We have performance appraisal every day and every hour”: Transferring performance management to Russia.

Abstract

Performance management (PM) of employees is an important established practice in multinational corporations (MNC) and therefore one of the key practices to be transferred to subsidiaries. In this study, we use the concept of institutional logics to show how Russian employees experience PM practices that are based on the institutional logic of a Finnish MNC which is contradictory to the one prevailing in Russia where the subsidiaries operate. Our findings contribute to the practice transfer and PM literature by showing how the Russian subsidiaries responded to competing institutional logics by consciously selecting certain elements from each logic, demonstrating “institutional bricolage”, to address both the headquarter's (HQ) requirements and the fast pace of change and uncertainties in an emerging post-Soviet market. Our study also enhances the international business (IB) literature by using the concept of institutional logics in IB and international management (IM) research, where it has been infrequently used.