practices and competitive advantage or firm performance (Becker and Gerhart,
1996; Paauwe and Richardson, 1997).However, while some research has sug-
gested that MNCs will gain by utilizing and integrating appropriate SHRM
strategy and practices to enhance firm performance,(e.g. Kobrin, 1994) there
remain inconclusive evidence and important questions about the nature of this
relationship (Caligiuri and Stroh, 1995; Harzing, 1999).
The revised framework developed by De Cieri and Dowling seeks to assist
in the cross-fertilization of ideas to further develop theory and empirical
research in strategic HRM in multinational firms. One of the main strengths of
the framework is that it is based on an expanded multidisciplinary base draw-
ing on new theoretical developments in HRM, strategic management (includ-
ing institutional theory and the resource-based view of the firm: Paauwe and
Boselie, 2002) in international business. As a result it has been argued that
theory building in IHRM has advanced to a second phase (Dowling et al.,
1999). Amidst all these strategic issues we encounter the corporate HR function,
which is the topic of our next section.
3 THE ROLE OF THE CORPORATE HR FUNCTION IN THE
INTERNATIONAL FIRM
Despite the considerable research on the roles and functions of the corporate
headquarters (Goold and Campbell, 1987), little attention has been paid to the
role of the corporate HR function, particularly in the context of the inter-
national firm. Earlier research on the issue of board level representation by per-
sonnel directors in the UK and Europe indicated a relatively weak position of
personnel directors in the corporate office (Winkler, 1974). British evidence
suggested that HR involvement in strategic decisions is patchy and mostly con-
cerned with implementation rather than formulation of strategy (Marginson
et al., 1988, 1993). However, a survey of European companies reported that
around half of HR managers across Europe felt they were proactively engaged
in the development of corporate strategy and that considerable variation
existed across Europe on this issue (Brewster, 1994). Some US studies suggest a
more influential role for top HR executives (Tsui and Gomez-Mejia, 1988) while
others highlight the limited influence of HR managers on corporate strategy
(Lengnick-Hall and Lengnick-Hall, 1988; Swiercz and Spencer, 1992). Similarly
while some US studies suggest that the HR function remains low in influence
relative to other major functions (Kochan et al., 1992), it has also been argued
that the status of HR managers has increased due to the perception that HR’s
contribution to business performance has increased (Ferris et al., 1991). Few,
however, would argue with the view of Hunt and Boxall (1998: 770) ‘While
there is some divergence of opinion, the dominant view in the international
74 International Human Resource Management