The Impact of Human Resource Localization on Employee Innovative Behavior in Chinese–Thai New Energy Enterprises
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Abstract
As Chinese new-energy enterprises accelerate their investment in Thailand, subsidiaries face increasing challenges in adapting to institutional differences while sustaining innovation performance. In this context, this study aims to examine (1) whether human resource localization enhances employee innovative behavior, (2) whether bidirectional knowledge sharing between headquarters and subsidiaries mediates this relationship, and (3) whether person–job fit moderates these effects.
To achieve these objectives, a quantitative survey was conducted among 331 employees working in Thai subsidiaries of Chinese-invested new-energy firms. Established measurement scales were adopted to capture perceived HR localization, forward and reverse knowledge sharing behaviors, person–job fit, and employee innovative behavior. The hypotheses were tested using multiple regression analyses and bootstrapping procedures to assess both mediation and moderation effects.
The results indicate that higher levels of HR localization are significantly associated with stronger employee innovative behavior. Both forward knowledge sharing (headquarters→subsidiary) and reverse knowledge sharing (subsidiary→headquarters) partially mediate this relationship, suggesting that localization enhances innovation by facilitating two-way knowledge exchanges. Furthermore, person–job fit positively moderates the effect of knowledge sharing on innovative behavior and strengthens the direct impact of HR localization on innovation, with a stronger moderating effect observed for reverse knowledge sharing.
Overall, this study demonstrates that HR localization functions as an innovation-enabling system through knowledge circulation and fit-based transformation, providing theoretical insights and managerial implications for multinational enterprises operating in emerging markets.
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