ABSTRACT

The fields of international business and strategic human resource management (HRM) have much in common. Both share a common central theme: the nature of the interaction between the organisation and its environment. In strategic HRM, the design of organisational strategies represents the leveraging of competitive advantages vis-à-vis critical environmental opportunities and threats (Porter, 1980). In a similar manner, international business represents the combination of comparative advantage and the market failure of intermediate goods (Dunning, 1981). In both cases, the organisation justifies its existence through an ability to differentiate itself from its environment.