Globalization and convergence–divergence of HRM across nations: New measures, explanatory theory, and non-standard predictions from bringing in economics

Abstract

This paper advances theory development in international and comparative HRM regarding convergence–divergence trends in HRM systems and practices across nations. Shortcomings in existing theory, such as universal versus contextual paradigms, are identified and critiqued, as are ambiguities in existing definitions and measures of HRM convergence and divergence. The paper then presents new ways of defining and measuring HRM convergence–divergence and a new theory perspective for explaining and predicting these trends. The new theory perspective involves incorporating economic principles of international trade and economic geography to explain the effect of global competition on the cross-national pattern of industry, firm, and production location and consequent patterns in HRM practice. On balance, economic theory predicts globalization likely leads to HRM divergence over time.