Modes of convergence and divergence: an integrative view of multinational practices in Pakistan

Abstract

The last two decades have witnessed an immense growth of globalization activities, making the study of multinationals a very popular one. However, most of these studies have focused upon the use of socio-cultural variables to support the divergence theory or upon contextual and organizational variables to support the convergence theory. In the present study, it is debated that both sets of variables must be used in combination to develop a comprehensive understanding of various issues that multinationals face. A sample of five multinationals operating in Pakistan is analysed and classified as per the various modes of convergence-divergence proposed by McGaughey and De Cieri (1999) after an investigation of organizational, socio-cultural and contextual variables. The conclusion drawn is that both convergence and divergence issues may occur simultaneously in the process of human resource management (HRM) change; and that the variables used to explain them are, in fact, not immutable in nature, as has been assumed by many.

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