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Management
STANDARDIZATION AND LOCALIZATION
IN THE HUMAN RESOURCE MANAGEMENT
OF SINO- FOREIGN JOINT VENTURES:
AN INDUCTIVE MODEL AND RESEARCH AGENDA

Shaohui Chen, PhD Candidate

&

Marie Wilson, Associate Professor

Department of Management and Employment Relations
The University of Auckland
Private Bag 92019
Commerce C Building, 18 Symonds Street, Auckland, New Zealand
64 9-3737599ext.7667 or 4808(Tel.)
64 9-3737477(Fax)
s.chen@auckland.ac.nz(e-mail)
m.wilson@auckland.ac.nz(e-mail)

Identification Number: 68

2

STANDARDIZATION AND LOCALIZATION
IN THE HUMAN RESOURCE MANAGEMENT
OF SINO- FOREIGN JOINT VENTURES:
AN INDUCTIVE MODEL AND RESEARCH AGENDA

Department of Management and Employment Relations
The University of Auckland
Private Bag 92019
Commerce C Building, 18 Symonds Street, Auckland, New Zealand

Identification Number: 68

STANDARDIZATION AND LOCALIZATION
IN THE HUMAN RESOURCE MANAGEMENT
OF SINO- FOREIGN JOINT VENTURES:
AN INDUCTIVE MODEL AND RESEARCH AGENDA
Summary
The tension between Standardization orientation of multinational companies and the necessity of localized adaptation has been identified as an enduring theme in the internationalization of human resource management. This tension has been highlighted in the Chinese context by academic researchers and practitioners (Chiang, 2000; Ding, Fields, & Akhtar, 1997; Goodall & Warner, 1997; Kraar, 1999; Lu &
Bjorkman, 1997; Upton & Seet, 1997; Wang & Satow, 1994). This paper assesses the perspectives of standardization and localization by reviewing key theoretical frameworks and empirical studies of effective international human resource management (IHRM). The key assumptions in IHRM standardization and localization are explored through the mechanism of 'difference drivers ' related to relative advantage in competency, consistency, power and experience, which contribute to the hybridisation of HRM practices in Sino-foreign joint ventures(JVs).
The model



References: As-Saber, S. N., Dowling, P. J., & Liesch, P. W. (1998). The role of human resource management in international joint ventures: a study of Australian- Indian joint ventures Bae, J., Chen, S.-j., & Lawler, J. J. (1998). Variations in human resource management in Asian countries: MNC home-country and Host-country effects Berger, P.L. & Luckmann (1966) The social construction of reality: A treatise in the sociology of knowledge. Caudron, S. (1995, ). Lessons from HR overseas. Personnel Journal, February, 88-93. Chiang, L. (2000). Doing business in China: stay ahead of your competitors. In J. T. Li, A. S. Tsui, & E. China Ministry of Foreign Trade & Economic Cooperation (23/03/2000). Statistics data : utilization of foreign captial (Statistics data), [internet website] Chinesenewsnet. (1999). Former-general manager of MicroSoft(China) resigned and joined TCL (Chinese), [internet] Daft, R. L. & Weick. (1984) Toward a model of organisations as interpretation systems. Academy of Management Review, 9, 284-295. Ding, D., Fields, D., & Akhtar, S. (1997). An empirical study of human resource management policies and practices in foreign-invested enterprises in China: the case of Shenzen Special Economic Zone Douglas, M. (1986) How institutions think . Syracuse, NY: Syracuse University Press. Dowling, P. J., Schuler, R. S., & Welch, D. E. (1993). International dimensions of human resource management Dutton, J.E. & Duncan, R.B. (1987) The influence of the strategic planning process on strategic change. Fang, T. (1999). Chinese business negotiating style. Thousand Oaks, London, New Delhi: SAGE Publications. Fiol, C.M. & Huff, A.S. (1992) Maps for managers: Where are we? Where do we go from here ? Journal of Management Studies, 29, 267-285. Freyd, J. (1983) Shareability: The social psychology of epistemology. Cognitive Science, 7, 191-210. Han 's Chinese Cultural Development Co.(1996, ). Four developing tendencies in foreign investment policy. Harvey, F. 1997. National culture differences in theory and practice. Evaluating Hofstede 's national cultural framework Jain, H. C., Lawler, J. J., & Morishima, M. (1998). Multinational corporations, human resource management and host-country nationals Kissinger, D. H. (1999, Monday, 18 October). The nightmares of foreign relations. NZ Herald, pp. A13 Dialogue. Kraar, L. (1999). China 's car guy--Hu Mao Yuan has skillfully blended GM 's best practices into a creaky state auto industry Lu, Y., & Bjorkman, I. (1997). HRM practices in China-Western Joint ventures: MNC standardization versus localization Martin, G., & Beaumont, P. (1999). Co-ordination and control of human resource management in multinational firms: the case of CASHCO Milliman, J., Glinow, M. A. V., & Nathan, M. (1991). Organizational life cycles and strategic international human resource management in multinational companies: implications for congruence theory. Nam, S. H. (1995). Culture, control and commitment in international joint ventures. The International Journal of Human Resource Managementt, 6 (3), 551-567. Napier, N. K., & Vu, V. T. (1998). International human resource management in developing and transitional economy countries: A breed apart? Human Resource Management Review, 8 (1), 40-77. Ngo, H.-Y., Turban, D., Lau, C.-m., & Siu-yun. (1998). Human resource practices and firm performance of multinational corporations: influences of country origin Porac, J. & Thomas, H. (1990) Taxonomic mental models in competitor definition. Academy of Management Review, 15, 224-240. Resnick, L., Levine, J., & Teasley, S. (Eds.). (1991). Perspectives on socially shared cognition. Washington DC: American Psychological Association. Rowley, C. (1998a). Conclusion: Reassessing HRM 's convergence. In C. Rowley (Ed.), Human resource management in the Asia Pacific region: Convergence questioned (pp Rowley, C. (1998b). Introduction: comparisons and perspectives on HRM in the Asia Pacific. In C. Rowley (Ed.), Human resource management in the Asia Pacific region: Convergence questioned (pp Schuler, R. s., Dowling, P. J., & Cieri, H. D. (1993). An integrative framework of strategic international human resource management Simpson, B. and Wilson, M. (1999). Shared Cognition: Mapping commonality and individuality In John A Wagner III (Ed.) Advances in Qualitative Organization Research, vol Starbuck, W.H. & Milliken, F.J. (1988) Executives ' perceptual filters: What they notice and how they make sense Swaak, R. A. (1995, Sept-Oct). The role of human resources in China. Compensation & Benefit Review, 27, 39-46. Taylor, S., Beechler, S., & Napier, M. (1996). Toward an integrative model of strategic international human resource management Thomas, J.B., Clark, S.M. & Gioia, D.A. (1993) Strategic sensemaking and organisational performance: Linkages among scanning, interpretation, actions and outcomes Upton, D., & Seet, R. (1997). Welcome to the Pacific Dunlop Electronic case, [CD-ROM]. Harvard business school [1999, 4, October]. Verburg, R. (1996). Developing HRM in Foreign-Chinese joint ventures. European management journal, 14 (5), 518-525. Warner, M. (1997). Introduction: HRM in greater China. The International Journal of Human Resource Management, 8 (5), 565-567. Weick, K. (1995). S ensemaking in organizations. Thousand Oaks, CA: Sage Publications.

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