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National embeddedness and calculative human resource management in US subsidiaries in Europe and Australia

Paul Gooderham

Norwegian School of Economics and Business Administration, Norway, paul.gooderham{at}nhh.no

Odd Nordhaug

Norwegian School of Economics and Business Administration, Norway, odd.nordhaug{at}nhh.no

Kristen Ringdal

Norwegian University of Science and Technology, Norway, kristen.ringdal{at}svt.ntnu.no

This article presents a study of the degree to which national institutional settings impact on the application of management practices in foreign subsidiaries of multinational companies. Applying the national business systems approach our study centres on the use of calculative human resource management (HRM) practices by subsidiaries of US multinational companies in the UK, Ireland, Germany, Denmark/Norway and Australia, respectively, in comparison with these countries’ indigenous firms.The analysis indicates that while US subsidiaries adapt to the local setting in terms of applying calculative HRM practices, they also diverge from indigenous firm practices.

Key Words: comparative and cross-cultural HRM • human resources and industrial relations • management • performance appraisal and feedback • strategic and international management

Human Relations, Vol. 59, No. 11, 1491-1513 (2006)
DOI: 10.1177/0018726706072843


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