Reverse transfer of HRM practices from emerging market subsidiaries: Organizational and country-level influences

Purpose - The purpose of this chapter is to conceptually analyze reverse transfers of human resource management practices from subsidiaries of transnational corporations in emerging markets to their headquarters in developed countries.

Methodology/approach - This is a conceptual chapter based on a review of the pertinent literature. Analysis is performed at the organizational and national levels.

Findings - We identify the type of transnational corporation best positioned to learn and utilize the potential of its emerging market subsidiaries to advance its human resource management practices. We further identify the types of practices best suited for reverse transfer.

Research limitations/implications - Empirical tests of our propositions are needed. We encourage researchers to extend our research by considering the regional (supra-national), industry and individual levels of analyses.

Practical implications - Managers are informed when and where potential for learning new practices is the greatest, and are urged to scrutinize those corporate units where such potentials exist, and yet transfers do not occur.

Originality/value - Emerging markets offer substantial learning potential for transnational corporations, yet most recent studies focus on transfer of technology and product innovations from subsidiaries, leaving the transfer of human resource management practices largely unexplored. Therefore, this study advances research on organizational knowledge and innovation management, and organization of transnational corporations.