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The Internationalization And Hr Strategies Of Emerging Market Multinational Enterprises (Em Mnes): The Case Of Thai Em Mnes

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Abstract

This paper uses a matched case comparison of two Thai multinational enterprises (MNEs) in the food industry, Charoen Pokphand (CP) and Thai Union Frozen Products (TUF), to examine how emerging market MNEs (EM MNEs) successfully overcome the liability of foreignness and the liability of origin. I also examine whether different business strategies and internationalization strategies are associated with different HR strategies for managers and professional employees in EM MNEs. CP, the world's largest producer of animal feed and shrimp among other products, is a paternalistic corporation that has focused on an exploitation business strategy; it has grown organically in the international arena from a family-owned business. It has remained almost completely vertically integrated across its supply chain. By contrast, TUF, the world's largest canned tuna producer, has focused on an exploration business strategy, has expanded globally through M&A, and has outsourced parts of its supply chain. Its HR strategies for managers and professional employees diverge as a result. CP mainly relies on internal labor market or "making" HR strategies to build a set of loyal Thai and local managers and professional employees who run their operations at headquarters and in other developing countries (south-south expansion) to overcome the two types of liabilities. By contrast, TUF, relies on external labor market or "buying" managers and professional employees from other well-recognized companies when it enters developed countries (south-north expansion) to overcome the two types of liabilities, to learn from developed country practices, and to help integrate the headquarters with the brands and / or subsidiaries. Keywords: Emerging market multinational enterprises (EM MNEs), liability of foreignness, liability of origin, internationalization strategy, human resource strategy

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2014-08-18

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Emerging market multinational enterprise; Liability of foreignness; Liability of origin

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Committee Chair

Batt, Rosemary

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Kuruvilla, Sarosh C

Degree Discipline

Industrial and Labor Relations

Degree Name

M.S., Industrial and Labor Relations

Degree Level

Master of Science

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Government Document

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dissertation or thesis

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