Studies have shown that multinational corporations (MNCs) struggle to match their global hiring and performance reviews with their learning processes, specifically at Unilever PLC, which results in uneven performance across countries and hinders the sharing of knowledge in fast-changing global settings. This study then intends to research how organizational learning mediates the interface between international human resource management (IHRM) and multinational performance.
A survey research design was adopted, with a population of 770 employees from Unilever Nigeria Plc. Using Taro Yamane’s sample size formula, a sample of 263 respondents was selected through simple random sampling. Data were collected via a structured questionnaire following ethical approvals and confidentiality assurances. The analysis was conducted using partial least squares for the inferential statistics to test for the hypothesis formulated and descriptive statistics via Statistical Package for Social Sciences to analyze demographic information of the respondents.
The results indicate that both global staffing and performance appraisals significantly influence MNC performance. Furthermore, organizational learning was found to fully mediate the relationship between performance appraisal and MNC performance, while it partially mediates the impact of global staffing on performance.
This study provides a novel perspective on how learning-driven HR strategies enhance global competitiveness by examining the mediating role of organizational learning in the relationship between IHRM and MNC performance.
Introduction
Globalization has fundamentally reshaped organizational operations in multinational corporations (MNCs), by intensifying cross-border collaboration and heightening reliance on diverse talent pools to achieve sustainable competitive advantage (Carnevale & Hatak, 2020). As organizations navigate increasingly complex international markets, the capacity to attract, develop and retain skilled employees has emerged as a decisive factor for competitiveness (Collins, 2021; Jimoh & Kee, 2022). This challenge is especially critical in the manufacturing sector, where MNCs must integrate human capital strategies across geographically dispersed units to ensure efficiency, innovation and long-term performance. In response, international human resource management (IHRM) has evolved as a strategic mechanism for global talent deployment, workforce development and performance optimization.
Although research has examined the influence of IHRM practices on multinational performance (Hu et al., 2022; Shaher and Ali, 2020), existing scholarship remains fragmented. Prior studies often analyze IHRM practices in isolation, paying little attention to how global staffing, training and performance appraisal collectively shape organizational outcomes. More importantly, they tend to overlook the internal mechanisms that transform IHRM strategies into superior performance across borders. One such mechanism is organizational learning, which enables firms to transfer knowledge, build adaptive capabilities and embed global best practices within local contexts. Despite its importance, the mediating role of organizational learning in the IHRM–performance nexus remains underexplored, leaving an incomplete understanding of how organizations achieve sustained value through international HR strategies.
This study addresses these gaps by investigating how organizational learning mediates the relationship between two central IHRM practices: global staffing and performance appraisal and multinational performance. Mediation testing is essential in this context because it explains how and why HR practices translate into performance outcomes, rather than simply establishing whether they do. Organizational learning provides the pathway through which staffing and appraisal practices generate competitive value: it enables firms to adapt HRM strategies to diverse environments, respond to emerging challenges and leverage cross-border knowledge flows. By focusing on this mediating mechanism, the study contributes to a more nuanced theoretical understanding and offers practical insights into how firms can strengthen the link between IHRM and global performance.
Grounded in the resource-based view (RBV), this research positions organizational learning as a dynamic capability that enhances the strategic value of human capital by enabling continuous adaptation and reconfiguration of HRM practices (Mailani, Kumar, and Singh, 2024). In doing so, the study enriches theory by clarifying the indirect pathways through which IHRM affects performance and advances practice by showing how MNCs can build resilience and agility in an era of rapid global change, workforce transformation and cross-cultural integration (Han, Jiang, and Anand, 2024).
The study is segmented into five parts. The literature review, which covers the underlying theory and hypothesis development, follows the introduction. Methodology includes research design, data collection and analysis techniques. Findings and discussions with respect to existing research are next. Finally, implications, limitations, suggestions for future studies and the conclusion of the study were discussed.
Objectives of the study
To determine the effect of global staffing on the performance of MNCs.
To examine the effect of the performance appraisal on the performance of MNCs.
To investigate how organizational learning mediates the relationship between the performance of MNCs and global staffing.
To investigate how organizational learning mediates the relationship between the performance of MNCs and performance appraisal.
