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Employment relations in German multinational companies in the UK and the future of the German model: empirical evidence on country-of-origin effects and industry internationalisation

Author

Listed:
  • Heinz-Josef Tuselmann
  • Arne Heise
  • Frank McDonald
  • Matthew Allen

Abstract

Interest has grown in the significance of the country-of-origin impact on the Employment Relations (ER) approaches in the international subsidiaries of Multinational Companies (MNCs). In this article, a comparative cross-sectional analysis of German subsidiaries with indigenous UK firms will be provided. The central issues concern the extent to which German MNCs in deregulated Anglo-American industrial relations settings draw on the German ER model, adjust to the host-country context or adopt current 'best practice' prescriptions frequently associated with leading US MNCs. Here, the key questions are: How and to what extent do different industry-specific forces interrelate with country-of-origin effects and pressures to adopt 'best practice' approaches to shape subsidiary ER outcomes?

Suggested Citation

  • Heinz-Josef Tuselmann & Arne Heise & Frank McDonald & Matthew Allen, 2010. "Employment relations in German multinational companies in the UK and the future of the German model: empirical evidence on country-of-origin effects and industry internationalisation," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 5(4), pages 390-408.
  • Handle: RePEc:ids:ijpubp:v:5:y:2010:i:4:p:390-408
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    References listed on IDEAS

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    1. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, January.
    2. Hartmut Egger & Peter Egger, 2002. "How international outsourcing drives up Eastern European wages," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), pages 83-96.
    3. Onaran, Özlem & Stockhammer, Engelbert, 2006. "The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis," Department of Economics Working Paper Series 1450, WU Vienna University of Economics and Business.
    4. Wolfgang F. Stolper & Paul A. Samuelson, 1941. "Protection and Real Wages," Review of Economic Studies, Oxford University Press, vol. 9(1), pages 58-73.
    5. Peter Egger & Mario Larch & Michael Pfaffermayr, 2007. "Bilateral versus Multilateral Trade and Investment Liberalisation," The World Economy, Wiley Blackwell, vol. 30(4), pages 567-596, April.
    6. Egger, Peter & Larch, Mario & Pfaffermayr, Michael, 2007. "On the welfare effects of trade and investment liberalization," European Economic Review, Elsevier, vol. 51(3), pages 669-694, April.
    7. Adrian Wood, 2002. "Globalization and wage inequalities: A synthesis of three theories," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), pages 54-82.
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