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The Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia

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Abstract

This study investigates the relationship between human resource management (HRM) and the performance of 101 foreign-owned subsidiaries in Russia. The study's results provide support for the assertion that investments in HRM practices can substantially assist a firm in improving performance. Further, different HRM practices for managerial and non-managerial employees are found to be significantly related to firm performance. Only limited support, however, is obtained for the hypothesized relationship between efforts at aligning HRM practices with firm strategy and subsidiary performance.

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*Carl F. Fey is an assistant professor at Stockholm School of Economics and also helping to develop Stockholm School of Economics in Saint Petersburg.

**Ingmar Björkman is a professor of international management at the Swedish School of Economics in Helsinki, Finland and affiliated with the INSEAD Euro-Asia Centre.

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Fey, C., Björkman, I. The Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia. J Int Bus Stud 32, 59–75 (2001). https://doi.org/10.1057/palgrave.jibs.8490938

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  • DOI: https://doi.org/10.1057/palgrave.jibs.8490938

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