HUMAN RESOURCE MANAGEMENT – THE KEY TO SUCCESS IN EMERGING MARKETS? - THE CASE OF LINDEX

Abstract

Globalisation and increased competition has forced MNCs to cut costs, increase efficiency and reach competitive advantage by moving out operations and functions to emerging markets. China is a good example of an emerging market that recently has received growing attention. However, in order for a MNC to be successful, the need to handle people from different cultures becomes a vital issue to grasp.

Consequently, the area of Human Resource Management (HRM) and International Human Resource Management (IHRM), emphasising a company’s need to look after its human resources, develop them, motivate them and make them grow in order to be efficient becomes vital. The topic of IHRM has received great academic attention, and is said to be critical for the success of firms operating on the global arena. Arguable, effective IHRM is said to make the difference between survival and extinction. Additionally, national culture as an influencer upon the area of HRM may become essential to understand.

We address the area of how Swedish MNCs should manage the area of HRM when operating in emerging markets. China serves as an example of an emerging market and Lindex, the assigner, serves as an example of a Swedish MNC. Additionally, IKEA and Ericsson are used as reference companies in order to gain a higher level of understanding.

The aim is to increase the knowledge within the area of HRM and IHRM and provide valuable recommendations to Lindex.