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Yu, Gyu-chang
Park, Woo-sung
Cho, Yung-ho
Year of Publication: 
[Journal:] Management Revue [ISSN:] 1861-9916 [Publisher:] Hampp [Place:] Mering [Volume:] 18 [Year:] 2007 [Issue:] 4 [Pages:] 392-409
Based upon the sample of 419 MNCs' subsidiaries in Korea, we examined the country of origin effect in the choice of MNCs' HRM strategy: transplantation, localization, and mixed. A multinominal logit regression analysis showed that there is an important country of origin effect in the choice between a localization strategy and a mixed strategy. North American MNCS tended to implement mixed strategy, while Japanese MNCs tended to adopt localization strategy. European MNCs were in the middle. The estimated log odds of choosing a localization strategy over a mixed strategy by Japanese subsidiaries were 1.79 times higher than European subsidiaries and 2.85 times higher than N. American subsidiaries; those by European subsidiaries were 1.59 times higher than N. American subsidiaries. However, the country of origin was not significantly related to the choice between a transplantation strategy and other strategies. We also examined two alternative factors influencing the HRM strategy of foreign subsidiaries: investment strategy and entry strategy. The implications of this and directions for future research are discussed.
country of origin
HRM strategy
South Korea
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