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The diffusion of “best management practice” across national boundaries is becoming a significant strategy for multinational companies (MNCs) to achieve competitive advantage in global markets. Several studies have shown that national cultural and institutional differences may constrain or limit the transfer of such “best practice”. However, these conclusions are based on studies of MNCs from developed countries and we know little about MNCs from developing countries in relation to human resource management best practice. China is engaging in rapid economic development and internationalisation of its business system, and Chinese MNCs see the adoption of advanced management practices as central to the process. Drawing on a study of Chinese MNCs operating in the UK, the article shows how the subsidiaries of these MNCs used the advanced environment of a developed country to transfer best practice of HRM into their organisations.

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