Literature review
Underlying theory
Resource-based view.
RBV provides the foundational theory for describing how organizational internal assets, most especially human capital, form competitive advantages that persist. According to Barney (1991), resources must be valuable, rare, imitable and not substitutable to enable organizations to achieve and maintain high performance. Whereas in IHRM, RBV is concerned with the strategic importance of human capital encompassing employees’ knowledge, abilities and experience in determining MNCs to be competitive worldwide (Beamish and Chakravarty, 2021). Effective management and care for these human resources in geographically dispersed subsidiaries, MNCs develop unique competencies that make them stand out in international markets (Tarique and Schuler, 2024).
However, recent applications of RBV demonstrate the role of dynamic capabilities in interpreting static resources into sustainable competitive advantages. Organizational learning is of crucial significance in IHRM settings, where MNCs need to continuously reform themselves to accommodate rapidly shifting circumstances. This intermediary process enables organizations not only to acquire and develop talent but also to transfer knowledge into implementable strategies that enhance performance (Gerhart and Feng, 2020). Jalali, Palalić, Razzak, and Al-Kharusi (2025) demonstrated that absorptive capacity acts as a mediator for big data analytics to affect organizational risk-taking and innovation, emphasizing the leadership of learning capabilities in achieving strategic value from internal resources. In addition, Jalali, Al-Riyami, Razzak, and Suleiman Alqam (2024a); and Jalali, Palalić, Razzak, and Al-Kharusi (2024b) found that absorptive capacity acts as a mediator between the effects of external network relationships and the external sourcing of big data analytics on small and medium-sized enterprise (SME performance, again emphasizing the leadership of internal learning mechanisms in the RBV school of thought.
These findings are aligned with the view that organizational learning is not merely a supportive function but a critical mediator that enhances the value of human capital in MNCs. The combination of RBV and organizational learning strengthens the theory, showing that just having resources isn’t enough; companies need to be able to take in, understand and use knowledge effectively. This expanded theoretical perspective advances the contribution of the present study by positioning organizational learning as a core mediating variable that links IHRM practices to multinational performance. Firms that embed learning processes within their HRM systems are better equipped to harness their human capital and translate it into long-term competitive advantages in global operations.
Research framework
Figure 1 presents the conceptual research framework for the study, illustrating the hypothesized relationships among the key constructs: global staffing, performance appraisal, organizational learning and the performance of MNCs. The model posits that both global staffing and performance appraisal serve as core dimensions of IHRM practices that influence MNC performance directly (H1 and H2) and indirectly through the mediating effect of organizational learning (H3 and H4). Specifically, global staffing and performance appraisal are proposed to positively impact organizational learning, which in turn enhances the performance of MNCs. This framework is grounded in the RBV, emphasizing human capital and learning as strategic internal resources that drive competitive advantage.
The diagram illustrates the relationships among global staffing, performance appraisal, organizational learning, and performance of multinational corporations. Arrows indicate four hypothesised links. Hypothesis 1 suggests that organizational learning directly affects the performance of multinational corporations. Hypothesis 2 proposes a direct link between global staffing and performance. Hypothesis 3 connects global staffing to organizational learning, while Hypothesis 4 links performance appraisal to organizational learning.Research framework
Source: Author’s own creation
The diagram illustrates the relationships among global staffing, performance appraisal, organizational learning, and performance of multinational corporations. Arrows indicate four hypothesised links. Hypothesis 1 suggests that organizational learning directly affects the performance of multinational corporations. Hypothesis 2 proposes a direct link between global staffing and performance. Hypothesis 3 connects global staffing to organizational learning, while Hypothesis 4 links performance appraisal to organizational learning.Research framework
Source: Author’s own creation
Global staffing
Global staffing refers to the deployment of human capital across international subsidiaries to ensure that positions are filled by individuals with the competencies, cultural sensitivity and strategic alignment necessary to drive organizational performance (Collins, 2021). In an increasingly competitive and complex global environment, staffing decisions underpin knowledge transfer, strategic coordination and subsidiary integration (Dunmade, Ajayi, and Jimoh, 2023). To capture the strategic scope of global staffing, this study adopts the classic ethnocentric, polycentric and geocentric typology. Originally proposed by Perlmutter (1969) under the “EPRG framework” and subsequently refined in international HRM literature, these three approaches remain the most widely cited and empirically validated dimensions for examining staffing practices in MNCs (Kiessling, Maley, Moeller, and Dabić, 2021). Their selection in this study is based on two considerations: theoretical uniqueness and practical applicability.
