Abstract
The purpose of this paper is to investigate what host country's advantages MNEs take into account when formulating their regional integration strategy in Asian subsidiaries. In addition, the different regional integration strategies lead to different emphasis in regional human resource (HR) strategies, HR competencies, and HR management effectiveness. The study provides a comprehensive framework which integrates institutionalism and resource-based theory to explain the considerations and HR issue on MNEs regional integration. With a total of 122 valid samples (MNEs' subsidiaries in Taiwan), our findings provide evidence that: firstly, the host country's advantages about labor quality and political stabilization are significantly associated with the MNE's decision of regional integration strategy. Secondly, subsidiaries which implement strategies with higher degree of regional integration emphasize more on the regional HR integration and local HR investment, HR competencies, and HRM effectiveness.
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