co-ops; employee-owned firms; International human resource management; multinational company; organizational politics; practice transfer; Strategy and Management; Organizational Behavior and Human Resource Management; Management of Technology and Innovation
Abstract :
[en] This paper examines the cross-national transfer of HRM practices at Up Group, an emblematic French multinational worker co-op. Our findings reveal that stakeholder pressure to disseminate the co-op’s core HRM practices to its foreign subsidiaries triggered two key strategic responses from the HQ member-owners: transfer circumvention and ceremonial transfer. Therefore, our study provides new insights into the political and contested nature of practice transfer by elucidating how MNCs actively engage in the selective and differential transfer of some of their core HRM practices to protect the HQ actors’ interests and preserve their position of power vis-à-vis the subsidiaries. In addition, our fine-grained analysis of the ceremonially transferred practices contributes to the literature on practice variation during diffusion processes in MNCs. Finally, by examining the challenges of the cross-national management of people in multinational worker co-ops, an increasingly important global player, this study addresses critical management scholars’ calls to broaden the horizons of IHRM research beyond the hegemonic analysis of for-profit shareholder-owned MNCs.
Disciplines :
Social, industrial & organizational psychology
Author, co-author :
Bretos, Ignacio; Department of Business Organization and Management, University of Zaragoza, Zaragoza, Spain
Errasti, Anjel; GEZKI Institute of Cooperative Law and Social Economy, University of the Basque Country, Donostia-San Sebastián, Spain
The politics of selective and differential transfer of HRM practices in employee-owned MNCs: evidence from an emblematic European worker co-op
Publication date :
2024
Journal title :
International Journal of Human Resource Management
ISSN :
0958-5192
eISSN :
1466-4399
Publisher :
Routledge
Volume :
35
Issue :
4
Pages :
621 - 655
Peer reviewed :
Peer Reviewed verified by ORBi
Funders :
MICINN - Ministerio de Ciencia, Innovación y Universidades Eusko Jaurlaritza
Funding text :
This study was supported by Ministerio de Ciencia, Innovación y Universidades under grant F21140; Gobierno de Aragón under grant S28_20R; and Eusko Jaurlaritza under grant IT1711-22. The authors gratefully acknowledge the inputs of Carmen Marcuello, Imanol Basterretxea, Aingeru Ruiz, and participants at the 8th EMES Research Conference on Social Enterprise. The authors also express gratitude to members at Up Group for giving their time and support to this research. The first author thanks the invaluable support of Ara Bretos Ares, Ander Bretos Ares, Patricia Ares Bel, and Carmen Fernández Ortiz del Rio.
Aguilera, R. V., & Jackson, G. (2010). Comparative and international corporate governance. Academy of Management Annals, 4(1), 485–556. https://doi.org/10.5465/19416520.2010.495525
Aguzzoli, R., & Geary, J. (2014). An emerging challenge: The employment practices of a Brazilian multinational company in Canada. Human Relations,67(5), 587–609. https://doi.org/10.1177/0018726713497523
Ahlvik, C., Smale, A., & Sumelius, J. (2016). Aligning corporate transfer intentions and subsidiary HRM practice implementation in multinational corporations. Journal of World Business, 51(3), 343–355. https://doi.org/10.1016/j.jwb.2015.04.003
Allen, M., & Wood, G. (2021). Institutional approaches to examining the influence of context on human resource management. In E.Parry, M. J.Morley, & C.Brewster (Eds.), Oxford handbook of contextual approaches to human resource management (pp. 53–70). Oxford University Press.
Almond, P. (2011). Re‐visiting ‘country of origin’ effects on HRM in multinational corporations. Human Resource Management Journal, 21(3), 258–271. https://doi.org/10.1111/j.1748-8583.2010.00153.x
Ansari, S. M., Fiss, P. C., & Zajac, E. J. (2010). Made to fit: How practices vary as they diffuse. Academy of Management Review, 35(1), 67–92. https://doi.org/10.5465/AMR.2010.45577876
Ansari, S., Reinecke, J., & Spaan, A. (2014). How are practices made to vary? Managing practice adaptation in a multinational corporation. Organization Studies, 35(9), 1313–1341. https://doi.org/10.1177/0170840614539310
Basterretxea, I., & Storey, J. (2018). Do employee‐owned firms produce more positive employee behavioural outcomes? If not why not? A British‐Spanish comparative analysis. British Journal of Industrial Relations, 56(2), 292–319. https://doi.org/10.1111/bjir.12247
Basterretxea, I., Cornforth, C., & Heras, I. (2022). Corporate governance as a key aspect in the failure of worker cooperatives. Economic and Industrial Democracy,43(1), 362–387. https://doi.org/10.1177/0143831X19899474
Becker-Ritterspach, F. (2009). Hybridization of MNE subsidiaries. Palgrave.