Performance appraisal
Appraisal refers to the systematic assessment of value, merit or quality (Landy and Farr, 1980), and in organizational settings, it involves a formal evaluation of employees by supervisors or managers familiar with their work. Therefore, performance appraisal is a critical component of IHRM, functioning as a structured mechanism for evaluating, managing and improving employee contributions across diverse cultural and operational environments. By aligning individual performance with organizational objectives, performance appraisal supports accountability, employee development and organizational effectiveness (Hu et al., 2022). Over time, appraisal has evolved from a narrow evaluative tool used primarily for promotion decisions to a multidimensional process that encompasses developmental feedback, performance improvement and alignment with strategic goals (Jimoh, 2023). The inclusion of this dimension in the present study is based on the consistent validation in performance management research and their strategic relevance to multinational corporations.
Organizational learning
Organizational learning serves as a critical mediating variable in the relationship between IHRM practices. In environments characterized by cultural diversity, regulatory variation and competitive complexity, the ability to acquire, assimilate and apply knowledge is indispensable for managing human capital and sustaining performance (Verma, Kumar, Mittal, Gupta, and Hsu, 2022). When applied to global staffing, organizational learning facilitates the transfer of expertise across borders and integrates multiple cultural perspectives, helping firms adapt staffing models to local contexts while aligning them with corporate objectives (Hu et al., 2022). The decision to adopt these dimensions rests on the extensive validation in organizational learning literature and their proven relevance to international business research.
Global staffing and performance of multinational corporations
Traditionally focused global staffing on senior management placements within MNCs, the scope of global staffing has expanded to include broader strategic concerns such as alignment with corporate goals, cross-border knowledge transfer and global leadership development (Kim, Chung, and Brewster, 2022). The performance of MNCs is often influenced by their ability to manage human capital across national boundaries. Effective global staffing ensures that talent is matched to key positions regardless of geography, thus facilitating strategic coordination, responsiveness to local conditions and the smooth exchange of critical information across subsidiaries (Jimoh and Kadiri, 2018). Despite its importance, the dynamics of headquarters–subsidiary staffing relationships remain unexplored, especially in how different staffing approaches affect organizational performance (Dunmade et al., 2023). A key challenge in global staffing arises from selecting candidates from home, host, or third countries. While home-country nationals (expatriates) provide alignment with headquarters’ strategy, host-country nationals bring local knowledge and cultural familiarity and third-country nationals offer regional or technical expertise (Collins, 2021). Yet, MNCs frequently underestimate the complexity of recruiting in foreign labor markets, often due to limited knowledge of local employment systems, cultural expectations and regulatory environments (Jimoh and Kadiri, 2018).
The intensification of globalization and cross-border competition has heightened the need for agile and experienced international managers. However, many MNCs now face a shortage of globally competent personnel, making it increasingly difficult to implement international strategies effectively. This issue extends beyond large corporations, as SMEs also expand their international footprints and encounter similar staffing constraints (Nkambule, Wang, Ting, and Lu, 2022). As organizations shift from hierarchical to more decentralized and networked models, global staffing must evolve into a flexible, knowledge-driven process that aligns talent with strategic intent. Grounded in the RBV, which emphasizes the role of human capital as a source of sustained competitive advantage, this study posits that global staffing decisions significantly shape the performance of MNCs. Properly structured staffing systems help MNCs build adaptive, culturally competent and strategically aligned workforces that contribute to superior performance across borders. It is in light of these that the study formulated the following hypothesis:
There is a significant effect of global staffing on performance of multinational corporation.
