Defining the research framework

Having reviewed the HR literature on transfer, it becomes apparent that influences are instigated from three levels of forces. These levels are: organisational forces (for ex- ample the interdependence between HQ and local entities, scope of centralisation, the number of expatriates in the local entity etc.); stakeholder interactions and their level of collaboration, personal interests and cultural narratives; and local forces, such as local legislative requirements and changes, locally-set business goals and expectations etc. As part of this thesis, the three levels of forces are defined as “organisational, stakeholder and local”. These forces represent the overarching categorisation of the Factors, used to operationalise and measure the Construct – the transfer of policies and practices – as per Bacharach’s theory building introduced in Chapter one. Table 3.4 summarises the main components outlined in the HR literature and their respective relevance to this thesis, including their link to the three levels of forces. The aim is to align the most relevant theoretical arguments of the HR literature as discussed in this Chapter, and to use them as a basis to build level one and two of the research framework which sets the analytical structure of this thesis. As such, the existing literature will be used and further elaborated by enacting a research framework that can be used to analyse the decision-making process of pensions, and

therefore the transfer of HRM policies and practices within organisations.

HR literature

Key aim Relevance Included in model/level

In relation to the three forces

HRM: hard and soft

To identify whether employees are seen as resources to achieve company-goals (hard HRM) or as resourceful humans with whom organisations build a long-term relationship (soft HRM). HRM strategy impacts the adherence and management of HR policies; expected to extend to pension policies. Literature is relevant.

Yes, it forms the theoretical HRM foundation – first level of the research framework.

Builds the foundation for the analysis of the three forces. HRM: best fit and best practice To analyse whether policies aim to be aligned with organisa- tional/business strategy (best fit); or whether a set of HR practices is defined and adopted (best practice). It indicates the strengths of HR transfer and the influence of external stakeholders. Literature is relevant.

Yes, it forms the theoretical HRM foundation – first level of the research framework.

Builds the foundation for the analysis of the three forces. IHRM: conver- gence/ diver- gence/or cross- vergence To analyse whether an organisation applies best practice in different countries (convergence), takes account of local variations, or adopts both approaches. Literature is very relevant as it helps to understand the HRM approach applied within the case studies, as well as the HR policy transfer.

Yes, when analysing the forces

impacting pension policy transfer – second level of the research framework.

It is part of the Factors to be able to operationalise and measure the transfer. Culture (national or organi- sational) To understand the cultural impact on firm behaviour and the management of local entities. Important to understand when analysing the transfer of HR policies.

Yes, when analysing the forces

impacting pension policy transfer – second level of the research framework.

It is part of the Factors to be able to operationalise and measure the transfer. Organisa- tional factors To understand the national context Less relevant, as the decision-making process is subject to more complexity

Not included in the model, but taken into consideration when introducing the national business and pension context N/A

Table 3.4: Review of HR literature and relevance for this thesis

applied to generate a theoretical HRM foundation for the analysis of transfer. The remaining literature reviewed, contributes to the definition of the Factors influencing the transfer of pension policies and practices. The application and combination of all literature is expected to provide the most pertinent context in order to answer the research questions. After having reviewed the HR literature, levels one and two of the research framework can be defined. The theoretical basis for the analysis of the multi-layered, multi-dimensional context of pension policies and practices transfer has been made and is outlined in Figure 3.3.

Figure 3.3: The research framework

It is important to note that the three identified forces are closely interlinked, and may therefore impact the development of each other. Further empirical findings related to the research framework and the role of the three forces can be found in Chapter five. The following chapters will adopt the above research framework to ensure a mean- ingful case study research methodological approach has been applied, answering the research questions outlined earlier in this Chapter.

3.7

Summary and conclusion

The main aim of this Chapter is to introduce the research framework and to define the first two levels of analysis, which constitute the analytical structure to be able to analyse the decision-making process of pensions in MNCs and to study the transfer of global pension policies and practices. The pension literature (outlined in Chapter two) highlighted that there may be a discrepancy between pension privatisation (and the increasing need for employer sponsored pension provision), and global pension risk and cost mitigation policies and practices that MNCs implement. It was concluded that HR literature would need to be reviewed – and both literatures on pension and HRM/IHRM needed to be combined – in order to be able to analyse the pension decision-making process and to understand the extent of impact global policies and practices have on local pension provision.

Having reviewed the pension and HR literature enabled the researcher to identify any gaps in the existing academic research and to position this thesis as an impor- tant contributor to new knowledge. The contribution of this thesis to the existing HRM/IHRM literature is to provide further research on the HR policy transfer of a HR component not discussed frequently in existing HRM/IHRM literature (workplace pensions), from the MNC headquarter in a developed market to its entity in an emer- ging market. Also, a new research framework on the transfer of policies and practices has been derived from existing HRM/IHRM literature and constitutes contribution to new knowledge. Therefore, the contribution of this thesis is twofold, constituting of empirical and theoretical contributions (further elaborated in Chapter seven).

This Chapter introduced, reviewed and discussed the HRM literature. Insights into the HRM and IHRM, made it possible to define MNCs from an HRM perspective for the purpose of this thesis – which was one of the three conceptual boundaries defined in Chapter two. In addition, the theoretical HRM foundation for the analysis of transfer, framing levels one and two of the overall research framework, could be generated. The review created a novel theoretical HRM foundation. The analysis of the transfer among case studies can now be operationalised and measured in the subsequent chapters, which will provide insights and further understanding into the decision-making processes of pension provision within MNCs.

