Reassessing the Practices of IHRM in Chinese MNCs in Africa:
Standardization and Adaptation
50 Years of Development in Sub-Saharan Africa-The Experience of
Tanzania
University of Bradford
Lujia Feng
Paul Barry and Christopher Rees
University of Manchester
30th May 2014
1
Reassessing the Practices of IHRM in Chinese MNCs in Africa:
Standardization and Adaptation
The University of Manchester
Lujia Feng,
Paul Barry and Christopher Rees
Abstract:
With increasing investment by Chinese MNCs in Africa, the challenges to find appropriate
IHRM policies and practices in their operation have emerged. To ensure the achievements of
their strategic goals and competitiveness, Chinese MNCs need to formulate and apply
effective practices of IHRM. In detail, the different contexts of Chinese and African
organizations underscore the need for MNCs to ensure their IHRM practices operate in line
with both the specific local situations and organizations’ standardized policies. For those
reasons, the aim of this thesis is to explore the practices of IHRM in Chinese MNCs in
Africa, considering the specific factors that influence the balance of IHRM and related issues.
To achieve the aim, three models will be proposed from a critical perspective. It focuses on
the analysis of IHRM policies and practices in Chinese MNCs in Africa and the influence of
internal and external factors on the transfer of IHRM from Chinese headquarters to African
subsidiaries. Specifically, it investigates the main issues and contextual factors of IHRM in
MNCs in the globalisation context; and explores IHRM policies and practices transfer from
Chinese MNCs headquarters to African subsidiaries with reference to specific practice of
performance management.
2
Introduction:
From the late 20th century to the present date, interest has grown in the research on
international human resource management (Ferner et al., 2011; Schuler & Tarique, 2007;
Brewster et al., 2005; Sparrow & Braun, 2006; Taylor et al., 1996). In the view of Schuler et
al. (1993) and others, IHRM refers to the process of human resource management in an
international context and considered from an international perspective (Brewster, 2002;
Briscoe & Schuler, 2004; Poole, 1999; Schuler & Tarique, 2007). It emphasizes human
resource management in international business and to a lesser degree, other sector
assignments and the international aspects of HRM policies and practices (Harzing &
Pinnington, 2011). IHRM as a discipline focuses on the understanding, application and
modification of all human resource activities with the consideration of internal and external
influential factors. In the organisational level, IHRM is closely related to strategic goals and
competitiveness of enterprises in the global environment (Schuler & Jackson, 2005; Schuler
& Tarique, 2003; Stahl & Bjorkman, 2006).
Against the backdrop of globalisation and competition in the international market, it is
asserted that effective policies and practices of IHRM play a crucial role in organisational
operation and performance, especially for multinational corporations (MNCs) which are the
product of global expansion (Needle, 2004). According to recent data from the United
Nations Centre, there were nearly 61,000 multinational corporations in the world, controlling
in turn some around 900,000 subsidiaries (UN, 2009). Compared with small and medium
sized enterprises (SMEs) which have smaller sales, less employees and smaller assets, MNCs
make direct investment in the form of marketing or manufacturing branches in multiple
countries (Cassell et al., 2002). They generate employment, investment and tax revenue for
areas in which they operate and contribute to the development of economies (Wild & Wild,
2013). So it is clear that IHRM aims to ensure successful operation of MNCs in the
globalisation context (Schuler et al., 1993).
The effectiveness and efficiency of IHRM policies and practices make a direct contribution to
MNCs being 1) competitive across the world 2) efficient 3) ideally locally adaptable to
specific situations 4) globally standardized 5) a strong capacity for knowledge transfer
(Schuler et al., 1993; Sparrow & Brewster, 2006). The above five requirements have been
3
deeply influenced by the practices of IHRM in a wide range of organizations, and it can be
argued that the difference between success and failure for many MNCs lies in the
effectiveness of IHRM practices (Briscoe & Schuler, 2004).
As China's economy has reformed itself and grown at between 7 and 9 percent annually over
the past two decades, its significant role in the global market cannot be ignored in academic
area (Wild & Wild, 2013). For instance, some organisations have published new research of
the Chinese economy with evaluation of China's real GNP at international prices (Lardy,
1994). As an important player in the world market, Chinese enterprises account for an
increasing share of the global economy. With the economic reforms in the state sector, many
Chinese MNCs and Joint Ventures (JVs) have focused on their international competitiveness
and the connection to the world (Cooke, 2005). For example, an increasing amount of
Chinese enterprises have changed their traditional approaches and policies of management in
accordance to the process of marketization and autonomy (Zhu & Dowling, 2002).
