Control over Employment Practice in Multinationals: Subsidiary Functions, Corporate Structures, and National Systems

Abstract

The authors use comparable data on employment practices in multinationals located in four countries—Canada, Ireland, Spain, and the United Kingdom—to examine the question, How can we explain variation among national subsidiaries of MNCs in the extent and form of control on employment matters? In accounting for variation in both output and social control, the authors explore three potential influences: the functions of the national subsidiaries within the wider companies; the role of host country constraints; and the structures of the multinational, including the HR function. They examine the effect of each set of factors in the presence of the others, something that previous research has been unable to do, and show that each is a significant influence. Their study breaks new ground by investigating the functions of subsidiaries and the link with control.