MNCs’ open international strategy–local dynamics: transfer of German “vocational education and training” to emerging economies

Abstract

Purpose This paper aims to examine multinational companies’ (MNCs) international transfer strategies of German vocational education and training (VET) and examines the dynamics in the subsidiaries. Design/methodology/approach Methodologically, the study is based on expert interviews conducted in German headquarters. To complete the picture, the study also includes insights from expert interviews in subsidiaries in Mexico, India and China. Findings There is a mix of country-of-origin and geocentric strategic orientation. VET is “boiled down” and adapted in its contents, but headquarters and expats maintain the spirit of VET, i.e. its national agenda of technical hands-on competencies and pedagogical competencies. To achieve this MNCs introduce general guidelines. Convincing takes place by means of role models. Research limitations/implications The effects in the emerging economies differ regionally; these regional differences are not the subject of this contribution. Practical implications VET transfer comprises the implementation of its core spirit which produces participatory and emancipatory dynamics. Social implications Intercultural learning has to be sensitive to such dynamics. Originality/value The study contributes to research on international strategies of MNCs, focussing on skill development of the blue-collar study.

International transfer of vocational education and training: a literature review

“…The findings have also revealed the strong influences of local conditions in this regard. For example, Wiemann and Pilz (2020) explored qualification strategies used by German multinational companies in India, Mexico, and China using both comparative VET research and applying the international human resource management perspective (see also Pilz and Wiemann 2020;Vogelsang and Pilz 2020;Fuchs 2020). They found that even in German companies in foreign countries, the dual training commonly used in Germany is only offered for a few specialists in some larger companies.…”

“…Edwards, Colling, and Ferner 2007). The following discussion explores the transfer of strategies from one country to another, but it is more concerned with knowledge transfer and knowledge diffusion than with policy transfer (Wiemann 2019;Wiemann, Ventura, and Fuchs 2019;Fuchs 2020). Dickmann and Müller-Camen (2006) introduced the term 'knowledge networking' in this context.…”

“…the transfer of human resource strategies from a parent company in the country of origin (centralisation), and adoption of local strategies in subsidiaries (decentralisation). They have identified different types of strategies used within this area of conflict (Fuchs 2020). For example, Pudelko and Harzing (2007) distinguished between the strategies used by the parent company, local practices in real-world locations, and geocentric strategies implemented worldwide in all locations of a multinational company.…”

Training activities in subsidiaries of foreign multinational companies: Local embeddedness in Germany?

“…This is known as (neo-)Taylorist work organization. However, there are some opposing tendencies, for example in the metropolitan regions of the emerging economies, especially in the metalworking and chemical industries (Fuchs, 2014(Fuchs, , 2020Wiemann & Fuchs, 2018). These insights on (limited) vocational skills in subsidiaries are relevant for VET-related and geographic research, since such skills can contribute to personality development and workers' agency, as well as to local development (Asheim & Coenen, 2007;Boschma et al, 2013;Phelps et al, 2018).…”

The region matters—for whom? The regional actor network for vocational education and training in tourism of Cancún (Mexico)

“…Research on countries of the Global South shows that there are ‘varieties’ of regional actor networks. A comparison between India, Mexico and China illustrates that particularly smaller multinational companies need cooperation partners on a local level to provide training but that these partners must meet different local conditions (Fuchs, 2020; Pilz & Wiemann, 2020). Local conditions can vary, which has an influence on training concepts and thus also on cooperation between actors (Vogelsang & Pilz, 2020).…”