Considering this context, academic research has placed emphasis on the methods by which
Chinese companies manage their employees both in the PRC and abroad to ensure their
organisations’ competitiveness (Lamond & Zheng, 2010). Previous research in this field has
focused largely on the practices of IHRM in subsidiaries of foreign MNCs operating in China
while less attention has been paid to the practices of IHRM in Chinese MNCs abroad in
foreign countries (Zheng, 2013; Cooke, 2011; Warner, 2010; Child, 2009; Rovai, 2005).
Since 1978, the Chinese government began to change its national policy from class struggle
to socialist economic construction which was proposed by Deng Xiaoping (Zhu et al., 2010).
The reform mainly focuses on the rural areas and fiscal system with more autonomy in the
market. At the same time, international trade and foreign investment is also advocated by the
government through the establishment of Special Economic Zones (SEZs), Open cities and
Open Regions (Webber & Zhu, 1995). When the Chinese government formulated the national
policy of 'go global' in 2004, it stimulated a growing number of Chinese enterprises to enter
and compete in the international market (Fan et al., 2013). With regard to the overseas
operation of the emerging Chinese MNCs, some research has mainly given priority to the
IHRM of Chinese MNCs in developed countries rather than in developing ones (Zhang,
2003; Zhang & Edward, 2007; Cooke, 2012; Fan et al., 2013). In fact, with their own
advantages such as capital, flexibility, size and culture, many Chinese MNCs are seeking to
transfer their experience of IHRM to less developed countires (Child & Rodrigues, 2005;
4
Zheng, 2013). There is some evidence to suggest that Chinese MNCs firstly absorbed the
advanced policies and practices of IHRM from developed countries such as Western Europe
and North America. Then they modified and changed the practices to fit with the operation of
large Chinese transnational organizations. And then western policies and practices with the
added Chinese characteristics are now being transferred to less developed regions where
Chinese MNCs invest and do business, with some further modifications based on the host
conditions. In other words, a relatively gradual process of IHRM evolution is displaced by a
more rapid assimilation of change in western practice and its transfer to MNCs contexts
through operation and activity in and outside China, for example, in the Africa.
There are two main reasons why Africa has been chosen by many Chinese MNCs to establish
their subsidiaries. As China has experienced remarkable economic growth in the past few
decades, the demands for natural resources and investment in them for Chinese
industrialization have also increased rapidly. That is one of the most important drivers
facilitating the increased cooperation between China and Africa (Zafar, 2007). In order to
have access to raw materials and to find markets for their products, many Chinese MNCs
have begun to develop or broaden their business activities in Africa. Numerous Chinese
MNCs have established an operational network of business, infrastructure, trade, aid and
investment in nearly fifty African countries. The areas of their interest have expanded from
natural resources to manufacturing, telecommunications, banking, clothing and service
industry (Zafar, 2007). According to the data from Chinese government, China’s Foreign
Direct Investment (FDI) in Africa has increased by an average of 46% per year over the past
decade. The stock of foreign investment reached $4.46 billion in 2007 starting from only $56
million in 1996. In 2009, the growth rate of Chinese FDI into Africa exceeded 81% in the
comparison with the same period in 2008 (Renard, 2011). The closer diplomatic relationships
between China and African countries have also facilitated the development of Chinese MNCs
in Africa (Zafar, 2007). It would seem, therefore, that investigation is needed to explore the
nature of IHRM transfer from Chinese MNCs to Africa. Considering the poverty of research
in this field, the thesis focuses on the practices of IHRM in Chinese MNCs in Africa, and
leads to a proposal for an integrative model of IHRM on the basis of research on the
headquarters in China and African subsidiaries of Chinese MNCs. Figure 1 below
demonstrates the process of IHRM transfer through Chinese MNCs from the North America
and Europe to Africa.
