Citation:

Walusimbi Yunus, Tarik Yahaya, Madoi Muzafaru, Wanyenze Barbra. "Analyzing International Human Resource Management Strategies Across Multinational Enterprises in Europe, Asia, and Africa" International Research Journal of Economics and Management Studies, Vol. 4, No. 3, pp. 218-225, 2025.

Abstract:

Through comparisons of the different HRM practices in European and Indian MNEs, including their subsidiaries located in Africa, this article provides valuable insights on the relevance of the country of origin effect (COE) and reviews previous studies examining the influence of institutions and firms on HR practices across countries vis-à-vis the influences imposed by host countries and parent countries alike on the same. Examining data from selected MNE subsidiaries obtained by scholars from the World Bank enterprise survey data, the findings of the article indicate that Indian MNEs experience higher costs of labor as a percentage of total sales compared to their counterparts in Europe. It also indicates that MNEs of Indian origin prioritize utilizing more flexible and temporary labor compared to those of European origin who highly depend on a more permanent, highly skilled labor force. Furthermore, the findings indicate less investment in employee training by Indian MNEs than their European counterparts who highly invest in training. No significant support is found to show that the skilled/unskilled labor ratio of Indian MNEs is lower compared to European subsidiaries. The study also ascertains that the country of origin effects are subdued due to inconsistencies with the ideology of their host countries. This is due to the fact that the evolvement of economies moves in tandem with their expectations pertaining to HRM policies and practices. If there is inconsistency with the ideology of the host country then these economies will find difficulty evolving.

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Keywords:

International Human Resource Management, Comparative Human Resource Management, Multinational Enterprises, Host Countries.