The dramatic and discontinuous changes taking place in the global environment have contributed to the evolution of traditional multinational corporations (MNCs) into global organisations that are more of a network nature (Gimeno & Woo 1996, Wolf 1997, Galunic & Rodan 1998, Westney 1999). The global network form of organizing roles and activities infuses into the firm a heightened need for cross-functional interdependence, which in turn, can increase role ambiguity for a human resource manager (Grimm & Smith 1997).

On the one hand, an important function of a global human resource manager is to shape a culture of developing external linkages (i.e., to local organisations and critical stakeholders) for a global organisation. On the other hand, it is vital the global human resource manager facilitates the integration of internal functional (i.e., international human resource management) and crossfunctional (i.e., global marketing, R&D and operations) relationships within the various competency centres of the global organisation (Mudambi & Helper 1998). Moreover, the expanded number of relationships needed in both the internal and external global network settings further increases the complexity of establishing an appropriate global human resource system (Zucker 1987).

There is a body of academic research employing network analysis to examine the structural and relational aspects of global strategy implementation. Network analysis is a well established theory used in a variety of situations in the business literature. While at the same time, the strategic human resource aspects of creating and maintaining global organisations and networking processes have, curiously, been neglected in the past research in the strategic international human resource management (i.e., SIHRM) literature.

The purpose of this paper is to develop a theoretical framework for flexible modes of strategic human resource management within a global network organisation configuration. A model of the SGHRM system, developed from a combined knowledge-based view and relational contracting theoretical perspectives, is proposed for empirical research and practical use in global organisations. In addition, specific barriers and competencies, associated with role transformation of human resource managers in global organisational networks, are identified. In conclusion, practical implications of the SGHRM system for assignments in global organisations, as well as various approaches and challenges to the empirical research of SGHRM systems, are discussed.

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