5
Figure 1: The process of IHRM transfer through Chinese MNCs
IHRM diffusion from
developed countries to
China
Advanced experience in academic research of
IHRM in developed countries such as in Western
Europe and North America
IHRM
Diffuse
-on
from
the
west to
Africa
IHRM reverse
diffusion from
MNCs in China to
western countries
IHRM
reverse
diffusion
from
western
or
Chinese
MNCs in
Africa to
the west
IHRM reverse
diffusion from
Chinese MNCs
in Africa to
Chinese
headquarters
The policies and practices of
IHRM
are
modified
and
developed
with
Chinese
characteristics in Chinese MNCs
MNCs
IHRM diffusion from MNCs
with Chinese characteristics
to Africa
The policies and practices of IHRM in Chinese
MNCs are transferred to subsidiaries in less
developed areas such as Africa considering
local conditions
Source: compiled by the author, based on Zhang & Edwards (2007)
6
IHRM in Chinese MNCs in Africa:
As a host country for international business, China has attracted the attention across the
world. By September 2012, China's exports reached 186.35 billion U.S. dollars with an
increase rate of 9.9 percent and the amount of the foreign trade expanded to 2.84 trillion U.S.
dollars, up 6.3 percent (Xinhua, 2012). With regard to Africa, McKinsey Global Institute
(2013) points out that world investors cannot afford to ignore the value and potential of
Africa as it boasts the highest rate of return on foreign investment than any other developing
region. During this process, the investment from China to Africa increased rapidly. China has
become the most important trade partner for Africa in 2009. With 85.319 billion U.S. dollars
exports from China to Africa, the linkage between the two areas has become closer than ever
before (IOSC, 2013). With the increase of consumption capacity in African market, the
diversity of China's exports to Africa has also been improved. For instance, the export
percentage of mechanical and electronic products from China to Africa increased to 45.9% in
2002 (IOSC, 2013).
Since Chinese MNCs have expanded their operation and established subsidiaries in Africa,
priority is given to their IHRM practices which are closely related to the organizational
performance and competitiveness (Edwards & Rees, 2011). As for the development of IHRM
in Chinese MNCs, it is divided into four periods (Gu, 2009). The first period is from the
establishment of People's Republic of China in 1949 to 1980s. During that time, only a few
Chinese enterprises entered the African market with the human resources mainly assigned by
the Chinese government (Zafar, 2007). In the second period from 1980s to mid-1990s, some
large state-owned enterprises (SOEs) from China began to invest into Africa under the
support of diplomatic agenda, but the key positions and many skilled employees are still
appointed by the government. Then, between mid-1990s and 2000, SOEs primarily focused
on the investment in natural resources, strategic asset and infrastructure with staff mainly
coming from China. Besides, some Chinese MNCs from the private sector started to establish
business in Africa (Gu, 2009). But the HRM in those companies are mainly the Chinese way
isolated from the local condition. The final stage is from 2000 until now, with the expansion
of both Chinese SOEs and MNCs in the private sector. In the new era, some trade zones and
industry parks are set up in many African countries such as the Zambia-China economic and
trade cooperation zone, the Ethiopia Eastern Industrial Park and the Nigeria Ogun-
7
Guangdong Free Trade Zone (Brautigam & Tang, 2011). Under this condition, the
cooperation between Chinese MNCs and local companies has been improved with more
flexible practices and policies of IHRM than before (Horwitz & Smith, 1998). Table 1 below
briefly summarizes the development of IHRM in Chinese MNCs in Africa.
