Title: External factors influence on HRM localisation in the developing country: a conceptual analysis of Chinese MNCs in Bangladesh

Authors: Mehedi Hasan Khan; Jiafei Jin

Addresses: School of Management, Harbin Institute of Technology, 92, Xidazhi Street, Nangang, Harbin, Heilongjiang, 150001, China ' School of Management, Harbin Institute of Technology, 92, Xidazhi Street, Nangang, Harbin, Heilongjiang, 150001, China

Abstract: International human resource management studies pointed out that emerging economy multinational companies tend to focus on HRM localisation in foreign subsidiaries for better operational output. MNCs' HRM localisation intention and implementation varies due to several reasons where radical differences exist between traditional MNCs and emerging economy MNCs, particularly in internationalisation strategy. An MNC's localisation strategy in a developed country is different from a developing country. Within an institutional theory framework, with a specific focus on HRM localisation of Chinese MNCs, we conceptually analysed the external factors associated with HRM localisation and how the external factors influence the intention implementation gap of HRM localisation of Chinese subsidiaries in Bangladesh. The paper concludes with a managerial implication and schema for future research.

Keywords: institutional theory; HRM localisation gap; external factors; Chinese MNC; Bangladesh.

DOI: 10.1504/IJBPM.2025.144684

International Journal of Business Performance Management, 2025 Vol.26 No.2, pp.152 - 172

Received: 02 Aug 2022
Accepted: 09 May 2023
Published online: 27 Feb 2025 *

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