Human resource localisation strategy and employer branding : A qualitative study on the association between human resource localisation strategy of MNCs and local employer branding

Human resource

localisation strategy

and employer

branding

MASTER PROJECT :Business Administration NUMBER OF CREDITS: 15

PROGRAMME OF STUDY:International Marketing AUTHOR: Xiu Jiatong

A qualitative study on the association between human

resource localisation strategy of MNCs and local

employer branding

Acknowledgement :

I would like to express my sincere appreciation to my supervisors Tommaso Minola, for his constant supports and critiques, as well as for providing me with the necessary information and guidance for my master's thesis.

I would also like to give particular thanks to all my research participants and to those who provided me with essential information that became the cornerstone of my master's thesis.

In addition, I would like to thank my parents for their wise counsel and sympathetic ear. You are always there for me.

Jönköping ,May 2021

Abstract:

Human resource localisation is considered a strategy for multinational corporations (MNCs) to hire local employees in local markets and gradually replace expatriate employees with local employees. (Fryxell et al., 2004) It has been increasingly recognized as an essential human resource management strategy of the localisation process for MNCs. To gain a local competitive advantage, it is claimed that corporations should attract and have the best local employees. (Wright et al., 1994) However, the low attraction and retention of local talent in MNCs poses a barrier to deeper human resource localisation.(Toh & Denisi, 2003)

Employer branding (EB) represents a corporation's efforts to promote a clear understanding of what makes it different and desirable as an employer, both inside and outside the corporation (Backhaus and Tikoo, 2004).In simple terms, we can understand it as the image and reputation of the employer in the eyes of internal and external employees. This paper argues that employer branding plays a vital role in solving human resource management (HRM) problems, attracting potential employees, and keeping existing employees.

With Chinese MNCs flourishing in the international arena, Chinese MNCs have become a vital force in developing the world economy. Some scholars even see MNCs from emerging economies, especially Chinese ones, as significant participants in challenging multinational corporations from developed economies (Luo & Tung, 2007).

Earlier studies lacked research on Chinese HR localisation strategies. It also lacks an explanation of how MNCs use employer branding to deepen their human resource localisation strategies in the context of globalization. Therefore, it is reasonable to explore the characteristics of Chinese MNCs' human resource localisation strategies and question how and why employer branding contributes to the value of MNCs, especially to human resource localisation strategies. Therefore, the purpose of this study is to investigate the Chinese characteristic of human resource management strategy, as long as to why and how employer branding influences MNCs' human resource localisation strategies.

branding can contribute to HR localisation strategies in the following ways. (1)Employer branding conveys a clear value proposition and makes recruitment more relevant. (2)Employer branding promotes harmonious relationships and makes it easier to manage people. (3)Employer branding enhances employees' identification with the organization and increases motivation for training. (4) EB facilitates local employees' understanding of compensation and incentives, which leads to employee retention.

Key words: Chinese MNCs, human resource localisation strategy, employer branding,human resource management,multinational corporations

Table of content:

1.2 Research problem and purpose... 3

1.3 Research Questions...5

1.4 Delimitation...6

2Theoretical Background...7

2.1 Human resource localisation...7

2.1.1Human resource management in MNCs...7

2.1.1.1 Multinational corporation(MNCs)... 7

2.1.1.2Human resource management... 7

2.1.1.3 Three fundamental models of human resource management in MNCs... 8

2.1.2 Human resource localisation in MNCs...10

2.1.2.1 Human resource localisation... 10

2.1.2.2 Human resource localisation as a strategy in MNCs... 11

2.1.3 Human resource localisation model... 11

2.1.4 Advantages and disadvantages of HR localisation strategy...13

2.1.4.1 Advantages...13

2.1.4.2 Disadvantage of HR localisation...14

2.1.5 The necessity of HR localisation...15

2.1.6 The success of human resource localisation... 17

2.1.6.1 Conditions of success...17

2.1.6.2 Measures of success... 17

2.1.7 The dilemma of human resource localisation in MNCs...18

2.1.8 Human resource localisation strategy in the context of Chinese MNCs... 19

2.1.8.1 Cultural dependency of human resource management in MNC and Chinese corporate culture...19

2.1.8.2 Country-of-origin effect and the characteristics of Chinese MNCs...22

2.2 Employer branding... 25

2.2.1Related Definition... 25

2.2.1.1Employer brand in terms of benefits...25

2.2.1.2Local employer branding...26

2.2.2Instrumental–symbolic framework...27

2.2.3Organizational identity and employer branding...28

2.3Human resource management and employer branding... 29

2.3.1 The association between EB and organizational attractiveness... 30

2.3.2The association between EB and organizational talent retention capabilities... 31

2.4 Summary of theoretical framework...33

3 Methodology... 35

3.1 Research philosophy...35

3.2 Research approach... 36

3.4 Research strategy... 38

3.5 Research process...39

3.6 Data collection procedure...40

3.7 Data analysis...42

3.8 Research Quality...43

3.9 Ethics...44

4 Empirical findings... 47

4.1 MNC profile... 47

4.2 Human resource localisation strategy and the perception of the concept in general...49

4.3 MNCs' practice of human resource localisation strategy... 54

4.3.1 Local employee recruitment... 54

4.3.2 Local employee salary... 55

4.3.3 Local employee training... 56

4.3.4 Local employee promotion ... 57

4.3.5 Local employee welfare... 57

4.4 The MNCs' employer brand and how it is perceived...58

5 Analysis... 60

5.1 What are the Chinese characteristics of human resource localisation strategy?... 60

5.1.1 Model of HR localisation strategy in China...60

5.1.2The dilemma of HR localisation in Chinese MNCs...62

5.2 How and why local employer branding contribute to the human resource localisation strategy of MNCs?...63

5.2.1EB communicates a clear value proposition and makes recruitment more relevant...63

5.2.2 EB promotes harmonious relationships and makes it easier for the employment of human resources... 64

5.2.3EB has enhanced employees' identification with the company and increased the motivation of local employees to participate in training... 64

5.2.4EB facilitates local employees' understanding of compensation and incentives, which leads to employee retention...64

6 Conclusion... 66

6.1 Concluding remarks...67

6.2 Impact on existing field of research...68

6.3 Managerial implications...69

6.4 Research limitations and future research...69

7 References... 71

1.Introduction

1.1Background

Someone joked, "If the Earth were to explode, the human being would have to flee to Mars. If a corporation can only choose to take away limited resources, it must choose to take away its employees. As long as it can take away 20 core employees, the corporation can re-establish a business empire on Mars." This statement clarifies the importance of human resources. (Rui, 2010) With the advancement of technology, the human being is no longer far from going to Mars. But it is still a highly complex process for a corporation to conduct business in a new country, much less to Mars.