Table 1: The development of IHRM in Chinese MNCs in Africa
Periods
Type of Chinese MNCs in Africa
1949-1980s
Only a few Chinese enterprises Mainly assigned and arranged by
under the aid projects of the the Chinese government
government
1980s-mid 1990s
Some large Chinese state-owned Key positions and many skilled
enterprises
(SOEs)
diplomatic agenda
with
Features of IHRM in Chinese
MNCs in Africa
the employees are still appointed by the
government
Mid 1990s-2000
SOEs expanded their business in The policies and practices of IHRM
Africa and some Chinese MNCs in Chinese MNCs tend to be
from the private sector started to isolated from local condition
establish business in Africa
2000 until now
The expansion of both Chinese With the establishment of some
trade zones and industry parks, the
SOEs and MNCs in the private
IHRM in Chinese MNCs is
connected with the local condition
sector
Source: adapted from Gu (2009)
From the above exploration, it is clear that with the development of Chinese MNCs in Africa,
the practices of IHRM in those organizations have also changed in accordance with the
condition. However, with different economic, institutional and cultural contexts between
China and Africa, challenges have emerged as Chinese MNCs are required to ensure their
advantages and competitiveness in their global operation. As Chinese MNCs intend to export
the IHRM practices with Chinese characteristics to Africa, they may attempt to pursue the
standardization of IHRM in their global operation (Horwitz et al., 2002). To ensure the
effectiveness and efficiency in operation, Chinese MNCs also take into account the unique
contexts in host countries (Caligiuri & Stroh, 1994). According to Milliman et al. (1991),
Chinese MNCs in Africa have to face the challenges in IHRM to cope with the overall
8
standardisation of organisations and to overcome the economic, institutional and cultural
constraints in host countries. In other words, the main challenge of Chinese MNCs in Africa
is to rectify the imbalance between organizational standardization and subsidiaries'
adaptation. With the low labour costs and the dominant role of agriculture sector in Africa,
other factors include political instability and corruption, poor infrastructure and low
purchasing power deteriorate the situation (Kamoche, 2011). Figure 2 briefly summarizes the
main challenges of IHRM faced when trying to rectify the imbalance between organizational
standardization and subsidiaries' adaptation Chinese MNCs in Africa.
Figure 2: The main challenges of IHRM in Chinese MNCs in Africa
Rectify the imbalance between
organizational standardization and
subsidiaries' adaptation
Poor infrastructure
Political
instability
and
corruption
Low purchasing
power
Source: adapted from Kamoche (2011)
Performance management of IHRM in Chinese MNCs in Africa
With the characteristics of Confucius culture and Marxist institution as the software and
hardware factors respectively, Chinese MNCs in Africa tend to place emphasis on a
collectivist and relationship-oriented system of performance management. Especially after
the implementation of 'Open Door' policy in 1978, Chinese MNCs have widely applied
performance management of IHRM practices in both private and public sectors (Harzing &
Pinnington, 2011). For instance, modern performance appraisal measures have been utilized
in many Chinese SOEs to improve their competitiveness and productivity. Recently, Cooke
9
(2008) has pointed out several main characteristics of performance management in Chinese
MNCs, which is demonstrated in Table 3.
Table 3: Main characteristics of performance management in Chinese MNCs
Characteristics of performance management Content of the characteristic of performance
management
in Chinese MNCs
Deeply embedded in the Chinese cultural a. The respect for age and seniority
background
b. The focus on guanxi, face and harmony
Strongly influenced
perspective
by
the
teamwork Advocate the group-based evaluations and
feedback rather than individual evaluations and
feedback
More emphasis on behaviours and traits
Process-oriented rather than outcome-oriented
Regarding performance management as an The lack of utility and feedback of performance
administrative formality
review to appraisers and appraisees so they may
not be serious enough (Chou, 2005)
High levels of subjectivity in the assessment a. Some employees tend to be rated and
implemented by managers
rewarded favourably
b. Managers have pressure to evaluate
performance and distribute rewards as it may
reduce the harmony in organizations
Source: adapted from Cooke (2008)
In Africa, Chinese MNCs are required to take into account the social, cultural and
institutional factors when implementing performance management of IHRM. On one hand,
with the development of globalization and the influence of original country, performance
management in Chinese MNCs tend to be standardized and towards that of Chinese
characteristics. On the other hand, as workers are likely to form different attitudes and
behaviours in practice, contextual factors may influence the implementation of performance
management in Chinese MNCs in Africa (Chiang & Birtch, 2007). As cooperation between
China and African countries increases recently, the transfer of performance management of
IHRM from Chinese MNCs to African subsidiaries has experienced rapid growth (Zafar,
2007). Operating in a different context, Chinese MNCs in Africa are required to design and
implement performance management in accordance with the local condition and factors
(Chiang & Birtch, 2007). In details, those include culture, institution, business strategy and
10
organizational structure respectively.
