In terms of the relationship between organisational type (multinational or local) and employees’ turnover and HRM practices, it is generally believed that in developing countries multinational companies have better HRM systems when compared to the local companies, and are considered as better places for work (Taylor, Beechler & Napier 1996, Duarte 2001). Warner (2004) argues that local organisations are still very far from applying the concept of HRM as is understood internationally.
Additionally, multinational organisations recruit and retain the top talent by offering better career opportunities, compensation, good salaries rate and a less hierarchical HR system (Nadiri & Tanova 2009). Socialising and working in multinationals further changes employees’ work related values to reflect the parent company’s culture. Therefore, in a competitive and growing economy where job opportunities are numerous, employees in multinational organisations, when compared to those in local organisations, are more likely to be influenced by HR practices in their organisations (Khilji & Wang 2007). These contentions provide the foundation for hypotheses three and four.