Images of the HQ-subsidiary relationship: has the country-of-origin effect disappeared? (original) (raw)
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Proceedings of the Academy of International …, 2006
This paper contributes to two recurring and very central debates in the international management literature: the convergence vs. divergence debate and the standardization vs. localization debate. Using a large-scale sample of multinationals headquartered in the US, Japan and Germany as well as subsidiaries of multinationals from these three countries in the two other respective countries, we test the extent to which HRM practices in subsidiaries are characterized by country-of-origin, localization, and dominance effects. Our results show that for German and Japanese subsidiaries the dominance effect is most important, i.e. their practices appear to converge to the dominant US practices. For US subsidiaries localization effects are particularly important. Hence our results lead to the rather surprising conclusion that for what might be considered to be the most localized of functions-HRM-convergence to a worldwide best practices model is clearly present for Japanese and German multinationals. The lack of country-of-origin effects for Japanese and German multinationals leads us to a conclusion that is of significant theoretical as well as practical relevance. Multinationals might limit export of country-of origin practices to what they consider to be their core competences and converge to best practices in other areas. .
HRM Practice and the Influence of "the Country of Origin" in Chinese MNC's operating in the UK
A number of studies have noted the influence of national differences on HRM strategic choice and practices of multinational companies (MNC's). These have mostly concerned the influence of the characteristic s of a host country on management practice in the subsidiaries, that is an ethnocentric strategy or the process of forward diffusion. In particular they have focussed on the way in which the culture and institutions of the host country constrain the diffusion of home practices into subsidiaries.
Journal of World Business, 2001
A key current academic debate is the interaction between multinationals companies and national business systems, both the parent-country system in which they are embedded, and the host systems in which they operate. This article presents evidence from recent case-study research on German multinationals operating in Britain and Spain. It argues, first, that there are pressures on these companies to adopt many standard 'Anglo-Saxon' business practices in human resources and industrial relations (HR/IR), such as standardized international policies on appraisal, performance, management development, and an explicit, formalized corporate 'culture'. Second, however, significant manifestations of the influence of the German business system persist, including a long-termist orientation, and a management approach based on co-operation. 'Anglo-Saxon' practices are absorbed into this prevailing German managerial culture, and as a result operate in a distinctively 'German' way. Third, the country-of-origin effect is mediated by the institutional constraints of different national host environments. But even in highly regulated contexts, such as Spain, companies were able to create sufficient flexibility to preserve elements of a German style.
National Embeddedness and Calculative HRM in US Subsidiaries in Europe
This article presents a study of the degree to which national institutional settings impact on the application of management practices in foreign subsidiaries of multinational companies. Applying the national business systems approach our study centres on the use of calculative human resource management (HRM) practices by subsidiaries of US multinational companies in the UK, Ireland, Germany, Denmark/Norway and Australia, respectively, in comparison with these countries' indigenous firms. The analysis indicates that while US subsidiaries adapt to the local setting in terms of applying calculative HRM practices, they also diverge from indigenous firm practices.
Journal of International Business Studies, 2016
Drawing on a dataset constructed from a parallel series of nationally representative surveys of multinational companies (MNCs), we compare the performance management (PM) practices of MNCs in the UK, Ireland, Canada, Spain, Denmark and Norway. In each country we analyze data relating to MNCs from that country and of the foreign affiliates of US MNCs. We argue that there is evidence of standardization in the nature of practices across countries, particularly evident in the analysis of US MNCs. Standardization of practices among MNCs is also evident in the rather limited variation in practices between US and indigenous MNCs within each country. Moreover, even where there is evidence of variation across and within countries, this cannot be fully explained by adaptation to local institutional constraints but rather can be seen as the product of how distinct national contexts can promote the take-up of practices.
Institutional theory and MNC subsidiary HRM practices: evidence from a three-country study
Journal of International Business Studies, 2007
This study sets out to explore HRM practices in MNC subsidiaries within an institutional theory framework. Based on a sample of 158 subsidiaries of multinational corporations operating in the United States, Russia, and Finland, the paper examines factors hypothesized to influence the HRM practices adapted in US, Japanese, and European MNC subsidiaries located in Russia, Finland and the US. The results indicate significant differences in HRM practices used across host countries. Both the status of the subsidiary HR department and the degree to which the subsidiary was involved in knowledge transfer with other parts of the MNC had a significant impact on the selection of HRM practices.