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Reverse Diffusion in US Multinationals: Barriers from the American Business System

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  • Tony Edwards
  • Phil Almond
  • Ian Clark
  • Trevor Colling
  • Anthony Ferner

Abstract

abstract This paper addresses the issue of ‘reverse diffusion’ of employment practices in multinational companies, which is defined as the transfer of practices from foreign subsidiaries to operations in the country of origin. It adds to the literature by examining the influence of the parent business system in multinationals. Specifically, it addresses how the dominant institutions and established organizational structures and practices in the home country affect the extent and impact of reverse diffusion of employment practices. Drawing on fresh evidence from American‐owned multinationals in the UK we argue that there is considerable potential for reverse diffusion to occur among this group of firms. However, we highlight a number of barriers to reverse diffusion that the American business system presents, demonstrating that these constrain both the prevalence and the impact of it in practice.

Suggested Citation

  • Tony Edwards & Phil Almond & Ian Clark & Trevor Colling & Anthony Ferner, 2005. "Reverse Diffusion in US Multinationals: Barriers from the American Business System," Journal of Management Studies, Wiley Blackwell, vol. 42(6), pages 1261-1286, September.
    • Handle: RePEc:bla:jomstd:v:42:y:2005:i:6:p:1261-1286
    DOI: 10.1111/j.1467-6486.2005.00541.x
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    Cited by:

    1. Tony Edwards & Paul Edwards & Anthony Ferner & Paul Marginson & Olga Tregaskis, 2010. "Multinational Companies and the Diffusion of Employment Practices from Outside the Country of Origin," Management International Review, Springer, vol. 50(5), pages 613-634, October.
    2. Anthony McDonnell & Jonathan Lavelle & Patrick Gunnigle, 2014. "Human Resource Management in Multinational Enterprises: Evidence From a Late Industrializing Economy," Management International Review, Springer, vol. 54(3), pages 361-380, June.
    3. Muhammad Butt & Paul Katuse, 2017. "International Human Resource Management Practices in Automotive Industry in Pakistan: Implications for Economic Growth," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(2), pages 136-136, January.
    4. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco & Holm, Ulf, 2020. "Demand and willingness for knowledge transfer in springboard subsidiaries of Chinese multinationals," Journal of Business Research, Elsevier, vol. 109(C), pages 297-309.
    5. Schröter, Oliver & Davoine, Eric, 2013. "Unterschiede in der institutionellen Einbettung der Arbeitsbeziehungen und Human Resource Management Praktiken zwischen Deutschland und der Schweiz: eine explorative Untersuchung in Schweizer Tochterg," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 67(4), pages 364-390.
    6. Carlos Garcia‐Pont & J. Ignacio Canales & Fabrizio Noboa, 2009. "Subsidiary Strategy: The Embeddedness Component," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 182-214, March.
    7. Tony Edwards & Paul Marginson & Anthony Ferner, 2013. "Multinational Companies in Cross-National Context: Integration, Differentiation, and the Interactions between MNCS and Nation States," ILR Review, Cornell University, ILR School, vol. 66(3), pages 547-587, May.
    8. Fortwengel, Johann & Gutierrez Huerter O, Gabriela & Kostova, Tatiana, 2023. "Three decades of research on practice transfer in multinational firms: Past contributions and future opportunities," Journal of World Business, Elsevier, vol. 58(3).
    9. Edwards, Tony & Tempel, Anne, 2010. "Explaining variation in reverse diffusion of HR practices: Evidence from the German and British subsidiaries of American multinationals," Journal of World Business, Elsevier, vol. 45(1), pages 19-28, January.
    10. Leanne Chung, 2014. "Headquarters’ Managerial Intentionality and Reverse Transfer of Practices," Management International Review, Springer, vol. 54(2), pages 225-252, April.
    11. Saka-Helmhout, Ayse, 2010. "Organizational learning as a situated routine-based activity in international settings," Journal of World Business, Elsevier, vol. 45(1), pages 41-48, January.
    12. Rana, Mohammad B. & Morgan, Glenn, 2019. "Twenty-five years of business systems research and lessons for international business studies," International Business Review, Elsevier, vol. 28(3), pages 513-532.
    13. Yulin Fang & Guo‐Liang Frank Jiang & Shige Makino & Paul W. Beamish, 2010. "Multinational Firm Knowledge, Use of Expatriates, and Foreign Subsidiary Performance," Journal of Management Studies, Wiley Blackwell, vol. 47(1), pages 27-54, January.

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