Influence of Multinational Corporations’ Trans-nationality on Human Resource Development in the Global South: the Case of Diageo’s East African Breweries in Kenya

Abstract

As multinationals expand across borders, the desire to enhance efficiency is often accompanied by the quest to coordinate and control operations across geographies. To achieve this, MNCs diffuse organizational norms in their operational spaces in order to enhance their competitive advantage. However, while enough similarities exist between multinationals and their parent companies in as far as human resource standards are concerned, the human resource influences by the parent corporation of multinational subsidiaries are influenced by the national physiognomies of the milieu in which they run. In Africa, MNC’s human resource management has been underpinned by sheer complexity and diversity owing to the diverse rules, regulations and laws guiding corporate human resource standards in diverse African nations. Using Diageo's East African Breweries in Kenya, this study evaluates the impact of transnational multinational firms on the development of human resources in the Global South. Specifically, the study evaluates the impact of EABL on human resource development; assesses the impact of EABL's labor entrants' human resource development programs on the Kenyan labor market; and assesses the impact of EABL's CSR programs on the Kenyan labor market. Using the norm evolution theory and a pragmatic research design, the study finds that Diageo’s East African Breweries Limited’s is critical to human resource development in Kenya through the use of training programmes to assimilate recruits and train existing staff. The multinational also has a programme to train and absorb graduate trainees. Additionally, the MNC uses Corporate Social Responsibility programmes to empower communities through sponsorship of needy but bright students. The study concludes that MNCs enhance HR development through in-house training as well as scholarships.