eHRM adoption in emerging economies: The case of subsidiaries of multinational corporations in Indonesia

AuthorHuub Ruël,Dustin Schilling,Tanya Bondarouk
Date01 June 2016
Published date01 June 2016
DOIhttp://doi.org/10.1002/cjas.1376
eHRM adoption in emerging economies: The case
of subsidiaries of multinational corporations in
Indonesia
Tanya Bondarouk*
University of Twente
Dustin Schilling
University of Twente
Huub Ruël
Windesheim University of Applied Sciences
Abstract
Electronic HRM (eHRM) is assumed to strengthen the posi-
tion of HRM as a business partner by promising strategic
benefits. Empirical support for this assumption, however,
mostly comes from studies conducted in developed econo-
mies. Yet eHRM adoption in the emerging economy context
remains poorly understood as is how eHRM can result in
strategic benefits. We argue that the difference between an
emerging economy compared to that of a developed
economy affects the adoption of eHRM in multinational
corporation (MNC) subsidiaries. In order to investigate
which extrinsic factors of a firm in an emerging economy
context play a role in the adoption of eHRM, we conducted
semistructured interviews in 11 subsidiaries in Indonesia.
We found that headquartersinfluence and the available
resources have a strong influence on eHRM adoption in In-
donesia. Copyright © 2016 ASAC. Published by John Wiley
& Sons, Ltd.
Keywords: electronic human resource management, diffu-
sion of innovations, eHRM adoption, multinational compa-
nies, Indonesia, qualitative research
Résumé
Selon une hypothèse bien connue, la gestion électronique des
ressources humaines (GERH) affermit le statut de la GRH en
tant que partenaire daffaires, en promettant des avantages
stratégiques. Toutefois, cette hypothèse trouve son fondement
théorique surtout dans les études menées sur les économies
développées. Ladoption de la GERH dans le contexte des
économies émergentes et les mécanismes lui permettant de
produire des avantages stratégiques restent peu ou mal connus.
Dans cet article, nous soutenons lidée que ladoption de la
GERH dans les succursales des entreprises multinationales ne
se fait pas de la même façon selon quon a affaire à une
économie émergente ou à une économie développée. Pour dé-
terminer les facteurs extrinsèques qui, au sein dune entreprise
évoluant dans une économie émergente, influencent ladoption
de la GERH, nous avons mené des entrevues semi-structurées
auprès de onze succursales de multinationales basées en
Indonésie. Les résultats indiquent que linfluence du siège so-
cial et les ressources disponibles ont un grand impact sur
ladoption de la GERH en Indonésie. Copyright © 2016 ASAC.
Published by John Wiley & Sons, Ltd.
Mots-clés : gestion électronique des ressources humaines,
diffusion des innovations, adoption de la GERH, entreprises
multinationales, Indonésie, recherche qualitative
The pressure from globalization and the subsequent ori-
entation towards a knowledge economy continues to force
Human Resources (HR) departments to cut costs and be-
come more efficient, flexible, and customer-oriented by
using electronic Human Resource Management Systems
(eHRM) (Galanaki & Panayotopoulou, 2009). In this paper,
eHRM is considered an umbrella term covering all possible
integration mechanisms and contents between HRM and
information technologies aiming at creating value within
and across organizations for targeted employees and
management(Bondarouk & Ruël, 2009, p. 507). eHRM
allows companies to generate HR data that supports strategic
decision making, to automate and digitize routine HR tasks,
and to make HR staff focus on strategic people-management
activities, all with a view of transforming HR professionals
into strategic business partners (Bondarouk & Ruël, 2013).
*Please address correspondence to: Tanya Bondarouk, University of
Twente, Human Resource Management Department, the Netherlands.
Email: t.bondarouk@utwente.nl
Canadian Journal of Administrative Sciences
Revue canadienne des sciences de ladministration
33: 124137 (2016)
Published online 1 April 2016 in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/CJAS.1376
Can J Adm Sci
33(2), 124137 (2016)Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd. 124

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