Existing studies have shown that the diversity and complexity of global markets require multinational corporations(MNCs) to have strong core competencies. (Rugman, 2009) Among these core competencies, human resource competitiveness is a significant one. (Wright et al., 1994) According to Wong& Law's research, MNCs are bound to go through a localisation phase due to cost factors, the development of information technology, and the utilization of information resources. (Wong & Law, 1999)

Localisation is the meaning of adjustment by MNCs to adapt to the characteristics of the local country and region. Since a corporation's localisation strategy is related to the area of the country where it is located, localisation activities are focused on adapting to the differences in history, culture, and values between the local and parent corporations. That will make the corporation's operations more responsive to local requirements. (Wong & Law, 1999)

Localisation of human resources is the process by which a subsidiary can decide to increase the degree of autonomy in recruiting local personnel as managers in response to local competition or customer needs. (Fryxell et al.,2004) For MNCs, human resource localisation (HRL) is the process of adapting human resource management activities in overseas markets to the characteristics of the local country or region, precisely: having local employees qualified for the job take over the responsibilities of the former expatriates. (McKinsey

Quarterly, 2021)Thus, HRL necessarily includes the appointment of local employees to replace expatriate employees.

However, according to Manpower Group research(2021), the global talent shortage has virtually doubled in the past decade. 54% of international corporations surveyed report a skills shortage. In 36 out of 44 countries, corporations also said it is more challenging to engage talent now than in 2018. Jonas Prizing, chairman and CEO of Manpower Group, said, "In a world where technology is increasingly powerful, there is a great demand for talent." (Manpower Group, 2021)

At the same time, it is not easy for MNCs to find the local talent they need in overseas markets. For one, because many local organizations are also looking for the same skills as their employees. However, compared to local companies, MNCs lack local visibility and reputation, making it difficult to compete with local companies.(Bhatnagar& Srivastava, 2008). On the other hand, MNCs require more language skills and management skills from their talent. (McKinsey Quarterly, 2012)

Besides, the high turnover rate of MNCs' local employees poses a threat to the growth of MNCs in the local market. (Toh & Denisi, 2003) Excessive turnover can cost an organization about 33% of its employee compensation package, including salaries and benefits. Corporations with high turnover rates may be outpaced by offices with employee turnover rates as low as four times their maximum profit. On top of that, high turnover rates can lower the morale of the rest of the organization, and this low morale is unhealthy for the entire organization. (Munns, 2021) Although voluntary turnover may have positive effects, such as the disposal of low-performing employees (Williams, 1999). Empirical evidence suggests that this has an overall negative impact on organizational effectiveness (Huselid, 1995).

For MNCs, high turnover rates present an even more significant challenge. High turnover rates among local employees can also negatively impact long-term interpersonal relationships between local employees and expatriates for work collaboration and knowledge

transfer. (Reiche, 2008)

The high turnover rate of local employees in foreign subsidiaries of MNCs arises for unique reasons. (Reiche, 2008) The high pay differential between expatriates and local employees is likely to reduce the sense of distributive justice among locals (Toh & DeNisi, 2003). Besides, employees from different cultural backgrounds have different levels of acceptance of corporate culture and work styles. It is difficult for corporations to accommodate different cultures and perceptions simultaneously, which also reduces the ability of MNCs to retain employees. (Reiche, 2008)

In entering and localizing human resources in overseas markets, MNCs can attract and retain local employees in their overseas markets remains a considerable challenge.

1.2 Research problem and purpose

Several extant studies have attempted to enhance the attractiveness of organisations to talent in various ways, making corporations stand out in the fierce global competition for talent. For example, developing appropriate recruitment communication strategies (Elving et al., 2012), assuming more corporate social responsibility (CSR) (Story et al., 2016), and implementing improved financial reward elements (compensation, employee benefits, and variable pay, etc.) (Schlechter et al., 2014)

Other scholars have sought to explore ways to reduce the employee turnover rate in corporations. For example, optimising job design to make employees feel a sense of accomplishment, using interviews, questionnaires, and observation methods to understand the actual inner needs of employees, establishing a feedback mechanism for employee communication and constructing a proper training and career development system.（Zhang, Y.,2016).

-employer branding(EB). EB is considered to be a practical approach to recruitment and retention challenges (Edwards, 2009). In addition, existing research suggests that employer branding as a tool to help HRM practices contributes to the employee attractiveness of the organisation and has a positive impact on enhancing employee loyalty. (Greening & Turban,2000)

In the employer branding literature, employees' attitudes and behaviours are influenced not only by their perceptions of their corporation's HR practices but also by their image positioning in the marketplace. In particular, the firm's value proposition and brand image in terms of HR are communicated externally. (Cable & Turban, 2001)Scholars view corporate image and employer branding as prerequisites for successful HRM: Herrbach and Mignonac (2004) argue that the association between employer brand image and HRM is relevant. Good employer branding has a significant effect on improving the quality of job applicants ( Rampl et al., 2014), and research by Cable & Turban, 2001 suggests that employer branding can reduce job applicants' sensitivity to salary (Cable & Turban, 2001). There are studies on the impact of employer branding on current employees that confirm that employer branding affects the organisational identity of existing employees. (Lievens et al., 2007)

To sum up, the corporation builds a good employer brand by giving the impression of reliable corporate governance and excellent market performance (Yu & Liu, 2016). Furthermore, EB comes to help the corporation to attract more local talents and master more local human resources, thus practising HR localisation strategy in depth. Among the many studies that confirm this link are Cable & Graham (2000) and highlighting the relationship between employer image and attractiveness. On the other hand, Carmeli & Freund (2002) and Cascio (2014) emphasise the link between the employer's image and retaining employees.

The statement that EB is a crucial tool for HRM is not new. (e.g., Maxwell & Knox, 2009, Fryxell et al.,2004, etc.) As mentioned earlier, HR management and operation of MNCs are more complex due to differences in history, culture, values, etc. (Wong & Law, 1999). The intense global competition for talent and the high turnover rate of MNCs also pose a

significant challenge to MNCs' localisation management of human resources. Although many studies have examined the importance and existing dilemmas of HR localisation in MNCs (e.g., Luo & Shenkar, 2006, Potter, 1989), few studies have explored the association between EB and HRL management in MNCs in the context of globalisation. The problem of HRL in MNCs has not been attempted to be answered by EB as a tool for HRM. Therefore, this paper will focus on how and why EB affects the HR localisation practices of MNCs and how MNCs can apply EB to solve the HR localisation dilemma.

In theory, the findings of this study will help improve the mechanism of HR localisation theory and employer branding theory, fill the research gap of HR localisation and employer branding association in multinational corporations (MNCs). In practice, it will help MNCs establish a good employer brand, attract and retain local talents, and deepen HR localisation strategy.

