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abstraction refers to the level at which the HR strategy is focused. According to Combs et al. (2006), there are different levels of abstraction in the design of a global HR system. Levels vary from recommendations, policy, to operational-level procedures. With a policy-level of abstraction, affiliates are given the freedom to implement their own HR strategies within the broad parameters of the standardized policies. However, with an operational level of abstraction, affiliates are expected to implement a more detailed HR management practice. Scope refers to the extent of HR management practices dealt with in the HR strategy. For example, the HR strategy may have a narrow scope and focus on two or three key areas, or it may have a wide scope and deal with the more comprehensive list of practices such as those described in the contingency perspective by Tregaskis et al (2005).

1.9.2 Research Evidence

Utilizing the findings from the research of 302 MNC's operating in the UK by (Edwards et al 2007) and the framework for subsidiaries by Cooke (2003), it was found that the determination of the appropriate formation model is largely dependent on four variables which include:

The business model

The impact of national culture on the business model

The role of the MNC's organizational culture in directing and controlling affiliates

The degree of convergence

1.9.3 Implementation & Expansion: Business Model

According to Cooke (2003), the business model largely drives corporate HR strategy and there is a need for congruence and alignment of HR management practices and business strategy. The increased complexity of MNC's is the result of MNC's pursuing value-creating opportunities that become available when firms have a global presence (Guest, 2003), but the increased complexity requires the appropriate organizational architecture, of which HR is a critical component. A most useful way of explaining MNC'S business models is the eclectic paradigm (Randall, 2006). In terms of the paradigm, MNC's are advised to invest across national borders because of an interplay between a firm's ownership-specific advantages (Firm Specific Advantages), the location attractiveness of countries or regions, and advantages gained from internalizing cross-border operations within the MNC'S; the so called OLI approach (Cooke, 2003).

The first factor, Ownership, refers to the MNC's specific competencies and an understanding of how they develop, the second, Location, relates to an appreciation of the transferability of a firm's competencies between markets, while the third factor, Internalization, deals with the alternative modes of market entry in a competitive context. The choice of location is influenced by a combination of FSAs (firm specific advantage) and country-specific factors, such as the availability of natural resources, access to markets, or assets that complement the FSA (Ferner et al, 2005). These respective approaches are referred to as Resource Seeking Foreign Direct Investment (FDI), Market Seeking FDI and Strategic Asset Seeking FDI (Cooke, 2003).

1.9.4 Implementation & Expansion: Influences on Destination

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