Abstract
The purpose of this article is to examine the drivers of global standardization and localization of International Human Resource Management (IHRM) practices internalized by Pakistan’s automotive industry leading to sustainable economic growth. The authors have studied the IHRM determinants influencing the automotive manufacturers, and have assessed its impact on sustainable economic growth. Analysis is developed on the antecedent IHRM theories and literature in the backdrop of Pakistan’s automotive industry. The study highlights the paramount aims of host-country IHRM practices viz global standardization and localization, its impact on host-country organization’s performance and resultant effect on sustainable economic growth. The article has focused, in subtle manner, on improving the explicit understanding on IHRM practices viz global standardization and localization drivers to achieve both growth for the industry and sustainable economic development of the country. The study is based on already generated literature thereby limiting the generalizability thereof, and provides a review of IHRM practices and outcomes in automobile sector in the growth context. The results have presented guidelines to researchers and practitioners doing research in human side in automotive industry providing impetus for growth, both at industry and country level.
Highlights
In line with the World Investment Report issued by United Nations in 2006, there are currently 77,000 transnational corporations having 770,000 foreign affiliations, gainfully employing 62 million workforces globally
The purpose of this article remains squarely focused on examining the International Human Resource Management (IHRM) drivers of globalization and localization in host-country, keeping Pakistan’s automotive sector as a central case, and determining its effect on automotive industry players; its cascaded impact on manufacturing sector’s growth and Pakistan’s economic development, in macro perspective
Khilji (2002) study established the fact that polycentric orientation seems ostensible in multinational corporations having operations in the country and automotive industry is no exception
Summary
In line with the World Investment Report issued by United Nations in 2006, there are currently 77,000 transnational corporations having 770,000 foreign affiliations, gainfully employing 62 million workforces globally. This is one of the critical facets that underpin the frontiers of globalization and its businesses spheres. The article presents an overview in comprehensive terms, in the form of survey and synthesis, encompassing the full spectrum of literature on international HRM, its critical determinants (i.e. globalization and localization in host-country context), its implications for automotive industry, and sustainable economic growth of the host country, an enormous activity that has consumed considerable effort, enough to generate several review papers. The key objective of this study is to deliberate and discuss the components of IHRM practices in host-country in the context of both automotive sector, and economic growth of Pakistan
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