Due to the unique characteristics of Chinese MNCs and their internationalisation patterns, many scholars have argued that traditional theories are inadequate to explain the internationalisation of Chinese MNCs (e.g. Child & Rodrigues, 2005). Furthermore, cultural dependency theory (Aycan, 2005) and the country-of-original effect (Ferner, 1997) also suggest that the home country has a unique influence on MNCs' cross-border operations. Therefore, the use of Chinese MNCs as a sample also brings additional value to this study -namely, studying the Chinese characteristics of HR localisation strategies. This will not only help managers of multinational companies to make adjustments when formulating and implementing management policies. It can also help to identify a neutral and acceptable HR localisation strategy between Chinese characteristics and the local market so that HR activities contribute to overall business objectives.

1.3 Research Questions

Question 1. What are the Chinese characteristics of the HR localisation strategies of Chinese MNCs?

Question 2. How and why does MNCs’ employer brand contribute to its HR localisation strategy?

1.4 Delimitation

The cases included in this research are mainly Chinese multinational corporations, primarily focused on their foreign markets in former Soviet countries (Russia, Ukraine, Uzbekistan) using a qualitative method. The study involves a limited number of cases but is open to different industries and types of corporations. This is to get a broader picture of whether there are any differences in HRM and local EB.

2Theoretical Background

2.1 Human resource localisation

Human resource management (HRM) is considered one of the most critical factors for business success. (Fryxell et al., 2004)

The globalisation of commerce has led to the increase of two relatively opposite types of human capital flows. The first is due to the rise in foreign workers (Clancy, 2009), and the second is the phenomenon of localisation of human resource management. (Luo & Shenkar, 2006)

Existing research shows that localisation of business operations-basically depends on the success of localisation of human resources. (Luo & Shenkar, 2006; Potter, 1989) Localisation is becoming a trend and trend in allocating human resources in multinational corporations as an inevitable outcome. (Rui, 2010). Hofstede (2010) also emphasises the increasingly important management role of local talent in MNCs, incorporating localisation into their strategies to cope with global market competition.

2.1.1Human resource management in MNCs

2.1.1.1 Multinational corporation(MNCs)

A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. A multinational corporation generally has offices and factories in different countries and a centralized head office to coordinate global management. (Hymer, 1970)

2.1.1.2Human resource management

Human resource management (HRM) is defined as the policies, management practices, and systems that influence employee behaviour, attitudes, and performance. (Bruce, K., & Nyland, C.,2011). The development of HRM can be seen from the fact that organizations of a certain size often establish specific organizations to engage in people-related management

(Potter, 1989). To achieve the organization's strategic goals, HRM uses modern science and technology and management theory to effectively motivate and utilize human resources by continuously acquiring them, integrating, regulating and developing them, and rewarding them. HRM is an effective means of achieving organizational goals and maximizing HRM activities on business performance. (Black, 1988)

2.1.1.3 Three fundamental models of human resource management in MNCs

Hill (2013) indicated that MNCs’ human resource management is divided into three main categories of orientation: ethnocentric, polycentric, and geocentric. And based on these three types of attitudes, three kinds of HRM models have gradually evolved. (as shown in the figure below)

Table 1, Three fundamental models of human resource management in MNCs (Hill, 2013). Host-country oriented model

The corporate strategy of an ethnocentric company is based on the homeland perspective, which upholds the underlying belief that what is successful at home should be equally successful elsewhere. The ethnocentric approach to staffing is to have key positions filled by nationals of the headquarters country. (Hill, 2013) The challenges of ethnocentric staffing are first, the limitations on development opportunities for host country nationals; second, the potentially long adjustment period of moving to the host country; third, the differences in compensation packages involving cost and equity issues. (Hill, 2013)

Localisation model

Companies with a polycentric orientation believe that the environment of each foreign subsidiary is unique and different, meaning that it is difficult to understand and handle in the home country. Therefore, each foreign subsidiary has a great deal of autonomy and decision-making power. As a result, subsidiaries are more self-sufficient and independent. Companies become polycentric because they are overwhelmed by the growing differences in their operating environments as they expand. One response was to hold each foreign unit accountable for its actions and profitability (Dowling et al.,1994). The polycentric approach to staffing is to recruit local managers to manage subsidiaries in their respective countries and corporate headquarters.

Comparison of host-country oriented model and localisation model :

Erwee's 2000 study demonstrated the consequences of home-country oriented (mainly in transplantation) and localisation (mainly in the form of grafting) of MNC HRM for business operations management. For example, as shown in the figure:

Figure 2, Comparison of host-country oriented model and localisation model (Rui, 2010).

Globalisation:

Globalisation is the result of localisation, an advanced stage of localisation. After the company has localised in each region and has grown steadily, the company establishes suitable uniform standards in each country's home country headquarters and subsidiaries in each country, unifies decision-making, and integrates and deploys human resources in a global framework. (Hill, 2013)

Home-country oriented, localisation, and globalisation is three human resource management models for multinational companies from a horizontal perspective. In the vertical view, it is the three stages that MNCs have gone through in their development. Almost all successful multinational companies that have developed to date are global-centred strategies. And as individual companies conduct global operations, they also have to go through these three stages, except that home-countryization has been the most inefficient in practice. A growing number of scholars suggest that for MNCs to survive and thrive in the long run, adopting a localised human resource model is necessary to achieve the globalisation of MNCs. (Hill, 2013)

2.1.2 Human resource localisation in MNCs

2.1.2.1 Human resource localisation

Luo and Shenkar (2006) suggest that localisation refers to how local resources and talent are used to design locally appropriate strategies to achieve market advantage and value. A similar definition was given by Fryxell et al. in their 2004 study ： Localisation of human resources is the process by which a subsidiary can decide to increase the degree of autonomy in recruiting local personnel as managers in response to local competition or customer needs.

Local employees

Local employees in this study are those recruited from the local labour market, born in the host country, and who have not left their land for a long time before being hired by the MNC. (Potter, 1989)

Expatriates

Expatriates are managers who are sent to work abroad from their home country. (Luo & Shenkar, 2006)The localisation process is effective when the jobs initially held by expatriates are filled by local employees capable of performing the job (Potter, 1989).

2.1.2.2 Human resource localisation as a strategy in MNCs

Human resource localisation of MNCs refers to the use of human resources of the host country by the foreign subsidiaries of MNCs to make them the main body of the corporation's employees. (Potter, 1989) Fryxell et al. (2004) proposed a similar definition in their 2014 study: human resource localisation refers to adopting corresponding and country-adapted human resource management policies and strategies by MNCs in different countries. Human resource localisation can help MNCs better adapt to the local market and culture and introduce suitable international talents for the corporation in overseas markets. Human resource localisation is the basis of localisation strategy for overseas MNCs in operation product development, brand management, etc. It is also an essential measure for MNCs' overseas corporations to compete with local corporations in host countries for competitive advantage. (Shaffer & Harrison, 1998)As globalization progresses, more and more MNCs realize that HR localisation is a necessary stage to go international. (Rui, 2010). Thus, MNCs' recruiting local employees and implementing local human resource management has become widely adopted as a strategy. (Hofstede, 2010).

