LOCALIZED HUMAN RESOURCE STRATEGIES AND EMPLOYEE PERFORMANCE IN MULTINATIONAL CORPORATIONS: EVIDENCE FROM HUAWEI'S MIDDLE EAST SUBSIDIARIES

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Yihan Shao
Ao Chen

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This study aims to: 1) examine the associations between localized talent recruitment (LHR), cross-cultural training intensity (CCTI), localized compensation fit (CLF), and employee performance in Huawei's Middle East subsidiaries; 2) test whether LHR mediates the relationship between CCTI and employee performance; and 3) assess whether CLF strengthens the relationship between LHR and performance. Using an exploratory quantitative case-study design, the study analyzes 12 country-year observations from Saudi Arabia, the United Arab Emirates, and Qatar during 2021-2024. Employee performance is represented by revenue per employee (RPE) and customer satisfaction score (CSAT). Data were compiled from Huawei annual and sustainability reports, official labor-localization policy documents, and public benchmarking sources. Results show that: 1) CCTI has the strongest and most stable positive association with both RPE and CSAT; 2) LHR partially transmits the relationship between CCTI and performance; and 3) CLF positively moderates the LHR-performance relationship. Because the dataset is small and constructed from secondary sources, the findings are interpreted as exploratory evidence rather than causal proof. The study contributes to international human resource management by explaining how recruitment, training, and compensation localization may operate as an integrated HR system in institutionally complex GCC markets.

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