In their "convergence hypothesis," Kerr, Dunlop, Harbison, and Myers (1960) posited that market forces would shift all countries toward employment and industrial relations systems similar to those of the United States. Although subsequent research long seemed to reject this argument (Punnett & Shenkar, 1996), globalization has proven a significant force that continues to foster renewed interest in the convergence hypothesis (e.g., Rowley & Benson, 2003). Convergence is a complex and multifaceted phenomenon. This study concerns only one aspect: convergence of human resource systems between locally owned companies (LOCs) and subsidiaries of multinational companies (MNCs) at the host-country level.
Despite apparent cultural and social impediments, research suggests that highperformance work systems (HPWSs) have the potential to be effective in East and Southeast Asia (Bae, Chen, Wan, Lawler, & Walumbwa, 2003). It therefore is not surprising that discussion often centers on the utility of American-style strategic human resource management (SHRM) and what has come to be known as HR "transformation" in this region (Erickson & Kuruvilla, 1998). LOCs, particularly those in the more advanced East and Southeast Asian economies, appear to be patterning their employment systems more extensively after those of Western multinational companies (MNCs), especially American MNCs.