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.
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.
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