Matthew M. C. Allen

Autonomy, Embeddedness and the Performance of Foreign-Owned Subsidiaries

This paper investigates whether changes in autonomy and embeddedness in host locations by foreign owned subsidiaries are associated with improvements in performance by subsidiaries. The results provide evidence that increasing operational decision‐making autonomy is associated with enhanced performance as measured by both subjective and more objective measures of performance. The results on the importance of increasing strategic decision‐making autonomy and embeddedness are less clear, with improved performance being detected in some cases, but only for the subjective measure of performance.

Can variation in public policies account for differences in comparative advantage

This article seeks light on the main claim of the Varieties of Capitalism (VoC) framework that public policies can help to shape comparative advantage, and, to complement existing assessments that have relied predominantly on qualitative data from a few economic sectors. It examines the distribution of export success in a number of economic sectors, in which competitiveness is characterized by either radical or incremental innovation. Unlike previous studies, it does this across all those OECD countries clearly identified in the VoC literature as either liberal market economies, co-ordinated market economies or unclassified. Moreover, it draws on the latest available data at the lowest level of aggregation. In contrast to previous studies, a more appropriate measure of trade specialization, revealed symmetric comparative advantage, is used. Overall, the evidence supports the VoC framework; however, in some sectors, the data raise important conceptual and methodological issues overlooked in current research.

Varieties of Capitalism, Governance, and High-Tech Export Performance: A Fuzzy-Set Analysis of the New EU Member States

Purpose – This paper aims to assess the extent to which convergence in institutional regimes is likely to occur, by examining all ten new EU member states in Central and Eastern Europe in terms of their development of comparative advantages in high‐tech export markets either by drawing on foreign investors in the form of multinational companies or by making use of domestic institutional resources.Design/methodology/approach – The article uses fuzzy sets and qualitative comparative analysis to examine both necessary and sufficient causes of success in high‐tech export markets. By doing so, it can address the important issue of institutional complementarity.Findings – While it finds that countries that have stronger records in such markets share common features, there are also important differences between them – not least in the areas of employee relations. This, together with other evidence presented in the paper, suggests that convergence around a specific institutional model is unlikely to happen.Origin...

Varieties and variability of employee relations approaches in US subsidiaries: Country-of-origin effects and the level and type of industry internationalisation

This article investigates the relative importance and variability of the country-of-origin effect in employee relations approaches of US subsidiaries within the context of diversity of employee relations patterns in home- and host-country business systems and the influence of important industry forces. It is based on a representative survey of US subsidiaries and indigenous firms in the UK. The cross-sectional comparison with indigenous UK firms confirmed a distinct US country-of-origin imprint in employee relations patterns in US subsidiaries. However, the magnitude of such an effect cautions against assumptions of popular stereotypes and reflects, inter alia, the diversity of employee relations approaches among US parent companies as well as developments in the UK industrial relations landscape over the last decades. The intra-US analysis revealed the importance of both the level and type of industry internationalisation in shaping the strength and nature of the country-of-origin influence. On the basis of the findings, the article highlights lessons to be learned for the study of cross-border policy-transfer issues in MNCs.

High Performance HRM and Establishment Performance in Pakistan: An Empirical Analysis

Purpose – Despite a growing literature on human resource management (HRM) in emerging economies, evidence from Pakistan is limited. There is scant information on both the human resource (HR) practices that indigenous workplaces adopt and their associations with HR-related outcomes. The purpose of this paper is to fill that gap by examining whether universalistic assumptions about the applicability of “high-performance” HR practices are valid in Pakistan, a country with religious values and organizational traditions that differ to those in the west. Design/methodology/approach – This study draws on the, to date, most comprehensive survey of indigenous establishments in Pakistan. The authors use logistic regressions to analyze the data. Findings – Workplaces, in general, adopt several “high-performance” HR practices, such as extensive training, career breaks, rigorous pre-employment candidate assessment, and the sharing of strategic information with employees. Attitude surveys and the provision of training ...

Business regulation, inward foreign direct investment, and economic growth in the new European Union member states

Purpose – The purpose of this paper is to assess the extent to which institutional convergence has taken place in the new European Union (EU) member states. It does so by contrasting arguments that are inspired by transaction‐cost economics within the mainstream international‐business literature and contentions within the comparative‐capitalisms perspective. A corollary of arguments within the former is that those countries that have less transparent ways of doing business will post poorer economic growth records than those with more predictable and less costly regulations. By contrast, contentions within the comparative‐capitalisms literature lead to expectations that a broader set of institutional factors will shape economic growth.Design/methodology/approach – The article adopts a fuzzy‐set qualitative comparative analysis approach to examine the necessary and sufficient causal conditions for economic growth in the region.Findings – There is a great deal of institutional diversity within the new EU mem...

