IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v50y2010i5d10.1007_s11575-010-0051-2.html
   My bibliography  Save this article

Multinational Companies and the Diffusion of Employment Practices from Outside the Country of Origin

Author

Listed:
  • Tony Edwards

    (King’s College London)

  • Paul Edwards

    (Warwick University)

  • Anthony Ferner

    (De Montfort University)

  • Paul Marginson

    (Warwick University)

  • Olga Tregaskis

    (De Montfort University)

Abstract

This paper analyses the issue of variation between multinational companies in the extent to which they use their foreign operating units as the origin of employment practices that are subsequently transferred across the firm. It uses data from a nationally representative survey of MNCs in the UK and contrasts the relative influences of three sets of factors on diffusion. The results demonstrate that while the nationality of the parent firm and the way in which the multinational is configured have only modest effects on diffusion, the organisational conduits through which the diffusion of practices can occur are central to explaining variation between firms.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:manint:v:50:y:2010:i:5:d:10.1007_s11575-010-0051-2
    DOI: 10.1007/s11575-010-0051-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-010-0051-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11575-010-0051-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Trevor Buck & Azura Shahrim & Stefan Winter, 2004. "Executive Stock Options in Germany: The Diffusion or Translation of US-Style Corporate Governance?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(2), pages 173-186.
    2. Dana B. Minbaeva, 2007. "Knowledge transfer in multinational corporations," Management International Review, Springer, vol. 47(4), pages 567-593, October.
    3. Harzing, Anne-Wil & Noorderhaven, Niels, 2006. "Knowledge flows in MNCs: An empirical test and extension of Gupta and Govindarajan's typology of subsidiary roles," International Business Review, Elsevier, vol. 15(3), pages 195-214, June.
    4. Harzing, Anne-Wil, 2001. "Of bears, bumble-bees, and spiders: the role of expatriates in controlling foreign subsidiaries," Journal of World Business, Elsevier, vol. 36(4), pages 366-379, January.
    5. Anil K. Gupta & Vijay Govindarajan, 2000. "Knowledge flows within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 473-496, April.
    6. X Martin & R Salomon, 2003. "Knowledge transfer capacity and its implications for the theory of the multinational corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 356-373, July.
    7. B Kogut & U Zander, 2003. "A memoir and reflection: knowledge and an evolutionary theory of the multinational firm 10 years later," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 505-515, November.
    8. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(3), pages 255-255, May.
    9. Johnson, William H.A. & Medcof, John W., 2007. "Motivating proactive subsidiary innovation: Agent-based theory and socialization models in global R&D," Journal of International Management, Elsevier, vol. 13(4), pages 472-487, December.
    10. John Child, 2000. "Foreign Direct Investment in the UK 1985-1994: The Impact on Domestic Management Practice," Journal of Management Studies, Wiley Blackwell, vol. 37(1), pages 1-1, January.
    11. John Child & David Faulkner & Robert Pitkethly, 2000. "Foreign Direct Investment in the UK 1985–1994: The Impact on Domestic Management Practice," Journal of Management Studies, Wiley Blackwell, vol. 37(1), pages 1-1, January.
    12. Rui, Huaichuan & Yip, George S., 2008. "Foreign acquisitions by Chinese firms: A strategic intent perspective," Journal of World Business, Elsevier, vol. 43(2), pages 213-226, March.
    13. Björn Ambos & Bodo B. Schlegelmilch, 2008. "Innovation in multinational firms: Does cultural fit enhance performance?," Management International Review, Springer, vol. 48(2), pages 189-206, April.
    14. Bossard, Annette B. & Peterson, Richard B., 2005. "The repatriate experience as seen by American expatriates," Journal of World Business, Elsevier, vol. 40(1), pages 9-28, February.
    15. Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 81-98, March.
    16. Tony Edwards & Phil Almond & Ian Clark & Trevor Colling & Anthony Ferner, 2005. "Reverse Diffusion in US Multinationals: Barriers from the American Business System," Journal of Management Studies, Wiley Blackwell, vol. 42(6), pages 1261-1286, September.
    17. Huan Zou & Pervez N. Ghauri, 2008. "Learning through international acquisitions: The process of knowledge acquisition in China," Management International Review, Springer, vol. 48(2), pages 207-226, April.
    18. Adenfelt, Maria & Lagerström, Katarina, 2006. "Knowledge development and sharing in multinational corporations: The case of a centre of excellence and a transnational team," International Business Review, Elsevier, vol. 15(4), pages 381-400, August.
    19. Henrik Bresman & Julian Birkinshaw & Robert Nobel, 1999. "Knowledge Transfer in International Acquisitions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(3), pages 439-462, September.
    20. Chris Smith & Peter Meiksins, 1995. "System, Society and Dominance Effects in Cross-National Organisational Analysis," Work, Employment & Society, British Sociological Association, vol. 9(2), pages 241-267, June.
    21. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anne Stevenot & Loris Guery & Geoffrey Wood & Chris Brewster, 2018. "Country of Origin Effects and New Financial Actors: Private Equity Investment and Work and Employment Practices of French Firms," British Journal of Industrial Relations, London School of Economics, vol. 56(4), pages 859-881, December.