Performance appraisal and performance of multinational corporations
In high-performing organizations, especially MNCs, performance appraisal functions as a central component of a broader performance management system. When effectively designed and implemented, performance appraisals serve not only to measure individual contributions but also to align employee behaviors with long-term organizational goals (Bertrand, Betschinger, & Moschieri, 2021). According to Jimoh, Yahaya & Salman (2023), performance appraisals are only effective when embedded in a purpose-driven system that supports decision-making around training, rewards and talent development. Misaligned or unclear appraisal processes can result in employee disengagement and missed opportunities for improvement.
The global nature of MNC operations introduces unique challenges for performance appraisal. Operating in multiple cultural and institutional contexts, MNCs navigate diverse understandings of performance, fairness and feedback. Dunmade et al. (2023) noted that MNCs often conduct performance reviews more rigorously and more frequently than domestic organizations driven partly by home-country accountability and global performance standards. These organizations also tend to integrate performance appraisal with other strategic HR functions such as succession planning, international leadership development and cross-cultural training.
Furthermore, MNCs play a central role in disseminating standardized management and HR practices across subsidiaries. They must decide whether to adapt performance evaluation systems to fit local norms or enforce global standards. This balancing act directly affects not only individual employee performance but also organizational coherence and global competitiveness. When done correctly, performance appraisal contributes to a high-performance culture that promotes transparency, accountability and continuous improvement. Drawing on the RBV, performance appraisal is conceptualized in this study as a valuable internal capability that supports the development and utilization of human capital, which in turn drives organization-level performance. When systematically applied, it becomes a mechanism through which MNCs align talent strategies with strategic objectives and enhance global effectiveness. It is in light of these that the study formulated the following hypothesis:
There is a significant effect of performance appraisal on performance of multinational corporation.
The mediating role of organizational learning in the nexus between global staffing and multinational performance
Global staffing is a critical strategic activity in MNCs, as it determines how human capital is deployed across diverse geographical contexts. Effective global staffing aligns talent with corporate objectives, local market needs and cultural norms, contributing to organizational performance. However, recently Shaher and Ali’s (2020) study had shown that the full performance benefits of global staffing are often realized only when organizational learning mechanisms are in place. Organizational learning facilitates the acquisition, dissemination and utilization of knowledge across borders, enabling MNCs to adapt to dynamic environments, innovate processes and gain a sustained competitive advantage. Staffing strategies enable knowledge exchange and cross-cultural competence, but without robust learning systems, the value of these strategies will remain underutilized (Shaher and Ali, 2020).
As Collings, Mellahi and Cascio (2018) argued, MNCs that invest in learning platforms achieve higher performance by integrating perception from globally dispersed talent. These systems not only enhance retention and engagement but also support strategic decision-making through shared learning and experience accumulation. Organizational learning serves as a mechanism that links global staffing to enhanced performance. According to Hekneby and Olsen (2024), learning-oriented organizations are more adaptable and resilient in volatile global markets. They systematically embed knowledge gained from diverse staffing models into operational processes, allowing for continuous innovation, local responsiveness and strategic agility. In addition, Shaher and Ali (2020) found that learning environments in MNCs enable effective knowledge flow between expatriates, host-country nationals and third-country nationals leading to improvements in efficiency and innovation.
Besides, empirical evidence (Ghasemzadeh, Nazari, Farzaneh and Mehralian, 2019; Salman, Olawale and Jimoh, 2024) suggests that learning cultures improve financial performance, market expansion and human capital development. By fostering knowledge integration and reducing risks associated with global assignments, organizational learning enhances the success rate of staffing strategies. Grounded in the RBV, this study conceptualizes organizational learning as a mediating variable through which global staffing translates into higher multinational performance. The presence of learning processes is what transforms dispersed talent deployment into a source of strategic advantage. It is in light of these that the following hypothesis was formulated:
Organizational learning does not mediate the relationship between global staffing and performance of multinational corporation.
The mediating role of organizational learning in the nexus between performance appraisal and multinational performance
Performance appraisal is a foundational component of international human resource management, used to assess employee contributions, identify skill and performance gaps and align workforce behavior with organizational goals (Jimoh, 2023). However, the direct impact of performance appraisal on multinational performance is often complex and influenced by contextual factors. Aguinis (2023) emphasized that the effectiveness of appraisal systems depends on the organization’s ability to convert evaluation results into meaningful development processes. Furthermore, organizational learning, on the other hand, enables MNCs to transform performance data into actionable knowledge. By integrating mechanisms such as structured feedback systems, targeted training and ongoing coaching, organizations will be able to enhance employee capabilities based on appraisal insights (Hekneby and Olsen, 2024). This ensures that performance appraisals do not merely serve as judgment tools, but as developmental platforms that support continuous improvement.
