Employee relations in Germany in transition: a path dependent trajectory of change?

The paper discusses whether in view of the accumulated contextual pressures the evolving new German employee relations model will resemble a more flexible version of the current one or whether it will emerge as an "Anglo-Saxonised" German model. It ascertains that despite the current contestation of the German model, erosion tendencies, though not negligible, are not as widespread as is often assumed and that far reaching reforms along neo-liberal lines are not desirable in the German context. It is suggested that a large proportion of German employers have a vested interest in maintaining the fundamentals of the current system. Proposes a path dependent reform trajectory internal to the system. The paper shows that the series of reforms carried-out so far has been accomplished within the parameters of the existing system, taking the form of regulated flexibility and centrally co-ordinated decentralisation. It ascertains that the German model is more adaptable and more flexible than its actual reputation, allowing companies to operate with more flexible collective employee relations' responses. Yet, evidence suggests that firms are already under-utilising the broadened framework. Nevertheless, the author predicts a continuation of the reform process and an emerging new flexible German employee relations model that remains essentially a collective one

German multinationals in the UK and the German model of labour relations: diffusion and reverse diffusion effects

The paper examines whether in light of heightened globalisastion pressures, German multinational companies operating in an Anglo-Saxon setting have developed approaches to employee relations which may point to the diminishing international competitiveness of the German approach. It also assesses whether the wider knockon effect may exert pressures o the German model of labour relations to converge towards the Anglo-Saxon model. The paper is based on a survey of German subsidiaries in the UK, their parent companies and a comparative analysis to the Workplace Employee Relations Survey 1998. The study reveals the existence of a country-of-origin effect in the UK subsidiaries and finds little evidence of attempts to import Anglo-Saxon style practices into the parent companies German locations, despite some indications of possible reverse diffusion effects with regard to direct employee involvement schemes. With the current reforms in the German industrial relations system already providing a broader scope for more flexible collective employee relations responses, evolving pattern in German multinationals may be described as a "flexible collective approach with a HRM dimension". Taking into account possible wider knock-on effects onto other companies in the German economy, the paper predicts a continuation of the path dependent reform trajectory in the German model

The evolution of foreign subsidiaries and employment: the case of German direct foreign investment into North West England

This paper investigates the evolution of foreign subsidiaries in promoting employment in their host regions. The implications for employment are considered using a theoretical frameworks on how Multinational Corporations (MNCs) develop their network of subsidiaries. The theoretical framework suggests that (when parent companies are based in economies with similar levels of development as the host economy) the development of subsidiaries should follow a time path beginning with export enhancing investments that diversify into more complex operations. An analysis is then made on how this would affect employment. The theoretical framework is assessed using evidence from a survey of German subsidiaries in North West England. The survey suggest that German MNCs may not be providing the expected benefits that are sought from the large increase in Direct Foreign Investment (DFI) flows that have followed from the integration programmes of the European Union (EU). The results of the survey are reinforced by evidence from other research work, which suggests that European MNCs are less likely than non- European to create diversified networks of subsidiaries within the EU. Some policy implications and a future research agenda are drawn from the results

The development of foreign-owned subsidiaries and the supply of European markets

The major relationships between regional economic integration and foreign direct investment (FDI) are well established, and have been extensively explored in the context of economic integration in the European Union (EU). Several studies have been conducted on the impact of FDI of intra-EU trade liberalisation and single market policies, and agglomerations and industrial clusters. However, with the exception of a few studies such as that by Pearce and Papanastassiou (1997) very little research has been done that is focused on the links between the strategic development of foreign-owned subsidiaries in Europe and their supply of European markets. This paper summarizes the literature on the implications of European economic integration for FDI; it highlights that there have been few studies that are centred on the strategic responses of MNCs to integration. The paper, then, assesses the impact of the strategic development of subsidiaries on the likelihood of them supplying Europe as the main or as a secondary market. This paper’s finding support the view that strategic and operational decision-making autonomy is important for those subsidiaries that export to Europe. In the case of Europe as a secondary market it seems that only strategic decision-making autonomy is important. The evidence for embeddedness factors reveals that they are less important than autonomy factors

Performance Effects of Subsidiary Developments in Collaboration, and Decision Making Power

