Essay on Avon Case Study

4496 Words Nov 28th, 2011 18 Pages
International Journal of Business and Management

May, 2009

A Review of Theories on Transnational Transfer of HR Practice within Multinationals
Tianyuan Yu Institute of Enterprise Management, School of Business, Sun Yat-Sen University International Finance College, Beijing Normal University, Zhuhai Campus Jin Feng Road, Tangjiawan, Zhuhai 519085, China Tel: 86-756-6126-600 E-mail:

Nengquan Wu Institute of Enterprise Management, School of Business, Sun Yat-Sen University 135Xin Gang Xi Road, Guangzhou 510275, China Tel: 86-20-8411-4155


This article discusses the process of transferring human resource (HR) policy and practice internationally within multinational
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As Kostova (1999, p.308) put it, “for purposes of synergy and efficiency, organizations often engage in cross-unit transfers of business practices that reflect their core competencies and superior knowledge and that they believe to be a source of competitive advantage”. HR policies and practices are often considered by top management to be one of those sources. Moreover, they may stem from both national and organizational contexts. Firstly, HR practices being transferred originate from national business system. Hall and Soskice (2001) believe that the existing social system of a nation generates national comparative advantage. Thus one can expect that MNCs tend to possess those ‘superior’ HR practices that are developed in support of their national comparative advantage and to transfer them to their subsidiaries worldwide. This can be regarded as a demonstration of the “country-of-origin” effects (Ferner, 1997; Edwards, 2004). Secondly, HR practices may stem from particular organizational contexts and convey organizational strategies. It is obvious that the competences of different MNCs of the same country-of-origin are not identical. They may develop core competences which are highly

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