, this article particularly examines the phenomenon of connectivity and the diffusion of ideas among HR actors and other actors outside companies. Three case studies of multinational subsidiaries in Indonesia were conducted. Data were collected through interviews, observations, and corporate documents and were analyzed using a modified-grounded approach. The findings show similarities among elements of HR systems across the cases, showing connectivity of ideas and actors in the configuration process. The ideas constituting the HR systems within each company were adopted through a variety of channels of diffusion. This article
proposes a typology of connectivity of actors that enables the diffusion and adoption of ideas across companies.
References
Arthur, J. B. (1994). Effects of human resource systems on manufacturing performance and turnover. Academy of Management Journal, 37, 670-687.
Arthur, J. B., & Boyles, T. (2007). Validating the human resource system structure: A levels-based strategic HR approach. Human Resource Management Review, 17(1), 77-92.
Bartlett, C. A., & Ghoshal, S. (1991). Managing across borders: The transnational solution, Boston, MA: Harvard Business School Press.
Bartlett, C. A., & Ghoshal, S. (2000). Transnational management: Text, cases, and readings in cross-border management. Boston, MA: McGraw Hill-Irwin.
Becker, B., & Huselid, M. (1998). High performance work systems and firm performance: A synthesis of research and managerial implications. Research in Personnel and Human Resources Management, 16, 53-101.
Beechler, S., & Yang, J. Z. (1994). The transfer of Japanese-style management to American subsidiaries: Constraints, and competencies. Journal of International Business Studies, 25(3), 467-491.
Birks, M., & Mills, J. (2011). Grounded theory: A practical guide. London, UK: Sage.
Bourdieu, P. 1983. The field of cultural production, or: The economic world reversed. Poetics, 12(4-5), 311-356.
Boxenbaum, E., & Jonsson, S. (2008). Isomorphism, diffusion and decoupling. In R. Greenwood, C. Oliver, K. Sahlin, & R. Suddaby (Eds.). The Sage handbook of organizational institutionalism (pp. 78-98). London, UK: Sage,.
Brewster, C., Mayrhofer, W., & Smale, A. (2016). Crossing the streams: HRM in multinational enterprises and comparative HRM. Human Resource Management Review, 26(4), 285-297.Burrel, G., & Morgan, G. (1979). Sociological paradigms and organizational analysis. London, UK: Heinemann.
Campbell, J. L. (2004). Institutional change and globalization. Princeton, NJ: Princeton University Press.
Charmaz, K. (2006). Constructing grounded theory: A practical guide through qualitative analysis. London, UK: Sage.
Hau-siu Chow, I., (2004). The impact of institutional context on human resource management in three Chinese societies. Employee Relations, 26(6), 626-642.
Collis, J., & Hussey, R. (2009). Business research: A practical guide for undergraduate & postgraduate students. Hampshire, UK: Palgrave Macmillan.
Czarniawska, B. (2004). Narratives in social science research. London, UK: Sage.
Czarniawska, B., & Joerges, B. (1996). Travels of ideas. In B. Czarniawska & G. Sevón. (Eds.). Translating organizational change (pp. 13-48). Berlin, Germany: Walter de Gruyter.
De Nooy, W. (2003). Field and network: Correspondence analysis and social network analysis in the framework of field theory. Poetics, 31(5-6), 305-327.
Denzin, N. K., & Lincoln, Y. S. (2005). Introduction: The discipline and practice of qualitative research. In N. K. Denzin, & Y. S. Lincoln (Eds.). The Sage handbook of qualitative research (pp. 1-32). London, UK: Sage.
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields, American Sociological Review, 48, 147-160.
DiMaggio, P. J., & Powell, W. W. (1991). Introduction. In W. W. Powell & P. J. DiMaggio (Eds.). The new institutionalism in organizational analysis (pp. 1-38). Chicago: University of Chicago Press.
Doz, Y. L., Bartlett, C. A, & Prahalad, C. K. (1981). Global competitive pressures and host country demands. California Management Review, XXIII (3), 63-74.
Eisenhardt, K. M. (1989). Building theories from case study research. The Academy of Management Review, 14(4), 532-550.
Elliott, J. (2005). Using narrative in social research: qualitative and quantitative approaches. London, UK: Sage.
