Scandinavian Working Papers in Business Administration

SSE/EFI Working Paper Series in Business Administration,
Stockholm School of Economics

No 2000:6: The Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia

Carl Fey and Ingmar Björkman ()
Additional contact information
Carl Fey: Dept. of Business Administration, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden
Ingmar Björkman: Swedish School of Economics and INSEAD, Postal: Swedish School of Economics, Post Box 479, 00101 Helsinki, Finland

Abstract: This study investigates the relationship between human resource management (HRM) and the performance of 101 foreign-owned subsidiaries in Russia. The study's results provide support for the assertion that investments in HRM practices can substantially help a firm perform better. Further, different HRM practices for managerial and non-managerial employees are found to be significantly related with firm performance. However, only limited support is obtained for the hypothesized relationship between efforts at aligning HRM practices with firm strategy and subsidiary performance.

Keywords: Human resource management; Russia; Performance

JEL-codes: M12

30 pages, April 19, 2000

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