In the context of globally dispersed organizations, cultural variation and institutional diversity limit the effectiveness of standardized appraisal practices. Organizational learning helps overcome these barriers by fostering communication across cultural lines, promoting consistent understanding of performance expectations and standardizing evaluation metrics (Bertrand et al., 2021). As a result, employees perceive appraisal systems as fair, growth-oriented and culturally sensitive leading to greater engagement, motivation and alignment with corporate objectives (Dunmade et al., 2023).
Besides, Jalali et al. (2024a, 2024b) indicated that MNCs that embed learning into their performance management processes experience positive results such as higher retention, stronger leadership pipelines and greater responsiveness to dynamic global markets. When appraisal is perceived as part of a learning-oriented organizational culture, it encourages feedback-seeking behaviors, proactive development efforts and the sharing of best practices across subsidiaries. Therefore, organizational learning is theorized to mediate the relationship between performance appraisal and multinational performance by translating appraisal processes into sustained improvements in talent management, innovation and global integration. It is in light of these that the study formulated the following hypothesis:
Organizational learning does not mediate the relationship between performance appraisal and performance of multinational corporation.
Methodology
A survey research design was adopted for this study because it aligns with the research objective of examining relationships among variables within a broad organizational setting. This design enabled the collection of quantifiable data from a representative sample of the study population, thereby facilitating the generalization of findings (Sekaran and Bougie, 2016). Grounded in a positivist research philosophy, the study used a quantitative approach to objectively analyze the effect of IHRM practices on the performance of multinational corporations. To maintain neutrality and avoid subjective influence, the researcher was independent of the data collection process, which focused on empirically assessing the hypothesized relationships (Cavana, Delahaye, and Sekaran, 2001).
The study population consisted of 777 employees of Unilever Plc, Lagos State, Nigeria, as reported in the company’s 2024 corporate profile. From this population, 263 respondents were selected using a simple random sampling technique, ensuring each member of the population had an equal chance of being included. This approach enhanced representativeness and minimized selection bias. The sample size was determined using Taro Yamane’s formula, guaranteeing statistical adequacy for robust inference. Data were gathered through a structured questionnaire, which was considered suitable for eliciting responses on IHRM practices, organizational learning and multinational performance.
The mediation effect of organizational learning was examined using the traditional approach proposed by Baron and Kenny (1986). This method involves first testing the direct association between the independent and dependent variables, then evaluating the indirect effect through the mediator to clarify the mechanism by which IHRM practices influence performance. In addition, common method bias (CMB) was mitigated through both procedural and statistical remedies in line with the recommendations of Sekaran and Bougie (2016). Procedurally, respondents were assured of anonymity, different response formats were used and predictor and criterion variables were separated in the questionnaire. Statistically, Harman’s single-factor test was conducted and the results showed that CMB was not a significant issue.
To further strengthen the validity of the findings, nonresponse bias was examined following the guidelines of Armstrong and Overton (1977). Early and late respondents were compared on key demographic and study variables under the assumption that late respondents resemble nonrespondents. Independent-sample t-tests revealed no significant differences between the two groups, indicating that nonresponse bias did not pose a serious threat to the data quality. Finally, a two-step confirmatory factor analysis (CFA) was conducted following Kline’s (2015) recommendations. First, first-order CFA was used to establish the unidimensionality and convergent validity of each construct. Thereafter, second-order CFA confirmed the hierarchical structure of the latent constructs, ensuring their reliability and validity for subsequent analysis.
