Multinationals,national business systems and HRM: the enduring influence of national identity or a process of 'Anglo-Saxonization'

This paper discusses the 'nationality effect' in the management of HRM by multinational companies (MNCs). After reviewing relevant literature in the institutionalist tradition and on 'national business systems', it assesses the elements of national environments that are most likely to influence MNC behaviour. It explores the tensions arising between the requirements of 'globalized' operations and the characteristics MNCs have adopted from their home environment. It is suggested that MNCs respond to such tensions by adopting various adaptation strategies, the most important of which may be termed 'Anglo-Saxonization': a convergence of MNC behaviour around a model typical of highly internationalized British or US MNCs. The argument is illustrated by findings from two German case studies, one of a large manufacturer, the other of a major bank; evidence is found of the Anglo-Saxonization of international HRM in these companies, but it appears to be taking place in a distinctively German manner.