The challenges of MNC employer branding in emerging markets: A case study from Hungary and China

Abstract

The study examines what kind of issues affect the development of an employer brand when establishing a new site in emerging markets and how MNCs overcome the challenges related to the development of the employer brand. Besides, specific frameworks of the findings are formulated for MNCs to help with EB in an emerging economy. The empirical part of this study was conducted using qualitative research method. Semi-structured interviews were conducted among 11 interviewees, 6 managers and 5 employees of two companies in two emerging economies, Hungary and China. In the study abductive approach was adopted and the data was analyzed with cross-case analysis comparing the results from Hungary and China as well as the practices of the companies in these markets.

The study reveals that features such as international career possibilities, providing hi tech working in environment, possibility to take part in CSR activities as well as support for work-life balance seemed to be the most important features in the emerging market context. A significant finding was that the employees seemed to value Finnish leadership and values greatly. Additionally, support from government and university cooperation were distinctive findings impacting the employer brand in emerging economy context. The results of the study as well as the developed framework will help MNCs to understand better the issues that need to be covered when developing employer brand in emerging markets.

This study covers the gap in employer branding literature as the research in emerging economies remains scarce. This study adds value to the existing literature by providing important insights about the differing perceived values of employer brand and employer branding practices in emerging markets. MNCs can utilize this knowledge when establishing a business in emerging markets and when planning employer branding activities.