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Adaptation of Compensation Practice in China: The Role ofSub-National Institutions

Published online by Cambridge University Press:  31 May 2019

Wei Lu ,
Ayse Saka-Helmhout  and
Rebecca Piekkari
Wei Lu*
Affiliation:
Aalto University, School of Business, Finland
Ayse Saka-Helmhout
Affiliation:
Radboud University, The Netherlands
Rebecca Piekkari
Affiliation:
Aalto University, School of Business, Finland
*
Corresponding author: Wei Lu (wei.lu@aalto.fi)
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Abstract

Unlike previous research that has largely focused on the influence of nationalinstitutions on human resource management practices in China, our study tapsinto the role of sub-national institutions. We demonstrate, via a qualitativeconfigurational analysis, that foreign subsidiaries of multinationalcorporations still adapt HQ compensation practice to the local context despitelow regulatory pressure and low mobility of skills at the sub-national level.This adaptation is facilitated by a decentralized structure in the multinationalcorporation. Our study also shows that high regulatory pressure and highportability of skills at the sub-national level alone are sufficient to inducelocal adaptation of compensation practice. Our explanation points to thesignificant role played by sub-national institutions in large and rapidlychanging emerging economies and contributes to research on local adaptation ofHRM practice in China. It offers an insight into forms of institutional agencyby political and economic actors at local levels of governance as they attemptto influence the skills and human resources available for MNCs throughregulatory means.

摘要

以往对中国人力资源管理实践的研究侧重于国家制度的影响，我们的研究则探讨中国地方制度的作用。我们通过定性的构型分析表明，即使在宽松的地方法规和技能流动性低的环境下，跨国公司的外国子公司仍然调整薪酬政策以适应当地的情况。跨国公司的分权结构促进了这种适应性。我们的研究还表明，在严格的地方法规和技能流动性高并存的情况下，跨国公司的外国子公司也会调整薪酬政策以适应当地情况。我们的解释指出了地方制度在大型且快速变化的新兴经济体中所发挥的重要作用，并有助于研究跨国公司人力资源管理实践在中国的适应性。本文揭示了地方层面政治和经济行动主体所形成的体制机构以地方法规为手段，影响跨国公司对技能和人力资源的获取。

Аннотация

Вотличиеотпредыдущихисследований,гдеосновноевниманиеуделялосьвлияниюнациональныхучрежденийнаметодыуправленияперсоналомв Китае,нашаработапосвященаролисубнациональныхучреждений.Наосновекачественногоструктурногоанализа,мыдемонстрируем,чтоиностранныедочерниекомпаниимногонациональныхкорпорацийпо-прежнемуадаптируюткорпоративнуюпрактикукомпенсациикместнымусловиям,несмотрянанезначительноедавлениесосторонырегулирующихоргановинизкуюмобильностьтрудовыхресурсовнасубнациональномуровне.Этойадаптацииспособствуетдецентрализованнаяструктуравмногонациональнойкорпорации.Нашеисследованиетакжепоказывает,чтосильноедавлениесосторонырегулирующихоргановивысокаямобильностьтрудовыхресурсовнасубнациональномуровнеявляютсядостаточнымиусловиямидлястимулированияместнойадаптацииметодовкомпенсации.Нашивыводыуказываютназначительнуюроль,которуюиграютсубнациональныеучреждениявкрупныхстранахсбыстроразвивающейсяэкономикой,а такжевносятвклад висследованияпоместнойадаптацииметодовуправлениячеловеческимиресурсамив Китае.Даннаяработадаетпредставлениеоформахинституциональнойдеятельностиполитическихиэкономическихсубъектовнауровнеместногоуправления,посколькуэтисубъектырегулируюттрудовыепрофессиональныересурсы,доступныедлямногонациональныхкорпораций,посредствомнормативно-правовыхмеханизмов.

Resumen

A diferencia de investigaciones previas que han estado enfocadas en gran medidaen la influencia de las instituciones nacionales en las prácticas degestión de recursos humanos en China, nuestro estudio intenta sacarleprovecho al papel de las instituciones subnacionales. Demostramos, através de un análisis de configuracióncualitativo, que las filiales extranjeras de las empresas multinacionalesaún adaptan las prácticas de compensación de lacasa matriz al contexto local pese a la baja presión regulatoria y labaja movilidad de habilidades a nivel subnacional. Esta adaptaciónestá facilitada por una estructura descentralizada en lacorporación multinacional. Nuestro estudio también muestraque una alta presión regulatoria y una alta portabilidad dehabilidades a nivel subnacional solamente son suficientes para inducir unaadaptación local de la práctica decompensación. Nuestra explicación apunta al importantepapel jugado por las instituciones subnacionales en las economíasemergentes rápidamente cambiantes y contribuye a lainvestigación sobre la adaptación local de lasprácticas de gestión de recursos humanos en China. Ofreceuna idea sobre las formas de agencia institucional por parte de actorespolíticos y económicos en los niveles locales de gobiernoya que estos intentna influir las habilidades y recursos humanos disponiblespara empresas multinacionales a través de medidas regulatorias.

Keywords

adaptation of compensation practiceChinaMNC decentralizationQualitative Comparative Analysis (QCA)sub-national institutions地方制度中国薪酬实践的适应性定性比较分析（QCA）跨国公司分权адаптацияметодовкомпенсацииКитайдецентрализациямногонациональныхкорпорацийкачественныйсравнительныйанализсубнациональныеучрежденияadaptación de la práctica de compensaciónChinadescentralización de empresas multinacionalesanálisis cualitativo comparadoinstituciones subnacionales

Information

Type
Special Issue Articles
Information
Management and Organization Review , Volume 15 , Special Issue 2: Doing Qualitative Research in Emerging Markets , June 2019 , pp. 235 - 267
Copyright
Copyright © The International Association for Chinese Management Research 2019 

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Footnotes

Accepted by: Guest Editor Emmanuella Plakoyiannaki

References

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