Predicting IHRM strategy and practice decisions: development of the IHRM orientation typology

Abstract

International human resource management (IHRM) is becoming increasingly fundamental to organisational success, as globalisation forces demand organisations to design and implement a global strategy. One of the most critical choices faced by IHRM practitioners is whether and when an organisation should adapt its human resource policies and practices to the local context (localisation). A typology of International Human Resource Management Orientations (IHRMO) that clarifies what IHRMO’s are and what they entail is developed from a review of the literature on localisation and globalisation, convergence and divergence and Perlmutter’s management typology. Additionally, two theoretical models are developed that predict which IHRM orientation identified in the typology should be adopted. The article takes a step towards elucidating effective IHRM strategy and practice decision‐making by showing that culture and institutional pressures, amongst other tings, do make a difference.