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When do international human capital enhancing practices benefit the bottom line? An ability, motivation, and opportunity perspective

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  • Kyoung Yong Kim

    (Department of Management, C.T. Bauer College of Business, University of Houston, Houston, USA)

  • Seemantini Pathak

    (Department of Management, College of Business Administration, University of Missouri – St Louis, St Louis, USA)

  • Steve Werner

    (Department of Management, C.T. Bauer College of Business, University of Houston, Houston, USA)

Abstract

We study the conditions under which firms can capitalize on their international human capital (IHC). Using the ability–motivation–opportunity (AMO) perspective we conceptualize IHC as ability, collaborative climate as motivation, and the firm’s level of internationalization as opportunity. We test three alternative AMO models – the additive model (main effect), the combinative model (two-way interactions), and the multiplicative model (a three-way interaction). Using a cross-industry sample of South Korean firms, we find support for the multiplicative model. Specifically, the relationship between IHC enhancement practices and firm performance is significant and positive only when both collaborative climate and internationalization are high.

Suggested Citation

  • Kyoung Yong Kim & Seemantini Pathak & Steve Werner, 2015. "When do international human capital enhancing practices benefit the bottom line? An ability, motivation, and opportunity perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(7), pages 784-805, September.
    • Handle: RePEc:pal:jintbs:v:46:y:2015:i:7:p:784-805
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    Citations

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    Cited by:

    1. Son Le & Mark Kroll, 2017. "CEO international experience: Effects on strategic change and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(5), pages 573-595, July.
    2. Adina-Raluca Sibian & Ana Ispas, 2021. "An Approach to Applying the Ability-Motivation-Opportunity Theory to Identify the Driving Factors of Green Employee Behavior in the Hotel Industry," Sustainability, MDPI, vol. 13(9), pages 1-19, April.
    3. Alvarado-Vargas, Marcelo J. & Hermans, Michel & Newburry, William, 2020. "What’s in it for me? Local employees’ anticipated career opportunities derived from firm internationalization," Journal of Business Research, Elsevier, vol. 117(C), pages 201-211.
    4. Wenjing Cai & Svetlana Khapova & Bart Bossink & Evgenia Lysova & Jing Yuan, 2020. "Optimizing Employee Creativity in the Digital Era: Uncovering the Interactional Effects of Abilities, Motivations, and Opportunities," IJERPH, MDPI, vol. 17(3), pages 1-19, February.
    5. Rajeev K. Goel & Devrim Göktepe-Hultén, 2021. "Innovation by foreign researchers: relative influences of internal versus external human capital," The Journal of Technology Transfer, Springer, vol. 46(1), pages 258-276, February.
    6. Najafi-Tavani, Zhaleh & Robson, Matthew J. & Zaefarian, Ghasem & Andersson, Ulf & Yu, Chong, 2018. "Building subsidiary local responsiveness: (When) does the directionality of intrafirm knowledge transfers matter?," Journal of World Business, Elsevier, vol. 53(4), pages 475-492.
    7. Yu, Wantao & Chavez, Roberto & Feng, Mengying & Wong, Chee Yew & Fynes, Brian, 2020. "Green human resource management and environmental cooperation: An ability-motivation-opportunity and contingency perspective," International Journal of Production Economics, Elsevier, vol. 219(C), pages 224-235.
    8. Pisani, Niccolò & Muller, Alan & Bogăţan, Paula, 2018. "Top Management Team Internationalization and Firm-level Internationalization: The Moderating Effects of Home-region Institutional Diversity and Firm Global Focus," Journal of International Management, Elsevier, vol. 24(3), pages 239-256.
    9. Kyoung Yong Kim & Pankaj C. Patel, 2020. "Broad‐Based Employee Ownership and Labour Productivity During the 2008 Recession: Evidence from Public Firms in Europe," British Journal of Industrial Relations, London School of Economics, vol. 58(2), pages 396-423, June.
    10. Stephanie Lu Wang & Dan Li, 2019. "Responding to public disclosure of corporate social irresponsibility in host countries: Information control and ownership control," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1283-1309, October.
    11. Jeoung Yul Lee & Vasyl Taras & Alfredo Jiménez & Byungchul Choi & Chinmay Pattnaik, 2020. "Ambidextrous Knowledge Sharing within R&D Teams and Multinational Enterprise Performance: The Moderating Effects of Cultural Distance in Uncertainty Avoidance," Management International Review, Springer, vol. 60(3), pages 387-425, June.
    12. Chipoong Kim & Chul Chung & Chris Brewster, 2019. "Beyond Nationality: International Experience as a Key Dimension for Subsidiary Staffing Choices in MNEs," John H Dunning Centre for International Business Discussion Papers jhd-dp2019-03, Henley Business School, University of Reading.
    13. Kim, Kyoung Yong & Atwater, Leanne & Jolly, Phillip & Ugwuanyi, Ijeoma & Baik, Kibok & Yu, Jia, 2021. "Supportive leadership and job performance: Contributions of supportive climate, team-member exchange (TMX), and group-mean TMX," Journal of Business Research, Elsevier, vol. 134(C), pages 661-674.
    14. Abdel-Rahim, Heba Y. & Lorenz, Melanie P. & Zaher, Angie Abdel, 2022. "How do cultural difference, cultural exposure, and CQ affect interpretations of trust from contract choices? Evidence from dyadic cross-country experiments," Accounting, Organizations and Society, Elsevier, vol. 96(C).
    15. Khadija Straaten & Niccolò Pisani & Ans Kolk, 2020. "Unraveling the MNE wage premium," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1355-1390, December.
    16. Ma, Li & Zhai, Xin & Zhong, Weiguo & Zhang, Zhi-Xue, 2019. "Deploying human capital for innovation: A study of multi-country manufacturing firms," International Journal of Production Economics, Elsevier, vol. 208(C), pages 241-253.
    17. Fan, Di & Wu, Sihong & Su, Yiyi & Li, Yi, 2022. "Managing expatriates to achieve mutual benefits: An integrative model and analysis," Journal of International Management, Elsevier, vol. 28(2).
    18. Paul N. Gooderham & Torben Pedersen & Alexander Madsen Sandvik & Àngels Dasí & Frank Elter & Jarle Hildrum, 2022. "Contextualizing AMO Explanations of Knowledge Sharing in MNEs: The Role of Organizational and National Culture," Management International Review, Springer, vol. 62(6), pages 859-884, December.
    19. Pia Ellimäki & Ruth V. Aguilera & Nuria Esther Hurtado-Torres & J. Alberto Aragón-Correa, 2023. "The link between foreign institutional owners and multinational enterprises’ environmental outcomes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(5), pages 910-927, July.
    20. Cristina Robledo-Ardila & Juan Pablo Román-Calderón, 2022. "Potential: in search for meaning, theory and avenues for future research a systematic review," Management Review Quarterly, Springer, vol. 72(1), pages 149-186, February.
    21. Jianfeng Meng & Majid Murad & Cai Li & Ayesha Bakhtawar & Sheikh Farhan Ashraf, 2022. "Green Lifestyle: A Tie between Green Human Resource Management Practices and Green Organizational Citizenship Behavior," Sustainability, MDPI, vol. 15(1), pages 1-19, December.

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