2.1.3 Human resource localisation model

The process of human resource localisation is abstracted into a three-stage model that includes planning, localizing, and consolidating.(Wong & Law,1999)

Figure 3, The process of human resource localisation (Wong & Law,1999).

Planning:

The planning phase of the localisation process includes three primary considerations:  Selecting a management deployment strategy for the local business

 Setting localisation goals

 Establishing, training, and communicating with expatriate managers

Localizing:

During the localisation phase, once the local operations are launched, and in process, the most relevant HR issues are:

 Motivating expatriates to implement the localisation plan.

 Selecting the local managers who will grow with the corporation.  Motivating local managers to learn new skills.

 Providing beneficial development opportunities to local managers.

Once the localisation phase is successfully implemented, and expatriates are replaced with local managers, the consolidation phase begins. During the consolidation phase, the critical human resource issues are the retention of local managers and the repatriation of expatriates.

2.1.4 Advantages and disadvantages of HR localisation strategy

2.1.4.1 Advantages

(1)Save human resource cost

MNCs have a high failure rate and high cost of using expatriation, and applying local employees can save costs. The expatriation and repatriation of managerial and technical staff have been an essential concern for many MNCs; However, due to home-country-centred attitudes and cultural differences, the actual failure rate of expatriation and the cost of exit failure remain high (Black, 1988).

Expatriate failure is usually defined as the premature return of an expatriate to his or her home country before the end of the planned assignment period. Solomon's survey of 50 Fortune 500 corporations (Solomon,1994) estimated that approximately 20 to 25 per cent of all expatriate assignments fail. When all other costs are included, the cost per expatriate manager who leaves early is close to one million dollars (Shaffer & Harrison, 1998). Applying HR localisation, the risk of expatriate failure and the resulting financial loss can be effectively avoided so that the total compensation cost after localisation will decrease. (Wong et al., 2004)

(2)Narrowing cultural differences

MNCs employ local employees to better adapt to the local environment, reduce cultural differences, and achieve cross-cultural integration. (Wall, 1990)

Culture clash increases the difficulty of multinational corporations' operations and may even lead to the failure of their global operations. Human resource localisation can effectively avoid cultural conflicts. Local employees with a shared cultural background are more willing

to communicate with local managers and establish a cordial relationship. (Hofstede, 2010) A local team will have more affinity. This cultural affinity is conducive to better use of local talents in human resources such as performance assessment, promotion, and advancement, which helps make more accurate business decisions in line with the local market of the corporation's business.

It is conducive to building strong cohesion and corporate values, integrating multiple cultures in corporate culture, and creating a favourable external environment. This increases employee loyalty to the corporation and improves problem-solving. And local employees have more connections in the local environment, and they are more likely to build business relationships. (Wall, 1990)

(3) Establishing a good reputation in the local area. (Kobrin, 1988)

Local employees can learn many mature and advanced management experience from the parent corporation while performing their tasks. Then with the movement of personnel and exchange of information, these advanced experiences and management methods can be passed on to other local enterprises. This can improve the overall management level of the host country enterprises. It will also create a good feeling in the host country and make a good atmosphere for its operation. (Rui,2010)

MNCs can also benefit the host country by recruiting local employees in overseas markets, which can alleviate the local employment problem to a certain extent. It can increase the trust and affinity of the consumer population in the host country and can better sell the corporation's products and services.（Kobrin, 1988）

2.1.4.2 Disadvantage of HR localisation

(1)Control and coordination between subsidiaries and the host corporation

Due to the localisation of human resources, the control and coordination between the MNC headquarters, the parent corporation, and the subsidiary are likely to be hindered. It has been mainly manifested in the straightforward lack of communication due to distance-time

difference and other reasons. It is easier for the subsidiary and parent corporation manager where the top level is easy to produce a broken belt in between. Coupled with a series of cultural differences such as language, different national values, and management attitudes accordingly create difficulties in coordination, it may isolate the corporation's headquarters personnel from the foreign subsidiaries of other cultures. In the long run, miscommunication and misunderstanding may result in difficulties for the headquarters to control the subsidiary. (Cuervo-Cazurra & Genc, 2008)

(2)Salary differences are challenging to bridge

Another issue is also more central to human resources, as payments can be the most direct indicator of whether multinational corporations practice procedural justice with local employees. Zhu (2018) found that procedural justice profoundly affects organisational members' perceptions of and trust in the organisation. The assurance of procedural justice enhances the perception of corporate members, and employees working under HR localisation strategies further trust their organisations' values and processes, resulting in beneficial behaviours for the organisation.

A fair and adequate compensation package must be designed for the difference in pay between local and foreign employees in multinational corporations. Attention must be taken to maintain a balance that can motivate employees in the long term, but with some flexibility in wage rates based on the consumption levels of different countries. This makes it difficult for multinational enterprises to operate internationally. Host country personnel are paid much worse than their foreign colleagues in the same position or even with more workload.(Toh & DeNisi, 2003)This dissatisfaction is reflected in business operations, which can cause specific management sticking points and hinder human resource localisation in multinational corporations.

2.1.5 The necessity of HR localisation

essential issue for MNCs. From the perspective of the corporation's home country, the localisation of human resources can save costs, enhance cultural integration and help the corporation win a good reputation. From the host country's perspective, it can learn from advanced experience and improve the employment problem to a certain extent.

Therefore, over the last three decades, many corporations have focused on the advantages of training a large group of international talent, have a solid commitment to the multinational corporation, and have a good understanding of the corporation's culture. These groups of managers are then sent to various countries to build the international operations of the MNC.

Although, like many other management policies, there are both advantages and disadvantages to localisation. However, a large body of literature tends to point out that the benefits of localisation usually outweigh the disadvantages (Law, K. et al., 2004) state in their article that the management arrangements associated with localisation and the practices related to localisation contribute to the success of localisation, which in turn has a positive impact. In the long run, developing local managers may also help build some strategic advantages for MNCs. According to RBV (Barney, 1986), intangible and hard-to-imitate resources help corporations build a competitive advantage. Localisation is one of the fundamental processes to develop significant intangible and inimitable human resources that can help to improve firm performance. Law also argues that developing local managers may also help establish some strategic advantages for MNCs in the long run. (Law, K. et al., 2004)

Based on the above discussion of the pros and cons of HR localisation, a summary will be made that implementing an HR localisation strategy is crucial to the development of MNCs. Since multinational corporations operate in this cross-country, cross-region, or even global way, it inevitably complicates human resource management. All the corporation's R&D, production, operation, sales, leadership, service, and other behaviours are ultimately implemented in people. People's behaviour also inevitably affects the corporation's efficiency and performance. And a set of a human resource management model that works well in the

home country, when the corporation conducts multinational operation, facing different cultures and systems, many problems will arise, leading to unfavourable function and performance decline. Therefore, multinational corporations' localisation of human resource management has become an essential part of MNC management.

