This paper examines the diffusion of a specific form of ‘dominant’ employment relations–Japanese HRM ‘best practice’–adopted in an emerging economy by Japanese multinational corporations (JMNCs) with strong corporate and state-backed power. A multi-site case study of ten Japanese-Indonesian automotive joint ventures in Indonesia reveals that alongside apparently consensual micro-level relations between home- and host-country managements, there are important political power games at the meso level: games aimed at defining ‘best practice’. In these games, host-country actors are more powerful than deterministic models might predict. They seek to defend Indonesian HRM practices, while Japanese actors develop strategies to bypass host-country workplace regulations. This study contributes to international HRM by expanding understanding of Japanisation in emerging economies and revealing the hidden importance of the meso level in managing institutional diversity and defining power relations between actors, especially as a source of ideological power.
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