Unraveling Home and Host Country Effects: An Investigation of the HR Policies of an American Multinational in Four European Countries

Abstract

This article argues that the institutional "home" and "host" country effects on employment policy and practice in multinational corporations (MNCs) need to be analyzed within a framework which takes more account both of the multiple levels of embeddedness experienced by the MNC, and processes of negotiation at different levels within the firm. Using in-depth case study analysis of the human resource (HR) structure and industrial relations and pay policies of a large U.S.-owned MNC in the IT sector, across Germany, Ireland, Spain, and the United Kingdom, the article attempts to move towards such a framework.

Miners, politics and institutional caryatids: Accounting for the transfer of HRM practices in the Brazilian multinational enterprise

“…The evidence suggests that the opportunity for MNEs to exercise such rule-making influence hinges on their "locational flexibility" (Almond et al, 2005) and whether they are of a mind to engage in "regime arbitrage" or "regime shopping" (Streeck, 1997) -that is, whether they have the capacity to threaten to go elsewhere if some institutional accommodation is not made to their operations' requirements.…”

“…First, the transfer of common HRM practices can be viewed as a specific instance of HQ-subsidiary relations (Ferner, Edwards & Tempel, 2012). Many MNEs tend to regard pay and performance management as central to their employment systems and are likely to adopt a highly centralized approach (Almond, Edwards, Colling, Ferner, Gunnigle, Muller-Camen, Wächter, 2005).…”

“…We further argue for the adoption of a dynamic multi-level institutionalist framework wherein an analysis of the micro-politics of the MNE is located within a wider macro-political terrain (cf. Almond et al, 2005;Morgan, 2011). The challenges are considerable but not insurmountable.…”

Managing the duality of IHRM: unravelling the strategy and perceptions of key actors in South Korean MNCs

“…The case study method 'focuses on understanding the dynamics present within single settings' (Eisenhardt 1989, p. 534), and despite posing certain limitations in terms of the generalisability of findings, by concentrating on an organisation in depth it allows researchers to uncover patterns and linkages amongst previously unidentified factors and contexts (Almond et al 2005). To minimise the risk of being overly idiosyncratic by relying solely on a single case and in order to 'allow the special features of cases to be identified more readily' (Bryman 1989, p. 171), the study compares activities in two organisations, selected to reflect an intended range in the processes under scrutiny.…”

Human Resource Management in Multinational Enterprises: Evidence From a Late Industrializing Economy

“…Much of this scholarship demonstrates that there are country of origin effects in the HRM policies and practices of MNEs (e.g. Almond 2011;Almond et al 2005;Bjorkman et al 2007;Ferner 1997;Lavelle et al 2010;Noorderhaven and Harzing 2003). The argument is made that the greater the cultural or institutional distance between the HQ and subsidiaries, the less likely a MNE will seek to transfer practices across operations.…”