2.1.6 The success of human resource localisation

2.1.6.1 Conditions of success

Fryxell et al. (2004) found that planning and selecting expatriates were crucial determinants of localisation success. Selmer (2004) identified the selection, recruitment, and retention of the right local employees as essential elements of a successful localisation. The localisation objectives, plans, and commitments of MNCs and related HRM practices significantly impacted their localisation outcomes.

Positive national images of MNCs' home countries can also lead to the adoption of standardised HRM strategies by MNCs in developed markets. For example, developed economies such as the United States, Germany, and Japan give the impression of reliable corporate governance and superior economic performance. (Yu & Liu, 2016) This gives them legitimacy to adopt standardised HRM strategies and may even gain them some exemptions locally. (Ferner, 1997).

2.1.6.2 Measures of success

The Chinese scholar Zhaohui Wang proposed in 2007 that the following three indicators can measure the degree of talent localisation.

(1) the number of foreign personnel replaced by local talent and the time required. (2) The performance of those local talents which replace the foreign personnel.

(3) The loyalty and turnover rate of those local talents which replace the foreign personnel to the corporation.

Wong & Law, 1999 made a similar argument in their study, which identified five dimensions of HR localisation success against which localisation goals can be set and HR

localisation outcomes measured. These include time frame, cost savings, the performance of local employees, retention of local employees, and local employees as part of the corporation's management team.

2.1.7 The dilemma of human resource localisation in MNCs

(1)High requirements and low attractiveness for local employee

For MNCs, highly qualified employees are critical to the organization's competitiveness in the global economy, as these employees significantly impact the organization's competitiveness (Gotsl&Wilson, 2001). In turn, establishing organizational attractiveness requires a solid corporate image of the corporation and extensive multinational management experience. It takes time to establish a corporate image in overseas markets. Therefore, it is not easy for MNCs to find the local talent they need in their overseas markets. On the one hand, many local organizations are also looking for the same skills as their employees.(Bhatnagar & Srivastava, 2008). On the other hand, MNCs require more language skills and management skills from their talent. (McKinsey Quarterly, 2021)

(2)High difficulty in recruiting and low retention of local employee

For MNCs, high turnover rates pose an even more significant challenge. High turnover of local employees can also harm building long-term interpersonal relationships between local and expatriate employees, promoting work cooperation and knowledge transfer. (Reiche, 2008)

The high turnover of local employees in foreign subsidiaries of multinational corporations arises for unique reasons. (Reiche, 2008) High pay differentials between expatriate and local employees are likely to reduce locals' sense of distributive justice (Toh & Denisi, 2003). Besides, employees from different cultural backgrounds have different levels of acceptance of corporate culture and work styles. It is difficult for corporations to accommodate different cultures and perceptions simultaneously, which also reduces the ability of MNCs to retain their employees. (Reiche, 2008)

2.1.8 Human resource localisation strategy in the context of Chinese MNCs

2.1.8.1 Cultural dependency of human resource management in MNC and Chinese corporate culture

The cultural dependency of human resource management in MNC

In the study by Aycan, 2005, it is shown that the human resource strategy of multinational corporations is composed of many factors, including the characteristics of the home and host countries, the attitude of the parent corporation towards the top managers of the parent company foreign subsidiary operations. Furthermore, HR strategy, especially in human resource mobility, is culturally dependent; for example, some scholars argue that the criteria used to recruit and select employees are culturally bound. Similarly, the corporate culture of the home country has a crucial influence on the international HR strategies of MNCs and their subsidiaries. Therefore, it is necessary to discuss the corporate culture of Chinese corporations here.

Cultural values of Chinese corporations

The lens of the 6-D Model is a framework proposed by Dutch psychologist Geert Hofstede to measure cultural differences across countries. He argues that culture is the mental programming people share in an environment that distinguishes a group of people from others. Through his research, he categorized the differences between cultures into six basic dimensions of cultural values. (Hofstede, 2010)

This framework is a more complete and systematic model of cultural analysis in international business management research and is a powerful tool for our understanding of both cultural phenomena and their impact on management.

According to the lens of the 6-D Model, the cultural values of Chinese corporations are as follows.

Figure 4, 6-D Model of Chinese corporations. "Home - Hofstede Insights Organisational Culture Consulting", 2021.https://www.hofstede-insights.com/country-comparison/china/

Power distance

In PDI rankings – which stands for Power Distance Index – China has an index score of 80. The subordinate-superior relationship is a power relationship in which the subordinate has no defence against the superior. People are motivated to give their best when they feel that a leader will guide them in the right direction. Therefore, people should not judge or criticize those with a higher rank than them.

Individualism

In this quadrant, China scores a 20. This represents a highly collectivistic culture prevalent in China, where people act in the group's interest and not necessarily in their interest. In-group considerations affect hiring and promotions. Close family members are usually given preferential treatment, mainly if they are older or have more authority. People in the

organization put personal relationships ahead of work. Individual and group loyalties come before corporation loyalty.

Masculinity

The score of 66 shows that China is a male society - success is the orientation and motivation of this society. To ensure success, Chinese people can sacrifice personal time and family time to devote to work. Service workers will work late in service, and for them, leisure time is secondary to their careers. Migrant workers can leave their hometowns alone to get better jobs and pay in the city, leaving their families back home and rarely seeing each other every year. Another example is that Chinese students and their families place a high value on students' test scores and rankings; in Chinese society, learning is a career and a family's hope. Academic performance is the measure of their success.

Uncertainty avoidance

The indicator is 30, which means that China scores very low in uncertainty avoidance. In China's social circle of people, many rules and truths are very flexible. Although there are laws and regulations to follow, some social norms and ethics need to be viewed flexibly depending on the actual situation. Chinese society is used to ambiguities; the Chinese language is also full of uncertain meanings in different contexts and tones.

Long term orientation

China scored 87 on this dimension, which means that China is a very pragmatic culture. The Chinese believe that truth is relative and depends on the specific situation, context, and time. The Chinese are hard-working, practical, and diligent. They demonstrate the ability to adapt traditions to changing conditions quickly, have a strong propensity to save and invest, be frugal, and persevere to achieve results.

Indulgence

China scored 24 on this dimension, which means that it is a restrained society. Compared to tolerant societies, restrained organizations place less emphasis on leisure time and control

the satisfaction of their desires. Chinese people's career-mindedness can make them willing to sacrifice personal rest and family time and have great restraint over existing desires. A typical example confirms this: Chinese people have the habit of saving money and have the ability to restrain themselves in the face of their desires to achieve delayed gratification. People with this orientation believe that social norms and wrong with indulging govern their behaviour.

