The Effect of International HRM Systems on Korean MNC Subsidiary Performance

Despite the crucial role of international human resource management (IHRM) systems for multinational corporations (MNCs), few studies examine the processes through which IHRM systems influence the performance of MNC subsidiaries. Executive expatriates in foreign country subsidiaries responded to a survey in a field study employing 207 Korean MNCs. We explored the effect of IHRM systems on subsidiary performance via expatriate executive adjustment. We examined the intensified effect of IHRM systems on expatriate executive adjustment in MNCs with various levels of international experiences (host country experience, general international experience, and culture cluster experience). Using multiple regression analysis, we found a predicted mediated relationship among IHRM systems, expatriate executive adjustment, and subsidiary performance and a predicted moderating effect from MNC international experiences in the relationship between IHRM systems and expatriate executive adjustment.