The integration–differentiation puzzle: a resource-capability perspective in international human resource management

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Abstract
This paper is concerned with the management of the human resource agenda in international business. It begins by examining the critical question of how to balance the organizational need for co-ordination and control (integration) at the centre and the increasing pressures for sensitivity and flexibility (differentiation) at the subsidiary or unit level. A resource-capability (RC) view is then offered to re-examine the integration–differentiation (IN–DI) debate, proposing how firms might resolve some of the dilemmas inherent in IN–Dl decisions by cultivating their stock of knowledge and expertise. This perspective also enables us to assess the underlying paradigmatic foundation upon which strategic decisions in international human resource management are based.