Strohmeier, S.; Diederichsen, A. (Eds.), Evidence-Based e-HRM? On the way to rigorous and relevant
research, Proceedings of the Third European Academic Workshop on electronic Human Resource
Management, Bamberg, Germany, May 20-21, 2010, CEUR-WS.org, ISSN 1613-0073, Vol. 570, online:
CEUR-WS.org/Vol-570/ , pp. 289-306.
© 2010 for the individual papers by the papers´ authors. Copying permitted only for private and academic
purposes. This volume is published and copyrighted by its editors
Global Integration versus Local Adaption of an e-HRM System in a
US MNC
Ralf Burbach, Institute of Technology Carlow, Ireland
ralf.burbach@itcarlow.ie
Tony Royle, National University of Ireland Galway, Ireland
tony.royle@nuigalway.ie
Abstract. Research in e-HRM appears to purport that e-HRM practices are
diffused and adopted uniformly in the subsidiaries of multinational
corporations (MNC). This paper argues that the transmission e-HRM
practices, like the diffusion of other HRM practices, is subject to a multitude
of institutional factors. This paper also proposes institutional theory as a
macro theoretical research paradigm for e-HRM research. Based upon an
analysis of interview data garnered in the German and Irish subsidiaries of
a single US MNC, a palpable divergence in e-HRM practices could be
discerned. Moreover, this research identifies a number of forces for
standardisation and isomorphic pressures in the institutional environment
of the MNC.
Keywords: e-HRM, Institutionalist Theory, Institutional Factors, Germany,
Ireland, International HRM
1 Introduction
Despite a growing body of research underpinning the field of electronic Human
Resource Management (e-HRM), a distinct paucity of studies founded on macro
theories emerges when this body of research is examined [89]. This paper argues that e-
HRM diffusion in the subsidiaries of a Multinational Corporation (MNC) is, similar to
other HRM practices, subject to a broad range of institutional factors, even though the
nature of an e-HRM would necessitate a high level of integration and standardisation
across the MNC to attain expected effectiveness and efficiency gains. It has frequently
been argued that particularly US MNCs‟ are characterised by standardised, centralised
and formalised HR policy-making processes and the introduction of US style HRM
practices in their host countries [e.g. 1, 25, 50]. The level of diffusion of HRM practices
in general across MNCs appears to diverge considerably and various attempts have been
made to understand these differences. For a number of years, the international HRM
(IHRM) literature has provided a forum for an ongoing debate, which has given rise to a
host of institutional factors that may arbitrate the transfer of employment practices
among multinational corporations‟ subsidiaries. These factors comprise home and host
country effects [1, 34, 70], sector effects [13, 78, 79], the institutional context and
national business system [e.g. 10, 13, 13, 14, 24, 25, 26], dominance effects [35, 62,