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Human Resource Management Practices in the Multinational Company: A Test of System, Societal, and Dominance Effects

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  • Paul K. Edwards
  • Rocío Sánchez-Mangas
  • Olga Tregaskis
  • Christian Lévesque
  • Anthony McDonnell
  • Javier Quintanilla

Abstract

Does the use of HRM practices by multinational companies (MNCs) reflect their national origins or are practices similar regardless of context? To the extent that practices are similar, is there any evidence of global best standards? The authors use the system, societal, and dominance framework to address these questions through analysis of 1,100 MNC subsidiaries in Canada, Ireland, Spain, and the United Kingdom. They argue that this framework offers a richer account than alternatives such as varieties of capitalism. The study moves beyond previous research by differentiating between system effects at the global level and dominance effects arising from the diffusion of practices from a dominant economy. It shows that both effects are present, as are some differences at the societal level. Results suggest that MNCs configure their HRM practices in response to all three forces rather than to some uniform global best practices or to their national institutional contexts.

Suggested Citation

  • Paul K. Edwards & Rocío Sánchez-Mangas & Olga Tregaskis & Christian Lévesque & Anthony McDonnell & Javier Quintanilla, 2013. "Human Resource Management Practices in the Multinational Company: A Test of System, Societal, and Dominance Effects," ILR Review, Cornell University, ILR School, vol. 66(3), pages 588-617, May.
    • Handle: RePEc:sae:ilrrev:v:66:y:2013:i:3:p:588-617
    DOI: 10.1177/001979391306600302
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    References listed on IDEAS

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    Cited by:

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    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. Jirjahn, Uwe, 2021. "Membership in Employers' Associations and Collective Bargaining Coverage in Germany," IZA Discussion Papers 14783, Institute of Labor Economics (IZA).
    4. Dionne Pohler & Chris Riddell, 2019. "Multinationals’ Compliance with Employment Law: An Empirical Assessment Using Administrative Data from Ontario, 2004 to 2015," ILR Review, Cornell University, ILR School, vol. 72(3), pages 606-635, May.
    5. Paul N. Gooderham & Torben Pedersen & Alexander Madsen Sandvik & Àngels Dasí & Frank Elter & Jarle Hildrum, 2022. "Contextualizing AMO Explanations of Knowledge Sharing in MNEs: The Role of Organizational and National Culture," Management International Review, Springer, vol. 62(6), pages 859-884, December.

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