It really enhances the importance of human resource management for multinational companies. Global Human Resource Management:
Internationalization of small and medium sized enterprises SMEs has profound influence on the human resource management practices. But present theories are drawn from empirical study on large multinational companies MNCs.
This paper analyzes the relationship between the degree of internationalization, internationalization strategy, the scale of oversea foreign direct investment FDI and human resource management practices of small and medium sized enterprises based on a sample of small businesses.
The result of our study shows that internationalization strategy and the scale of FDI have significant influence on human resource management practices of small and medium sized business, but the degree of internationalization are not as influential as the former two factors.
InChina has surpassed the United States and became the biggest host country of foreign investment globally. Most MNCs among the top companies listed by Fortune have established their branch companies in China to extend their business into our domestic market.
Relatively, Chinese scholars and researchers have carried out comprehensive study on the FDI of foreign companies.
But very little research has been done on the internationalization of SMEs and its influence on the human resource practices of SMEs. As far as the author concerned, there are mainly two reasons for this phenomenon: As for small firms, internationalization is not an opportunity, but a threat.
What s more, SMEs are often regarded as domestic market orientated Lindmark, ; on the other hand, in the field of HRM research, more emphasis is put on large firms even though their economic significance has declined in recent years Hendry, Welsh and White suggest that a traditional assumption amongst managers has been that small businesses should be managed along essentially the same principles as large firms but on a smaller scale.
This paper analyzes the relationship between the degrees of internationalization, internationalization strategy, FDI scale human resource management practices. Internationalization is a procedure involved in two sides of international economic transactions, which includes investing abroad, namely the outward internationalization, and attracting foreign investors, inward internationalization.
The internationalization is not a simple geographic concept. Present literature has extensive research on the internationalization process of SMEs, particularly through exporting, but how to term inward international activities has received relatively little attention and often indirect Loustarinen, Buckley and GhauriWelch and Loustarinen Inward international operations can be seen as the mirror image of outward operations, similarly covering a multiplicity of forms-such as imports of goods and services, finance and technology; through franchising, licensing, direct investments, alliance 2 agreements and the like Luostarinen and Welch, There are at least three prominent schools of scholarship have direct implications on the process of internationalization of SMEs.
Literatures on how to measure the degree of internationalization DOI mainly include: The researchers explore different indexes under specific situation.
Within the literature, although there are some examples of thriving small business Ackroyd,most of the research seems to demonstrate that the SMEs can be in a considerably disadvantaged position, when compared with the larger firms. By looking more specifically at HRM practices, for example, training has been given considerable attention Arthur and Hendry, ; Storey and Westhead, ; Abbot,with general conclusion that groups of employees in small companies are less likely to have access to structured training provision than their large counterparts.
Actually Storey and Westhead suggest that there appears to be a linear relationship between the size of a firm and the amount of formal structured training provision. The difficulties associated with training are commented on in most of the studies that address SMEs and their general performance, but not their internationalization factors and nor other HRM practices.
The SMEs with higher degrees of internationalization tend to focus more on HRM practices and has higher level of human resource management and development Wu Sanqing, In general, high degree of internationalization means more possibilities of cooperation with oversea firms which is a good channel to learn western management practices to effectively reduce the transaction cost of developing their own HRM practices for the SMEs.
The benefit can be briefly interpreted in the following three aspects: One is that the SMEs with high degree of internationalization are more likely to obtain relevant HRM plan or method, for example, a mode of training or an effective instrument of performance evaluation as a supplier, producer or agent of foreign company.
The second is that on the foreign cooperating side, they hold higher expectations on the HRM practices of our SMEs to meet the need of developing new business in a international market context.Importance of Human Resource Management Stages of International Involvement: When an organization initiates international operations, then it has been passed through five stages which are as follows.
Some unique features of EMNCs may not be the result of their country of origin but rather with their industry of operation, stage of internationalization, global context at the time of internationalization, or prior international experience (Ramamurti, ).
Strategic HRM in context International and Comparative HRM Theories of IHRM Strategy Isomorphic pressures Stages of internationalization and product life cycle Product market and sociocultural logic theory International Structure & IHRM Strategy of MNCs.
Huawei realized that although its strong position within emerging markets was making the organization highly profitable, it was a limiting strategy in the long run. By late , Huawei used its domestic contacts to change its organization's framing into a wholly different perspective.
Stages of Internationalization in Huawei (IHRM) Essay Stages of Internationalization There are 6 stages of internationalization was devised by Jeffrey S.
Hornsby & Donald E.
Kuratko in Export is at the first stage of internationalization. Stages In The Execution Of A Sales Order. Sales Order Processing Hong Kong Wellink Optical Ltd. Sales Department Hong Kong, China Prepared by: Matthew Ho Date: March 26, Executive Summary The sales department of Hong Kong Wellink Optical Ltd.
has been using the same sales order processing for the past two years.