An MNE is this kind of industry when competition in one country is essentially independent

Embracing the convergence–divergence–crossvergence debate in the field of international human resource management (IHRM) and linking it to the context of emerging market multinational enterprises (EMNEs), our key contribution is to provide a precise and feasible architecture of convergence–divergence–crossvergence response that takes into account the global versus local dilemma, as well as the headquarters–subsidiary relationship. By incorporating the latest theoretical development and case observations of EMNEs, we identify localization as a strategic goal and autonomy as a control means that foster EMNEs' choosing their own paths in managing international human resources. Under the architecture, the two types of crossvergent IHRM strategies – deliberate and emergent – are further distinguished. Propositions are developed for future empirical testing.

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journal article

Overcoming the Liability of Foreignness

The Academy of Management Journal

Vol. 38, No. 2 (Apr., 1995)

, pp. 341-363 (23 pages)

Published By: Academy of Management

https://doi.org/10.2307/256683

https://www.jstor.org/stable/256683

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Abstract

This study addressed the question of whether firms in a competitive, globally integrated environment face a "liability of foreignness" and to what extent either importing home-country organizational capabilities or copying the practices of successful local firms can help them overcome this liability. Predictions were tested with a paired sample of 24 foreign exchange trading rooms of major Western and Japanese banks in New York and Tokyo. Results support the existence of a liability of foreignness and the role of a firm's administrative heritage in providing competitive advantage to its multinational subunits. They also highlight the difficulty firms face in copying organizational practices from other firms.

Journal Information

The Academy of Management Journal presents cutting edge research that provides readers with a forecast for new management thoughts and techniques. All articles published in the journal must make a strong empirical and/or theoretical contribution. All empirical methods including (but not limited to) qualitative, quantitative, or combination methods are represented. Articles published in the journal are clearly relevant to management theory and practice and identify both a compelling practical management issue and a strong theoretical framework for addressing it. For more than 40 years the journal has been recognized as indispensable reading for management scholars. The journal has been cited in such forums as The Wall Street Journal, The New York Times, The Economist and The Washington Post. The journal is published six times per year with a circulation of 15,000.

Publisher Information

The Academy of Management (the Academy; AOM) is a leading professional association for scholars dedicated to creating and disseminating knowledge about management and organizations. The Academy's central mission is to enhance the profession of management by advancing the scholarship of management and enriching the professional development of its members. The Academy is also committed to shaping the future of management research and education. Founded in 1936, the Academy of Management is the oldest and largest scholarly management association in the world. Today, the Academy is the professional home for more than 18290 members from 103 nations. Membership in the Academy is open to all individuals who find value in belonging.

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