Strategic global human resource management: A necessity when entering emerging markets

Abstract

This chapter examines major factors and processes that lead to the development of strategic global human resource management [SGHRM] capability in organizations doing business in emerging markets. The dynamism of this capability is hypothesized to increase as specific structural changes are initiated, such as an innovative practice of inpatriation. It is argued that the inpatriation provides the strategic coherence and flexibility necessary for effective organizational strategies in emerging markets. Through the examination of this innovation in strategic global human resource systems from a knowledge based-view theoretical perspective, the emergence of certain unique and valuable organizational outcomes (i.e. trust, commitment, social capital, and legitimacy) are explained. The potential problems and challenges of implementing an inpatriation program in global negotiations are also examined, with particular focus on gaining acceptance of inpatriate managers in the headquarters organization. In conclusion, specific directions for future research relative to the development of SGHRM capability based on inpatriation as core competency are outlined.