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Internationalization of small and medium sized enterprises SMEs has profound influence on the human resource management practices. But present theories are drawn from empirical study on large multinational companies MNCs.
This paper analyzes the relationship between the degree of internationalization, internationalization strategy, the scale of oversea foreign direct investment FDI and human resource management practices of small and medium sized enterprises based on a sample of small businesses.
The result of our study shows that internationalization strategy and the scale of FDI have significant influence on human resource management practices of small and medium sized business, but the degree of internationalization are not as influential as the former two factors.
InChina has surpassed the United States and became the biggest host country of foreign investment globally. Most MNCs among the top companies listed by Fortune have established their branch companies in China to extend their business into our domestic market. Relatively, Chinese scholars and researchers have carried out comprehensive study on the FDI of foreign companies.
But very little research has been done on the internationalization of SMEs and its influence on the human resource practices of SMEs. As far as the author concerned, there are mainly two reasons for this phenomenon: As for small firms, internationalization is not an opportunity, but a threat.
What s more, SMEs are often regarded as domestic market orientated Lindmark, ; on the other hand, in the field of HRM research, more emphasis is put on large firms even though their economic significance has declined in recent years Hendry, Welsh and White suggest that a traditional assumption amongst managers has been that small businesses should be managed along essentially the same principles as large firms but on a smaller scale.
This paper analyzes the relationship between the degrees of internationalization, internationalization strategy, FDI scale human resource management practices. Internationalization is a procedure involved in two sides of international economic transactions, which includes investing abroad, namely the outward internationalization, and attracting foreign investors, inward internationalization.
The internationalization is not a simple geographic concept. Present literature has extensive research on the internationalization process of SMEs, particularly through exporting, but how to term inward international activities has received relatively little attention and often indirect Loustarinen, Buckley and GhauriWelch and Loustarinen Inward international operations can be seen as the mirror image of outward operations, similarly covering a multiplicity of forms-such as imports of goods and services, finance and technology; through franchising, licensing, direct investments, alliance 2 agreements and the like Luostarinen and Welch, There are at least three prominent schools of scholarship have direct implications on the process of internationalization of SMEs.
Literatures on how to measure the degree of internationalization DOI mainly include: The researchers explore different indexes under specific situation. Within the literature, although there are some examples of thriving small business Ackroyd,most of the research seems to demonstrate that the SMEs can be in a considerably disadvantaged position, when compared with the larger firms.
By looking more specifically at HRM practices, for example, training has been given considerable attention Arthur and Hendry, ; Storey and Westhead, ; Abbot,with general conclusion that groups of employees in small companies are less likely to have access to structured training provision than their large counterparts.
Actually Storey and Westhead suggest that there appears to be a linear relationship between the size of a firm and the amount of formal structured training provision. The difficulties associated with training are commented on in most of the studies that address SMEs and their general performance, but not their internationalization factors and nor other HRM practices.Published by the International Committee of the Fourth International (ICFI) The kidnapping of Huawei executive Meng Wanzhou Foxconn workers stage protest in Zhengzhou, China.
It states that strategic human resource management is a complex process that is constantly evolving and the subject of ongoing discussion by academics and other commentators. International Journal of Human Resource Management.
Vol 25, No 8, April. pp the activities involved and the stages of the workforce planning process. Importance of Human Resource Management Stages of International Involvement: When an organization initiates international operations, then it has been passed through five stages which are as follows.
International Journal of Business and Social Science Vol. 4 No. 4; April The Impact of International Human Resource Management Practices on Short-term International Assignments: A Case of SMEs in Sri Lanka Padmini Jayasekara Department of Human Resource Management development stage of IHRM practices on short-term international.
Discuss IHRM’s role in the three stages of combination, in support of International mergers & acquisitions, and International joint ventures. Explain which of the stages presents the greatest challenge to IHRM, and why?
Atleast words. Categories Questions Post navigation. Stages of Internationalization There are 6 stages of internationalization was devised by Jeffrey S. Hornsby & Donald E. Kuratko in Export is at the first stage of internationalization.