A Review of Theories on Transnational Transfer of HR Practice within Multinationals

Abstract

This article discusses the process of transferring human resource (HR) policy and practice internationally within multinational companies (MNCs), and the factors that influence the transfer process. The first section thoroughly surveys the literature on why MNCs transfer HR practices across borders and generalizes three lines of arguments. The second section looks at “what to transfer” with regard to particular HR issues, and points to a gap in the literature. The next section briefly reviews three main methods of transfer adopted by MNCs. Finally, the results of transfer are discussed both prescriptively and descriptively in light of Kostova’s (1999) multilevel model. The arguments presented in this article have two main implications which are summarized in the conclusion.