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Factors Affecting the Adoption of High Performance Work Systems in Foreign Subsidiaries: an Empirical Investigation in Hong Kong

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Factors Affecting the Adoption of High Performance Work Systems in Foreign Subsidiaries: an Empirical Investigation in Hong Kong
Factors Affecting the Adoption of High Performance Work Systems in Foreign Subsidiaries: An empirical investigation in Hong Kong

FACTORS AFFECTING THE ADOPTION OF HIGH PERFORMANCE WORK SYSTEMS IN FOREIGN SUBSIDIARIES: AN EMPIRICAL INVESTIGATION IN HONG KONG
Ngo, Hang-Yue The Chinese University of Hong Kong Sharon Foley Tsinghua University, China

ABSTRACT High performance work systems (HPWS) have been increasingly used in multinational corporations (MNCs). Drawing upon institutional theory and alignment theory, we examine the determinants of the adoption of HPWS in foreign subsidiaries of MNCs. Our data were collected via a survey of HR directors/managers of MNCs operating in Hong Kong. The results of regression analysis show that the use of HPWS in foreign subsidiaries is related to headquarters’ control, strategic HRM orientation, and adaptability of HRM, but not related to mimetic HRM orientation. We further find that strategic HRM orientation and adaptability of HRM has a significant interaction effect on the adoption of HPWS.

INTRODUCTION Over the past two decades, high performance work systems (HPWS) have attracted a substantial amount of attention from management and organisational researchers. HPWS refers to a set of coherent human resource (HR) practices that can enhance firm performance (Delaney & Huselid, 1996; Huselid, 1995; Wright, Garner, Moynihan & Allen, 2005; Youndt, Snell, Dean & Lepak, 1996). As a potential source of competitive advantage for firms (Becker & Huselid, 1998), HPWS has been widely employed by many
2011 IJES VOL 19 NO 2 Page 1

Ngo, Hang-Yue and Sharon Foley

organisations in Western countries (Godard & Delaney, 2000; Kaman, McCarthy, Gulbro & Tucker, 2001). In recent years, it has become a standard system in the area of human resource management (HRM), and has diffused beyond national boundaries (Bae, Chen, Wan, Lawler & Walumbwa, 2003; Bjorkman, Fey & Park,2007; Guthrie, Flood, Liu & MacCuitain, 2009; Lawler, Chen &
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