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Overt employment discrimination in MNC affiliates: home-country cultural and institutional effects

Author

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  • Cindy Wu

    (Hankamer School of Business, Baylor University, Waco, USA)

  • John J Lawler

    (Institute of Labor and Industrial Relations, University of Illinois at Urbana-Champaign, USA)

  • Xiang Yi

    (College of Business and Technology, Western Illinois University, MacComb, USA)

Abstract

Using job announcements posted by MNC subsidiaries in Taiwan and Thailand, we investigated the effects of MNC home-country cultural and institutional forces on the use of employment gender and age discriminatory criteria in host countries where anti-discrimination legislation was absent. We examined the cultural effects with composite measures taken from the work of Hofstede and Schwartz. The effects of the existence of anti-age and anti-gender discrimination employment legislation in an MNC home country were also assessed to control for institutional factors. Logit analysis shows that MNC home-country culture and institutional environment can have a strong impact on the use of discriminatory criteria by MNCs in host countries, at least those lacking protective legislation. Specifically, MNCs based in countries that have existing and effective age and gender discrimination laws, and have more individualist and less masculine cultures, are less likely to engage in at least overt gender-based and age-based discrimination. Journal of International Business Studies (2008) 39, 772–794. doi:10.1057/palgrave.jibs.8400376

Suggested Citation

  • Cindy Wu & John J Lawler & Xiang Yi, 2008. "Overt employment discrimination in MNC affiliates: home-country cultural and institutional effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 772-794, July.
    • Handle: RePEc:pal:jintbs:v:39:y:2008:i:5:p:772-794
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    Cited by:

    1. Cuervo-Cazurra, Alvaro & Dieleman, Marleen & Hirsch, Paul & Rodrigues, Suzana B. & Zyglidopoulos, Stelios, 2021. "Multinationals’ misbehavior," Journal of World Business, Elsevier, vol. 56(5).
    2. Newburry, William & Gardberg, Naomi A. & Sanchez, Juan I., 2014. "Employer Attractiveness in Latin America: The Association Among Foreignness, Internationalization and Talent Recruitment," Journal of International Management, Elsevier, vol. 20(3), pages 327-344.
    3. Dheer, Ratan J.S. & Li, Mingxiang & Treviño, Len J., 2019. "An integrative approach to the gender gap in entrepreneurship across nations," Journal of World Business, Elsevier, vol. 54(6), pages 1-1.
    4. Ivan Montiel & Alvaro Cuervo-Cazurra & Junghoon Park & Raquel Antolín-López & Bryan W. Husted, 2021. "Implementing the United Nations’ Sustainable Development Goals in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 999-1030, July.
    5. Dirk Clercq & Dominic Lim & Chang Oh, 2014. "Hierarchy and conservatism in the contributions of resources to entrepreneurial activity," Small Business Economics, Springer, vol. 42(3), pages 507-522, March.
    6. Dirk De Clercq & Dominic S.K. Lim & Chang Hoon Oh, 2013. "Individual–Level Resources and New Business Activity: The Contingent Role of Institutional Context," Entrepreneurship Theory and Practice, , vol. 37(2), pages 303-330, March.
    7. Stacey Fitzsimmons & Mustafa F. Özbilgin & David C. Thomas & Stella Nkomo, 2023. "Equality, diversity, and inclusion in international business: A review and research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(8), pages 1402-1422, October.
    8. Koveshnikov, Alexei & Tienari, Janne & Piekkari, Rebecca, 2019. "Gender in international business journals: A review and conceptualization of MNCs as gendered social spaces," Journal of World Business, Elsevier, vol. 54(1), pages 37-53.
    9. Xu, Kai & Hitt, Michael A. & Brock, David & Pisano, Vincenzo & Huang, Lulu S.R., 2021. "Country institutional environments and international strategy: A review and analysis of the research," Journal of International Management, Elsevier, vol. 27(1).
    10. Hemmert, Martin & Kim, DaeSoo & Kim, Jisun & Cho, BooYun, 2016. "Building the supplier's trust: Role of institutional forces and buyer firm practices," International Journal of Production Economics, Elsevier, vol. 180(C), pages 25-37.
    11. Hoch, Felix & Rudsinske, Jonas, 2022. "Institutional discrimination against female managers as a barrier to firm internationalization and international trade," Discussion Papers of the Institute for Organisational Economics 1/2022, University of Münster, Institute for Organisational Economics.

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