Institutional frameworks and radical innovation: an analysis of high- and medium-high-technology industries in Germany

Radical innovation is increasingly becoming the focus of attention of both policy makers and senior corporate managers. However, debates within the varieties of capitalism literature on the ease with which radical innovation can be achieved within less de-regulated economies, such as Germany, have tended to focus on the pharmaceutical industry. This article demonstrates that attempts to assess the extent to which the socio-economic institutions typically associated with Germany support radical innovation should be broadened to cover other sectors besides the pharmaceutical industry, as the distinctiveness of that sector has yet to be firmly established. This article proposes theoretical reasons to suggest that the pharmaceutical industry may not be as distinct, in terms of radical innovation, from other sectors as it is often implicitly assumed to be. These arguments are assessed using the large-scale, representative survey data. This paper opens up new areas that can be explored in future research. The core finding is that pharmaceutical firms are not statistically more likely to introduce radical innovations compared to those in many other high-technology and medium-high-technology industries. In addition, works councils and sectoral collective agreements do not hinder the development of new technologies. Both of these findings have important public-policy implications.

Sectoral collective agreements: Remuneration straitjackets for German workplaces?

Purpose – This paper aims to map some of the diversity in employee relations in Germany that is overlooked, first, within assessments of the German labour market that focus on the national level and second, within separate studies in this area that emphasize attempts by employers to circumvent important institutions.Design/methodology/approach – The research adopts a quantitative approach to examine data for German manufacturing and service sectors on both the spread of industry‐wide collective agreements and the extent to which workers are paid wage rates that are higher than those set out in those agreements. It also assesses the prevalence of profit sharing and employee share ownership schemes.Findings – Industry‐wide collective agreements are not the burden that they are often portrayed. Actual wage rates and the prevalence of profit sharing and ESOSs make German workplaces more heterogeneous than critics and advocates of the German economic model posit.Research limitations/implications – The data are...

Establishments’ use of temporary agency workers: the influence of institutions and establishments’ employment strategies

Abstract Comparative institutional analyses have added much to our understanding of HRM in different countries, providing powerful arguments against the need for flexible labour markets to boost economic performance. However, existing research has tended to downplay the possibility that variation within countries may result in a well-protected core of workers that grows ever smaller alongside increasing numbers of precarious workers. We draw on data from the World Economic Forum and the European Company Survey to examine how institutions influence establishments’ use of temporary workers in 29 European countries plus Turkey. We analyse the data using (1) principal components analysis to categorize the countries in our analysis, (2) a two-step cluster analysis to draw up groups of establishments by their use of temporary workers and (3) a multilevel logistic regression to examine how the institutional setting of establishments and key establishment characteristics interact to influence workplaces’ use of temporary workers. We show that institutional characteristics shape the prevalence of temporary workers in the 28 European Union member states plus FYR Macedonia and Turkey; however, institutions are not deterministic and important variation in the use of temporary workers depends upon the interaction between establishment characteristics and the establishment’s business system.

Institutions and Investments by Emerging Economy Multinationals in Developed Economies: Solar PV Firms and the Role of Political Authorities in Germany

Foreign investments by emerging-economy multinational enterprises (EMNEs) have recently generated much scholarly interest (Buckley et al., 2008; Mathews, 2006; Williamson and Raman, 2011). Key theoretical debates have focused on how this investment differs, if at all, from that by developed-economy multinationals. This work has revealed key insights into the nature of EMNEs and the implications of their activities for international business theory (e.g. Annushkina and Colonel, 2013; Gameltoft et al., 2012; Mathews, 2006; Ramamurti, 2012; Sinkovics et al., 2014). In particular, research has highlighted two key factors that distinguish outward foreign direct investment (OFDI) by emerging-economy firms compared to their developed-economy counterparts. First, home-country governments play a relatively prominent role in promoting foreign investments by EMNEs, especially mergers and acquisitions (Buckley et al., 2007; Child and Marinova, 2014; Ramamurti, 2012; Sauvant, 2009; Zhang et al., 2011). Second, EMNEs often acquire firms abroad for their superior capabilities (Mathews, 2006).