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Global standardization or national differentiation of HRM practices in multinational companies? A comparison of multinationals in five countries

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Abstract

Drawing on a dataset constructed from a parallel series of nationally representative surveys of multinational companies (MNCs), we compare the performance management (PM) practices of MNCs in the UK, Ireland, Canada, Spain, Denmark and Norway. In each country we analyze data relating to MNCs from that country and of the foreign affiliates of US MNCs. We argue that there is evidence of standardization in the nature of practices across countries, particularly evident in the analysis of US MNCs. Standardization of practices among MNCs is also evident in the rather limited variation in practices between US and indigenous MNCs within each country. Moreover, even where there is evidence of variation across and within countries, this cannot be fully explained by adaptation to local institutional constraints but rather can be seen as the product of how distinct national contexts can promote the take-up of practices.

Résumé

S’appuyant sur un ensemble de données construit à partir d’une série parallèle d’enquêtes représentatives au niveau national d’entreprises multinationales (EMN), nous comparons les pratiques de management de la performance (MP) d’EMN au Royaume-Uni, en Irlande, au Canada, en Espagne, au Danemark et en Norvège. Dans chaque pays, nous analysons les données relatives aux EMN du pays et à celles des filiales étrangères d’EMN américaines. Nous considérons qu’il existe des indices de standardisation au niveau de la nature des pratiques entre les pays, ceci est particulièrement manifeste dans l’analyse des EMN américaines. La standardisation des pratiques au sein des multinationales est également mise en évidence par la variation assez limitée des pratiques entre les EMN américaines et autochtones au sein de chaque pays. En outre, même lorsqu’il existe des indices de variation entre et au sein des pays, cela ne peut être entièrement expliqué par l’adaptation aux contraintes institutionnelles locales, mais peut plutôt être vu comme le produit de comment des contextes nationaux distincts peuvent favoriser l’adoption de pratiques.

Resumen

Basándonos en una base de datos construida a partir de una serie paralela de encuestas representativas nacionalmente de empresas multinacionales (EMN), comparamos las prácticas de gestión de rendimiento (PM) en multinacionales en Gran Bretaña, Irlanda, Canadá, España, Dinamarca y Noruega. En cada país analizamos los datos de multinacionales de ese país y las subsidiarias extranjeras de multinacionales de los Estados Unidos. Proponemos que hay pruebas de estandarización en la naturaleza de las prácticas entre los países, esto es particularmente evidente en el análisis de multinacionales de Estados Unidos. Las prácticas de estandarización entre las multinacionales también son evidente con la poca variedad en las prácticas entre empresas de Estados Unidos y multinacionales originarias de cada país. Además, incluso cuando hay evidencia de variación entre y dentro de los países, esto no puede ser explicado del todo por las limitaciones de adaptación a instituciones locales pero si pudiera ser visto como el producto de cómo los diferentes contextos nacionales pueden promover la adopción de las prácticas.

Resumo

Baseando-nos em um conjunto de dados construído a partir de uma série paralela de pesquisas nacionalmente representativas de empresas multinacionais (EMN), nós comparamos as práticas de gestão de desempenho (PM) de multinacionais no Reino Unido, Irlanda, Canadá, Espanha, Dinamarca e Noruega. Em cada país, analisamos os dados relativos às EMN desse país e das filiais estrangeiras de EMN norte-americanas. Argumentamos que não há provas de padronização na natureza das práticas entre os países, particularmente evidente na análise das EMN norte-americanas. Padronização de práticas entre as EMN também é evidente na variação bastante limitada em práticas entre os EUA e as multinacionais domésticas em cada país. Além disso, mesmo onde há evidências de variação entre e dentro dos países, isso não pode ser totalmente explicado pela adaptação às restrições institucionais locais, mas sim pode ser visto como o produto de como distintos contextos nacionais podem promover a aceitação de práticas.

概要

借鉴从跨国公司(MNCs)具有国家代表性调查的平行系列建立的数据, 我们比较在英国、爱尔兰、加拿大、西班牙、丹麦和挪威的MNCs的绩效管理(PM)实践。我们认为, 跨国实践的性质有标准化的证据, 在对美国MNCs的分析中特别明显。跨国公司实践的标准化在每一个国家里的美国公司和本土MNCs实践的颇为有限的变动中也呈明显。而且, 甚至在跨国和国内有变动证据的地方, 这个不能完全用适应当地制度约束来解释, 而是能被看成是独特的国家文化情境如何能提升实践从事率的产品。

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Acknowledgments

The project was supported by a number of funding bodies and research centres: Canada’s Social Sciences and Humanities Research Council (the SSHRC Major Collaborative Research Initiatives, Initiatives on the New Economy and International Opportunities Fund), the Fonds québécois de recherché sur la société et la culture (Équipes and Regroupements stratégiques), the Canada Research Chair on Globalization and Work, the Interuniversity Research Centre on Globalization and Work (CRIMT); Ireland’s Labour Relations Commission, the Irish Research Council for the Humanities and Social Sciences, the University of Limerick Research Office; Spain’s Ministries of Education and Science (Ref. SEJ2007-03096, Award 01/0010/2006) and Science and Innovation (Ref: ECO2009-10287), the Directorate-General for Scientific Investigation of the Madrid region (Award 06/0009/2000), the BBVA Foundation (Ref. 216/06), the Autonomous University of Madrid/Banco Santander (Ref: CEAL-AL/2011-28), IESE Business School; the UK’s Economic and Social Research Council (Awards RES-000-23-0305 and RES-062-23-2080); Danish Research Council for Independent Research (FSE) (Ref. 275-09-0146); and the European Commission’s International Research Staff Exchange Scheme (FP7 IRSES-GA-2008-230854 – INTREPID).

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Correspondence to Tony Edwards.

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Accepted by Paula Caligiuri, Area Editor, 24 March 2016 This article has been with the authors for three revisions.

Appendix: Representativeness of the National Surveys, % of firms

Appendix: Representativeness of the National Surveys, % of firms

 

UK

Canada

Ireland

Spain

Denmark

Norway

Sector

 Production

  Population

53

59

48

54

67

63

  Achieved sample

57

66

46

47

71

73

 Services

  Population

47

413

534

463

339

377

  Achieved sample

43

33

54

53

29

27

Country of origin

 Domestic

  Population

18

23

12

18

27

28

  Achieved sample

15

21

18

25

27

39

 North American

  Population

38

57

43

21

14

13

  Achieved sample

41

51

41

28

15

10

 European

  Population

30

17

39

57

54

56

  Achieved sample

31

21

33

42

52

50

 East Asia

  Population

8

4

6

4

4

3

  Achieved sample

8

7

7

5

5

1

 Rest of world

  Population

6

     

  Achieved sample

6

     

Size

 100–499

  Population

46

46

69

61

59

52

  Achieved sample

42

48

54

35

58

38

 500–999

  Population

18

19

13

15

19

20

  Achieved sample

18

18

16

18

20

24

 1000–4999

      

  Population

27

26

18

18

18

24

  Achieved sample

32

28

29

34

19

31

 5000+

      

  Population

9

9

 

6

4

4

  Achieved sample

9

6

 

13

4

7

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Edwards, T., Sánchez-Mangas, R., Jalette, P. et al. Global standardization or national differentiation of HRM practices in multinational companies? A comparison of multinationals in five countries. J Int Bus Stud 47, 997–1021 (2016). https://doi.org/10.1057/s41267-016-0003-6

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