eHRM adoption in emerging economies: The case of subsidiaries of multinational corporations in Indonesia.

Electronic HRM (eHRM) is assumed to strengthen the position of HRM as a business partner by promising strategic benefits. Empirical support for this assumption, however, mostly comes from studies conducted in developed economies. Yet eHRM adoption in the emerging economy context remains poorly understood as is how eHRM can result in strategic benefits. We argue that the difference between an emerging economy compared to that of a developed economy affects the adoption of eHRM in multinational corporation (MNC) subsidiaries. In order to investigate which extrinsic factors of a firm in an emerging economy context play a role in the adoption of eHRM, we conducted semistructured interviews in 11 subsidiaries in Indonesia. We found that headquarters’ influence and the available resources have a strong influence on eHRM adoption in Indonesia