Global, national and local practices in multinational corporations: towards a sociopolitical framework

By M. Geppert, Karen Williams. 2006

181 citations recorded by the source corpus.

This paper intends to shed some light on strategies and power resources of subsidiary managers and employee representatives involved in ‘charter changes’ and the implementation of ‘best practices’ developed elsewhere. Research shows that local managers face a dilemma in that they need both internal legitimacy (within the MNC itself) and external legitimacy (within the local context). It is argued that the power resources key actors draw on in the (internal) decision-making processes of ‘charter changes’ are intertwined with certain (external) national business system (NBS) characteristics, an aspect often neglected in North American research about MNCs. The authors identify three key influences, which restrain or empower local management and employees in their ability to make strategic choices and gain power within the MNC. They are (1) the overall strategic approach of the multinational group, (2) the strategic position and the economic performance of the subsidiary itself and (3) the degree of institutional embeddedness of the subsidiary in the host country. Comparative mini-case studies are used to illustrate the effect of local management and employee representatives' empowerment on their ability to retain skills and work practices supportive of a diversified quality production process in the face of MNC pressure to adopt global ‘best practices’ based on more standardized production processes.

Subfields: Organizational Behavior and Human Resource Management, Political Science and International Relations, Public Administration

View Paper: https://www.semanticscholar.org/paper/ee3591d0abb73f3e202616f6398da3c3cce2fa01

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Organizational Behavior and Human Resource Management

  1. C. Dörrenbächer
  2. M. Geppert

In Political Science and International Relations

  1. M. Geppert
  2. C. Dörrenbächer

In Public Administration

  1. C. Dörrenbächer
  2. M. Geppert

Citations in the corpus