The Adoption and Implementation of High-Performance Work System in Subsidiaries of Japanese Multinational Companies in Vietnam: a Qualitative Study

Authors

  • Huy Phuong TRAN National Economics University Hanoi, Vietnam
  • Thi Ngoc Quynh DINH Foreign Trade University Hanoi, Vietnam
  • The Kien NGUYEN3 VNU University of Economics and Business, Vietnam National University, Hanoi, Vietnam

DOI:

https://doi.org/10.2478/orga-2022-0003

Abstract

Background and purpose: Managing human resource in foreign subsidiaries of Multinational Companies (MNCs) has been a challenging task due to the cultural diversity. High Performance Work System (HPWS) has been adopted by headquarters of MNCs in their subsidiaries as a form of control. The current research aims to explore the adoption and implementation of HPWS in subsidiaries of Japanese MNCs in Vietnam.
Design/Methodology/Approach: A qualitative research design was conducted with data collected from semi-structured in-depth interviews with 33 managers working in 11 subsidiaries of Japanese MNC in Vietnam. Content analysis was used to analyze the data.
Results: The results suggested that although HPWS was not fully implemented in these establishments, ability enhancing, motivation enhancing and opportunity enhancing bundle of HPWS were adopted to a varying extent. In addition, HPWS was adopted as a reactive response rather than a strategic choice. Finally, cost-benefit consideration may provide explanation for the non-systematic implementation of HPWS in affiliations of Japanese MNCs in Vietnam.
Conclusion: The research provides some evidences to support the best-fit approach to HPWS adoption and implementation. Although HPWS has the potential to improve organizational performance, it must be internally aligned with the context of the organization.

Keywords: High performance work system, Adoption, Implementation, Subsidiaries, Japanese multinational companies, Vietnam

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Published

2022-02-21

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Section

Research Papers