The questionnaire included validated scales adapted from prior studies: global staffing from Schuler et al. (2002), performance appraisal items from Tarique and Schuler (2010), multinational performance items from DeNisi and Protchard (2006); and organizational learning measures from Garvin, Edmondson, & Gino (2008). Before data collection, ethical approval was obtained from Unilever Plc’s Lagos State office, with assurances of confidentiality and exclusive academic use provided to all respondents. Data analysis was conducted using the Statistical Package for the Social Sciences (SPSS) and the partial least squares structural equation modeling (PLS-SEM) technique via SmartPLS software. PLS-SEM was selected due to its robustness in handling complex models with multiple constructs and its suitability for smaller to medium sample sizes, especially when the research aims to explore mediation effects and predictive relationships (Hair, Hult, Ringle, & Sarstedt, 2017). Furthermore, PLS-SEM does not require strict assumptions about data normality, making it ideal for the current data set.
Results
The measurement model
Table 1 below displayed the result of measurement model which shows acceptable reliability and validity for both first- and second-order constructs. All first-order constructs such as global staffing, performance appraisal, organizational learning and performance showed strong factor loadings (≥0.535), composite reliability (CR ≥ 0.743) and average variance extracted (AVE ≥ 0.755), exceeding recommended thresholds (Hair et al., 2017). At the second-order level, IHRM was modeled as a higher-order construct comprising global staffing and performance appraisal, while organizational learning and performance also served as second-order constructs. This supports the multidimensional nature of these constructs and aligns with previous studies (Byrne, 2016).
Measurement model – first- and second-order structure
| Construct level | Latent variable (construct) | Indicator (item) | Loading | CR | AVE |
|---|---|---|---|---|---|
| First-order | Global staffing | GS2 | 0.766 | 0.766 | 0.868 |
| GS3 | 0.890 | ||||
| First-order | Performance appraisal | PA1 | 0.712 | 0.757 | 0.878 |
| PA2 | 0.683 | ||||
| PA3 | 0.793 | ||||
| PA4 | 0.844 | ||||
| PA5 | 0.718 | ||||
| First-order | Organizational learning | OL1 | 0.827 | 0.743 | 0.796 |
| OL2 | 0.851 | ||||
| OL4 | 0.535 | ||||
| OL5 | 0.671 | ||||
| First-order | Performance | PF1 | 0.665 | 0.768 | 0.755 |
| PF2 | 0.702 | ||||
| PF3 | 0.734 | ||||
| PF4 | 0.642 | ||||
| Second-order | IHRM (independent variable) | Global staffing, performance appraisal | – | ||
| Second-order | Organizational learning (mediator) | Organizational learning | – | ||
| Second-order | Performance (dependent variable) | Performance | – |
Table 2 below shows the heterotrait–monotrait (HTMT) values for discriminant validity, with most construct relationships falling below the acceptable threshold of 0.90, indicating adequate discriminant validity. However, the values between organizational learning and both performance (0.918) and performance appraisal (0.915) slightly exceed this threshold. These minor overlaps are theoretically acceptable due to the close relationship between learning processes, performance and appraisal systems (Garvin et al., 2008). The constructs demonstrate acceptable discriminant validity.
Discriminant validity: heterotrait–monotrait ratio (HTMT)
| Global staffing | Organizational learning | Performance | Performance appraisal | |
|---|---|---|---|---|
| Global staffing | ||||
| Organizational learning | 0.536 | |||
| Performance | 0.714 | 0.918 | ||
| Performance appraisal | 0.725 | 0.915 | 0.869 |
Table 3 below presents the direct effects of global staffing and performance appraisal on multinational performance. The results show that both global staffing (β = 0.157, p < 0.006) and performance appraisal (β = 0.550, p < 0.01) have significant positive effects on performance, with performance appraisal demonstrating a stronger influence. The R2 value of 0.413 indicates that both predictors explain 41.3% of the variance in multinational performance. These findings align with prior studies emphasizing the strategic role of staffing and appraisal in enhancing organizational outcomes (Dasgupta, Carbery, and McDonnell, 2022; Jimoh and Kadiri, 2018).
