6. Conclusion
6.1. Theoretical and practical implications
Existing IB research has recognised EMNCs' improved competitiveness (e.g. Ramamurti and Singh, 2009; Luo and Child, 2015; Rui et al., 2016) but has not offered detailed empirical research into the ways that expatriate deployment, competency and management contributes to EMNCs' competitive advantage. By assessing detailed case-study evidence on Chinese MNCs, this paper advances the understanding of EMNC competitiveness and the contributions to it of their IHRM strategy. This is important finding for all the EMNCs in general, as EMNCs need to strategically build a competitive advantage from their evolutionary paths (Kotabe and Kothari, 2016).
In contrast to past research which implies that EMNCs only obtain limited advantage based on cheap labour and materials and acquired or imitated technology from DMNCs, our study provides evidence that EMNCs can achieve additional advantages through their deployment of expatriates selected for their competencies at managerial and operational level. By using CMNCs as examples, our research also helps to explain why, in contradiction to earlier research suggesting that CMNCs use expatriates mainly because they are cheaper and more cost-effective than managers and workers sourced elsewhere (Cooke, 2014), CMNCs are now expanding rapidly in many emerging markets in which their own expatriates are usually more expensive than local labor. Our case studies reveal the principal motivations for using expatriates, based on their unique characteristics, and the ways in which CMNCs have adapted their centralized HRM strategies to accommodate the need for more local adaptation in expatriate deployment to emerging host countries.
Our study advances IHRM research on expatriates by investigating their use from a competitive advantage perspective, identifying how EMNCs' expatriate deployment creates competitive advantage through not only saving labour cost but also improving efficiency and exploiting reconfiguration capability. It reveals how EMNCs achieve advantage through deploying unique IHRM on expatriate and using of host-country conditions to overcome home-country power and status differences. This offers insight and empirical evidence to enrich the so called “HRM with Chinese characteristics” (Warner, 1993, 1995). It also extends expatriate research on the role and function of expatriates by examining in detail their previously neglected use at operational level, and assessing ways in IHRM strategy which integrates managerial and operational expatriates more effectively promotes the competitiveness of EMNCs.