Coordinated vs. liberal market HRM: The impact of institutionalization on multinational firms

E. Farndale*, C. Brewster, E. Poutsma

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

The impact of institutionalized contexts on the HRM activities of multinational firms has become a focus of increasing attention in recent literature. However, theories of how different types of business systems or market economies may influence HRM, and the impact of context on multinational corporations (MNCs) operating under these different conditions are still not fully tested. In this paper the influence of the extent of institutional embeddedness of different national contexts (based on varieties of capitalism theory) on the HRM activities of MNCs is explored through the use of extensive survey data from four countries: the UK, Germany, the Netherlands and Sweden. Evidence is found of differences in HRM practices between foreign- and domestic-owned MNCs, as well as between MNCs and domestic organizations. Although less than expected, the restricted amount of leeway within a coordinated economy also appears to have differential effects on the various HRM practices explored in these foreign and domestic organizations.
Original languageEnglish
Pages (from-to)2004-2023
JournalInternational Journal of Human Resource Management
Volume19
Issue number11
DOIs
Publication statusPublished - 2008

Fingerprint

Industry
Institutionalization
Multinational firms
Multinational corporations
HRM practices
Survey data
Varieties of capitalism
Sweden
Germany
National context
Market economy
The Netherlands
Business markets
Embeddedness

Cite this

@article{2150caac6ad54caf9f9d9244b3a9134f,
title = "Coordinated vs. liberal market HRM: The impact of institutionalization on multinational firms",
abstract = "The impact of institutionalized contexts on the HRM activities of multinational firms has become a focus of increasing attention in recent literature. However, theories of how different types of business systems or market economies may influence HRM, and the impact of context on multinational corporations (MNCs) operating under these different conditions are still not fully tested. In this paper the influence of the extent of institutional embeddedness of different national contexts (based on varieties of capitalism theory) on the HRM activities of MNCs is explored through the use of extensive survey data from four countries: the UK, Germany, the Netherlands and Sweden. Evidence is found of differences in HRM practices between foreign- and domestic-owned MNCs, as well as between MNCs and domestic organizations. Although less than expected, the restricted amount of leeway within a coordinated economy also appears to have differential effects on the various HRM practices explored in these foreign and domestic organizations.",
author = "E. Farndale and C. Brewster and E. Poutsma",
year = "2008",
doi = "10.1080/09585190802404247",
language = "English",
volume = "19",
pages = "2004--2023",
journal = "International Journal of Human Resource Management",
issn = "0958-5192",
publisher = "ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD",
number = "11",

}

Coordinated vs. liberal market HRM : The impact of institutionalization on multinational firms. / Farndale, E.; Brewster, C.; Poutsma, E.

In: International Journal of Human Resource Management, Vol. 19, No. 11, 2008, p. 2004-2023 .

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Coordinated vs. liberal market HRM

T2 - The impact of institutionalization on multinational firms

AU - Farndale, E.

AU - Brewster, C.

AU - Poutsma, E.

PY - 2008

Y1 - 2008

N2 - The impact of institutionalized contexts on the HRM activities of multinational firms has become a focus of increasing attention in recent literature. However, theories of how different types of business systems or market economies may influence HRM, and the impact of context on multinational corporations (MNCs) operating under these different conditions are still not fully tested. In this paper the influence of the extent of institutional embeddedness of different national contexts (based on varieties of capitalism theory) on the HRM activities of MNCs is explored through the use of extensive survey data from four countries: the UK, Germany, the Netherlands and Sweden. Evidence is found of differences in HRM practices between foreign- and domestic-owned MNCs, as well as between MNCs and domestic organizations. Although less than expected, the restricted amount of leeway within a coordinated economy also appears to have differential effects on the various HRM practices explored in these foreign and domestic organizations.

AB - The impact of institutionalized contexts on the HRM activities of multinational firms has become a focus of increasing attention in recent literature. However, theories of how different types of business systems or market economies may influence HRM, and the impact of context on multinational corporations (MNCs) operating under these different conditions are still not fully tested. In this paper the influence of the extent of institutional embeddedness of different national contexts (based on varieties of capitalism theory) on the HRM activities of MNCs is explored through the use of extensive survey data from four countries: the UK, Germany, the Netherlands and Sweden. Evidence is found of differences in HRM practices between foreign- and domestic-owned MNCs, as well as between MNCs and domestic organizations. Although less than expected, the restricted amount of leeway within a coordinated economy also appears to have differential effects on the various HRM practices explored in these foreign and domestic organizations.

U2 - 10.1080/09585190802404247

DO - 10.1080/09585190802404247

M3 - Article

VL - 19

SP - 2004

EP - 2023

JO - International Journal of Human Resource Management

JF - International Journal of Human Resource Management

SN - 0958-5192

IS - 11

ER -