Title the TRANSFER and DIFFUSION of HUMAN RESOURCE (HR) POLICIES and PRACTICES of EUROPEAN MULTINATIONAL COMPANIES (Mncs) to THEIR NIGERIAN SUBSIDIARIES
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Title THE TRANSFER AND DIFFUSION OF HUMAN RESOURCE (HR) POLICIES AND PRACTICES OF EUROPEAN MULTINATIONAL COMPANIES (MNCs) TO THEIR NIGERIAN SUBSIDIARIES Name: Dr. Janet Francis Akhile This is a digitised version of a dissertation submitted to the University of Bedfordshire. It is available to view only. This item is subject to copyright. THE TRANSFER AND DIFFUSION OF HUMAN RESOURCE (HR) POLICIES AND PRACTICES OF EUROPEAN MULTINATIONAL COMPANIES (MNCs) TO THEIR NIGERIAN SUBSIDIARIES J.F. AKHILE 2019 UNIVERSITY OF BEDFORDSHIRE i THE TRANSFER AND DIFFUSION OF HUMAN RESOURCE (HR) POLICIES AND PRACTICES OF EUROPEAN MULTINATIONAL COMPANIES (MNCs) TO THEIR NIGERIAN SUBSIDIARIES By J.F. AKHILE A thesis submitted to the University of Bedfordshire in partial fulfilment of the requirements for the degree of Doctor of Philosophy October 2019 ii THE TRANSFER AND DIFFUSION OF HUMAN RESOURCE (HR) POLICIES AND PRACTICES OF EUROPEAN MULTINATIONAL COMPANIES (MNCs) TO THEIR NIGERIAN SUBSIDIARIES J. F AKHILE 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 iii findings of this work thus make a valuable contribution to SIHRM literature and institutional theory literature with a focus on HRM in MNCs operations. iv DECLARATION I declare that this thesis is my own unaided work. It is being submitted for the degree of (PhD) at the University of Bedfordshire. It has not been submitted before for any degree or examination in any other University. Name of candidate: Janet Francis Akhile Signature: Date: October 2019 v Table of Contents CHAPTER ONE: INTRODUCTION ............................................................................ 1 1.1 The study context: human resource management practices in Nigeria ........ 5 1.2. Nigeria oil and gas industry and the importance of HRM practices ............ 7 1.2.1 Evidence from two European MNCs subsidiaries ................................................ 9 1.3 Research avenue and identification of research gaps .................................. 11 1.4 Research contribution and originality ............................................................ 13 1.5 Research methodology .................................................................................... 14 1.6 Literature search .............................................................................................. 16 1.7 The structure of the thesis .............................................................................. 17 CHAPTER TWO: LITERATURE REVIEW ............................................................... 19 2.1 Introduction ...................................................................................................... 19 2.2 Defining the HRM practices ............................................................................. 20 2.2.1 HRM practices diffusion within MNCs ................................................................. 21 2.3 The strategic approach to IHRM in MNCs ...................................................... 25 2.3.1 Adaptive, exportive, and integrative HRM practices .......................................... 30 2.4 Institutional theory viewpoint .......................................................................... 33 2.4.1 The old and new institutionalism ......................................................................... 35 2.4. 2 Defining the pillars of institutions ....................................................................... 36 2.4.3 New institutionalism: interpretation of organisational field isomorphism and legitimacy ........................................................................................................................ 38 2.4.4 The standard of employment regulations and trade union ................................ 39 2.4.5 The degree of normative pressure ....................................................................... 41 2.4. 7 Degree of environmental uncertainty .................................................................. 42 vi 2.4.8 Actors’ degrees of agency and strategic responses .......................................... 43 2.5 Criticism in the application of new institutional theory ................................ 48 2.6 A combined approach to the transfer of HRM practices .............................. 50 2.6 .1 Mechanisms of global integration of HR practices ............................................ 57 2.7 Summary and research questions .................................................................. 60 CHAPTER THREE- RESEARCH METHODOLOGY ............................................... 62 3.1 Research philosophy ....................................................................................... 62 3.2 Research paradigm .......................................................................................... 63 3.2.1 Justification for the interpretivist research paradigm ........................................ 65 3.3.1 Case Study ............................................................................................................. 68 3.3.2 Determining and defining research questions .................................................... 69 3.3.3 Case study research design ................................................................................. 70 3.3.4 Data gathering ........................................................................................................ 70 3.3.5 Case study description.......................................................................................... 71 3.3.6 Data analysis and interpretation ........................................................................... 71 3.3.7 The rationale for the case study strategy ............................................................ 72 3.4 Establishing rigour in qualitative case study research ................................ 75 3.4.1 Credibility ............................................................................................................... 76 3.4.2 Transferability ........................................................................................................ 77 3.4.3 Dependability ......................................................................................................... 78 3.4.4 Confirmability ......................................................................................................... 79 3.4 Data collection .................................................................................................. 79 3.5.1 The purpose of semi-structured interviews ........................................................ 80 3.5.2 Documents ............................................................................................................. 84 3.5.3 Observation of company context ......................................................................... 85 3.6 Data analysis; thematic analysis .................................................................... 86 3.6.1 Doing the analysis ................................................................................................. 88 vii 3.6.3 Phase two; Generation of initial codes ................................................................ 89 3.6.4 Phase three; searching for themes ...................................................................... 90 3.6.5 Phase four; reviewing themes .............................................................................