Culture fit and employee engagement in foreign subsidiaries: Evidence from Chinese multinational enterprises in the United States

Abstract

Engaging local employees in foreign subsidiaries has emerged as a critical concern for Chinese multinational enterprises (MNEs). This study employs the theoretical framework of culture fit to conduct an inductive multiple-case study of Chinese subsidiaries in the United States. We examine how culture fit between the organizational and societal levels is manifested through human resource management practices at the foreign subsidiaries of Chinese MNEs. Particularly, we demonstrate how culture fit or misfit influences the intellectual, social, and affective engagement outcomes of local employees at the individual level. This study extends the understanding of culture fit across multiple levels and its direct impact on employee engagement. The findings provide valuable managerial implications for global human resource managers to effectively engage their culturally diverse workforces.