Employee Relations at Asian Subsidiaries in Hungary

Abstract

Asian foreign direct investment is substantial in Hungary in regional comparison. Multinationals from China, India, Japan, and Korea are important investors in the Hungarian economy. The main aim of this article is to describe how home and host country institutions and business and management culture influence the operation of the companies in question, first of all in the various areas of human resource management. In the analysis, we rely mainly on the Varieties-of-Capitalism approach, given its emphasis on the organizational and related cultural differences that result in different types of capitalisms in the world economy. The article is based on company interviews conducted with the representatives of seven Asian subsidiaries in Hungary (1–10 interviews per company) that are operational in the automotive and/or electronics industry. Our conclusion is that management and labor relations in these companies evolve under the influence and through the interaction of related home and host country business culture, thus they contain elements of both. However, we found the clear dominance of host country impacts, which has become more pronounced over time.

Key Factors of Corporate Expatriates' Cross-Cultural Adjustment - an Empirical Study

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New drivers of industrialization and novel aspects of Hungarian-Chinese bilateral cooperation. Chinese foreign investments in Hungary

“…The appearance of Asia in the region was not new, as Shinwa Ltd. (a secondlevel automotive supplier) has been operating in Miskolc since 1998, and the Singapore-based Patec Group established a production site in the city in 2008. However, the 2010s, with the advent of high-volume Chinese capital, represented a new phase (Sass et al 2019).…”

Tax effects on foreign direct investment—Just a rerouting

“… 15 Given a large geographical distance between home and host country, investors may choose intermediary countries located in between as conduits (Sass et al, 2019 ). …”

“…Given a large geographical distance between home and host country, investors may choose intermediary countries located in between as conduits(Sass et al, 2019).16 Cost of channelling corporate income from one country to another in terms of taxes to be paid. In particular, the tax cost between two countries consists of corporate income taxes to be paid in the host country, a nonresident withholding tax on the income of the subsidiary and corporate income taxes in the home country(Petkova et al, 2020).17 See B.3.…”