Firstly, to ensure the effectiveness of performance management in Chinese MNCs in Africa,
importance should be attached to the role of culture. According to Bailey and Fletcher (2006),
the application of performance management has great implications of culture. For instance,
the effectiveness of 360 degree feedback in performance management differs across the
world. In Ireland, it can improve performance with a low power distance of culture. While, in
China, it may result in the decline of performance in order to pursue organizational harmony
and balance (Brutus et al., 2001). With the consideration of local culture, managers in
subsidiaries will utilize performance management without referring to the MNCs' policies. In
the same way, employees will reflect to policies of performance management on the basis of
their cultural orientation (Mamman, et al., 2009). With regard to the influence of colonial
history in Africa, performance management there is characterized by bureaucratic and ethnic
features. Further, African masculine culture with collectivism and high power distance also
influence performance management in Chinese MNCs. For instance, those companies may
prefer the group-oriented performance appraisal systems. In addition, Kamoche (2000) has
pointed out that African countries tend to attach great importance to the issues of family and
community. In other words, the African culture advocates altruism, benevolence, kindness
and generosity. With the need of belonging and family relationship, it is necessary to take into
account the well-being of others (House et al., 2004). Thus, in the practice of performance
management, nepotism is a characteristic of Chinese MNCs in Africa as managers are more
likely to formulate policies which can bring benefits to themselves and family members of
subsidiary host-country nationals (HCNs) (Mamman et al., 2009).
Secondly, institutional factors also exert influence of performance management in Chinese
MNCs in Africa. The state and government of African countries has implement polices to
attract cooperation with Chinese MNCs based on the strategic partnership, political equality,
mutual trust and win-win cooperation (PRCMFA, 2006). However, considering the underdeveloped situation of Africa where the main concern is the basic need of life, employees are
likely to attach great importance to monetary reward and career development (Graham &
Leung, 1987; Debrah, 2004). In other words, staffs in Africa pay more attention to the level
of salary, personal growth and autonomy. Sometimes, money is regarded as the first career
objectives of employees in MNCs in Africa (Kubo & Saka, 2002). From this point of view,
performance management in Chinese MNCs in Africa is closely linked with employee
11
development and the level of salary. With performance-based reward systems, employees in
Africa are stimulated to make effort to achieve the organizational goals (Baruch et al., 2004).
Next, with regard to the law and regulation in African countries, fairness and corporate social
responsibility (CSR) is also required to be taken into account especially for Chinese MNCs
operating in the unfamiliar environment (Mamman et al., 2009). In the practice of
performance management, the appraisal systems of parent-country nationals (PCNs), hostcountry nationals (HCNs) and third-country nationals (TCNs) are connected to the equality
issue. The policy of employee involvement in the evaluation process is also a positive method
for Chinese MNCs to pursue organizational goals (Roberts, 1994). However, with insufficient
and imperfect law and regulation systems, managers are reluctant to consider the opinions
and fairness of employees (Mekonan & Mamman, 2003). What is worse, performance
management may be regarded as a symbol to keep in line with the institutional demand
instead of improving the performance (Abrahamson, 1991). Thus, to ensure the rights of
employees in MNCs in Africa, attention is required to pay to the role of other international
organizations such as trade union and NGOs. For instance, International Labour Organization
(ILO) has purposed the 'Decent Work' which emphasizes the improvement of rights in
workplace, social protection and dialogue (ILO, 1999). To work with ILO, states and MNCs
in developing countries are able to promote labour standards with technical assistance and
improvement policy (Rubery & Grimshaw, 2003). In Africa, those types of cooperation are
closely related to the human rights issues which focus on the payment standard of living
wage. It can prevent the negative competition among under-developed countries with
growing inequality and declining standard in the payment system (Chan & Ross, 2003).
Next, the performance management of IHRM in Chinese MNCs in Africa is combined with
their business strategies of the organizations which export IHRM practices from China to
Africa. In this way, subsidiaries tend to implement business strategies to differentiate their
products or services in accordance with the local market (Porter, 1980). To facilitate the
operation, the practices and policies of performance management are also modified in
accordance with the business strategy of organizations. On one hand, the ownership of
Chinese MNCs makes their performance management different from each other. For
example, Chinese MNCs from the public sector may focus more on the relationship between
line managers and their subsidiaries than the private sector. That is crucial to the effectiveness
of performance management (Ovadje & Ankomah, 2001). On the other hand, the sectors of
knowledge-intensive or labour-intensive also impose influence on the practices and policies
12
of performance management. In other words, various targets of market-seeking or resource
seeking have effect on the transfer of performance management from Chinese headquarters to
African subsidiaries (Cooke, 2012a). Thus, it is clear that business strategy links the
performance management in MNCs with organizational competitiveness as different business
strategies of MNCs and their subsidiaries exert influence on the practices and policies of
performance management.
