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‘Vanguard’ Subsidiaries and the Diffusion of New Practices: A Case Study of German Multinationals

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  • Anthony Ferner
  • Matthias Varul

Abstract

German companies, used to operating in their distinctive domestic business environment, have had to learn new ‘rules of the game’ as they have internationalized. There are signs that they are adopting some of the characteristics of more mature international companies, particularly those from an ‘Anglo‐Saxon’ tradition. This ‘Anglo‐Saxonization’ is seen in international HR policy, in areas such as training and development and performance management. Drawing on research into German multinationals, this paper explores the role of ‘vanguard’ subsidiaries in spreading ‘Anglo‐Saxon’ practices to German companies. It also analyses the impact of such innovations on pre‐existing patterns of behaviour.

Suggested Citation

  • Anthony Ferner & Matthias Varul, 2000. "‘Vanguard’ Subsidiaries and the Diffusion of New Practices: A Case Study of German Multinationals," British Journal of Industrial Relations, London School of Economics, vol. 38(1), pages 115-140, March.
    • Handle: RePEc:bla:brjirl:v:38:y:2000:i:1:p:115-140
    DOI: 10.1111/1467-8543.00154
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    1. Tony Edwards & Paul Edwards & Anthony Ferner & Paul Marginson & Olga Tregaskis, 2010. "Multinational Companies and the Diffusion of Employment Practices from Outside the Country of Origin," Management International Review, Springer, vol. 50(5), pages 613-634, October.
    2. Anthony McDonnell & Jonathan Lavelle & Patrick Gunnigle, 2014. "Human Resource Management in Multinational Enterprises: Evidence From a Late Industrializing Economy," Management International Review, Springer, vol. 54(3), pages 361-380, June.
    3. Mari Yamauchi, 2016. "Employment Systems in Japan's Financial Industry: Globalization, Growing Divergence and Institutional Change," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 522-551, September.
    4. Schröter, Oliver & Davoine, Eric, 2013. "Unterschiede in der institutionellen Einbettung der Arbeitsbeziehungen und Human Resource Management Praktiken zwischen Deutschland und der Schweiz: eine explorative Untersuchung in Schweizer Tochterg," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 67(4), pages 364-390.
    5. Mike Geppert & Karen Williams & Dirk Matten, 2003. "The Social Construction of Contextual Rationalities in MNCs: An Anglo‐German Comparison of Subsidiary Choice," Journal of Management Studies, Wiley Blackwell, vol. 40(3), pages 617-641, May.
    6. repec:bla:jomstd:v:40:y:2003:i:3:p:609-616 is not listed on IDEAS
    7. Peer Hull Kristensen & Glenn Morgan, 2007. "Multinationals and institutional competitiveness," Regulation & Governance, John Wiley & Sons, vol. 1(3), pages 197-212, September.
    8. Patrick Wagner & Damian Raess, 2023. "South to north investment linkages and decent work in Brazil," LABOUR, CEIS, vol. 37(1), pages 122-159, March.
    9. Matten, Dirk & Geppert, Mike, 2004. "Work systems in heavy engineering: the role of national culture and national institutions in multinational corporations," Journal of International Management, Elsevier, vol. 10(2), pages 177-198.
    10. Ignacio Bretos & Anjel Errasti & Carmen Marcuello, 2019. "Multinational Expansion of Worker Cooperatives and Their Employment Practices: Markets, Institutions, and Politics in Mondragon," ILR Review, Cornell University, ILR School, vol. 72(3), pages 580-605, May.
    11. Fortwengel, Johann & Gutierrez Huerter O, Gabriela & Kostova, Tatiana, 2023. "Three decades of research on practice transfer in multinational firms: Past contributions and future opportunities," Journal of World Business, Elsevier, vol. 58(3).
    12. Edwards, Tony & Tempel, Anne, 2010. "Explaining variation in reverse diffusion of HR practices: Evidence from the German and British subsidiaries of American multinationals," Journal of World Business, Elsevier, vol. 45(1), pages 19-28, January.
    13. Bader, Anna Katharina & Froese, Fabian Jintae & Cooke, Fang Lee & Schuster, Tassilo, 2022. "Gender diversity management in foreign subsidiaries: A comparative study in Germany and Japan," Journal of International Management, Elsevier, vol. 28(3).
    14. Gyu-Chang Yu & Woo-Sung Park & Yung-Ho Cho, 2007. "MNCs’ HRM Strategy and Country of Origin Effect: Do North American, European and Japanese Firms Really Differ?," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(4), pages 392-409.
    15. Hsiang-Lin Cheng & C.-M. J. Yu, 2012. "Adoption of Practices by Subsidiaries and Institutional Interaction within Internationalised Small- and Medium-Sized Enterprises," Management International Review, Springer, vol. 52(1), pages 81-105, February.
    16. repec:aia:aiaswp:wp39 is not listed on IDEAS
    17. Leanne Chung, 2014. "Headquarters’ Managerial Intentionality and Reverse Transfer of Practices," Management International Review, Springer, vol. 54(2), pages 225-252, April.
    18. Saka-Helmhout, Ayse, 2010. "Organizational learning as a situated routine-based activity in international settings," Journal of World Business, Elsevier, vol. 45(1), pages 41-48, January.
    19. Paul Marginson & Paul Edwards & Tony Edwards & Anthony Ferner & Olga Tregaskis, 2010. "Employee Representation and Consultative Voice in Multinational Companies Operating in Britain," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 151-180, March.
    20. Raess, Damian & Wagner, Patrick, 2022. "South to north investment linkages and decent work in Brazil," Papers 1382, World Trade Institute.
    21. Jie Shen, 2007. "Approaches to International Industrial Relations in Chinese Multinational Corporations," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(4), pages 410-426.
    22. Anthony Ferner & Jacques Bélanger & Olga Tregaskis & Michael Morley & Javier Quintanilla, 2013. "U.S. Multinationals and the Control of Subsidiary Employment Policies," ILR Review, Cornell University, ILR School, vol. 66(3), pages 645-669, May.
    23. Kahancová, Marta, 2008. "Embedding multinationals in postsocialist host countries: Social interaction and the compatibility of organizational interests with host-country institutions," MPIfG Discussion Paper 08/11, Max Planck Institute for the Study of Societies.
    24. J. Ryan Lamare & Patrick Gunnigle & Paul Marginson & Gregor Murray, 2013. "Union Status and Double-Breasting at Multinational Companies in Three Liberal Market Economies," ILR Review, Cornell University, ILR School, vol. 66(3), pages 696-722, May.

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