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Multiculturals as strategic human capital resources in multinational enterprises

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Abstract

Multiculturals – individuals with notable cultural knowledge, skills, abilities, and other characteristics (KSAOs) – are widely assumed to contribute to MNE performance leading, ultimately, to global competitive advantages. We nuance this general belief by arguing that what matters for an MNE’s competitive advantage is not the employment of multiculturals per se, but rather the MNE’s ability to transform multiculturals’ KSAOs into strategic human capital resources by creating complementarities between KSAOs and emergence-enabling factors. Using a 12-month in-depth ethnographic study over the span of two years in two MNEs, we identified five emergence-enabling factors that enable the transformation of multiculturals’ KSAOs into human capital resources and strategic human capital resources: (1) a global mindset, (2) a differentiated HR architecture, (3) the language policy and practices, (4) team diversity, and (5) multicultural team leadership. We suggested that a global mindset and differentiated HR architecture are emergence-enabling factors that enable the transformation of KSAOs into unit-level strategic human capital resources that are relevant for competitive advantage, while team diversity and multicultural team leadership are emergence-enabling factors that enable the transformation of KSAOs into unit-level human capital resources relevant for performance parity. Finally, the language policy and practices were relevant for both processes.

Résumé

Les multiculturels – les individus possédant des connaissances, des compétences, des capacités et d'autres caractéristiques culturelles notables (Knowledge, skills, abilities, and other characteristics - KSAOs) - sont largement supposés contribuer à la performance des entreprises multinationales (Multinational Enterprises – MNEs) et, in fine, conduire à des avantages concurrentiels à l’échelle globale. Nous nuançons cette conviction générale en argumentant que ce qui compte pour l'avantage concurrentiel d'une MNE n'est pas l'emploi des multiculturels en tant que tels, mais plutôt la capacité de la MNE à transformer les KSAOs des multiculturels en ressources stratégiques en capital humain en créant des complémentarités entre les KSAOs et les facteurs favorisateurs d’émergence. Nous appuyant sur une recherche ethnographique approfondie de douze mois sur une période de deux ans au sein de deux MNEs, nous avons identifié cinq facteurs favorisateurs d’émergence qui permettent la transformation des KSAOs des multiculturels en ressources en capital humain et en ressources stratégiques en capital humain : (1) une mentalité globale, (2) une architecture RH différenciée, (3) la politique et les pratiques linguistiques, (4) la diversité des équipes et (5) le leadership d'équipe multiculturelle. Nous avons suggéré qu'une mentalité globale et une architecture RH différenciée étaient les facteurs qui favorisent la transformation des KSAOs en ressources stratégiques en capital humain au niveau de l'unité, importantes pour l'avantage concurrentiel, tandis que la diversité des équipes et le leadership d'équipe multiculturelle constituaient les facteurs qui favorisent la transformation des KSAOs en ressources en capital humain au niveau de l'unité, importantes pour la parité des performances. Enfin, la politique et les pratiques linguistiques étaient importantes pour les deux processus.

Resumen

Los multiculturales -personas con notables conocimientos culturales, destrezas, habilidades y otras características (KSAOs por sus iniciales en inglés)- se da ampliamente por sentado que contribuyen al desempeño de las empresas multinacionales, y en última estancia llevan a las ventajas competitivas globales. Nosotros matizamos esta creencia general al argumentar que lo que importa para la ventaja competitiva de una empresa multinacional no es que emplee a multiculturales per se, sino la capacidad de las empresas multinacionales para transformar los conocimientos culturales, destrezas, habilidades y otras características de los multiculturales en recursos humanos estratégicos al crear complementariedades entre las conocimientos culturales, destrezas, habilidades y otras características y los factores habilitadores que emerjan. Usando un estudio etnográfico en profundidad de doce meses de duración en un periodo de dos años en dos empresas multinacionales, identificamos cinco factores que facilitan la emergencia que permiten la adaptación de los conocimientos culturales, destrezas, habilidades y otras características de los multiculturales en recursos de capital humano y recursos estratégicos de capital humano: (1) una mentalidad global, (2) una arquitectura de recursos humanos diferenciada, (3) la política y las prácticas lingüísticas, (4) la diversidad de los equipos, y (5) el liderazgo del equipo multicultural. Sugerimos que una mentalidad global y una arquitectura diferenciada de recursos humanos son factores emergentes que permiten la transformación de los conocimientos culturales, destrezas, habilidades y otras características en recursos de capital humano estratégicos a nivel de unidad que son relevantes para la ventaja competitiva, mientras que la diversidad de equipos y el liderazgo de equipos multiculturales son factores emergentes que permiten la transformación de los conocimientos culturales, destrezas, habilidades y otras características en recursos de capital humano a nivel de unidad relevantes para la paridad de desempeño. Finalmente, la política y prácticas lingüísticas fueron relevantes para ambos procesos.

