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The nature of international integration and human resource policies in multinational companies

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  • Tony Edwards

Abstract

In this article we demonstrate that the literature concerning multinational companies (MNCs) and employment relations has failed to develop a convincing explanation of variation in the extent to which MNCs develop a global element to the management of their international workforces. We argue that whether MNCs have an incentive to develop international human resource policies is shaped by the extent and nature of international integration, which we define as the commonalities and inter-dependencies in the production process across borders. In particular, we identify three aspects of the integration of MNCs that are crucial in this respect: whether the firm pursues financial economies or synergistic linkages from its international operations; whether it segments or replicates its operations across countries; and whether it standardises or differentiates its product internationally. Copyright The Author 2010. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.

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  • Tony Edwards, 2011. "The nature of international integration and human resource policies in multinational companies," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(3), pages 483-498.
    • Handle: RePEc:oup:cambje:v:35:y:2011:i:3:p:483-498
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    File URL: http://hdl.handle.net/10.1093/cje/beq033
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    Cited by:

    1. 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.
    2. Tony Edwards & Olga Tregaskis & David Collings & Patrice Jalette & Lourdes Susaeta, 2013. "Control over Employment Practice in Multinationals: Subsidiary Functions, Corporate Structures, and National Systems," ILR Review, Cornell University, ILR School, vol. 66(3), pages 670-695, May.
    3. Song, Ji-Won, 2021. "How MNE subsidiaries transfer HRM practices in distant environments: A tale of two IKEA subsidiaries," Journal of International Management, Elsevier, vol. 27(2).
    4. Chung, Chul & Sparrow, Paul & Bozkurt, Ödül, 2014. "South Korean MNEs’ international HRM approach: Hybridization of global standards and local practices," Journal of World Business, Elsevier, vol. 49(4), pages 549-559.

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