The purpose of this paper is to investigate the impact of localized human resource management (LHRM) on host country nationals’ (HCNs) intention to remain (ITR) and extra-role performance (ERP) through the mediating role of person-organization fit (POF).

Data were gathered from 494 employees in two Chinese subsidiaries in Iran via two-stage self-administered survey and analyzed with AMOS 21.

The results show that LHRM positively affected employees’ ITR and ERP. However, there was no significant relationship between LHRM and POF and between POF and ERP.

Previous studies in the international human resource management literature have focused more on Western and South Asian countries. The present study, to the best of our knowledge, is the first inquiry of its kind in an Iranian context. Hence, this paper contributes to the existing knowledge by testing LHRM in two large Chinese multinational companies in Iran. Additionally, the results of this study will increase our understanding of LHRM and provide practitioners with superior insights into some practices that could elevate HCNs’ ERP and ITR.