Learning transfer in multinational companies: explaining inter-organisation variation

This article addresses the extent to which multinational companies (MNCs) in Ireland deploy practices aimed at the transfer of learning in their operations and the factors explaining inter-organisation variation in so doing. Using data from 260 MNCs, we find that comparatively large numbers of firms deploy practices to transfer learning in their Irish operations. Most notably, we find that almost half of all MNCs have a formal policy on organisational learning, while more than six in every ten MNCs in Ireland utilise three or more learning transfer mechanisms. In investigating inter-organisation variation with respect to these, we test a number of hypotheses involving nationality, sectoral, MNC (e.g. organisation structure) and HR factors. Our results show that the presence of international HR structures is a significant factor in explaining learning transfer in MNCs. We also find support that employment size, sector and integration between the MNC's global operations are useful variables in explaining variation in the deployment of practices on learning transfer in MNCs.     

Technology transfer: The approach of a Dutch multinational

The process of technology transfer has been a major underlying cause of many crucial geopolitical issues. This paper treats the topic of technology transfer from multinational firms to developing countries as a managerial challenge and narrates how the pioneering initiative taken in 1961 by N.V. Philips has met that challenge. The main instrumentality employed by Philips is its Pilot Plant at Utrecht which, by all indications, has served both the multinational and the host nations in the developing world in a positive way for more than two decades.     

Strategic imperatives,power and subsidiary performance: the transfer of human resource management practices in multinational companies operating in Poland's post‐socialist banking industry

We examine the extent to which institutional influences account for the transfer of performance management systems in two foreign‐owned banks, one German the other Irish, in Poland. While we find they were important, more important were the joint effects arising from the subsidiaries' times‐of‐acquisition, their pre‐acquisition economic health, the international experience of the MNCs' management, headquarters‐generated strategic imperatives and the political dynamics that ensued between corporate and local management.     

Modes of convergence and divergence: an integrative view of multinational practices in Pakistan

The last two decades have witnessed an immense growth of globalization activities, making the study of multinationals a very popular one. However, most of these studies have focused upon the use of socio-cultural variables to support the divergence theory or upon contextual and organizational variables to support the convergence theory. In the present study, it is debated that both sets of variables must be used in combination to develop a comprehensive understanding of various issues that multinationals face. A sample of five multinationals operating in Pakistan is analysed and classified as per the various modes of convergence-divergence proposed by McGaughey and De Cieri (1999) after an investigation of organizational, socio-cultural and contextual variables. The conclusion drawn is that both convergence and divergence issues may occur simultaneously in the process of human resource management (HRM) change; and that the variables used to explain them are, in fact, not immutable in nature, as has been assumed by many.     

Societal institutions and HRM practices: an analysis of four European multinational subsidiaries in Bangladesh

Using the ‘societal-effect’ approach, a variant of the institutional theory developed and tested in Europe, this study investigates the impact of societal institutions on human resource management (HRM) practices of European multinational subsidiaries in Bangladesh, which is now on the list of the Next-11 economies of the world. In-depth case studies of four European multinational subsidiaries revealed the presence of different degrees of influence – partly attributable to societal effect – on the human resource practices of these subsidiaries. Our study added a new dimension to the interface between the strong and weak institutions and how such interfacing accords both legitimacy and reverse legitimacy to MNC subsidiaries and their societal institutions respectively. Another interesting finding of the study is the emergence of political system as a societal institution and, hence, a determinant of HRM practices in these subsidiaries. The study's implications are given.     

Capturing complexity: developing an integrated approach to analysing HRM in SMEs

This article presents a framework to evaluate HRM in small and medium‐sized enterprises (SMEs), using an open systems theoretical perspective. In presenting an open systems perspective the objective is to overcome the limitations of existing theorising in HRM, in particular to facilitate a move away from the ‘small is beautiful’ versus ‘bleak house’ stereotypes evident in much of the literature concerned with HRM in SMEs. The evidence is drawn from six SMEs operating in the Republic of Ireland, using a case study method. The findings show that a complex interplay of external structural factors and internal dynamics shaped HRM in each of the companies. HRM was not the coherent set of practices typically identified in the literature but rather was often informal and emergent. It is argued that the open systems theoretical framework enables a move beyond mere recognition of the complexity and heterogeneity of HRM in SMEs, towards an understanding, accommodation and explanation of particularistic factors.     

