Globally sustainable management: a dynamic model of IHRM learning and control

Purpose – After a thorough literature review on multinational learning, it is apparent organizations “learn” when they capitalize on expatriate management, a “learning strategy” (international work teams, employee involvement and other human resource policies), technology transfer and political environment and cross‐cultural adaptation. This suggests learning is possible when control mechanisms are relaxed or reduced, resulting in an ambiguous relationship between multinational learning and control. There has been no research on the relationship between learning and control largely due to this assumption of ambiguity and this paper attempts to overcome this gap by presenting a holistic approach to multinational learning and control. This paper posits that focusing on optimizing learning and control through flexible IHRM policies is a globally sustainable approach to MNE management. The purpose of this paper is to present a conceptual framework designed to address two major issues in international management: organizational learning and managerial control. Design/methodology approach – Multinational organizations are often faced with a perceived ambiguous choice of promoting learning throughout the organization in a way that facilitates local adaptation of corporate knowledge, while maintaining control over subsidiary corporate culture (control). This paper presents a new model designed to facilitate a balanced approach to learning and control in the multinational enterprise. Findings – The proposed model is one of sustainable management focusing on dynamic IHRM learning and control. The pillars of the proposed model thus include: National Culture, HRM policies and practices and IHRM strategies of the parent MNE; National Culture, locally developed HRM policies and practices, and transferred IHRM policies and practices in the affiliate unit; sharing of learning oriented IHRM policies and/or among MNE affiliates only; and global IHRM control and learning IHRM policies and practices (uniform across MNE units). Originality/value – While the literature in this realm addresses these issues separately, managers are faced with a delicate balancing act of promoting learning among multinational units while maintaining corporate control over key aspects of the company's core competencies.