Direct effect of global staffing and performance appraisal on the performance of multinational corporations
| H | Relationship | β | SE | t-value | p-value | R2 | Decision |
|---|---|---|---|---|---|---|---|
| H1 | GL → PE | 0.157 | 0.058 | 2.724** | p < 0.006 | 0.413 | Supported |
| H2 | PA → PE | 0.550 | 0.056 | 9.827** | p < 0.01 | Supported |
GL = global staffing; PA = performance appraisal; PE = performance. p < 0.05*; p < 0.01**
Table 4 below shows the mediating effect of organizational learning in the relationship between global staffing and performance appraisal on multinational performance. The results indicate that organizational learning significantly mediates both the relationship between global staffing and performance (β = 0.155, p < 0.01) and between performance appraisal and performance (β = 0.044, p = 0.022). The confidence intervals (5% LL–95% UL) do not include zero, confirming the significance of the indirect effects. These findings support the view that organizational learning plays a crucial role in translating HRM practices into improved organizational performance (Hu, Zhang, Yang, and Huang, 2022).
Mediating effect of organizational learning on the relationship between global staffing and performance appraisal on performance of multinational corporations (MNCs)
| H | Relationship | β | SE | t-value | p-values | 5% LL | 95% UL | Decision |
|---|---|---|---|---|---|---|---|---|
| H3 | GL → OL → PE | 0.155 | 0.038 | 4.108** | 0.01 | 0.046 | 0.193 | Mediated |
| H4 | PA → OL → PE | 0.044 | 0.019 | 2.286** | 0.022 | 0.035 | 0.178 | Mediated |
GL = global staffing; PA = performance appraisal; PE = performance; OL = organizational learning. *p < 0.05; **p < 0.01
Discussion of findings
Global staffing significantly influences multinational performance.
The findings reveal that global staffing has a positive and significant influence on multinational performance. This relationship is consistent with the RBV (Barney, 1991), which posits that the strategic deployment of human capital is critical for building firm-specific advantages. Global staffing enables organizations to leverage a diverse talent pool, contributing to innovation, responsiveness and local market capabilities that are essential for achieving superior multinational performance. This is supported by empirical evidence from Dasgupta et al. (2022), Rickley (2023) and Nkambule et al. (2022), who find that diverse staffing practices enhance organizations’ capacity to operate effectively across borders. In the case of Unilever Nigeria Plc, international staffing fosters cross-cultural knowledge exchange and builds organizational agility. The results further support the view that global staffing is not merely a mechanism for reallocating personnel across regions, but a strategic tool for enhancing absorptive capacity and competitive positioning. Thus, effective global staffing practices contribute meaningfully to MNCs’ ability to integrate global operations and respond to heterogeneous market demands:
Performance appraisal significantly influences multinational performance.
The analysis confirms that performance appraisal significantly affects multinational performance, reinforcing the argument that formal evaluation systems serve as drivers of individual and organizational performance. Drawing on goal-setting theory, the results suggest that clearly articulated performance criteria and structured feedback mechanisms enable alignment between individual and corporate objectives. This aligns with the findings of Jimoh and Kadiri (2018); Yahaya, Jimoh, and Ameen (2022); and Baroun (2023), who emphasize the importance of performance appraisals in enhancing performance, accountability and employee motivation. At Unilever Nigeria Plc, performance appraisals serve not only as evaluative tools but also as instruments for employee development, goal clarity and continuous improvement. As Isiaka, Kadiri, and Jimoh (2017) highlighted, appraisal systems that foster developmental feedback cultures are especially beneficial in dynamic international environments where adaptability and engagement are essential for sustained performance:
Organizational learning mediates the relationship between global staffing and multinational performance.
The third hypothesis investigated whether organizational learning mediates the link between global staffing and multinational performance. The results support a partial mediation effect, suggesting that while global staffing independently contributes to performance, its impact is significantly amplified when firms have robust learning mechanisms. This finding aligns with the knowledge-based view, which regards learning and knowledge integration as critical to the transformation of individual capabilities into firm-level competencies. Supporting evidence from Singh (2022) and Zaharie, Poór, Ratiu, and Osoian (2020) suggests that global staffing creates potential for cross-cultural and experiential learning, which must be captured through deliberate learning processes. Within Unilever, the ability to translate international experiences into actionable insights depends heavily on systems that support organizational learning. Verma et al. (2022) emphasized that learning organizations institutionalize processes that facilitate reflection and knowledge dissemination, which, in this case, transform the benefits of global staffing into sustained multinational performance:
Organizational learning mediates the relationship between performance appraisal and multinational performance.