The final factor influences performance management in Chinese MNCs in Africa is the
organizational structures. The organizational structures mainly incorporate multidomestic
structure, global structure, international structure and transnational structure (Bartlett &
Ghoshal, 1989). With the application of different structures, the relationship between country
of origin, host country and international integration differs from each other. First of all, the
performance management in Chinese MNCs in Africa is influenced by the Confucius style of
plan, acting, monitoring and review as the organizations are embedded in the country of
origin (Harzing & Pinnington, 2011). For instance, the majority of senior managerial
positions are occupied by the parent-country nationals (PCNs) in Chinese MNCs in Africa.
Secondly, the contextual situation in the host country interacts with the role of country of
origin. Considering the transfer of IHRM practices from Chinese MNCs into Africa, the
performance management should be kept in line with the local regulation and ideology. For
instance, as the African attach importance to the welfare and relationship of the family
members, nepotism is an issue to consider when implementing policies in performance
management (Mamman et al., 2009). Last but not least, the international integration is also
related to the organizational structures. From this point of view, the similarity between the
country of origin and host country plays a significant role. Specifically, both the Chinese and
African societies place emphasis on the concept of relationship (Guanxi) and the maintaining
of face (Mianzi). The system of allocation rewards in African subsidiaries can learn from
headquarters in China as they tend to implement ethnocentric polices in performance
management and fear losing face in the evaluation process (Luo, 1997; Bozionelos & Wang,
2007).
Summarizing, to explore performance management as a proxy for IHRM in Chinese MNCs
in Africa, it is necessary to take into the factors including culture, institution, business
strategies of MNCs and organizational structures. Considering the influential factors and
other related issues, the Model below illustrates an integrative theory of IHRM in Chinese
13
MNCs in Africa with the application of performance management. It indicates that the
development of globalisation has facilitated the emergence of multinational corporations
(MNCs). To pursue their strategic goals of local responsiveness, efficiency and integration,
MNCs are required to take into account the significance of international human resource
management (IHRM) in the process of forward and reverse diffusion. On one hand, some
MNCs bring the developed technique of management from the country of origin to foreign
subsidiaries. On the other hand, some MNCs absorb the advanced skills and experience of
developed subsidiaries and transfer them to the headquarters. With the increase of Chinese
MNCs in Africa, the success of their operation may be closely related to their successful
practice of IHRM. As a proxy for this practice, performance management is chosen to be
explored in this study in the context of external and internal factors which influence IHRM in
Chinese MNCs in Africa. More specifically, the external contextual factors include institution
and culture, as the hardware and software factors, respectively. The institutional factor is
explored with reference to the unique Chinese characteristics while the cultural factor is also
understood to be influenced by the Confucian values. The internal contextual factors include
business strategies and operational structures in organizations. Specifically, they refer to the
ownership such as state-owned or private, business sectors such as hi-tech or manufacturing
and the relationship between headquarter and subsidiaries of Chinese MNCs in Africa.
14
Model: The integrative model of IHRM in Chinese MNCs in Africa considering influential
factors and other related issues
Three orientations of
IHRM
The forward and
reverse diffusion of
Globalisation
Adaptive
IHRM practices
Exportive
in MNCs
Integrative
The emergence of Multinational
Aim for appropriate
practice of IHRM in
Chinese MNCs in
Africa:
To balance between
standardisation and
adaptation
Three orientation of
IHRM
Strategic goals of
IHRM in Chinese
MNCs in Africa:
Corporations (MNCs)
The significant role of international
human resource management
Local responsiveness
Efficiency
(IHRM) in Chinese MNCs in Africa
Integration
Adaptive
External factors influence IHRM
Exportive
in Chinese MNCs in Africa
Internal factors influence IHRM in
Chinese MNCs in Africa
Integrative
'Hardware' factors
influence IHRM in
Chinese MNCs:
'Software' factors
influence IHRM in
Chinese MNCs:
The institutional factors The Confucius value from
from the perspective of the perspective of cultural
Chinese characteristics dimensions and contexts
The business
strategies of
Chinese MNCs in
Africa
The Performance Management of IHRM Practice in
Chinese MNCs in Africa
Source: compiled by the author based on Schuler et al., (1993).