Resumo

Multiculturais – indivíduos com notáveis conhecimentos culturais, talentos, habilidades e outras características (KSAOs) – são considerados por muitos como contribuintes para o desempenho de MNE e, em última análise, levam a vantagens competitivas globais. Nós matizamos essa crença geral, argumentando que o que importa para a vantagem competitiva de uma MNE não é o emprego de multiculturais em si, mas sim a capacidade da MNE de transformar as KSAOs de multiculturais em estratégicos recursos de capital humano, criando complementaridades entre as KSAOs e fatores que possibilitam sua emergência. Usando um estudo etnográfico aprofundado de doze meses ao longo de dois anos em duas MNEs, identificamos cinco fatores que possibilitam tal emergência que permitem a transformação de KSAOs de multiculturais em recursos de capital humano e recursos estratégicos de capital humano: (1) uma mentalidade global, (2) uma arquitetura de RH diferenciada, (3) a política e práticas de linguagem, (4) diversidade de equipe e (5) liderança multicultural de equipe. Sugerimos que uma mentalidade global e uma arquitetura de RH diferenciada são fatores que possibilitam a emergência que permitem a transformação de KSAOs em recursos de capital humano estratégico em nível de unidade que são relevantes para a vantagem competitiva, enquanto a diversidade da equipe e a liderança multicultural da equipe são fatores que possibilitam a emergência que permitem a transformação de KSAOs em recursos de capital humano ao nível de unidade relevantes para a paridade de desempenho. Por fim, a política e as práticas linguísticas foram relevantes para ambos os processos.

摘要

多元文化人 – 具有显著的文化知识、技能、能力和其它特征 (KSAO) 的个体 – 被广泛认为有助于跨国企业 (MNE) 的绩效, 并最终产生全球竞争优势。我们将这一信念细化, 认为对MNE竞争优势而言, 重要的不是多元文化人就业本身, 而是MNE通过在KSAO和新兴促成因素之间创造互补性, 将多元文化人的 KSAO 转化为战略人力资本资源的能力。我们对两家MNE进行了为期 12个月的跨度为两年的深入的民族志研究, 确定了能够将多元文化人的KSAO转变为人力资本资源和战略人力资本资源的五个促成因素: (1) 全球化思维, (2) 差异化的人力资源架构, (3) 语言政策与实践, (4) 团队多样性, (5) 多元文化团队领导力。我们认为, 全球化思维和差异化的HR 架构是促成 KSAO 转变为与竞争优势相关的单位级战略人力资本资源的促成因素, 而团队多样性和多元文化团队领导力是促成将 KSAO 转变为与绩效均势相关的单位级人力资本资源的促成因素。最后, 语言政策和实践与这两个过程都相关。

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Acknowledgements

The authors would like to thank the three anonymous JIBS reviewers and JIBS area editor Ute Stephan for their very constructive feedback. We also are grateful to Fabian Jintae Froese and Anthony Nyberg for their valuable and helpful comments on earlier versions of the manuscript. Hae-Jung Hong wishes to thank all participants in her field work, and acknowledges the financial support provided by the Diversity and Leadership Chair at the ESSEC Business School.

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Authors and Affiliations

  1. People and Organizations Department, NEOMA Business School, Office A234, 1 rue du Maréchal Juin, BP 215, 76825, Mont-Saint-Aignan Cedex, France

    Hae-Jung Hong

  2. Copenhagen Business School, Kilevej 14, room 2.67, 2000, Frederiksberg, Denmark

    Dana Minbaeva

  3. King’s College London, London, UK

    Dana Minbaeva

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  1. Hae-Jung Hong
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  2. Dana Minbaeva
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Correspondence to Hae-Jung Hong.

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Accepted by Ute Stephan, Consulting Editor, 20 July 2021. This article has been with the authors for three revisions.

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Hong, HJ., Minbaeva, D. Multiculturals as strategic human capital resources in multinational enterprises. J Int Bus Stud 53, 95–125 (2022). https://doi.org/10.1057/s41267-021-00463-w

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