Dual Institutional Pressures: Indian MNCs' Staffing Strategies in the UK
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Abstract
This study investigates how national institutional environments shape the staffing strategies of multinational corporations (MNCs), with a specific focus on Indian MNCs operating in the United Kingdom. It examines how firms originating from institutionally informal contexts adapt their practices within the formal, compliance-driven structures of a developed economy. A qualitative, case-based methodology was employed, drawing on in-depth investigations of two Indian MNCs in the UK. Data were collected through purposive and snowball sampling, including semi-structured interviews and secondary sources, and analysed thematically. The results demonstrate that institutional formality-particularly in political regulation, labour markets, and enforcement mechanisms-exerts a decisive influence on staffing practices. Indian MNCs are compelled to adopt polycentric approaches prioritising local hiring, legal compliance, and formalised HR practices, contrasting with the informal, network-based logics that dominate in their home environment. This institutional divergence necessitates significant adaptation when operating in developed contexts. The study advances the concept of dual institutional pressures by showing how hostcountry institutional dominance can override home-country logics. Unlike traditional models that emphasise home-country control, this research highlights a reversed dynamic in which developed host contexts drive acceptance-based staffing strategies. Methodologically, the integration of primary and secondary data provides a contextsensitive contribution, while thematically derived insights enrich debates in international HRM and institutional theory.
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Abstract
This study investigates how national institutional environments shape the staffing strategies of multinational corporations (MNCs), with a specific focus on Indian MNCs operating in the United Kingdom. It examines how firms originating from institutionally informal contexts adapt their practices within the formal, compliance-driven structures of a developed economy. A qualitative, case-based methodology was employed, drawing on in-depth investigations of two Indian MNCs in the UK. Data were collected through purposive and snowball sampling, including semi-structured interviews and secondary sources, and analysed thematically. The results demonstrate that institutional formality-particularly in political regulation, labour markets, and enforcement mechanisms-exerts a decisive influence on staffing practices. Indian MNCs are compelled to adopt polycentric approaches prioritising local hiring, legal compliance, and formalised HR practices, contrasting with the informal, network-based logics that dominate in their home environment. This institutional divergence necessitates significant adaptation when operating in developed contexts. The study advances the concept of dual institutional pressures by showing how hostcountry institutional dominance can override home-country logics. Unlike traditional models that emphasise home-country control, this research highlights a reversed dynamic in which developed host contexts drive acceptance-based staffing strategies. Methodologically, the integration of primary and secondary data provides a contextsensitive contribution, while thematically derived insights enrich debates in international HRM and institutional theory.
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Md Ismil Hossain, Asma Begum, Ismil Hossain.
Dual Institutional Pressures: Indian MNCs' Staffing Strategies in the UK. Authorea. 04 September 2025.
DOI: https://doi.org/10.22541/au.175700330.06871987/v1
DOI: https://doi.org/10.22541/au.175700330.06871987/v1
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