Multi-Level Issues in International HRM: Mean Differences, Explained Variance, and Moderated Relationships

Excerpt] While neither denying that differences in HR systems exist, nor that some of the variety of practices is due to real differences across countries, we will attempt to dissect the issue of International HRM using ideas, concepts, and models emerging from multilevel theory and research. We posit that three ideas are critical to this line of research: Mean differences in the use of HR practices across countries, the amount of variance in HR practices that is explained by countries, and the extent to which countries (or specifically culture) moderates the relationships between HR practices and outcomes. Our conclusion is that these differences may not be as large as we think they are, and may in fact be due less to differences in culture and more to differences in institutional contexts.