Erlandson, D. A., Harris, E. L., Skipper, B. L., & Allen, S. D. (1993). Doing naturalistic inquiry: A guide to methods. Newbury Park, CA: Sage.
Farndale, E., & Paauwe, J. (2007). Uncovering competitive and institutional drivers of HR practices in multinational corporations. Human Resource Management Journal, 17(4), 355-375.
Flick, U. (2006). An introduction to qualitative research. London, UK: Sage.
Galaskiewicz, J. & Wasserman, S. (1989). Mimetic processes within an interorganisational field: An empirical test. Administrative Science Quarterly, 34(3), 454-479.
Flyvbjerg, B. (2006). Five misunderstandings about case-study research. Qualitative inquiry, 12(2), 219-245.
Glaser, B. G. (1978). Theoretical sensitivity: Advances in the methodology of grounded theory. Mill Valley, CA: Sociology Press.
Glaser, B. G., & Strauss, A. L. (1956). The discovery of grounded theory: Strategies for qualitative research. Chicago, IL: Aldine Publication.
Greenwood, R., Oliver, C., Sahlin, K., & Suddaby, R. (2008). Introduction. In R. Greenwood, C. Oliver, K. Sahlin, & R. Suddaby (Eds.). The Sage handbook of organizational institutionalism (pp. 1-46). London: Sage,
Greenwood, R., Suddaby, R., & Hinings, C. R. (2002). Theorizing change: The role of professional associations in the transformation of institutionalized fields. Academy of Management Journal, 45(1), 58-80.
Grenfell, M. (2008). Pierre Bourdieu: Key concepts. Stocksfield, UK: Acumen
Guest, D., Conway, N., & Dewe, P. (2004). Using sequential tree analysis to search for ‘bundles’ of HR practices. Human Resource Management Journal, 14(1), 79-96.
Hauff, S., Alewell, D., & Hansen, N. (2016). HR system strength and HR target achievement-towards a broader understanding of HR processes. Human Resource Management. DOI:10.1002/HR.21798.
Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38, 635-672.
Jovchelovitch, S., & Bauer, M. W. (2000). Narrative interviewing [online]. London, UK: LSE Research Online. Available at http://eprints.lse.ac.uk/2633.
Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: Translating strategy into action. Boston, MA: Harvard Business School Press.
Kepes, S., & Delery, J. E. (2006). Designing effective HR systems: The issue of HR strategy. In R. J. Burke & C. L. Cooper (Eds.). The human resource revolution: Why putting people first matters (pp. 55-76). Oxford, UK: Elsevier.
Knight, J. (2000). Suboptimality and social institutions: the relationship between cognition and context. In M. Streit, U. Mummert, & D. Kiwit (Eds.). Cognition, rationality, and institutions (pp. 11–26). Berlin, Germany: Springer.
Kostova, T., & Roth, K. (2002). Adoption of an organizational practice by subsidiaries of multinational corporations: Institutional and relational effects. Academy of Management Journal, 45(1), 215-233.
Kostova, T., Roth, K., & Dacin, T. (2008). Institutional theory in the study of multinational corporations: a critique and new directions. Academy of Management Review, 33(4), 994-1006.
Lepak, D. P. and Snell, S. A. (1999). The Human Resource Architecture: Toward a Theory of Human Capital Allocation and Development, Academy of Management Review, 24(1), 31-48.
Mabry, L. (2009). Case study in social research. In P. Alasuutari, L. Bickman, & J. Brannen (Eds.). The Sage handbook of social research methods (pp. 214-227). London: Sage.
MacDuffie, J. P. (1995). Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world of auto industry. Industrial & Labor Relations Review, 48(2), 197-221.
Manning C., & Roesad, K. (2007). The manpower law of 2003 and its implementing regulations: genesis, key articles and potential impacts. Bulletin of Indonesian Economic Studies, 43(1), 59-86.
Martin, J. L. (2003). What is field theory? The American Journal of Sociology, 109(1), 1-49.
Mizruchi, M., & Fein, L. C. (1999). The social construction of organizational knowledge: A study of the uses of coercive, mimetic, and normative isomorphism. Administrative Science Quarterly, 44(4), 653 - 83.
Monks, K., & McMackin, J. (2001). Designing and aligning an HR system. Human Resource Management Journal, 11(2), 57-89.
