Development and fit of HRM over time in foreign subsidiaries: the case of Japanese subsidiaries in Poland

Human resource management (HRM) is a critical function in the context of foreign subsidiaries, yet we know little about how it is established and developed over time. Based on a longitudinal, in-depth study of 12 Japanese manufacturing subsidiaries located in Poland we investigate how HRM develops over time in a foreign subsidiary and how the fit between its elements is maintained and managed. The paper contributes to the subsidiary literature by proposing a theory-based and empirically driven stage model of subsidiary HRM development over four stages: initiation, controlled growth, functional integration and global integration. We identify typical changes in HRM practices (staffing, training, appraisal, rewards and industrial relations) prevalent in each of these stages. Moreover, we identify internal and external contingency factors (industry, mode of establishment, regional headquarters and key organisational actors) that influence the development and fit of HRM over time.