Societal institutions and HRM practices: An analysis of four European multinational subsidiaries in Bangladesh

Shamsud D. Chowdhury, Monowar H. Mahmood

Research output: Contribution to journalArticlepeer-review

33 Citations (Scopus)

Abstract

Using the 'societal-effect' approach, a variant of the institutional theory developed and tested in Europe, this study investigates the impact of societal institutions on human resource management (HRM) practices of European multinational subsidiaries in Bangladesh, which is now on the list of the Next-11 economies of the world. In-depth case studies of four European multinational subsidiaries revealed the presence of different degrees of influence - partly attributable to societal effect - on the human resource practices of these subsidiaries. Our study added a new dimension to the interface between the strong and weak institutions and how such interfacing accords both legitimacy and reverse legitimacy to MNC subsidiaries and their societal institutions respectively. Another interesting finding of the study is the emergence of political system as a societal institution and, hence, a determinant of HRM practices in these subsidiaries. The study's implications are given.

Original languageEnglish
Pages (from-to)1808-1831
Number of pages24
JournalInternational Journal of Human Resource Management
Volume23
Issue number9
DOIs
Publication statusPublished - May 2012

ASJC Scopus Subject Areas

  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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