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Adaptation of Compensation Practice in China: The Role of Sub-National Institutions

Published online by Cambridge University Press:  31 May 2019

Wei Lu ,
Ayse Saka-Helmhout  and
Rebecca Piekkari
Wei Lu*
Affiliation:
Aalto University, School of Business, Finland
Ayse Saka-Helmhout
Affiliation:
Radboud University, The Netherlands
Rebecca Piekkari
Affiliation:
Aalto University, School of Business, Finland
*
Corresponding author: Wei Lu ([email protected])
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Abstract

Unlike previous research that has largely focused on the influence of national institutions on human resource management practices in China, our study taps into the role of sub-national institutions. We demonstrate, via a qualitative configurational analysis, that foreign subsidiaries of multinational corporations still adapt HQ compensation practice to the local context despite low regulatory pressure and low mobility of skills at the sub-national level. This adaptation is facilitated by a decentralized structure in the multinational corporation. Our study also shows that high regulatory pressure and high portability of skills at the sub-national level alone are sufficient to induce local adaptation of compensation practice. Our explanation points to the significant role played by sub-national institutions in large and rapidly changing emerging economies and contributes to research on local adaptation of HRM practice in China. It offers an insight into forms of institutional agency by political and economic actors at local levels of governance as they attempt to influence the skills and human resources available for MNCs through regulatory means.

摘要

以往对中国人力资源管理实践的研究侧重于国家制度的影响，我们的研究则探讨中国地方制度的作用。我们通过定性的构型分析表明，即使在宽松的地方法规和技能流动性低的环境下，跨国公司的外国子公司仍然调整薪酬政策以适应当地的情况。跨国公司的分权结构促进了这种适应性。我们的研究还表明，在严格的地方法规和技能流动性高并存的情况下，跨国公司的外国子公司也会调整薪酬政策以适应当地情况。我们的解释指出了地方制度在大型且快速变化的新兴经济体中所发挥的重要作用，并有助于研究跨国公司人力资源管理实践在中国的适应性。本文揭示了地方层面政治和经济行动主体所形成的体制机构以地方法规为手段，影响跨国公司对技能和人力资源的获取。

Аннотация

В отличие от предыдущих исследований, где основное внимание уделялось влиянию национальных учреждений на методы управления персоналом в Китае, наша работа посвящена роли субнациональных учреждений. На основе качественного структурного анализа, мы демонстрируем, что иностранные дочерние компании многонациональных корпораций по-прежнему адаптируют корпоративную практику компенсации к местным условиям, несмотря на незначительное давление со стороны регулирующих органов и низкую мобильность трудовых ресурсов на субнациональном уровне. Этой адаптации способствует децентрализованная структура в многонациональной корпорации. Наше исследование также показывает, что сильное давление со стороны регулирующих органов и высокая мобильность трудовых ресурсов на субнациональном уровне являются достаточными условиями для стимулирования местной адаптации методов компенсации. Наши выводы указывают на значительную роль, которую играют субнациональные учреждения в крупных странах с быстро развивающейся экономикой, а также вносят вклад в исследования по местной адаптации методов управления человеческими ресурсами в Китае. Данная работа дает представление о формах институциональной деятельности политических и экономических субъектов на уровне местного управления, поскольку эти субъекты регулируют трудовые профессиональные ресурсы, доступные для многонациональных корпораций, посредством нормативно-правовых механизмов.

Resumen

A diferencia de investigaciones previas que han estado enfocadas en gran medida en la influencia de las instituciones nacionales en las prácticas de gestión de recursos humanos en China, nuestro estudio intenta sacarle provecho al papel de las instituciones subnacionales. Demostramos, a través de un análisis de configuración cualitativo, que las filiales extranjeras de las empresas multinacionales aún adaptan las prácticas de compensación de la casa matriz al contexto local pese a la baja presión regulatoria y la baja movilidad de habilidades a nivel subnacional. Esta adaptación está facilitada por una estructura descentralizada en la corporación multinacional. Nuestro estudio también muestra que una alta presión regulatoria y una alta portabilidad de habilidades a nivel subnacional solamente son suficientes para inducir una adaptación local de la práctica de compensación. Nuestra explicación apunta al importante papel jugado por las instituciones subnacionales en las economías emergentes rápidamente cambiantes y contribuye a la investigación sobre la adaptación local de las prácticas de gestión de recursos humanos en China. Ofrece una idea sobre las formas de agencia institucional por parte de actores políticos y económicos en los niveles locales de gobierno ya que estos intentna influir las habilidades y recursos humanos disponibles para empresas multinacionales a través de medidas regulatorias.

Keywords

adaptation of compensation practiceChinaMNC decentralizationQualitative Comparative Analysis (QCA)sub-national institutions地方制度中国薪酬实践的适应性定性比较分析（QCA）跨国公司分权адаптация методов компенсацииКитайдецентрализация многонациональных корпорацийкачественный сравнительный анализсубнациональные учрежденияadaptación de la práctica de compensaciónChinadescentralización de empresas multinacionalesanálisis cualitativo comparadoinstituciones subnacionales
Type
Special Issue Articles
Information
Management and Organization Review , Volume 15 , Special Issue 2: Doing Qualitative Research in Emerging Markets , June 2019 , pp. 235 - 267
Copyright
Copyright © The International Association for Chinese Management Research 2019 

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Footnotes

Accepted by: Guest Editor Emmanuella Plakoyiannaki

References

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