Managing cross-cultural differences: Testing human resource models in Latin America

This study examines whether firms should adapt their Human Resource Management (HRM) practices to cross-cultural differences. The authors introduce three different positions, namely, the culturalist, the universalist, and an integrated position that reconciles the former two named the culturally-animated universalist position. The study compares the effectiveness of these three positions in a sample of 138 firms located in Latin-America. Results suggest that, contrary to common wisdom in the International HRM literature, firms following a universalist approach outdo those using a culturalist one. However, the effect of universal HR practices on HR performance is also contingent on the country's performance orientation. The authors advocate the culturally-animated universalist position.