Subsidiary Agency in Gender Equality Practice Implementation: The Case of Korean MNE Subsidiaries in Sweden

Abstract

Focusing on contextualized understandings of institutional distance and subsidiary agency, in this article I explore how multinational enterprise (MNE) subsidiaries address gender equality in the workplace. In particular, this study analyzes the strategic responses of three Korean MNE subsidiaries in Sweden to examine the extent to which they exercise agency over gender equality issues within specific institutional environment. In Swedish institutional environment, there is high demand for subsidiaries to develop gender-balanced organizational cultures and practices. As a result, Korean subsidiaries may actively consider promoting a more gender-equal working environment to gain local legitimacy, or they may retain their home country’s practices and avoid such pressures. The analysis shows that the subsidiaries’ perceptions of institutional distance and the organizational conditions in which subsidiaries are embedded shape their agency (strategic responses) and co-evolve with host institutions. I thus contribute to existing MNE agency literature by highlighting subsidiaries’ agency building process regarding gender equality issues.

Organization culture types and the replication of transferred human resource management practices in multinational subsidiaries in Nigeria

“…Similarly, there is some research evidence on the role of institutions, national culture and corporate organizational factors in explaining the extent to which certain HRM practices are transferred or localized within subsidiaries (Nwagbara, 2020). While prior research has identified mechanisms underpinning the transfer and replication process, there is limited literature (except Beletskiy and Fey, 2021; Schneider, 1988; Song, 2021, 2022) that explains the organizational culture (OC) types responsible for replication and factors that are likely to influence the choice of different mechanisms through which practice is replicated (Chiang et al ., 2017). Moreover, prior research investigating the influence of different contextual elements has been predominantly Western-centric (Chiang et al ., 2017).…”

“…Interestingly, we contribute to the literature by revealing that while clan OC is an inhibiting mechanism, hierarchical OC is a facilitating mechanism in the diffusion process. To the best of our knowledge, only a limited number of studies (except Beletskiy and Fey, 2021;Schneider, 1988;Song, 2021Song, , 2022 have provided insights into how various OC types affect the implementation and lack of implementation of transferred HR practices. Additionally, we contribute to the literature by highlighting the importance of institutional and cultural environments in determining the choice of OC as the mechanism through which practice replication would take place.…”