All managers stated that their companies wish to learn and use UK management practices although the reasons they gave for doing so varied. Reasons to apply this strategy given by the CEO’s of these companies are as follow;
One of the CEO told that they have to depend on local expertise if they want to extend their markets into the UK and they could not attract and retain local talent if they did not follow local labor management practices.
CEO from another company says “It was formed to establish an international business and viewed learning modern techniques on how to manage people as integral to its success”.
Important structural factor promoting localization in these six companies is government ownership.
Results showed that market position and business integration also affect the extent and nature of localization and diffusion. The more the company depends on a local market for its services, the more localization in HR practice is apparent
The scope of localization and diffusion also reflects the extent
to which they are dependent on local or international markets.
A staff composed of both expatriates and locals could provide opportunities for the learning and diffusion of local practices (Edwards 1998).