The role of actors in configuring HR systems within multinational subsidiaries

This paper theorizes the role of actors in configuring human resource management systems within subsidiaries of multinational companies, a process typically involving the management of complexity and contradictory pressures stemming from a variety of sources. Subsidiary HR managers play a key role in this process as they make ongoing adjustments in response to these pressures. Three theoretical stances are drawn upon: rational choice, particularly as represented in the resource based view, institutional and the micropolitics of actors. We argue that a blended perspective best enables a full conceptualization of the dynamic interactions of actors and their context. We suggest the need to recast the definition of institutional field with regard to MNC subsidiaries, particularly in recognizing wider cognitive influences.

Research Highlights► We theorize the process of configuring human resource systems within multinational subsidiaries. ► We develop our arguments based on the examination of three existing theoretical frameworks: rational choice, institutional, micropolitics of actors. ► We propose a blended perspective that simultaneously takes institutional effects and actor agency into account. ► We offer a model of the process as a framework for future research.