Abstract

This paper examines the factors that encourage small entrepreneurial firms in emerging markets to invest in HRM practices as they internationalize. We show that when firms internationalize into either more economically developed countries or those countries with stronger employment regulations, they invest more in HRM practices. Moreover, firms led by CEOs with general management experience, who are concerned about meeting international standards, and who have built more extensive international partnerships will also invest more in HRM practices. Our findings, which are based on a sample of firms from India, China, and South Africa, suggest that internationalization of entrepreneurial firms into global markets spurs the development of HRM practices in emerging markets.

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