The following Chapter describes the research methodology used to collect and analyse the data, and its relationship to the research questions and theoretical framework.

Chapter 4

Research design and

methodology

The previous two chapters have discussed the pensions and HRM literature and de- veloped the research framework, which constitutes the analytical structure of this thesis. The aim of this methodology chapter is to explain the research design used to undertake this research. It also aims to justify the research methods applied to collect the appropriate data, to be able to address the research questions and test the hypotheses in the following chapters.

Chapter four starts with a discussion on how the research design is derived. It then compares qualitative and quantitative research methods and outlines the research method chosen for this thesis. The following sections discuss the data collection method and provide insights into the case studies used for this research including the choice of countries, sectors and interviewees. It then outlines the different phases of research fieldwork and discusses the data collection strategies applied, including the use of semi-structured interviews, documentary and secondary data analysis, and the researcher’s role. The penultimate section discusses how the data in this study is analysed. This Chapter ends with a conclusion.

4.1

Research theory-building

There are two main strategies to research and for building theory. These are referred to “research-to-theory” and “theory-to-research” strategies (Reynolds, 1971), or more

commonly: the inductive and the deductive strategies (Hussey & Hussey, 2003; Lyn- ham, 2002; Sekaran & Bougie, 2010). Under the deductive approach, the researcher tests theory by applying empirical observation. The approach starts from a theory, de- velops hypotheses, and then collects data or observations to address the hypotheses. This approach ultimately confirms or disproves the original theory. The deductive ap- proach is referred to as moving from the general to the particular (Hussey & Hussey, 2003; Sekaran & Bougie, 2010). According to Reynolds (1971), a deductive approach needs to have a relatively small number of variables and few significant patterns as part of the data collection.

Under an inductive approach, the researcher develops a theory by observing empirical reality. Here, the researcher collects and analyses data to develop a theory (Bry- man & Bell, 2003; Saunders, Lewis, & Thornhill, 2009). It moves from individual observations to statements of general patterns or laws (Hussey & Hussey, 2003). This approach was made popular by Karl Popper, who used the inductive approach for the purpose of falsifying rather than verifying research. According to Karl Popper “. . . scientific knowledge would advance most rapidly through the development of new ideas [conjectures] and attempts to falsify them with empirical research [refutations]” (Reynolds, 1971, p. 144).

The deductive approach owes more to realism and positivism and is often applied in quantitative research; whereby the inductive approach relates to qualitative research that follows nominalism and interpretivism (Bryman & Bell, 2003; Lynham, 2002; Saunders, Lewis, & Thornhill, 2009). More information on quantitative and qualitative research can be found in section 4.2.

In the 17th_{century and as part of the Enlightment, the separation between measurable} and abstract thinking/research was debated, as well as the separation between rational and creative thinking (Brown & Harris, 2014). More recent research has increasingly argued against using both approaches as single or even controverting approaches, and instead has proposed that they should be seen as reflections on how the three essential elements of applied theory building evolve (Collis & Hussey, 2009; Easterby- Smith, Thorpe, & Lowe, 1991; Kauffman, 1980; Lynham, 2002; Senge, 1990). These elements are: the development of knowledge and explanation (theory); the inquiry and discovery (research); and the outcomes of the first two elements (practice) (Lynham,

2002). As such, both approaches have often been combined in the same study, applying the argument that they complement each other, whereby induction helps to develop a theory and deduction helps to test it. Layder (1998) named the combined approach “adaptive theory approach”, resting upon an epistemological position which is neither positivist nor interpretivist, and applying objectivism and subjectivism in terms of its ontological assumption. It assumes that the social world is complex and multi-faceted, paying particular attention to the interconnections between human agency, social activities and social organisations (structures and systems).

Using case studies to build theory has been a popular tool to reach a combined deductive and inductive approach; whereby inductive theory building is based on the new data that comes from cases, and the deductive theory approach uses case data to test the theory (Eisenhardt & Graebner, 2007). Some researchers have argued that the theory that stems from cases is likely to be more accurate, interesting and testable – as it is based on rich empirical data; however, have also warned for oversimplification, broad generalisations, and confusion around the complexity of the research approach (Eisenhardt & Graebner, 2007)

The present research adopts an adaptive theory approach, whereby predominantly the deductive approach is used to answer the research questions. Following the de- ductive approach, this thesis begins with a detailed literature review to understand the research domain. From the existing literature, research gaps are identified. A research framework and two hypotheses are then developed. To test the hypotheses and the reliability and validity of the research framework – empirical data is needed. Qualitative data is primarily used. The study also incorporates some inductive theory building, by integrating empirical data when building the research framework (Hamel, 1993). Empirical data can be referred to in this instance, as the researcher’s experi- ence as a consultant and reflection of knowledge and insights into the topic and the companies (further discussed in section 4.3.3.3), and the review and adjustment of the initial research framework throughout the research, when new empirical data became available. In addition, this thesis also considers the context of the different “objects”, which according to Hamel (1993) is an inductive notion to research. Overall, this thesis aims to analyse pension decision-making process in MNCs and to understand the impact global pension policies and practices have on local decision making. An

important component of this research is therefore to investigate the transfer of global pension policies and practices and local entities’ decision-making around adapting these guidelines. Its foundation is the research framework, which needs to be a thor- ough theory, hence first to be built and then tested. As such, the adaptive theory approach, as outlined (and introduced earlier in this section) by Layder (1998) is the most appropriate approach for this thesis. The next section provides details of the chosen methods of research.