The transfer and diffusion of human resource (HR) policies and practices of European multinational companies (MNCS) to their Nigerian subsidiaries

Abstract

Human resource (HR) practices diffusion within multinational companies (MNCs) is an imperative area of research for strategic international human resource management (SIHRM). The existing literature noted that there are critical factors that affect the transfer and diffusion process of human resource practices. This research seeks to address certain shortcomings in existing SIHRM literature, in particular the lack of work on human resource policies and practices adopted by multinationals operating in developing sub-Saharan African (SSA) countries. This research extends the focus of SIHRM literature beyond MNCs parent companies into the subsidiary’s context in developing SSA country. This work builds from broader analytical frameworks to examine and interpret the dynamic underlying process of human resource practices diffused. More precisely, drawing upon SIHRM literature and institutional theory to provide a comprehensive understanding of the transfer and diffusion of human resource practices. The empirical data was collected from international human resource managers (IHR), local management staff in the Nigerian subsidiaries including human resource managers, senior managers and line managers. The research involved forty-two semi-structured interviews, supplemented by company documents, from two European companies operating in the Nigerian oil and gas sector. This work used thematic analysis to evaluate and interpret the data. Analysis of the interviewers account showed that both company and country factors shape the adoption and diffusion of human resource practices in the Nigerian subsidiaries. The findings indicate that the strategic importance of each human resource practice is a driving force behind the transfer process. The two European MNCs utilised exportive and integrative SIHRM orientation to disperse a wide range of HR practices from the parent companies. Furthermore, the findings indicate that employment regulations and trade union effects alone do not influence MNCs’ choice of practices diffused in the Nigerian subsidiaries. Socio-cultural factors such as values and beliefs affect the workforce's personal actions and perceptions, and these are key factors to consider when transferring HR practices. The findings of this work thus make a valuable contribution to SIHRM literature and institutional theory literature with a focus on HRM in MNCs operations.