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Human resource management in US subsidiaries in Europe and Australia: centralisation or autonomy?

Publication TypeJournal Article
Year of Publication2008
AuthorsFenton-O'Creevy MP, Gooderham PM, Nordhaug O
JournalJournal of International Business Studies
Volume39
Issue1
Pagination151-166
ISBN Number0047-2506
Keywordscentralised control; centralised control multinationals; International HRM; neo-institutional theory; strategic context; subsidiary management
URLhttp://oro.open.ac.uk/10043/
Refereed DesignationRefereed

Abstract

We explore determinants of subsidiary autonomy in setting human resource management (HRM) practices within US-parented multinational enterprises (MNEs), in Europe and Australia. We examine both the effect of strategic context and the effect of the institutional location of the subsidiary. We find that US MNEs show greater centralisation of control over HRM where the subsidiary faces global markets, in coordinated market economies vs liberal market economies, and where union density is low.