Conclusions and Policy Implications

Abstract

The study reported in this book is the first of its kind to assess the impact of both labour relations practices and labour relations approaches on the performance of German subsidiaries. The study incorporated rich information provided by recent qualitative work, whilst at the same time allowing for statistically grounded inferences based on a large sample. It has provided a detailed picture that has captured a variety of ER patterns. Furthermore, it has also taken into account emerging ER trends in Germany. In addition, the study redressed some of the statistical shortcomings inherent in many previous studies. The study has provided a rigorous and robust statistical analysis based on a large-scale representative study that allows for a high degree of generalization about the links between ER systems and performance in German subsidiaries in the United Kingdom. As the United Kingdom is, after the United States, the second most important host location for German FDI, this study highlights the general ER preferences of a large percentage of the subsidiaries of German MNCs and also examines the subsequent performance outcomes. The findings from the study reveal important evidence on the interrelated issues of the international suitability of the German model of firm-level ER for the international operations of German MNCs, including the impact on firm performance in overseas subsidiaries.