THE STRATEGIC ROLE OF THE HR DEPARTMENT IN MNC SUBSIDIARIES IN CHINA BETWEEN 1999 AND 2006
Jennie Sumelius, Swedish School of Economics and Business Administration, Finland
Ingmar Björkman, Professor, Swedish School of Economics and Business Administration, Finland
Adam Smale, D.Sc., University of Vaasa, Finland

Abstract
In this study we examine factors that influence the strategic role of the HR department in Western MNC subsidiaries in China between 1999 and 2006. Despite of the acknowledged importance of the HR department in connection with the development of capabilities and the coordination of practices within MNCs, research on the role of the HR department in MNCs remains scarce. The current study is based on two sets of quantitative questionnaire data collected in 142 subsidiaries in 1999 and 2006. The results indicate that the role of the HR department is more strategic in 2006 than it was in 1999. Furthermore, subsidiary size and the size of the HR department were positively associated with the strategic role of the HR department.
Keywords: role of the HR department, MNC subsidiary, China