    2. Alison J. Glaister & Yipeng Liu & Sunil Sahadev & Emanuel Gomes, 2014. "Externalizing, Internalizing and Fostering Commitment: The Case of Born-Global Firms in Emerging Economies," Management International Review, Springer, vol. 54(4), pages 473-496, August.
    3. Tony Edwards & Olga Tregaskis & David Collings & Patrice Jalette & Lourdes Susaeta, 2013. "Control over Employment Practice in Multinationals: Subsidiary Functions, Corporate Structures, and National Systems," ILR Review, Cornell University, ILR School, vol. 66(3), pages 670-695, May.
    4. Chul Chung & Masayuki Furusawa, 2015. "The HRM of Foreign MNCs Operating in Europe," John H Dunning Centre for International Business Discussion Papers jhd-dp2015-04, Henley Business School, University of Reading.
    5. Akiebe Humphrey Ahworegba & Christophe Estay & Myropi Garri, 2020. "Institutional duality incidence on subsidiaries: configuration, differentiation and avoidance strategies," Post-Print hal-03632783, HAL.
    6. Magdalena Rzemieniak & Monika Wawer, 2021. "Employer Branding in the Context of the Company’s Sustainable Development Strategy from the Perspective of Gender Diversity of Generation Z," Sustainability, MDPI, vol. 13(2), pages 1-24, January.
    7. 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.
    8. Johannes Meuer & Marlies Kluike & Uschi Backes-Gellner & Kerstin Pull, 2018. "Using expatriates for adapting subsidiaries' employment modes to different market economies: a comparative analysis of US subsidiaries in Germany, the UK and Switzerland," Working Papers 372, University of Zurich, Department of Business Administration (IBW).
    9. Klaas Szierbowski-Seibel & Marius Claus Wehner & Rüdiger Kabst, 2019. "HR Integration, HR Strategy, and HR Partnership - Comparing the "Strategic Partner" between the USA and Germany," Working Papers Dissertations 47, Paderborn University, Faculty of Business Administration and Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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).
    3. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco & Holm, Ulf, 2020. "Demand and willingness for knowledge transfer in springboard subsidiaries of Chinese multinationals," Journal of Business Research, Elsevier, vol. 109(C), pages 297-309.
    4. Dellestrand, Henrik & Holm, Ulf & Lindahl, Olof, 2023. "Moving beyond the transfer dyad: Exploring network influences on transfer effectiveness," International Business Review, Elsevier, vol. 32(2).
    5. Zhou, Abby Jingzi & Fey, Carl & Yildiz, H. Emre, 2020. "Fostering integration through HRM practices: An empirical examination of absorptive capacity and knowledge transfer in cross-border M&As," Journal of World Business, Elsevier, vol. 55(2).
    6. Qi Ai & Hui Tan, 2018. "The intra-firm knowledge transfer in the outward M&A of EMNCs: Evidence from Chinese manufacturing firms," Asia Pacific Journal of Management, Springer, vol. 35(2), pages 399-425, June.
    7. Jindra, Björn & Giroud, Axèle & Scott-Kennel, Joanna, 2009. "Subsidiary roles, vertical linkages and economic development: Lessons from transition economies," Journal of World Business, Elsevier, vol. 44(2), pages 167-179, April.
    8. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    9. McGuinness, Martina & Demirbag, Mehmet & Bandara, Sasanka, 2013. "Towards a multi-perspective model of reverse knowledge transfer in multinational enterprises: A case study of Coats plc," European Management Journal, Elsevier, vol. 31(2), pages 179-195.
    10. Mo Yamin & Hsin-Ju ‘Stephie’ Tsai & Ulf Holm, 2011. "The Performance Effects of Headquarters’ Involvement in Lateral Innovation Transfers in Multinational Corporations," Management International Review, Springer, vol. 51(2), pages 157-177, April.
    11. Thomas Hutzschenreuter & Tanja Matt, 2017. "MNE internationalization patterns, the roles of knowledge stocks, and the portfolio of MNE subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1131-1150, December.
    12. Minbaeva, Dana & Park, Chansoo & Vertinsky, Ilan & Cho, Yeon Sung, 2018. "Disseminative capacity and knowledge acquisition from foreign partners in international joint ventures," Journal of World Business, Elsevier, vol. 53(5), pages 712-724.
    13. Dynah A. Basuil & Deepak K. Datta, 2015. "Effects of Industry- and Region-Specific Acquisition Experience on Value Creation in Cross-Border Acquisitions: The Moderating Role of Cultural Similarity," Journal of Management Studies, Wiley Blackwell, vol. 52(6), pages 766-795, September.
    14. Leanne Chung, 2014. "Headquarters’ Managerial Intentionality and Reverse Transfer of Practices," Management International Review, Springer, vol. 54(2), pages 225-252, April.
    15. 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.
    16. Yulin Fang & Guo‐Liang Frank Jiang & Shige Makino & Paul W. Beamish, 2010. "Multinational Firm Knowledge, Use of Expatriates, and Foreign Subsidiary Performance," Journal of Management Studies, Wiley Blackwell, vol. 47(1), pages 27-54, January.
    17. López-Sáez, Pedro & Cruz-González, Jorge & Navas-López, Jose Emilio & Perona-Alfageme, María del Mar, 2021. "Organizational integration mechanisms and knowledge transfer effectiveness in MNCs: The moderating role of cross-national distance," Journal of International Management, Elsevier, vol. 27(4).
    18. Irina Jormanainen & Alexei Koveshnikov, 2012. "International Activities of Emerging Market Firms," Management International Review, Springer, vol. 52(5), pages 691-725, October.
    19. Heather Berry, 2017. "Managing valuable knowledge in weak IP protection countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 787-807, September.
    20. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:manint:v:50:y:2010:i:5:d:10.1007_s11575-010-0051-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.