2.1.8.2 Country-of-origin effect and the characteristics of Chinese MNCs Country-of-origin effect

According to the ethnocentric theory proposed by Perlmutter (1969), MNCs tend to transplant critical business strategy practices from their country of origin to their subsidiaries and apply them wherever they operate.

Ferner (1997) also shows that although national differences in global economic and technological activity are decreasing, the influence of national business culture on the strategic behavior of MNCs in host countries remains significant. This is known as the country of origin effect, defined as the influence of home country business culture in determining the strategic behavior of MNCs in the host country. Therefore, it is necessary to take the land of original effect into account in the study and discuss the characteristics of Chinese corporations.

The uniqueness of Chinese MNCs

Chinese MNCs are influenced by the forces of the supply and demand market, but more importantly, they are dominated by the powerful political system of the Chinese government. For example, before China began to develop a market economy, the previous model of human resource management was a lifetime employment system; average wages; centralized management; low labor mobility; and state-controlled appointment and promotion of managers (Warner, 2008). Employee performance was assessed based on criteria of virtue (de), ability (neng), diligence (qing), and actual performance (ji). Since the initiation of socialist market reforms in China, Western-style HRM practices have gradually entered Chinese multinational corporations. It is only since then that the familiar performance reward and promotion mechanisms have appeared in China. Thus, it is clear that the impact of

Chinese government policies on Chinese corporations is enormous and reaches into all aspects (Zhu, 2018)

Chinese MNCs have a solid ability to overcome government inefficiencies. Although Chinese MNCs lack specific resources and capabilities compared to developed country MNCs, they have a unique competitive advantage. As a developing country, China has a certain period of institutional gaps such as an imperfect contractual environment, underdeveloped market mechanisms, inefficient judiciary, unpredictable and burdensome regulations, heavy bureaucracy, political instability, or discontinuity of government policies. (Cuervo-Cazurra & Genc, 2008) However, Chinese MNCs still survive and thrive under difficult institutional conditions. This suggests that when operating in developing economies with similar governance conditions, Chinese MNCs can use this unique ability to overcome government inefficiencies (Cuervo-Cazurra & Genc, 2008)

The unique overtime culture and work ethic of Chinese corporations

Peng's 2019 study refers to this overtime culture as a sick (vingtaine pathological) culture of long hours. It relates to the workplace, where Chinese corporations control both managerial and social aspects of their employees.

Managerial control:

Salary is not proportional to the number of hours an employee works in the office but instead to the performance an employee completes each month. Not only do employees need to achieve understanding, but they also need to compete with other employees for bonuses and advancement opportunities. Long hours seem inevitable, partly because the workload is too heavy and partially because the heavy workload is not distributed fairly and efficiently. In short, overtime is a part of working in China. Most people in China will work regular overtime, with hours starting at any time between 7 a.m. and 10 a.m. and ending from 6 p.m. to 10 p.m. (or even later).

Social control:

The similar desire for diligent work ethic visibility based on overtime work suggests that forms of social control are prevalent in the workplace in addition to managerial control. When someone consistently leaves the office on time, others will ask behind her to get a promotion or quit. Even the employee feels embarrassed about working on time and is pressured to conform and stay in the office. (Peng, 2019)

Work ethic: equating hard work to overtime work

Peng's research uncovered a unique work ethic in Chinese corporations, whereby workers who work overtime are perceived as working hard. In contrast, those who leave the office on time are perceived as working less seriously. Overtime work is interpreted as a personal choice for those who are willing to take on more responsibilities and challenges in pursuit of long-term career development and a "meaningful life" as defined by a hard-working work ethic. The equation between overtime work and hard work separates different types of worker themes from each other, and overtime work, in turn, justifies the elite practice of training and promoting employees who spend more time working than others. Overtime work is considered part of the job. It, therefore, is not compensated or under-compensated because long hours demonstrate our selfless dedication to the corporation and are an essential part of job performance necessary for promotion. (Peng, 2019)

In short, overtime is part of working in China and part of the work ethic of Chinese corporations. Most Chinese employees accept overtime as part of the job, especially in technology or emerging industries. Some foreigners, however, struggle with this part of Chinese corporate culture. Although the overseas subsidiaries of Chinese corporations will adjust to local laws, the country-of-original effect makes overtime culture unavoidable in Chinese MNCs.

According to the theory of cultural dependence of MNCs' HRM, Chinese MNCs' HRM is deeply influenced by Chinese corporate culture. However, according to the country of the original effect, Chinese MNCs have their uniqueness. Therefore, it is necessary to discuss the

human resource localisation strategy of Chinese MNCs. In this study, the author will also study human resource localisation and employer branding in Chinese MNCs and consider these characteristics as cultural factors in the human resource localisation strategy and employer branding.

2.2 Employer branding

The roots of employer branding(EB) can be found in the principles of brand marketing (Ambler & Barrow, 1996; Cable & Turban, 2001; Backhaus, 2004). At the intersection of human resource management (HRM) and brand marketing, employer branding is "an internally and externally engaged approach to recruitment and retention that recognizes a corporation's difference and attractiveness to employers"; (Lievens, 2007)

As a new concept in human resource management, employer branding interprets the relationship between employers and employees from a new perspective. Unlike the object of branding theory in marketing, employer branding theory regards the employees of a corporation as customers. Therefore, it attracts and retains core employees by establishing a good employer image in employees' minds to enhance their competitiveness.

Thus, employer branding is considered a practical approach to the recruitment and retention challenges. Backhaus and Tikoo argue that employer branding represents a corporation's efforts to promote a clear understanding of what makes it different and desirable as an employer, both inside and outside the corporation " (Backhaus and Tikoo, 2004)

2.2.1Related Definition

2.2.1.1Employer brand in terms of benefits

This paper will define employer branding using the concept proposed by Ambler and Barrow back in 1996.

benefits provided by employment and associated with the employer. (Ambler & Barrow, 1996) Specifically, employers may offer employees opportunities for career development or other activities and compensation and benefits, and employees may identify with organizational goals and directions in their work and develop a sense of belonging. These three aspects are then functional, economic, and psychological benefits that employers provide to employees. (Ambler & Barrow, 1996)

Functional benefit: Functional benefits are activities provided by the employer to employees that benefit career development or other aspects.

Economic benefit: Economic benefits refer to the compensation and performance incentives provided by the employer to the employee.

Psychological benefit: Psychological benefit refers to the feelings and experiences of belonging, direction, and purpose that an employee has at work.

However, empirical research on this topic is still relatively scarce (Backhaus & Tikoo, 2004; Lievens et al., 2007;), especially for local employer brands of multinational corporations in their overseas markets.