Transfer of labour‐management partnership in multinational companies

There has been a growing interest in how multinational corporations transfer various management practices from one country to another. The positions vary from an extreme where all practices will become globally standardised; to claims that the local context will be a decisive factor. In this article, the research question is why an MNC would want to transfer the partnership practice and what the key elements to success might be. As pointed to, partnership is a part of the company's business system, the way they are used to operating. Also important is that the risk of failing in terms of technological issues was important, and thus commitment and cooperation are crucial. Success can be understood by their effort to reduce the institutional distance as much as possible, including the choice of location, hiring policy emphasis on education and training, the strategy of building strong connections to the senior shop steward.     

Similar,but still different: how US multinational companies in Germany and Switzerland use host‐country training and skill practices

We examine in how far US subsidiaries in Germany and Switzerland display characteristics of a strategic fit with their host country and mostly find support for our predictions. Subsequently we determine each subsidiary's host‐country fit and test for within country differences in using local training and skill practices. We find the extent of continuing vocational education and training and the extent to which training on the job is important to vary with host‐country fit in Germany, while in Switzerland, as predicted, we find no such relations.     

Gender and regional employment differences: an industrial relations approach

This paper analyses gender differences in regional employment in Europe. An industrial relations approach is used, which requires that regulations and institutions in the labour market be analysed in regard to power relations in the workplace. Gender relations and working conditions are seldom included when welfare-state arrangements and the functioning of the labour market are discussed at a national level. The results of this study show that welfare-state policies, in a broad sense, support women's opportunities to take part in paid work in the labour market. Women in Europe are beginning to occupy an increasing share of the new jobs that are created as they improve their labour-force participation rates. Women are also moving into higher growth sectors of the economy to a larger extent than men. But in terms of occupations, hierarchies and power relations, the mechanisms of segregation in the workplace are changing very slowly. While considerable literature exists on the segregation processes within organizations, very little deals with how to change segregation patterns and how to balance the differences in power between women and men in the workplace.     

Strategic factors influencing international human resource management practices: an empirical study of Australian multinational corporations

This paper presents a diachronic account of the careers of two generations of Chinese in Hong Kong and two generations of Chinese in Britain. It focuses on both the intra-generational and inter-generational similarities and diversities in career development of these Chinese. Using Raider and Burt's (1996) distinction between voluntary and involuntary boundaryless careers as a framework, this study concludes that the ‘firstgeneration Chinese’ in both Hong Kong and Britain were initially involuntarily bounded in their careers, but, over time, the ‘first-generation Chinese’ in Britain later chose to be voluntarily bounded to their careers, while the ‘first-generation Chinese’ in Hong Kong were pushed by macro-economic factors to experience involuntary boundarylessness. In contrast, the ‘second-generation Chinese’ in Britain are rather ambiguously placed, in a position voluntarily to choose bounded or boundaryless careers, while the ‘secondgeneration Chinese’ in Hong Kong are more firmly ensconced in a situation of pursuing voluntary boundaryless careers.     

Flexible employment practices in Europe: country versus culture

Abstract This paper examines extent to which variances in flexible employment practices across fourteen European countries may be attributed to cultural variances. Data were gathered through a survey of human resource practices in 4,876 companies. The results indicate that national differences between flexible employment practices were explained by cultural differences. Specifically, we find use of part-time work is related to power distance and individualism; contract work is related to uncertainty avoidance and individualism; shift work is related to uncertainty avoidance, power distance and individualism; and telework is related to femininity.     

A cost-minimization approach to the international transfer of HRM/IR practices: Anglo-Saxon multinationals in the Federal Republic of Germany

The existence of host-country and country-of-origin effects is analysed by using the concept of fiscal federalism as a theoretical analogy. It is argued that multinationals try to minimize the costs of centralization and decentralization associated with cross-national personnel policy. The higher the costs of decentralization, the more likely is the existence of country-of-origin effects. The opposite holds true for increasing costs of centralization. This is tested empirically by comparing the human resource management and industrial relations (HRM/IR) practices of US and British subsidiaries operating in Germany with those of native German firms. Based on 297 valid cases, it is shown that the existence of decentralization costs is associated with country-of-origin effects in various areas of personnel management, such as the use of variable compensation, employee ownership and initial vocational training. In contrast, in the field of industrial relations (co-determination, compliance with collective bargaining), there are strong pressures to adapt to local norms, leading to host-country effects. These results indicate that a rationalistic cost-minimization approach is well suited to explaining the patterns of host- and home-country effects in regard to the HRM/IR practices of multinational enterprises.     

