The RBV perspective has been discussed in connection with HRM for some time (see Schuler
& MacMillan, 1984; Wright & McMahan, 1992; Wright, McMahan, & McWilliams, 1994) and considerable
tacit knowledge is considered to reside within the whole HRM system (Lado & Wilson,
1994; Huselid, 1995). However, RBV theories of the firm also present the clearest argument as to
why firms must transfer capabilities globally. Morris, Snell, and Wright (2006) argue that because
MNCs operate in multiple environments they possess variations in both their people (reflecting the
skill sets created by national business systems) and in their practices (which reflect local requirements,
laws, and cultures). They benefit from a global workforce both by capitalizing on the superior
skills that can be found by accessing global labor pools, and by exploiting the cultural synergies
of a diverse workforce. SIHRM practices can contribute to the effective management of a firm's
employees by enabling such outcomes. This variation is also a potential source of advantage at a
local level. In discussing the transfer of HR best practice on a global basis, strategists argue that in