HRM in multinational enterprises and domestic companies: Financial participation embedded in HRM configurations
Keywords
Loading...
Authors
Issue Date
2022-06-27
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
As a first part, this mixed-methods research sheds a light on the differences in HRM practices for subsidiaries of Anglo-Saxon MNEs, subsidiaries of European MNEs, and domestic companies in Europe. A configurational perspective helps to examine coherent sets of HRM practices in companies, aimed at either ‘controlling’ the employee, or stimulating the ‘commitment’ of the employee. Using an institutionalism lens, this research shows that Anglo-Saxon MNEs have the most ‘control’ oriented HRM configurations, then European MNEs, then European domestic companies. Anglo-Saxon MNEs are very ‘control’ oriented because of countries-of-origin effects, and European MNEs are influenced by them on the international playfield. Interviews conducted in the civil engineering industry sector confirm the underlying
mechanisms for the differences in HRM configurations in the different types of companies. These mechanisms entail an urge for uniformization, influence of other companies in the choice for certain HRM practices, and institutional barriers complicating, not obstructing, the dissemination of HRM practices to foreign subsidiaries in Europe. As a second part, this research sheds a light on whether financial participation (i.e., shares or profit shared with employees) is predicted by a ‘control’ or ‘commitment’ HRM configuration. ‘Profit sharing’ and ‘employee share ownership’ are strongly associated with both ‘control’ and ‘commitment’ HRM configurations. On the ‘control’ side, financial participation can be used to incentivize the employee for more productivity. On the ‘commitment’ side, the employee is more involved in the company. Though, the interviews only provide for a strong validation of ‘commitment’ reasons to introduce financial participation in the company. Reasons mentioned to implement financial participation are improving a connection to the company, rewarding the employee, invoking commitment, involving the employee, and reducing the ‘we-they’ feeling.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen