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1. Introduction
There is little research on HRM (human resource management) practices of multinationals in emerging markets (Cappelli et al., 2011; Holtbrugge and Kreppel, 2012; Khanna and Palepu, 2006). This paper addresses this paucity in the extant literature by researching on leading Indian IT (information technology) companies established in Mexico. Global consultants identify both India and Mexico as promising emerging economies of the BRIC (Brazil, Russia, India and China) and MIST (Mexico, Indonesia, South Korea and Turkey) cluster of nations. The information technology (IT) industry in India is considered one of its blue chip and is recognized globally for its high standards (Holtbrügge and Kreppel, 2012; Cappelli et al., 2011). Global practitioners need to be cognizant of the HRM practices multinational firms should offer within the global integration (GI) and local responsiveness (LR) framework in leading emerging countries (Fan et al., 2008).
Scholars (Hamel and Prahalad, 1983; Bartlett and Ghoshal, 1989) have explored the GI-LR (global integration-local responsiveness) framework from different perspectives. Hamel and Prahalad (1983) introduced the concept of the GI-LR framework suggesting that multinationals usually provide standardized or localized products and services. Multinationals follow integration because of economies of scale, customers’ preferences and coordination of subsidiaries. On the other hand, these firms follow responsiveness, because of host country’s product/service preferences and resource advantages. Bartlett and Ghoshal (1989) broadened this classification to identify a three-step typology for different kinds of international firms. Global companies usually adopt high standardization (integration), multi-domestic companies pursue high responsiveness (localization) and transnational companies pursue both integration and localization. This research is going to explore how this framework is implemented by Indian IT firms in Mexico.
Multinationals in Mexico have pursued either local or home practices. US firms in Mexico adopted local recruitment practices such as specifying age, gender and physical attractiveness in their employment advertisements. Baker and McKensie, a US-based law firm, in Mexico, specified for male applicants as the macho culture prefers its clients being represented by men (Dickerson, and Mandell, 2006). On the other hand, Ramirez and Zapata-Cantu (2009) provide evidence of how a Danish firm adopted an integrated (global) management approach in its subsidiaries in Mexico. The company introduced online personality tests for their hiring process, which was a common practice in its...