2.2.1.2Local employer branding

In this paper, "local" refers to "the specific overseas market that the MNC enters". Therefore, the "local employer brand" here, from the employee's point of view, refers to the process of recruiting and harvesting employees and potential employees from overseas markets by MNCs. The employees and applicants perceive the corporation's image in overseas markets. (Lievens & Highhouse, 2003) The employer's perspective refers to the "combination of functional, economic and psychological benefits" associated with the employer that MNCs provide by hiring employees in the host country. (Ambler & Barrow, 1996)

2.2.2Instrumental–symbolic framework

Lievens et al. proposed the instrumental-symbolic framework in 2007, which is widely used in employer branding research. The framework divides image attributes into instrumental and symbolic features. Instrumental details cover the functional and practical aspects of the material elements of the image (e.g., salary, position, working conditions). Extended attributes are mainly used to summarize the spiritual aspects of self-perception and expression (e.g., prestige, innovation, loyalty).

Instrumental attributes:

Instrumental attributes(functional attributes) are primarily objective, tangible attributes. To summarize instrumental attributes in one sentence, "maximizing benefits and minimizing costs" (Lievens & Highhouse,2003,p. 79) are what employees want most from their organizations.

In the context of employer branding research, this attribute refers to the objective, specific and practical details inherent to a job or organization (Lievens & Highhouse, 2003). Instrumental points are of interest to applicants primarily because of their utility. Many studies on employer branding have tested and validated this attribute. For example, Lievens & Highhouse, 2003, validated in the military that instrumental details refer to pay and benefits or opportunities to travel abroad and participate in sports activities.

Symbolic attributes:

Symbolic attributes are the second dimension of employer image measurement and are more abstract than instrumental attributes. It is described in terms of subjective, abstract, and intangible attributes derived from how people perceive (user imagery) and make inferences about them, focusing on mental and emotional aspects. In a nutshell, symbolic attributes allow employees to "maintain their self-identity, enhance their self-image, or express themselves" in an organization (Lievens & Highhouse,2003,p. 79).

In the context of employer branding research, this attribute refers to the subjective, perceptual perceptions that a job or organization brings to employees (Lievens & Highhouse, 2003). Many researchers in related fields have generated scales for this dimension: Lievens & Highhouse in 2003 validated in the military that symbolic attributes refer mainly to sincerity, excitement, cheerfulness, competence, prestige, and ruggedness. In addition, Davies et al.(2018) categorized seven dimensions of firm characteristics that predict employee satisfaction: likability, corporate, competence, fashionable, chill, informal, and masculinity. Although a variety of unique descriptive features may be used in different studies to describe symbolic organizational attributes, five factors that occur at high frequencies appear to be identified as the basis for extended image attributes (Lievens & Highhouse, 2003): sincerity, excitement, competence, sophistication, and ruggedness.

In summary, the instrumental-symbolic framework has been applied in various contexts and can be identified as a reliable way to categorize employer brand dimensions. Lievens and Highhouse, in their 2007 study, confirmed that both instrumental and symbolic attribute dimensions positively influence the attractiveness of employers within the organization. The effect applies both to the organization's insiders such as current employees and equally to the organization's external employees such as potential and actual applicants. Of these, the instrumental attribute is primarily concerned with the specific information collected by the genuine applicant and therefore has the most significant impact on the primary applicant. The symbolic qualities impact both internal and external employees of the organization but are particularly important in the internal environment. Using this framework, this study will attempt to explore the employer branding of MNC's overseas subsidiaries in the context of globalization.

2.2.3Organizational identity and employer branding

Lievens et al. (2007) connect two relatively developed research streams on organizational identity and employer branding. Their study used an instrumental-symbolic framework to examine factors related to employer brand and organizational identity. Two

samples were used: a sample of 258 Army applicants as organizational insiders and 179 military personnel as organizational outsiders. The study found that(a) Applicants’ perceptions of the organization’s instrumental and symbolic attributes will be positively associated with their attraction to the organization. (b) Employees’ perceptions of the organization’s instrumental and symbolic attributes will positively associate with their identification with the organization. Employer branding includes organizational identity (a) members’ perceptions of the organization’s image and (b) members’ evaluations of the organization’s image and organizational attractiveness and other people’s perceptions of the organization’s image. (Lievens et al., 2007)

Thus, the scope encompassed by the definition of employer branding is further expanded to include people outside the corporation (applicants) and people inside the corporation (employees). Therefore, the employer brand studied in this paper consists of both internal employees’ evaluation of the organization and outsiders’ perceptions of the organization’s.

2.3Human resource management and employer branding

Scholars have argued that branding and corporate image are prerequisites for attractive employer branding and successful HRM in the existing literature. Hadi & Ahmed say that the link between employer branding and human resource management is relevant because a positive employer brand attracts, retains, and keeps good employees and positively impacts. This link is also confirmed in numerous studies by Cable and Graham (2000), emphasising the relationship between employer branding and attractiveness. On the other hand, Hadi & Ahmed (2018) highlighted the link between employer image and retaining employees. Maxwell & Knox, in their 2009 study, proved that employees are internal beneficiaries of employer branding by evaluating the portfolio of benefits offered by the organisation and performing in the organisation based on the evaluation results. From the employer's perspective, organisational attractiveness is one of the strongest arguments supporting human resource management. (Lievens & Highhouse, 2003).

2.3.1 The association between EB and organizational attractiveness

Ambler and Barrow, the originators of the employer branding concept, laid the groundwork for equity-based employer branding research in 1996. This is, recruitment research identified "links between recruitment activities, image and reputation, and applicant outcomes" (for example, organisational attractiveness).

In a study by Hadi & Ahmed, 2018, it was found that employer branding helps to improve recruitment in organisations, which in turn helps to reduce recruitment costs. However, when building a positive employer brand in an organisation, managers must understand the importance of certain factors that play an essential role in attracting possible employees to the corporation (Hadi & Ahmed, 2018).

In a 2017 study, Yu & Davis showed how employer branding is related to employer knowledge and can thereby influence the attractiveness of an organisation. Identifying and attracting potential employees is a significant concern for most organisations. Organisational recruitment is using employer knowledge to influence the attitudes and decisions of job seekers. Employer knowledge provides likely workers with information about job attributes and organisational culture that will ultimately be used for job selection, in addition to building a reputation and sense of prestige among hiring corporations. Lack of employer knowledge is not an easy task, as job search behaviour usually provides the context for an experienced employer profile. Thus, our current hiring knowledge and employer knowledge is compromised by a lack of understanding of how job seeker activities influence and interact with the way employers are perceived.

Yu & Davis' research also suggests that familiarity with the organisation describes the extent to which job seekers know about the employer. Employer brands, on the other hand, are job seeker beliefs about employer attributes. They contain information about organisational characteristics (e.g., values and culture), the jobs the organisation offers (e.g., types of jobs), and the current working people. This evidence contributes to increased

awareness of employer knowledge and reinforces the employer brand, an essential tool for competitive advantage in human resources. (Yu & Davis, 2017)

Cable & Turban argue that employer branding is one of the main components of employer knowledge communicated during the recruitment process (Cable & Turban, 2001). They say that employer branding conveys the potential benefits of being an employee of the organisation and is therefore relevant to the organisation's attractiveness. Possible uses range from the instrumental (e.g., salary) to the symbolic (e.g., prestige) mentioned above. Employer branding also helps the organisation's employees to build their social identity and gain recognition from society. Put, by working for an organisation that is seen as flourishing and prestigious, employees gain more recognition and recognition from the community as a result. This gives the employee a first impression that can impress others and carries the core values that the employee expresses about himself/herself. Therefore, this identity is vital to the organisation's employees. Thus, employer branding positively influences attractiveness.

