Abstract:
out of their national borders into foreign countries and how they attempt to transfer human resource
management (HRM) policies and practices across their subsidiaries for a best-fit HRM model.
Design/methodology/approach – The paper uses the dilemma theory (involving two opposing values
which doing one without the other creates a disadvantage but both cannot be done together) as the main
analytical tool and reviews scholarly literature on MNCs’ HRM transfers for the assessment of the transfer
challenges.
Findings – It is found that MNCs face a dilemma as to how to find best-fit between home-country HRM
requirements and host-country demands. In the face of this dilemma, MNCs attempt to build synergy between
home-country requirements and host-country demands for a best-fit HRM that is beneficial to both the parent
company and their foreign subsidiaries. Despite the best-fit HRM practices to diffuse the tension, parent
company has greater influence in the final synergy product which is the trade-off between home-country HRM
label and host-country contextual demands, thereby advancing the dominant HRMoption of the dilemma.
Practical implications – MNCs should be aware of the possible challenges as they internationalise and
should equally be aware that though they may build a synergy (a blend of workable headquarters and
subsidiary HRM), the final product will continue to favour headquarters’ HRM policies and practices.
Originality/value – The paper generates theoretical implications into the issues and challenges that arise
with HRM transfers within multinational firms by examining how the dilemma theory sheds light on the
transfer process and challenges from the dominant-contextual tension till the fight for best-fit HRM. It also
contributes to the development of cycle of cross-border HRM dilemma, cross-border HRM transfer framework
and Synergy-Dominant theory.
