IS INTERNATIONALIZATION ASSOCIATED WITH INVESTMENTS IN HRM? A STUDY OF ENTREPRENEURIAL FIRMS IN EMERGING MARKETS

This study investigates how internationalization is associated with investing in HRM within entrepreneurial firms from emerging markets. Using a sample of 171 firms from India, China, and South Africa, we show that when firms internationalize either into more economically developed countries or into countries with stronger employment regulations, they also invest more in HRM practices. Moreover, firms led by CEOs with general management experience and those more concerned with meeting international standards invest more in HRM practices. Finally, HRM investments are also greater in entrepreneurial firms characterized by extensive international partnerships. Overall, our findings suggest that internationalization by entrepreneurial firms in emerging markets is associated with developing HRM practices. (C) 2010 Wiley Periodicals, Inc.