Myloni, B., Harzing, A. W. K., & Mirza, H. (2004). Host country specific factors and the transfer of human resource management practices in multinational companies. International Journal of Manpower, 25(6), 518-534.
Paauwe, J. (2004). HR and performance: Achieving long-term viability. Oxford, UK: Oxford University Press.
Powell, W. W., & Colyvas, J. A. (2008). Microfoundations of institutional theory. In R. Greenwood, C. Oliver, K. Sahlin, & R. Suddaby (Eds.). The Sage handbook of organizational institutionalism (pp. 276-298). London: Sage.
Pudelko, M., & Harzing, A. W. (2007). Country-of-origin, localization, or dominance effect? An empirical investigation of HR practices in foreign subsidiaries, Human Resource Management, 46(4), 535-559.
Pudelko, M., & Harzing, A. W. (2008). The Golden Triangle for MNCs: Standardization towards headquarters practices, standardization towards global best practices and localization, Organizational Dynamics, 37(4), 394-404.
Reay T., & Hinings, C. R. (2009). Managing the rivalry of competing institutional logics. Organization Studies, 30(06), 629-652.
Riessman, C. K. (2008). Narrative methods for the human sciences. Los Angeles, CA: Sage.
Rupidara, N. S. (2010). Connected actors, connected ideas. Paper presented at the 26th European Group of Organization Studies (EGOS) Colloquium, Lisbon, Portugal (July).
Rupidara, N. S., & Darby, R. (2017). Institutional influences on HRM in the Asian business environment: the case of Indonesia. Journal of Asia Business Studies, 11(3), 262-277.
Rupidara, N. S., & McGraw, P. (2008). HR practices and institutional isomorphism among multinational and local companies in Indonesia. Turku, Finland: HR Global 2008 Conference Proceedings.
Rupidara, N. S., & McGraw, P. (2010). Institutonal change, continuity and decoupling in the Indonesian industrial relations system. Journal of Industrial Relations, 52(5), 613-30.
Rupidara, N. S., & McGraw, P. (2011). The role of actors in configuring HR systems within multinational subsidiaries. Human Resource Management Review, 21(3), 174-185. Sanders, K., & Yang, H. (2016). The HRM Process Approach: The Influence of Employees’ Attribution to Explain the HRM-Performance Relationship. Human Resource Management, 55(2), 201-217.
Schuler, R. S., Dowling, P. J., & De Cieri, H. (1993). An Integrative Framework of Strategic International Human Resource Management. Journal of Management, 19, 419-459.
Schwandt, T. A. (1994). Constructivist, interpretivist approach to human inquiry. In N. K. Denzin & Y. S. Lincoln (Eds.). Handbook of qualitative research (pp. 118-137). Thousands Oaks, CA: Sage.
Scott, W. R. (2008). Institutions and organizations: Ideas and interests. Thousand Oaks, CA: Sage.
Simandjuntak, D. S. (1999). An inquiry into the nature, causes and consequences of the Indonesian crisis. Journal of the Asia Pacific Economy, 4(1), 171-192.
Smale, A. (2007). Mechanisms of global HR integration in multinational corporations. Acta Wasaensia No. 18, Unpublished doctoral thesis, University of Vaasa, Vaasa, Finland.
Smale, A. (2008). Global HR integration: a knowledge transfer perspective. Personnel Review, 37(2), 145-164.
Smith, J. A., Flowers, P., & Larkin, M. (2009). Interpretative phenomenological analysis: Theory, method and research. London: Sage.
Stake, R. E. (1994). Case studies. In N. K. Denzin & Y. S. Lincoln (Eds.). Handbook of qualitative research (pp. 236-247). Thousands Oaks, CA: Sage.
Stark, S., & Torrance, H. (2008). Case study. In B. Somekh & C. Lewin (Eds.). Research methods in the social sciences (pp. 33-40). London: Sage.
Strauss, A. L., & Corbin, J. (1990). Basics of Qualitative Research: Grounded Theory Procedures and Techniques. Thousand Oaks, CA: Sage.
Suddaby, R. (2006). From the editor: What grounded theory is not. Academy of Management Journal, 49(4), 633–642.