The paper investigates the consequences of interactions between autonomy, intra and inter-organizational networks for the performance of subsidiaries. Furthermore, the paper analyzes the impact of changes in autonomy and network relationships rather than investigating levels. This introduces the concept of adjustment of subsidiary strategies to changes in the international and host country business environment. Based on a survey of 350 foreign owned subsidiaries located in the UK, Germany and Denmark, we find evidence that increases in the inter-organizational network relationships of subsidiaries lead to increased subsidiary performance. Further, increased subsidiary autonomy positively affects subsidiary inter-organizational network relationships, and to some degree negatively affects intra-organizational network relationships. Finally, overlapping effects between inter- and intra-organizational network relationships are found

Direct Employment of Skilled Labour by Foreign Owned Subsidiaries and the Development of Autonomy and Intra and Inter Organizational Relationships

This paper develops a conceptual framework on the strategic development of subsidiaries and the direct employment of skilled labour. The framework is based on autonomy, and intra and inters organizational relationships. The conceptual model outlines the conditions that are likely to lead to too much, or too little, autonomy and intra and inter organizational relationships. This model is then used to develop propositions on the links between autonomy and intra and inter organizational relationships and direct employment of skilled labour

Vive les différences? Voice in French MNCs' overseas workplaces: a comparative study of voice in French, German and US subsidiaries in the UK

© 2014, © 2014 Taylor & Francis. Foreign-owned firms help to disseminate management practices across UK companies; this includes the ability of indigenous firms to learn improved human resource management (HRM) practices from leading foreign companies. Analysing the transfer of HRM policies forms an important strand of the international HRM and comparative capitalisms literatures; however, large-scale, comparative studies of voice patterns in German, US and, in particular, French subsidiaries in the UK are limited. This paper draws on a major survey that includes the, to date, largest sample of French MNC subsidiaries. It does not simply identify the existence of different kinds of voice mechanisms, but examines how these different practices come together in the implementation of subsidiaries' voice policies. This enables the detection of subtle, but important, differences in the subsidiaries' voice practices. French subsidiaries are significantly less likely to pursue a partnership approach to voice than their German and US counterparts. French and US establishments are significantly more likely to adopt a ‘bleak house’ approach than German ones. Importantly, these key differences only emerge at a fine-grained level of analysis that examines how subsidiaries implement voice practices

Revisiting the standing of International Business journals in the competitive landscape

© 2016.Journal rankings are contentious, proliferating and bring about a significant change to research productivity and quality assessment. In this paper, we assess the quality and impact of International Business (IB) journals in relation to each other and management and business journals more broadly. In so doing, we overcome methodological limitations of previous journal rankings by adopting a novel approach that incorporates a worldwide meta-ranking. Its key advantage is the ability to look at the standing of journals both within and between subject-areas. Comparisons between subject areas are important because centralization of resource allocation decisions within institutions has ramifications for disciplines and staff involved. Results indicate that within the IB domain, JIBS continues to top the list, JWB has solidified its position and joined the upper tier of IB journals, the space below JIBS and JWB is increasingly contested, pointing to the emergence of a multi-tier set of "core" IB journals. In the wider competitive landscape of management and business journals, IB journals perform well in the upper tier, but there is a long tail of IB journals at the lower end of our meta-ranking

The new German model of employee relations: flexible collectivism or Anglo-Saxonisation?

This paper discusses whether in view of the accumulated contextual pressures the evolving new German employee relations model will resemble a more flexible version of the current one or whether it will emerge as an Anglo-Saxonised German model. It ascertains that despite the current contestation of the German model, erosion tendencies, though not negligible, are not as widespread as is often assumed and that far-reaching reforms along neo-liberal lines are not desirable in the German context. It is suggested that a large proportion of German employers have a vested interest in maintaining the fundamentals of the current system. A path-dependent reform trajectory internal to the system is proposed. This paper shows that the series of reforms carried out so far has been accomplished within the parameters of the existing system, taking the form of regulated flexibility and centrally co-ordinated decentralisation. It ascertains that the German model is more adaptable and more flexible than its reputation suggests, allowing companies to operate with more flexible collective employee relations’ responses. Yet, evidence suggests that firms are already under-utilising the broadened framework. Nevertheless, the author predicts a continuation of the reform process and an emerging new flexible German employee relations model that remains essentially a collective one