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Factors Influencing Human Resource Management Practices in Chinese Multinational Companies Operating in Australia: an Exploration

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Factors Influencing Human Resource Management Practices in Chinese Multinational Companies Operating in Australia: an Exploration Factors Influencing Human Resource Management Practices in Chinese Multinational Companies Operating in Australia: An Exploration by LING QI BBus, MHRM submitted in fulfilment of the requirements for the degree of Doctor of Philosophy Deakin University May 2017 ACKNOWLEDGEMENTS I owe my deepest gratitude and respect to my principal supervisor, Dr Connie Zheng, who has been profusely helpful and always offered unending patience, invaluable guidance and abundant support throughout my study journey. I thank her not only for teaching me the value of research, but also for passing on to me the precious wisdom for getting along with life, despite difficulties and challenges. I could not have imagined having another supervisor better than her. I am also very grateful to my associate supervisor, Professor Amanda Pyman, for her constructive advice and detailed comments on every chapter of my thesis. I have also taken from Professor Pyman an invaluable life lesson: ‘BE POSITIVE ALWAYS’. My sincere thanks also goes to Associate Professor Ambika Zutshi, Dr Bruce Hearn Mackinnon, and Dr Alfred Presbitero for providing me with insightful guidance and comments on my thesis in the last stage of my thesis writing. I also acknowledge the professional editorial assistance of Dr Bradley Smith. Lastly, and most importantly, I would like to thank my beloved parents, my father, Jiawan Qi, and mother, Xiufang Kai, for raising me up; and my sister, Lei Qi for supporting me all the way of my PhD journey. Their love and care for my children with all they have are forever cherished. iv TABLE OF CONTENTS TITLE PAGE………………………………………………………………………i DEAKIN UNIVERSITY ACCESS TO THESIS – A…………………………....ii DEAKIN UNIVERSITY CANDIDATE DECLARATION ................................ iii ACKNOWLEDGEMENTS ................................................................................... iv LIST OF TABLES ................................................................................................ viii LIST OF FIGURES ................................................................................................ ix LIST OF ABBREVIATIONS .................................................................................. x ABSTRACT ………………………………………………………………… ...xi CHAPTER 1 INTRODUCTION ........................................................................ 1 1.0 Research background ......................................................................................... 1 1.1 Statement of the research problem ................................................................... 3 1.2 Research questions ............................................................................................. 6 1.3 Research methodology ....................................................................................... 7 1.4 Expected outcomes of the study ........................................................................ 9 1.5 Outline of the thesis .......................................................................................... 10 CHAPTER 2 LITERATURE REVIEW .......................................................... 13 2.0 Introduction ...................................................................................................... 13 2.1 Evolution of human resource management (HRM) ...................................... 14 2.1.1 Strategic human resource management (SHRM) .............................. 15 2.1.2 International human resource management (IHRM)......................... 17 2.1.3 Culture and IHRM ............................................................................. 19 2.1.4 SIHRM and success of MNCs .......................................................... 22 2.2 Theories and SIHRM Models .......................................................................... 24 2.2.1 Resource-based view ......................................................................... 25 2.2.2 Institutional theory ............................................................................ 27 2.2.3 Cross-cultural perspective ................................................................. 30 2.2.4 Evaluation of relevant SIHRM models ............................................. 32 2.3 Home and host country effects on HRM practices ........................................ 43 2.3.1 Country of origin (COO) effect ......................................................... 43 2.3.2 Effects of COO on HRM Practices ................................................... 46 2.3.3 Effects of host country on HRM practices ........................................ 49 2.3.4 Further theoretical explanation of home and host country effects .... 51 2.4 Comparing factors influencing HRM practices of established MNCs and emerging Chinese MNCs ................................................................................. 56 2.4.1 Factors influencing HRM practices of non-Chinese MNCs ............. 56 2.4.2 Factors influencing HRM practices of Chinese MNCs ..................... 67 2.5 Developing a conceptual framework .............................................................. 77 v 2.5.1 Identifying COO and host country effects influencing HRM practices in Chinese MNCs .............................................................. 77 2.5.2 Subsidiary’s specific factors .............................................................. 83 2.5.3 A conceptual framework ................................................................... 85 2.5.4 Research questions ............................................................................ 87 2.6 Chapter summary ............................................................................................. 90 CHAPTER 3 RESEARCH METHODLOGY ................................................. 91 3.0 Introduction ...................................................................................................... 91 3.1 Research paradigms ......................................................................................... 92 3.1.1 Defining common research paradigms .............................................. 92 3.1.2 Positivist and post-positivist paradigms ............................................ 94 3.1.3 Transformative paradigm .................................................................. 95 3.1.4 Pragmatic paradigm ........................................................................... 96 3.1.5 Interpretivist (constructivist) paradigm ............................................. 97 3.2 Interpretivism and research design ................................................................ 99 3.2.1 Phenomenology approach ................................................................. 99 3.2.2 Grounded theory approach .............................................................. 100 3.2.3 Ethnographic approach .................................................................... 101 3.2.4 Case study approach ........................................................................ 101 3.3 Case companies and sample selections ......................................................... 104 3.3.1 Unit of analysis ................................................................................ 104 3.3.2 Sample selection .............................................................................. 109 3.4 Semi-structured, in-depth interviews ........................................................... 110 3.4.1 Development of semi-structured interview questions ................ 115 3.4.2 Human research ethics procedures .................................................. 116 3.5 Data analysis techniques ................................................................................ 117 3.5.1 Computer-assisted qualitative data analysis .................................... 117 3.6 Reliability and validity of the study .............................................................. 120 3.7 Chapter summary ........................................................................................... 122 CHAPTER 4 DATA ANALYSIS .................................................................. 123 4.0 Introduction .................................................................................................... 123 4.1 Overview of pre-set nodes and open nodes .................................................. 123 4.2 Home country effect ....................................................................................... 127 4.2.1 Home country government regulations and policies ....................... 127 4.2.2 Home country culture ...................................................................... 132 4.2.3 Labour market conditions ................................................................ 137 4.2.4 Summary of country of origin effect on HRM practices ................ 138 4.3 Host country effect ......................................................................................... 138 4.3.1 Host country government regulations and policies ......................... 139 4.3.2 Host country culture ........................................................................ 146 4.3.3 Labour market conditions ................................................................ 150 4.4 Subsidiary specific factors ............................................................................. 151 4.4.1 History of subsidiary (length of time operating overseas) .............. 152 4.4.2 Flow of resources ............................................................................ 154 vi 4.4.3 Ownership ......................................................................................
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