The transfer of HRM practices to Indian subsidiaries in a South Korean MNC in the auto industry
The transfer of HRM practices to Indian subsidiaries in a South Korean MNC in the auto industry
This chapter presents a case study, which examines a Korean parent company’s approach to employment practices in its Indian subsidiaries as well as their responses to the Korean parent. A multi-sited case study of a Korean auto multinational, conducted at its headquarters in South Korea and at its research and development (R&D), manufacturing, and sales subsidiaries in India, show that the Korean firm adopted “global best practices,” which were heavily influenced by American practices rather than Korean parent practices. However, the chapter also shows that local actors in the Indian subsidiaries modified key practices. The findings of this chapter call into question the dominant assumptions about the diffusion of multinational human resource management and highlight the role of Korean firms in the diffusion of “global best practices” to India, an important emerging market in Asia.
Keywords: multinational, Korea, India, Indian subsidiaries, employment practices, human resource management, global best practices
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