HRM practices of MNEs and domestic firms in Ghana: divergence or convergence?
| Published date | 05 February 2018 |
| DOI | https://doi.org/10.1108/PR-05-2016-0116 |
| Pages | 2-21 |
| Date | 05 February 2018 |
| Author | Desmond Tutu Ayentimi,John Burgess,Kerry Brown |
| Subject Matter | HR & organizational behaviour,Global HRM |
HRM practices of MNEs and
domestic firms in Ghana:
divergence or convergence?
Desmond Tutu Ayentimi and John Burgess
School of Management, Curtin University, Perth, Australia, and
Kerry Brown
Faculty of Business and Law, Edith Cowan University, Joondalup, Australia
Abstract
Purpose –The purpose of this paper is to adopt the convergence-divergence perspective to examine the
extent of similarities and differences in human resource management practices between multinational
enterprise subsidiaries and local firms in Ghana.
Design/methodology/approach –This paper draws from multiple case study evidence using in-depth
face-to-face interviews and document analysis. The data were analyzed in four stages using both thematic
analysis and cross-case analysis techniques.
Findings –The authors found both convergence and divergence, however, the evidence points to more
convergence and direction toward convergence between MNEs and local firms’HRM practices.
Research limitations/implications –Even though there was evidence of cultural embeddedness within
local firms in the adoption of certain HRM practices, the influence of national culture on HRM practice
convergence between MNEs and local firms has been limited. Thus, the convergence-divergence debate
through the lens of national culture may need to be re-examined.
Practical implications –The evidence of convergence and direction toward convergence tendencies within
the context can be argued to be less underpinned by local isomorphism limited host-country influence.
Practically, there is something to learn from indigenous Ghanaian organizations that can contribute to
HRM advancement, the Ghanaian concept of annual durbars, annual or semi-annual gatherings to take
stock of past activities and to award hard working staff, could provide the platform to strengthen the
employer-employee relationship at the firm level.
Originality/value –This study fillsan important contextual gap (a less developedcountry’s context) w ithin
the convergence-divergencedebate and contributesto informing new knowledge ofthe convergence-divergence
debate, which pointsto more convergence and direction toward convergence between MNEsand local firms’
HRM practices.
Keywords Qualitative, Developing countries, Human resource management practices,
Multinational corporations (MNC)
Paper type Research paper
Introduction
This paper examines HRM practices between MNE subsidiaries and domestic firms within a
less developed country’s context. Although there has been extensive literature on the
convergence-divergence debate in HRM domain, the focus on Ghana specifically and Africa
generally is interesting but yet to receive much research attention:
Conceptually, Africa is not a dream but in many ways, HRM in Africa could be a dreamlike
experience, the sheer complexity and diversity found there can make the HRM process one of the
more vexing decisions that management may have to undertake when doing business in Africa”.
(Harvey, 2002, p. 1119)
HRM in Africa and Ghana to be precise has been influenced by four major factors,
colonization, decolonization, cultural diversity and economic development (Harvey, 2002;
Kamoche, 2011; Debrah, 2013). The traditional approach to the management of human
resources through an emphasis on bureaucratic and administrative procedures coupled with
its numerous cultural beliefs, values and kinship systems may be a source of concern for
Personnel Review
Vol. 47 No. 1, 2018
pp. 2-21
© Emerald PublishingLimited
0048-3486
DOI 10.1108/PR-05-2016-0116
Received 22 May 2016
Revised 28 February 2017
18 May 2017
Accepted 30 May 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0048-3486.htm
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PR
47,1
strategic HRM advancement in Ghana (Nukunya,2003; Debrah, 2000). Although, progressive
HRM practices linked to strategic HRM are generally found in MNE subsidiaries and other
foreign organizations (Hansen-Thompson, 2011; Debrah, 2013). In Ghana, the traditional
administrative procedure of the HRM function is still evident in public and private sector
institutions (Debrah, 2013).
The British colonial rule and the arrival of Europeanmissionaries and traders had a major
influence in HRM practice configuration through the introduction of Western approaches to
people managementin West Africa during the pre-colonial and post-colonial era (Ovadje and
Ankomah, 2013; Akinnusi, 1991). It has been argued that administrative systems and
personnel functions existed long ago but were notproperly structured and formalized before
the importation of modern organizational systems to Africa (Kamoche, 2011; Debrah, 2013;
Akinnusi, 1991). These new HRM systems were based on bureaucratic principles by the
British and Europeans linked to organizing an empire and colonial administration
(Debrah, 2013; Akinnusi, 1991). HRM practices in Ghana haveundergone substantial change
during the emergence of colonialism and its increased commercialization of the traditional
Ghanaian economy (Debrah, 2013). This change saw the need for the recruitment of local
employees to work as clerks, interpreters, laborers and messengers for the British and
European traders, which subsequently gave rise to the development of the personnel
management function (Debrah, 2013). During British rule, traditional rulers also recruited
laborers for the colonial administration as they were part of the colonial administration
system through the indirect rule system (Obeng-Fosu, 1991; Debrah, 2013). Ghana’s political
independence in March, 1957 witnessed a swift domestication of the local economy where
expatriate employees were replaced with local workers, which then necessitated the need to
employ andtrain many local workers. Thisled to the advancement of the HRMfunction in the
1960s (Debrah,2013). Interestingly,the absence of trained and experiencedHRM professionals
led to the recruitment of other discipline graduates as HR managers. As a result, the HRM
function wasineffective due to inexperienceand the lack of professionalswith HRM skills and
capabilities (Debrah, 2000, 2013) and subsequently undermined the advancement of strategic
HRM practices in Ghana.In recent times, HRM in Ghana has assumed a strategic position in
some sectors like the oil and gas and the banking sectors, which are mostly dominated by
foreign investments. Hansen-Thompson (2011) asserted that it is in the financial sector that
modern HRM practices are likely to be noticeable due to the needfor financial institutions to
attract and retain highly qualified and talented employees. The HRM function has become a
critical successfactor for survival as a result of intense competition from foreign institutions
and MNEs. However, despite the greater importance of the HRM function in recent times in
some Ghanaian organizations, the HRmanager is yet to assume a strategicmanagement role
at the top management level.
Importantly, the “familiness”of colonization, decolonization, cultural diversity,
economic development trajectory and its underpinning implication in shaping HRM
advancement in Ghana makes it contextually different from other underdeveloped or
developing economies. Likewise, the paper evokes an important contextual setting within
the cultural distance (Kogut and Singh, 1988) and institutional distance (Kostova, 1997)
literature to contribute to the convergence-divergence debate. Fundamentally,
the application of context specifics or “context effects”in the conceptualization of HRM
theories has become strategically indispensable to advancing the HRM domain (Whetten,
2009). It has become relevant for scholars in the field of HRM and organizational behavior
to account for contextual effects as a way of advancing the boundaries of existing theories
and discovering new theories (Minbaeva, 2016; Whetten, 2009). Indeed, “contextual
effects”provide a broader perspective to understanding organizational and management
issues (Whetten, 2009; Tsui, 2007). The recognition of “contextual effects”as an important
lens in broadening the understanding of management phenomena, especially within the
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HRM practices
of MNEs and
domestic firms
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