A study of the employment system of Japanese multinational retailers in Hong Kong

This study examines the employment system of Japanese multinational retailing corporations in Hong Kong through two case companies - Morioka and Okadaya. The human resource management (HRM) practices- recruitment and selection, remuneration, and training and development - of the companies are studied. The different HRM practices applied to different groups of employees within each case company are compared using an employment systems model. The employment system is structured and multi-layered. The development of the structured employment system is then analysed in relation to the cultural and sectoral factors. It is shown that only the cultural characteristics of the Japanese parent companies can explain the ethnocentric management approach used in which Japanese personnel are employed in the internal labour marker (ILM) and local employees are employed outside the ILM. Economic and labour market conditions in both parent and host countries and sectoral characteristics have also contributed to the stratification of the employment system among the local employees. The implications of this study are that the long-term development of Japanese multinational retailers will be weakened if the structured employment system persists.     

A re-examination of flexible employment practices in Japan

This article re-examines commonly held perspectives on flexible employment practices used in Japanese organisations. Recent research has concluded that market conditions have caused a shift away from lifetime employment and towards flexible employment. To examine this position, the literature is compared with statistics available from Japan's Nippon Keidanren, Ministry of Internal Affairs and Communications, Public Management Ministry, Ministry of Health Labour and Welfare, the United Nations and OECD. A synthesis of these sources demonstrates that flexible employment practices are part of a historic, not recent, model of employment. Concluding with an integrated table of key labour market statistics, the article highlights a Western academic tendency to rely on the macro-level three pillars model and not use meso-level labour statistics as a reference point to define flexible employment conditions in Japanese organisations.     

Law of dismissal and employment practices in Japan

In this article the author discusses the extent of Japanese legal protection against dismissal available to employees covered by the lifetime employment policies of the large corporations…He argues that the policies do not offer a total guarantee and they are in any case in long-term decline-a development with important implications for the role of the law.     

Performance management practices within emerging market multinational enterprises: the case of Brazilian multinationals

This study advances our understanding of HRM within emerging market multinational enterprises (EM-MNEs) by examining the extent to, and mechanisms by, which Brazilian MNEs standardise or localise their performance management (PM) policies and practices, and the factors that influence their design and implementation. We explored these issues through qualitative case studies of three Brazilian MNEs. The analysis of interview data reveals a strong tendency for Brazilian MNEs to centralise and standardise their PM policies and practices. The key finding of this paper is that PM practices within Brazilian MNEs are not based on indigenous Brazilian practices, but, rather, are heavily influenced by global best practices. The findings are at odds with previous research, which suggests that EM-MNEs apply different HR practices in developed country subsidiaries and developing country subsidiaries. Also, contrary to expectations, our results indicate that institutional distance does not have a significant influence on the adaptation of PM practices at subsidiary level.     

New management practices in a multinational corporation: the restructuring of worker representation and rights?

This article addresses the strategy of a multinational corporation's approach to implement new management practices within its European operating units. It explores how certain elements of an industrial relations system can facilitate the development of these practices. It argues that a foundation for labour may be being constructed which can condition eventual outcomes.     

Uncovering competitive and institutional drivers of HRM practices in multinational corporations

Current international human resource management (IHRM) literature focusing on multinational corporations (MNCs) presents evidence of both similarities and differences in the HR practices adopted in different global locations. However, the drivers behind this duality require more detailed investigation. This article focuses on exploring why MNCs position themselves within global markets as they do, exploring how extant theory can help explain the drivers behind both global and national HR practices. Based on a worldwide sample of in‐depth interview‐based case studies of well‐known MNCs, we explore the ways in which different firms react to both institutional and competitive pressures in selecting their approach to HRM. The findings uncover a differentiation between external global competitive isomorphic pressures, external national institutional isomorphic pressures, and internal processes of strategic choice and competitive differentiation. It is suggested that MNCs face all three drivers of HRM simultaneously, leading to different patterns of practice adoption, adaptation and innovation.