Social networks and subsidiary HRM capabilities : The case of Nordic MNC subsidiaries in China

Purpose – This paper seeks to examine the internal and external social networks in which subsidiary HR and general managers discuss HRM issues, and to explain how their involvement in these networks influences subsidiary HRM capabilities. Design/methodology/approach – The data consist of qualitative interviews with 40 HR and general managers in 23 Nordic MNC subsidiaries in China. Findings – Managers view their networks with other MNCs as being more important for developing their HRM capabilities than contact with peers in local domestic companies. Within the MNC global and regional networks were perceived as being especially useful. Research limitations/implications – The interviews were conducted in Nordic MNC subsidiaries in Beijing and Shanghai. This could carry implications for the generalisability of the findings. Other limitations of the study are the sampling method and the interview language. MNCs establishing themselves in China should encourage involvement of HR and general managers in internal and external networks. External MNC networks appear to be particularly important sources of HRM knowledge and ideas. Internally more effort should be focused on helping HR managers improve their global networks. Originality/value – The paper provides an in‐depth description of subsidiary managers' networks, responds to calls made for more research regarding the outcomes of social capital, and addresses the gap in previous research regarding the importance of how things are done in HRM.