The effect of human resource management practices on Japanese MNC subsidiary performance: a partial mediating model

Abstract

The purpose of this study is to examine the relationship between a bundle or system of human resource (HR) practices and firm performance and the processes through which these HR practices affect organizational outcomes. Using a sample of fifty-two Japanese multinational corporation subsidiaries operating in the United States and Russia, we examine the impact of HR systems on firm performance mediated by employee skills, attitudes and motivation in an attempt to shed light on the so-called ‘black box’ through which HR practices lead to firm performance. The results support the notion that employee skills, attitudes and behaviours play a mediating role between HR systems and firm outcomes in multinational corporations. These findings illustrate the varying impact of synergistic systems of HR practices and their generalizability in different national contexts.