International Business Strategy in HR of the Chinese MNCs Dissertation

International Business Strategy in HR of the Chinese MNCs - Dissertation Example As the discussion stresses the MNCs have started dominating the world market and how they manage their personnel on an international scale is considered critical to the success of globalizing strategies. When firms operate across boundaries the organizational culture is secondary to the national culture.From this paper it is clear that most studies in international business focus on the success and failures of MNCs from developed countries in developing and emerging economies. However, in recent times MNCs from emerging economies such as India and China have also been making entry into developed as well as developing nations. The theories of internationalization are based on the MNCs from developed countries. These may not applicable to MNCs from emerging economies as they lack the expertise in best practices. They particularly face issues in HR management due to lack knowledge of cultural integration. This is because the MNCs from emerging markets come from a national, cultural and institutional background that differs from the developed country MNCs. This gives rise to the importance of understanding the cultural context and its contribution in the success and failure of the emerging MNCs.  Since the Chinese MNCs have been venturing overseas with the support of the government, it has been considered essential to evaluate how national cultures can make an impact on the HRM practices. Bunchapattanasakda and Wong (2011) contend that nations with comparative advantage would tend to transfer their home practices to their overseas subsidiaries but those with low comparative advantages may be forced to adopt the overseas practices. Several MNCs in Europe and the US were taken over by Chinese companies such as China Mobile and TCL but they failed to operate the takeovers successfully (Cao & Forrest, 2011). The main reason cited has been the lack of experience to handle the organization due to language and cultural barriers. The Chinese MNCs could not win the suppor t of the stakeholders due to limited global visibility. Networking and guanxi, typical of Chinese culture, did not appear to work in western business environments. Fan, Nyland and Zhu (2009) suggest evaluating the factors that drive the Chinese MNCs to integrate their operations globally. One of the main causes of failures that have emerged is the lack of knowledge in managing human resources by the Chinese managers. Xhang (2003)