This paper highlights the evolution and contribution of the institutional theory perspective to the study of human resource management (HRM) transfers between advanced economies and less developed economies owing to institutional dissimilarities. The paper seeks to explore the institutional differences between advanced economies (home) and less developed economies (host) through the lens of institutional theory and how such institutional differences constrain or provide opportunities for the transfer of HRM practices. We develop a conceptual framework through the lens of institutional theory to provide useful and comprehensive insight of factors or conditions to consider when transferring HRM practices from advanced economies to less developed economies where there are institutional dissimilarities. The framework offers a broad perspective of the three dimensions of institutional theory to help multinational enterprises evaluate and explore how the differences in institutional settings between home and host countries may create opportunities or constraints in HRM practice transfers.
- human resource management practices
- institutional dissimilarities
- institutional theory
- international human resource management
- multinational enterprises