CONTINUITIES IN HUMAN RESOURCE PROCESSES IN INTERNATIONALIZATION AND DOMESTIC BUSINESS MANAGEMENT

Abstract

Internationalization is often seen as posing distinctive human resource problems that are difficult to overcome. This paper takes an alternative approach by considering the processes by which firms, large and small, internationalize and the way they sustain overseas activity at different stages of their internationalization. It does so by reference to six challenges faced by firms in the course of internationalization. the result is to highlight continuities and regularities between international human resource management and the creation of an effective domestic organization, along with common underlying processes and skills centred on networking, teams and organizational learning. It is argued that this shifts attention from the specific tasks of the human resources function to more broadly defined human resource activities and processes which affect the growth of firms internationally. Secondly, it helps firms to think more positively about becoming international and to address relevant skills. Thirdly, it identifies appropriate activities, tasks and situations that business schools need to provide as part of an international management education. However, the paper also recognizes that internationalization involves specific differences between domestic and international business management. A number of these are rooted in country‐specific institutional factors which human resource management, the function, has to address. While processes may be common, knowledge is context‐bound.

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