In this chapter,we take a more in-depth look at the transfer of HRM practices across context.As Disney discovered upon opening is theme park near Paris,just because practices work well in one context is no guarantee that they will transfer effectively to a new one.However, the ability to develop an expertise in one country and then implement it in another id one of the key advantages of the NME. Since,as discussed in previous chapters,the contexts across which global organization must operate differ significantly,the transfer of practices involves more than the simplistic "Think global,act local" mantra that dominates much of the thinking in this regard.
Why Firms Transfer practices
The wide variety of contexts across which multinational organizations must operate along with the inherent for pressure for adapting to local practices raises the question of why firms would engage in transfer of practices at all. Three basic motives for the transfer of practices have been identified. These are market, cultural and political motives
Market Motives
Market motives refer to the idea that the transfer of practices is seen as a means to enhance the efficiency of the organization by sharing best practices throughout the organization. This is based on the idea that organizations need to develop an integrated network of subunits that share expertise and knowledge with each other in order to survive in an internationally competitive environment. HRM practices are central to developing and sharing the organizational competencies required to enhance the organization’s relative competitive position. For example, a Japanese firm’s Singapore affiliate may develop efficient HRM selection policies to cope with high turnover in the labor market. If the MNE can successfully transfer these policies to other environments that also experience high labor mobility ,this can increase the efficiency of the overall organization.