HR PRACTICES AND INSTITUTIONAL ISOMORPHISM AMONG MULTINATIONAL AND LOCAL COMPANIES IN INDONESIA
Neil Semuel Rupidara, Professor, Macquarie University, Sydney, Australia
Peter McGraw, Professor, Macquarie University, Sydney, Australia

Abstract
This paper discusses and analyses the factors that influence human resource practices among foreign multinational and select local companies in Indonesia.  The influences are in discussed using a conceptual framework developed from within institutional theory. This paper tries to portray the processes whereby MNCs, and in particular local HR managers, interpret pressures within complex and overlapping multi-institutional settings.  The paper also comments on the role that MNCs play in the diffusion of HR knowledge and practices into local institutional environment. Empirical evidence confirms institutional isomorphism among MNCs and local firms.
Keywords: institutional theory, multinational companies, human resouce practices, Indonesia