Oxford Handbook of Human Resource Management

24. 
    
    
    
    2. 1 The InXuence of HR Considerations on FDI Decisions
    
    
    
    

Key to any analysis of global HR strategies is FDI, investments that include
minority, joint, and majority ownership arrangements and vary by whether
they are made in ‘greenWeld’ sites or by merger and acquisition. As treated in
the economics literature, companies engaging in FDI believe they enjoy some
‘ownership’ advantage(s) over competitors operating in other countries, advan-
tages they can exploit abroad. In exploiting ownership advantages, decisions
about where and how much to invest across alternative locations are a matter
of comparative ‘location’ advantages. Included among these potential location

Environmental context

Home and foreign

market contexts

Home and foreign

socio-political contexts

MNC business

strategies

Home country

IR systems

MNC global

HR strategies

Host country

IR systems

Home operations

HR strategies

Foreign operations

HR strategies

Home-country

union strategies

Host-country

Transnational inter-union strategies union strategies

Fig. 24.1. An analytical framework

492 w i l l i a m n. c o o k e