Cross-National Transfer of Employment Practices in Multinationals

cross-national transfer of employment practices in multinationals

Abstract
This paper argues for the systematic incorporation of power and interests into analysis of the cross-border transfer of practices within multinational companies (MNCs). Using a broadly Lukesian perspective on power it is argued that the transfer of practices involves different kinds of power capabilities through which MNC actors influence their institutional environment both at the ‘macro-level’ of host institutions and the ‘micro-level’ of the MNC itself. The incorporation of an explicit account of the way power interacts with institutions at different levels, it is suggested, underpins a more convincing account of transfer than is provided by the dominant neoinstitutionalist perspective in international business, and leads to a heuristic model capable of generating proposed patterns of transfer outcomes that may be tested empirically in future research.

Keywords multinationals; comparative & cross-cultural HRM; conflict; international HRM; strategic and international management; organisational theory.
Introduction

Much has been written about the cross-national transfer of management practices in multinational companies (MNCs). A recent conceptual development is the ‘neoinstitutionalist’ contribution of Kostova and colleagues (Kostova, 1999; Kostova and Roth, 2002; Kostova et al., 2008). In the international business literature, this approach shows signs of establishing a new intellectual hegemony.1 Given this salience, critical engagement is essential.
The neoinstitutionalist approach to practice transfer in MNCs has provided fundamental insights. It argues that MNCs – or to be more precise, their subsidiaries – operate under conditions of ‘institutional duality’, facing both the institutional terrain of the international firm itself and that of the host environment in which they operate. These institutional spheres exert rival isomorphic pressures which come to the fore

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