Between autonomy and control: Expatriate managers and strategic IHRM in SMEs

Abstract

Much research in the relatively new area of International HRM has concentrated on the problems of expatriates and expatriation issues (Scullion, 1995; Brewster & Harris, 1999). These are often related to concerns that they face in working in a foreign environment; particularly, such issues as cultural difficulties and other factors associated with assignment failure (Harzing, 1995; Forster, 1997). However, there is very little research on what expatriates do as managers in a foreign context, and how this relates to overall business and HRM strategy in the organization as a whole. This article is a small contribution to this growing debate, and examines the strategic relationship between the HRM department at national HQ and how its strategy and policy is translated by expatriates at subsidiary levels in a relatively small organization operating in 37 countries. The article focuses most particularly on the tensions between local autonomy of the organization's various overseas units and the attempts by its headquarters to achieve control. We particularly examine the role of HRM in attempting to find this balance. © 2001 John Wiley & Sons, Inc.