Linking international adaptation strategy, immigrant effect, and performance: The case of homeヨhost and cross-market scenario

Previous studies suggest that a proper fit between business strategy and human resource management can enhance a firm’s financial performance. Building on prior findings, this study proposes that an ideal match could occur on the choice of international adaptation strategy and immigrant effect (IE). This match would have a significant effect on firms’ financial performance. The proposed framework is examined using the experience of 121 firms operating across the Greater China region in the home–host and cross-market scenarios. It is found that the extent of adaptation strategy is positively associated with the choice of IE in both home–host and cross-market scenarios and that IE has significant direct and indirect effects on market share and profitability in the cross-market scenario. This study proposes a new strategy–human resource management-performance framework. The findings established provide some implications for researchers and managers. 2010 Elsevier Ltd. All rights reserved. * Corresponding author. Tel.: +64 9 414 0800x9503; fax: +64 9 441 8177. E-mail addresses: [email protected] (Henry F.L. Chung), [email protected] (E. Rose), [email protected] (P.-h. Huang). 1 Tel.: +64 9 414 0800x9264; fax: +64 9 441 8177. 2 Tel.: +886 7 5252000x4638; fax: +886 7 5254698.