A Study on The Moderating Effects of National Culture on International Human Resource Management Strategy and Knowledge Transfer
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1 , pp A Study on The Moderating Effects of National Culture on International Human Resource Management Strategy and Transfer Jungah Lee 1 and Nakjung Kang 2 1 Department of International Trade, Pusan National University, Busan Daehakro 63road 2, Busan, Korea, jeanna21@naver.com 2 Department of Distribution and logistics, Dong Eui University, Busan Jingu Eumgwangro 176, Korea, nakjung@deu.ac.kr Abstract: The purpose of this study is to analyze the moderating effects of national culture on the international human resource management strategy and knowledge transfer. To analyze this objective, this study reviews various literatures and developed a research model. To examine the research model, we collected data from international companies. Keywords: IHRM, national culture, knowledge transfer 1 Introduction The purpose of this study is to set up a conceptual model and hypotheses about the moderating effects on the national culture of the type international human resource management strategy and knowledge transfer to analyze target companies. 2 Hypothesis <H 1> Exportive IHRM strategy will have a positive impact on the knowledge transfer performance. <H 2> Adaptive IHRM strategy will have a positive impact on the knowledge creation performance. <H 3> Collectivist cultural tendency will have a positive impact on the exportive IHRM strategy and knowledge transfer performance. <H 4> Individualistic cultural tendency will have a positive impact on the adaptive IHRM strategy and knowledge creation performance. 1 First author 2 Corresponding author ISSN: ASTL Copyright 2016 SERSC
2 <H 5> Higher uncertainty avoidance tendency will have a positive impact on the exportive IHRM strategy and knowledge transfer performance. <H 6> Lower uncertainty avoidance tendency will have a positive impact on the adaptive IHRM strategy and knowledge creation performance. 3 Data Collection and Measurements From a total of 300 questionnaires, 140 questionnaires were collected. Among the responses excluding uncertain responses, a total of 91 responses were eventually considered. Table 1. Survey Items Construct Items References National culture Individualism-Collectivism Hofstede(1991) Uncertainty avoidance IHRM strategy Exportive IHRM Adaptive IHRM Hymer(1976), Martin and Beaumont(1998) Benito and Gripsrud(1992) Rosenzweig and Nohria(1993) transfer Krogh(1998), O Dell and transfer creation shareing Adaption knowledge Innovative knowledge Grayson(1998) Venkatraman(1994), Kuemmerle, W(2002) Table 2. Reliability and Factor Analysis for IHRM Construct Exportive Adaptive Cronbach s Alpha Apply the strategies and policies of subsidiaries based in Headquarters Apply headquarters human resource system Centralized decision-making system Apply headquarters marketing system Apply independent local HR system System introduced for local field Product development for local consumer Modified for local marketing activities Eigen value Variance Copyright 2016 SERSC 129
3 Table 3. Reliability and Factor Analysis for National Culture Construct UAI Individualism Collectivism Cronbach s Alpha Level of rules and regulations Level of acceptance of innovative ideas Level of security system Nuclear family system Team based performance Incentive system Eigen value Variance Table 4. Reliability and Factor Analysis for knowledge transfer and creation Construct transfer creation Cronbach s Alpha Level of rules and regulations Level of acceptance of innovative ideas Level of security system Nuclear family system Team based performance Incentive system Eigen value Variance Results As shown in <tables 5-8>, it can be seen that the moderating effect of national culture significantly affected the types of IHRM and knowledge performance. Therefore, <hypotheses 1-6> were all supported. Table 5. Analysis for Regression: moderating effect for Exportive IHRM and Transfer Constant exportive.532** ** ** Exportive*UAI.585* * Exportive*Collective 1.213* * Copyright 2016 SERSC
4 F 38.5** 24.4** 25.6** R Adjust R Table 6. Analysis for Regression: moderating effect for Exportive IHRM and Creation Constant exportive * Exportive*UAI Exportive*Collecti ve F R Adjust R Table 7. Analysis for Regression: moderating effect for Adaptive IHRM and Transfer Constant adaptive adaptive *UAI adaptive *Individual F R Adjust R Table 8. Analysis for Regression: moderating effect for Adaptive IHRM and Creation Constant adaptive.432** ** ** adaptive *UAI.945* * adaptive *Individual.806* Copyright 2016 SERSC 131
5 F 38.5** 24.8** 27.5** R Adjust R References 1. Benito, G.R.G., Gripsrud, G.: The Expansion of Foreign Direct Investments: Discrete Rational Location Choices or a Cultural Learning Process?. in, JIBS, Vol. 23, No. 3, 1992, pp Hofstede, G., Cultures and Organizations: Software of the Mind. London: McGraw-Hill Hymer, S., The International Operations of National Firms: A Study of Direct Investment", Cambridge, MA: MIT Press, Krogh, G. V., K. Ichijo, Nonaka, Enabling knowledge creation, Oxford: Oxford University Press, Kuemmerle, W., Home base and knowledge management in international ventures. Journal of Business Venturing, Vol. 17, 2002, pp Martin, G., Beaumont, P., Diffusing best practice in Multinational Firms: Prospects, Practices and Contestation. International Journal of Human Resource Management, Vol. 9, 1988, pp Rosenzweig, P., Nohria, N.: Influence of Human Resource Management Practices in Multinational Corporations. Journal of International Business Studies, 1993, pp O Dell, C., C. J. Grayson, If only we knew what we know: Identification and transfer of internal best practice. California Management Review, Vol. 40, 1998l, pp Venkatraman, N. IT-Enabled Business Transformation: From Automation to Business Scope Redefinition. Sloan Management Review Vol. 3, No. 2, 1994, pp Copyright 2016 SERSC
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