The final hypothesis examined the mediating role of organizational learning in the relationship between performance appraisal and multinational performance. The findings indicate a significant mediation effect, implying that performance appraisal systems yield stronger performance when they are designed to support ongoing learning and development. This supports prior findings by Al-Husban and Yawson (2024); AlMazrouei, Bodolica, and Zacca (2024); and Naqshbandi, Meeran, Kim, and Mughal (2024), who argued that feedback-rich appraisal systems promote learning behaviors, skill enhancement and innovation. Theoretically, this resonates with organizational learning theory, which emphasizes the role of feedback loops in organizational adaptation and performance improvement. In the Unilever context, appraisal processes that incorporate reflective dialogue, personalized feedback and career development planning contribute to employee engagement and capability building. Consequently, these learning-oriented practices facilitate continuous improvement and global competitiveness, thereby positioning organizational learning as a critical enabler in linking HRM practices with multinational performance.
Theoretical implications
This study extends the RBV theory by illustrating how international human resource management practices, specifically global staffing and performance appraisal, function as strategic resources that contribute to multinational performance. The findings demonstrate that when organizations adopt a deliberate approach to staffing, they not only secure a diverse and skilled workforce but also strengthen their capacity to leverage unique knowledge and capabilities across subsidiaries. Introducing organizational learning as a mediating variable advances RBV by showing that resources alone are insufficient unless they are integrated into dynamic processes of knowledge sharing and capability development. In the case of Unilever Nigeria Plc, organizational learning transforms staffing diversity and appraisal practices into sources of sustained competitive advantage by aligning global talent with adaptive strategies. This reinforces RBV’s central proposition that valuable, rare and inimitable resources must be supported by organizational mechanisms that ensure continuous renewal and strategic alignment.
Practical implications
These findings suggest that multinational organizations like Unilever must integrate global HRM practices with robust learning mechanisms to fully realize performance benefits. Global staffing and performance appraisal alone are not sufficient; their true value emerges when combined with systems that capture knowledge, facilitate sensemaking and promote learning culture across subsidiaries. This provides a strategic pathway for enhancing organizational agility, knowledge retention and global competitiveness. In addition, HR managers play a key role in embedding organizational learning into HRM strategies, advocating for mentorship programs, digital learning tools and performance evaluations that emphasize growth. By institutionalizing learning as a core function, Unilever PLC can maximize its human capital potential, drive innovation and enhance performance outcomes, making organizational learning a vital mechanism for sustaining a competitive advantage in the global business environment.
Limitations and suggestions for future studies
The primary limitation of this study is its focus on MNCs in Nigeria, which restricts the generalizability of the findings. In addition, the study is constrained by its reliance on global staffing and performance appraisal as the sole measures of MNC performance. Furthermore, the analytical approach, which depends on statistical software in the social sciences, also presents a limitation. To address these constraints, future research should consider larger populations across multiple countries to enhance the applicability of the findings. In additi, researchers should explore a broader range of HR factors influencing MNC performance, such as compensation, training and development, performance management systems, talent management and health and safety.
Conclusion
This study demonstrates that global staffing, performance appraisal and organizational learning are central to enhancing the performance of MNCs. Examining these dynamics within Unilever Nigeria Plc, the research shows how IHRM support organizations in overcoming environmental complexity, aligning resources with strategic goals and sustaining competitiveness in international markets. However, the study has certain limitations. Its focus on a single organization limits the extent to which the findings can be generalized across other industries and geographical contexts. In addition, the data relied primarily on organizational-level insights, leaving out the lived experiences of employees that could reveal how HRM practices operate at the individual level. Future research should therefore expand the scope by including cross-industry and cross-country comparisons to capture broader patterns and variations in IHRM effectiveness. Longitudinal studies could further illuminate how global staffing, performance appraisal and organizational learning evolve over time in response to shifting market and institutional pressures. Incorporating employee perspectives and testing alternative theoretical lenses, such as institutional and social exchange theory, would also enrich the understanding of how HRM systems contribute to sustainable organizational results in multinational settings.
