The Impact of Foreign and Private Ownership on Bridging HR Practices and Learning Organizations

Abstract

Despite the extensive literature on learning organizations, few studies explore the mechanisms through which the human resources (HR) practices support learning organizations. Even fewer distinguish the contextual organizational characteristics that impact these practices. The paper employs the resource-based view to examine the links between HR practices and learning organizations. Focusing on a developing country context and based on a research design using open ended questions, the research sample includes 339 organizations. The findings show that the HR practices that support learning organization are more prevalent in foreign-owned (MNCs subsidiaries) and in private organizations vs. the public sector. Besides, older and larger sized organizations are more likely to employ HR practices that develop learning organizations. These organizations are differentiated by their more extensive learning & development and employee performance evaluation practices. The study brings empirical evidence for the impact of the context on the links between HR practices and learning organizations and stresses the need to enhance the collaboration between foreign-owned and domestic organizations. The results reveal the contextual characteristics that foster stronger links between HR practices and learning organizations and call for a stronger focus on HR in developing countries.