15
The operational
structures of
Chinese
MNCs in Africa
Research Methodology: Triangulation—Mixed Methods
According to Denzin (1978), triangulation is the convergence of methodologies in the
research of the same phenomenon. It is a vehicle through which several different methods are
found to be congruent and to yield comparable data. Recently, Hammersley (1996, pp. 167)
has pointed out that triangulation refers to
the application of quantitative method to facilitate and corroborate qualitative research
findings or vice versa
In other words, triangulation incorporates the application of multiple methods to explore the
research aim and objectives. On one hand, through triangulation, qualitative method is able to
facilitate quantitative one. It provides hypotheses which can be examined with a quantitative
research strategy. It also gives full scope of the role of data measurement as qualitative
method can implement structured interviews and self-completion questionnaires (Bryman,
2004). On the other hand, quantitative method can also improve the qualitative one. For
instance, with the implementation of quantitative method, it is easier to select people for
interview in the qualitative research. In addition, it can develop the interview questions from
general to specific with huge data analysis and questionnaire distribution (Denzin, 1978).
There are several reasons why triangulation method is chosen to be applied in this research.
Firstly, it can develop a more complete, holistic and contextual exploration of the case. With
the application of multiple methodologies, the research is more likely to reveal some unique
factors which may be neglected by a single method. Secondly, the triangulation method can
improve the confidence of the research. In other words, it tends to achieve confident
interpretations, developing hypotheses and context-related findings (Jick, 1979). The final
reason is that triangulation method can facilitate a better integration between the theories and
case studies. It is possible to connect different theories with the common case and fill in the
gaps between theories and cases (Marris, 1975).
Specifically, triangulation method in this research will be conducted through exploring the
performance management of IHRM in the African subsidiary of a Chinese MNC. Firstly, with
the data collected from questionnaires distributed to staff and documents about the Chinese
16
MNC, some key questions will be developed to prepare for the semi-structured interview.
Secondly, in-depth interview to employees and focus groups will be implemented with
specific questions to explore the factors of Model Three which has been proposed in Chapter
Two. Furthermore, the research aim and objectives in Chapter One will direct the process of
the interview. Finally, considering the practical implication of the research, performance
management of IHRM in the subsidiary is chosen in order to link theories with practices.
Thus, the diffusion of performance management from the Chinese multinational corporation
to African context is able to be reassessed in a more comprehensive way. Figure 3 below
briefly summarizes how the triangulation method is applied in this research.
Figure 3: How triangulation applied in this research is
Questionnaires
and documents
through a pilot
research
To develop a
broad picture of
the research
method
Semi-structured
interviews to
explore
performance
management of
IHRM in the
African subsidiary
of the Chinese
MNC
Focus groups to
further uncover the
factors which
influence
performance
management of
IHRM in African
subsidiary of the
Chinese MNCs
Source: compiled by the author
17
An integrative model to
explore performance
management of IHRM from
Chinese MNCs to African
subsidiaries
Summary:
With the integrative model and triangulation as the research methodology, the paper gives
explanation and discussion which aims to explore the practices of IHRM in Chinese MNCs in
Africa, considering the specific factors that influence the balance of IHRM and related issues.
To explore the academic gap, the paper
 investigates the main issues and contextual factors of IHRM in MNCs in the
globalisation context
 interrogates the main issues and contextual factors which shape IHRM policies and
practices in Chinese MNCs in their PRC headquarters
 interrogates the main issues and contextual factors which shape IHRM policies and
practices in Chinese MNCs in their African subsidiaries from an integrative
perspective
 explores IHRM policies and practices transfer from Chinese MNCs headquarters to
African subsidiaries with reference to specific practice of performance management
As the former research has tended to place emphasis on IHRM and MNCs in Western
context, the paper tries to shed new light on IHRM to investigate the gaps of Chinese MNCs
in Africa.
18
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