Javier Quintanilla

Between home and host country: multinationals and employment relations in Europe

Foreign-owned firms employ a significant proportion of the European workforce. This varies considerably between countries but in manufacturing, where the figures are highest, it generally represents more than 10 per cent of employment (see Table 1). Furthermore, it increased strongly between 1985 and 1995. Foreign-owned transplants are likely to provide a challenge for national systems of employment relations (ER) in Europe. They represent the most visible manifestation of the influence of global pressures on national economies and societies. However there is only limited empirical evidence to support such an assessment. Existing research has largely concentrated on the behaviour of US and Japanese multinational companies (MNCs). This suggests that US firms in Europe have transferred practices from their home country and thereby challenged national systems of collective representation and bargaining and acted as HR innovators in areas such as pay and work organisation (Almond, Edwards and Muller, 2001; Ferner, forthcoming). Innovations by Japanese firms have mainly been in the area of work organisation (Elger and Smith, 1998; Morris, Wilkinson and Munday 2000). The more limited research about ER practices of firms from other countries suggests that they also transfer home country practices, but in a way that is less challenging to their

The Diffusion of Employment Practices in Multinationals: `Americanness' within US MNCs in Spain?

Drawing on several theoretical perspectives, including institutionalism and strategic choice, this article examines the impact of home and host country national business systems on the diffusion of human resource management practices by American multinational corporations to their subsidiaries in Spain. Our evidence suggests that the tight control that American multinational corporations usually exert over their subsidiaries has recently increased. In most of the case studies, successful implementation of corporate human resource policies has mainly been achieved due to the degree of malleability and openness that characterized the Spanish business system. However, increased control also reflects the legitimacy given to managerial human resource practices originating in the USA and the willingness of host country managers to implement corporate policy. To this extent, it can be argued that subsidiary management plays a critical role in the configuration and implementation of human resource management and industrial relations policies and practices in multinational corporations.

U.S. MULTINATIONALS AND THE CONTROL OF SUBSIDIARY EMPLOYMENT POLICIES

The authors examine whether U.S. multinational companies (MNCs) are distinctive in the degree to which they exert direct control over policy on human resources and employment relations (HR/ER) in their foreign subsidiaries. The results confirm the distinctiveness of U.S. MNCs in their greater degree of direct control of policy, compared not only with non-U.S. firms but with every other major nationality or national grouping of MNCs: France, Germany, the Nordic group, the rest of Europe, and Japan. U.S. control of HR/ER policy is greater not just in the aggregate, but for most individual items. Finally, while levels of control over subsidiaries vary among host countries studied (Canada, Ireland, Spain, and the United Kingdom) the greater U.S. orientation to control relative to non-U.S. MNCs holds regardless of host.

HUMAN RESOURCE MANAGEMENT PRACTICES IN THE MULTINATIONAL COMPANY: A TEST OF SYSTEM, SOCIETAL, AND DOMINANCE EFFECTS

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.

Malleability in Spain: The Influence of US Human Resource Development Models

This chapter describes the evolution of HR practices in Spain, particularly the strategic management of HR. Prompted by recent political, economic, and social change, we have seen considerable and growing interest in a more holistic and systematic view of developing individuals and their organizations. In this chapter, note that we refer to HR or HRM, which are terms used in the Spanish business community. However, our focus is on the developmental side of the HR function. Key to understanding Spain’s recent transformation is the cultural malleability of its business system (Dickman, 1999; Ferner et al, 2001; Muller-Camen et al., 2001; Quintanilla, 1998). The concept of malleability is synonymous with the notion of flexibility; that is, Spanish managers are very open to new and sophisticated “best practices” from afar.