From an ethnocentric to a geocentric approach to IHRM

Abstract

PurposeThe purpose of this paper is to study the case of one French multinational company which has undergone a process of radical restructuring and “internationalization” because of acquisitions of Anglo‐Saxon multinational companies. It examines how the organizational changes influenced the company's approach to the international human resource management (IHRM).Design/methodology/approachThe methodology of this research is the single case study. Sources of evidences are direct participation and observation, interviews with top managers, and documentation.FindingsThe results show that the ethnocentric model, when French managers were placed on the top of the foreign subsidiaries, becomes non‐efficient in the company which doubled its size and the geographical spread of its activities. It is argued that the forces of globalization constrained this multinational company to change from an ethnocentric approach to a geocentric approach to its IHRM.Originality/valueThe case demonstrates that national and organizational cultures are important contextual factors which influence the company's approach to its IHRM. The paper outlines the interconnectedness of globalization and the geocentric approach to the IHRM.