Thus, the study of recruitment and organisational attractiveness intersects with the task of employer branding. Organisational attractiveness describes employees' "evaluative responses" (Cable & Turban, 2001,p. 148) to an organisation, in other words, the positive feelings and attitudes that (potential) employees generally hold toward an organisation, which subsequently leads to their preferred responses. It is further confirmed in Cable and Turban's study that organisational attractiveness is mainly reflected in the recruitment process, where a positive employer image increases the number and quality of potential employees of an organisation and attracts more and higher quality candidates; (Cable &Turban, 2003).

2.3.2The association between EB and organizational talent retention capabilities

Hadi & Ahmed, 2018 highlighted the link between employer brand and employee retention capabilities. A good employer brand enhances employees' identification with the organization, thus reducing employee turnover. The scope of employer branding is expanding, and employee retention is an essential aspect of every organization's success. Hadi & Ahmed's

research in 2018 found that: developmental value is a necessary and vital value for employee retention. Managers should prioritize employee recognition and appreciation to achieve better performance and retention rates. Managers need to develop essential and up-to-date skills among their employees that will help organizations leverage the maximum potential of their employees and help employees develop themselves more effectively so they can choose better opportunities within or outside of their current organization. If managers appreciate the work employees do and provide them with developmental value, this will lead to employee loyalty and employee retention.

Employers gain employee loyalty and the urge to work for an employer by caring about what employees think of that employer. Employees spread word-of-mouth impressions of the employer, both positive and negative, to influence the organization's employer brand. Employer branding is a method of employer retention with an all-encompassing impact on employees' employment experience, encouraging a positive work environment while reducing voluntary turnover. Organizations use their employer branding strategy to attract employees who can stay with the corporation and influence those who choose to stay or leave the organization. Employee loyalty and retention depend on the organizational image that the employer develops in the employees' minds, which is also crucial in attracting a new workforce. (Hadi & Ahmed, 2018)

Maxwell & Knox, in their 2009 study, also found that the internal beneficiaries of employer branding, employees evaluate the portfolio of benefits offered by the organization, and the results of the evaluation affect their performance in the organization. A good employer brand helps to increase employees' identification with the corporation and its management practices, which positively strengthens employees' sense of organizational support. By increasing the power of human resources, organizations can create an organizational climate of mutual trust and recognition, which can help reduce negative employee sentiment and reduce employees' tendency to leave. (Maxwell & Knox, 2009)

place to work. None of the employees will want to leave because every other organization will be less attractive to them in the presence of that organization with a strong employer brand. The dimension of employer branding clarifies the difference in the level of organizational commitment of employees, which corporations can use to increase employee retention.

In short, employer branding has a strong influence on the attitudes and behaviours of current employees (Lievens & Highhouse, 2003). A strong employer brand helps to positively moderate the impact of organizational support for cognitive processes on the attitudes and behaviours of service employees. The underlying logic is that employees who are more satisfied with the corporation will engage in their daily work with tremendous enthusiasm, bringing quality products and active service to the public. The public will have a better opinion of the corporation's products and employees, which means that both the product image and the employer image are climbing upward.

2.4 Summary of theoretical framework

In summary, these studies on employer branding research and human resource management have discussed in the usual sense and lack studies focusing on MNCs' overseas markets. The interconnection and impact of HRM practices of MNCs and their local employer brands have not been well addressed.

By extension, we apply the study of HRM and employer branding to Chinese MNCs. For MNCs, HR localisation and local employer branding may also be closely related. On the one hand, HR localisation can influence the establishment of the corporation's local employer brand by attracting and retaining local talent. On the other hand, the local employer brand image of that corporation can affect its attractiveness to local employees and reduce the tendency of employees to leave, thus affecting the implementation of its HR localisation. Faced with the competitive pressure of fierce globalisation for talent and the enormous cultural differences with the host country, MNCs establishing a good employer brand will

contribute to their HR localisation.

Therefore, one of the objectives of this study is to examine the association between MNCs' HR localisation and local employer branding in overseas markets in the context of globalisation. Furthermore, to further refine the theories related to HRM and employer brand association, this study will also try to answer the question "why and how" does MNCs' employer brand affect the implementation of its HR localisation strategy.

An additional research focus will be on the characteristics of Chinese MNCs' HR localisation strategies. With the reform and opening up, Chinese MNCs have made frequent overseas appearances in the international market in recent years. Chinese MNCs are subject to unique cultural and political systems that bring unique characteristics to these Chinese MNCs.These characteristics profoundly affect the promotion of Chinese MNCs' multinational operations and HR localisation strategies. However, most of the current studies focus on how developed MNCs enter other developed or developing country markets generally, and few studies focus on multinational operations in developing countries. Thus this paper will explore the characteristics of Chinese MNCs' HR localisation strategies by conducting interviews with four overseas experienced Chinese MNCs.

3 Methodology

3.1 Research philosophy

"The concepts, techniques, and practices of HRM are the practical elements of an inherent philosophy that reproduces and transforms the way individuals and organisations are formed." (Bramming, 2007) Therefore, it is essential to explore the philosophical roots of research before launching into a discussion of appropriate research methods.

Interpretivism holds that truth and knowledge are subjective, cultural, and historical based on people's experiences and understanding of truth and knowledge. Researchers can never fully separate themselves from their values and beliefs. Therefore, these will inevitably inform the way they collect, interpret, and analyse data. This method is mainly applied in the liberal arts and sciences, such as the humanities and social sciences, where there is no data collection to speak of. The research method is mainly applied to qualitative research, where interviews are used to obtain generally credible conclusions (Ryan, 2018).

Existing research suggests that the main strength of the philosophy is that it contributes to an understanding of the how and why, allowing the researcher to understand the changes that have occurred indeed. It also provides insight into the process of social change and considers the complexity and contextual factors. (Ryan, 2018)

The disadvantage is that the research process can become lengthy and complex due to the time-consuming nature of data collection. It is also challenging to have a clear and unambiguous model for the study, and the researcher must always face uncertainty. (Ryan, 2018)

Therefore the use of interpretivism is appropriate. The main research question of this thesis is why and how the HR localisation strategies of MNCs are linked to their local employer brands. This is because interpretivism helps to understand the how and why, which is highly relevant to the research question of this paper. Since local employees' perceptions of