The strategic role of HR in MNC subsidiaries in China between 1999 and 2006

Abstract

Purpose The purpose of this paper is to examine the factors that have influenced the strategic role of the HR department in Western MNC subsidiaries in China between 1999 and 2006. Design/methodology/approach The study is based on two sets of quantitative questionnaire data collected in 142 subsidiaries in 1999 and 2006. Qualitative interview data from 2006 are also used to shed light on the findings of the quantitative analysis. Findings The results indicate that the role of the HR department was more strategic in 2006 than in 1999. Furthermore, subsidiary size and the size of the HR department were positively associated with the strategic role of the HR department. Originality/value The study contributes to the literature on HRM in MNCs by examining the role of the HR department, which has received surprisingly little attention in previous research, especially the role of the HR department, in foreign MNC subsidiaries. The study also responds to calls for more empirical research examining the development of HRM in China over time.

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