Sumelius, J., Björkman, I., Ehrnrooth, M., Mäkelä, K., & Smale, A. (2014). What determines employee perceptions of HR process features? The case of performance appraisal in MNC subsidiaries. Human Resource Management, 53(4), 569-592.
Takii, S., & Ramstetter, E. D. (2005). Multinational presence and labour productivity differentials in Indonesian manufacturing, 1975 – 2001. Bulletin of Indonesian Economic Studies, 41(2), 221-42.
Tambunan, T. T. H. (2007). Trade and investment liberalization in the development of small and medium-size enterprises: A perspective from Indonesia. Asia-Pacific Trade and Investment Review, 3(2), 135-146.
Tarmidi, L.T., n.d. Krisis moneter Indonesia: Sebab, Dampak, Peran IMF dan Saran. Retrieved 31 August 2011, from http://
www.bi.go.id/NR/rdonlyres/427EA160-F9C2-4EB0-9604-C55B96FC07C6/3015/bempvol1no4mar.pdf.
Tayeb, M. (1998). Transfer of HRM practices across cultures: an American company in Scotland. International Journal of Human Resource Management, 9(2), 332-358.
Taylor, S., Beechler, S., & Napier, N. (1996). Toward an integrative model of strategic human resource management. Academy of Management Review, 21(4), 959-985.
Thee, K. W. (1991). The surge of Asian NIC investment into Indonesia. Bulletin of Indonesian Economic Studies, 27(3), 55-88.
Timberg, T. (2000). Strategy of financing small and medium enterprises in a new economic environment. Paper presented at the Conference on The Indonesian Economic Recovery in Changing Environment. Jakarta: University of Indonesia. Retrieved 22
December 2010, from http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN015681.pdf.
Ulrich, D. 1997. HR champions: The next agenda for adding value and delivering results. Boston, MA: Harvard Business Press.
Viney, L. L. (1987). Interpreting the interpreters. Malabar, FL: Robert E. Krieger.
Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295-320.
Yahiaoui, D. (2014). Hybridization: striking a balance between adoption and adaptation of human resource management practices in French multinational corporations and their Tunisian subsidiaries. International Journal of Human Resource Management, 26(13), 1665-1693.
Yin, R. K. (1989). Case study research: Design and methods. Newbury Park, CA: Sage.
Zilber, T. B. (2002). Institutionalization as an interplay between actions, meanings and actors: The case of a rape crisis center in Israel. Academy of Management Journal, 45(1), 234-254.
Downloads
Submitted
Published
How to Cite
Issue
Section
License
Copyright (c) 2018 Aregu Asmare, Abel Worku
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Journal Author(s) Rights
For IRJBS to publish and disseminate research articles, we need publishing rights (transferred from the author(s) to the publisher). This is determined by a publishing agreement between the Author(s) and IRJBS. This agreement deals with the transfer or license of the copyright of publishing to IRJBS, while Authors still retain significant rights to use and share their own published articles. IRJBS supports the need for authors to share, disseminate and maximize the impact of their research and these rights, in any databases.
As a journal Author, you have rights to many uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in IRJBS journals have comprehensive rights to use their works for teaching and scholarly purposes without needing to seek permission, including:
- use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees;
- use for internal training by the author's company;
- distribution to colleagues for their research use;
- use in a subsequent compilation of the author's works;
- inclusion in a thesis or dissertation;
- reuse of portions or extracts from the article in other works (with full acknowledgment of the final article);
- preparation of derivative works (other than commercial purposes) (with full acknowledgment of the final article);
- voluntary posting on open websites operated by the author or the author’s institution for scholarly purposes,
(But it should follow the open access license of Creative Common CC-by-SA License).
Authors/Readers/Third Parties can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially. Still, they must give appropriate credit (the name of the creator and attribution parties (authors' detail information), a copyright notice, an open access license notice, a disclaimer notice, and a link to the material), provide a link to the license, and indicate if changes were made (Publisher indicates the modification of the material (if any) and retain an indication of previous modifications.
Authors/Readers/Third Parties can read, print and download, redistribute or republish the article (e.g. display in a repository), translate the article, download for text and data mining purposes, reuse portions or extracts from the article in other works, sell or re-use for commercial purposes, remix, transform, or build upon the material, they must distribute their contributions under the same license as the original Creative Commons Attribution-ShareAlike (CC BY-SA).
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
