Variations and differences in the application of HR policies and practices by US hotel multinational firm’s subsidiaries across coordinated and transitional periphery economies: a case approach

Abstract

In this study, we explore how, and to what extent, home country effects on HR practice in hotel industry MNEs might diminish when host country institutional mediation is weak or uneven. This study centres on the case of luxury hotel chain subsidiaries of a US multinational firm operating across advanced coordinated and transitional periphery economies. It focuses on employee resourcing, training, reward and performance management practices, and draws on in-depth interviews, participant observation and document analysis thereby enabling triangulation of results. Through qualitative analysis, we conclude that the reduction in home country effects in subsidiaries operating in uncertain environments of transitional periphery economies reflects not only the extent to which prominent foreign players may be subject to closer regulatory scrutiny even when enforcement capabilities are weak but also the operation of extended clan-based networks of support.