Over the last decade, the numbers of multinational corporations (MNCs) have increased significantly because of the dramatic growth of internationalization and global competition. MNCs play an important role in order to maximize profits and manage complex of international business activities. In spite of the fact that the multinational corporation is operated in several countries (Stonehouse, Cambell, Hamill & Purdie, 2005), the operation and strategic planning of international firms would be more complex than domestic firms in terms of dealing with affiliates across borders and transferring human resources and knowledge between parent companies and their affiliates. Due to these complexities, MNCs can be confronted with various challenges that force them to emphasize on manifest activities especially international human resource management (IHRM) (Ondrack, 1985 & Scullion, 1995 cited in Harzing & Ruysseveldt, 2004).
IHRM has become a considerable strategy assisting international organization to be successful by managing the effective employees for running international activities in MNCs (Briscoe & Schuler, 2004). Therefore, it is likely important to integrate appropriately organizational strategy with international HRM (SIHRM) in order to implement the global achievement of organization and obtain competitive advantages. However, the important issue of SIHRM is a design of SIHRM in term of how to balance the needs between integration and differentiation of both parent organizations and their affiliates that influence by internal factors, such as experience in managing internal operations and external factors, such as industry and regional characteristics. (Shuler, Dowling & De Cieri, 1993 cited in Taylor, Beechler & Napier, 1996). This e ...