An assessment of the moderating role of employees’ cultural orientations amongst foreign manufacturing multinational companies in Kenya

Abstract
Over the last ten years or so, significant differences of opinion have emerged ar ound two related issues. How to adequately implement strategic human resources strategies to improve firm performance and, whether or not a ‘ bundle of HR best practices ’ exists that can be applied in all contexts with predictable outcomes. In regards to the first issue, the question of whether a direct link between strategic human resources management (SHRM) practices and firm performance exists, the arguments are equivocal. Some studies have demonstrated the existence of direct links between SHRM practices and firm performance (Edwards & Wright, 2001). Other studies (Dimba, 2010; Katou & Budhwar, 2006) have shown that SHRM practices do not lead directly to business performance but rather they influence employee motivation. In other words, it is employee outcomes that ultimately influence performance.
Description
Published in SA Journal of Human Resource Management; Vol 11, No 1 (2013), 11 pages. doi: 10.4102/sajhrm.v11i1.453
Over the last ten years or so, significant differences of opinion have emerged around two related issues. How to adequately implement strategic human resources strategies to improve firm performance and, whether or not a ‘bundle of HR best practices’ exists that can be applied in all contexts with predictable outcomes. In regards to the first issue, the question of whether a direct link between strategic human resources management (SHRM) practices and firm performance exists, the arguments are equivocal. Some studies have demonstrated the existence of direct links between SHRM practices and firm performance (Edwards & Wright, 2001). Other studies (Dimba, 2010; Katou & Budhwar, 2006) have shown that SHRM practices do not lead directly to business performance but rather they influence employee motivation. In other words, it is employee outcomes that ultimately influence performance. With regards to the second issue (named above), two perspectives exist. On the one hand researchers, who embrace the Universalist perspective, emphasise the notion of a ‘bundle of best practices’ in relation to human resources (HR) practices. However, on the other hand, there is an opposing viewpoint which disapproves of the notion of a best practices bundle. Specifically, Gerhart (2005, p. 178) argues that an important concern revolves around the fact that ’… it seems unlikely that one set of SHRM practices will work equally well no matter the context‘. This is particularly significant given that contextual variables, chiefly national culture or employee cultural orientations have been found in various studies to have an influence on the choice of HRM strategies (Aycan, Al-Hamadi, Davis & Budhwar, 2007; Nyambegera, Daniels & Sparrow, 2001). Mamman and Adeoye (2007) argue that as developing countries are increasingly adopting technologies and expertise that are similar to those of developed countries, foreign multinational companies (MNCs) tend to become conduits for transferring host-country SHRM practices to their developing host-countries often without making any adaptive changes to these practices. The underlying belief in these practices is that SHRM practices in developing countries are seen as converging towards those of developed countries. This belief is not widely accepted, particularly not amongst the growing number of writers who have shown that cultural diversity in societies around the globe tend to retard and even reverse convergence (Horwitz et al., 2006). On the basis of the foregoing arguments, there is a need for additional robust and quantitative evidence to support the MNCs’ SHRM-performance link and investigations from different contexts. Thus, the aim of this study is to investigate the question of what is the likely cultural influence on the choice of SHRM practices amongst foreign multinationals in Kenya. Specifically, the research objectives of the study will try to determine: • The relationship between Human Resources practices and performance, • The relationship between culture and SHRM practices, • Whether cultural orientation moderates SHRM practices and employee motivation and • Whether employee motivation mediates between SHRM and firm performance.
Keywords
Employee cultural orientation, multinational companies, Kenya
Citation