Bjerregaard, T., & Klitmøller, A. (2016). Conflictual practice sharing in the MNC: A theory of practice approach. Organization Studies,37(9), 1271–1295. https://doi.org/10.1177/0170840616634126
Björkman, I., & Lervik, J. E. (2007). Transferring HR practices within multinational corporations. Human Resource Management Journal, 17(4), 320–335. https://doi.org/10.1111/j.1748-8583.2007.00048.x
Bonache, J., & Zárraga‐Oberty, C. (2020). Compensating international mobility in a workers’ cooperative: An interpretive study. Journal of World Business,55(5), 100975. https://doi.org/10.1016/j.jwb.2018.11.005
Bretos, I., & Errasti, A. (2017). Challenges and opportunities for the regeneration of multinational worker cooperatives: Lessons from the Mondragon Corporation–A case study of the Fagor Ederlan Group. Organization,24(2), 154–173. https://doi.org/10.1177/1350508416656788
Bretos, I., Díaz-Foncea, M., & Marcuello, C. (2018). Cooperativas e internacionalización: Un análisis de las 300 mayores cooperativas del mundo. CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 92(92), 5–37. https://doi.org/10.7203/CIRIEC-E.92.11480
Bretos, I., Errasti, A., & Marcuello, C. (2019). Multinational expansion of worker cooperatives and their employment practices: Markets, institutions, and politics in Mondragon. ILR Review,72(3), 580–605. https://doi.org/10.1177/0019793918779575
Bretos, I., Errasti, A., & Marcuello, C. (2020). Is there life after degeneration? The organizational life cycle of cooperatives under a ‘grow-or-die’ dichotomy. Annals of Public and Cooperative Economics,91(3), 435–458. https://doi.org/10.1111/apce.12258
Cheney, G., Cruz, I., Peredo, A. M., & Nazareno, E. (2014). Worker cooperatives as an organizational alternative: Challenges, achievements and promise in business governance and ownership. Organization,21(5), 591–603. https://doi.org/10.1177/1350508414539784
Chiang, F. F. T., Lemański, M. K., & Birtch, T. A. (2017). The transfer and diffusion of HRM practices within MNCs: Lessons learned and future research directions. International Journal of Human Resource Management,28(1), 234–258. https://doi.org/10.1080/09585192.2016.1246461
Clark, E., & Geppert, M. (2011). Subsidiary integration as identity construction and institution building: A political approach. Journal of Management Studies,48(2), 395–416. https://doi.org/10.1111/j.1467-6486.2010.00963.x
Clegg, S. R., Courpasson, D., & Phillips, N. (2006). Power and organizations. Sage.
Clibborn, S. (2019). The politics of employment relations in a multinational corporation during crisis. Economic and Industrial Democracy,40(3), 560–582. https://doi.org/10.1177/0143831X17748198
Collings, D. G., & Dick, P. (2011). The relationship between ceremonial adoption of popular management practices and the motivation for practice adoption and diffusion in an American MNC. International Journal of Human Resource Management,22(18), 3849–3866. https://doi.org/10.1080/09585192.2011.561233
Cooke, F. L., Dickmann, M., & Parry, E. (2022). Building sustainable societies through human-centred human resource management: Emerging issues and research opportunities. International Journal of Human Resource Management,33(1), 1–15. https://doi.org/10.1080/09585192.2021.2021732
Dedoussis, V. (1995). Simply a question of cultural barriers? The search for new perspectives in the transfer of Japanese management practices. Journal of Management Studies, 32(6), 731–745. https://doi.org/10.1111/j.1467-6486.1995.tb00149.x
Delbridge, R., & Keenoy, T. (2010). Beyond managerialism?International Journal of Human Resource Management,21(6), 799–817. https://doi.org/10.1080/09585191003729309
Delbridge, R., Hauptmeier, M., & Sengupta, S. (2011). Beyond the enterprise: Broadening the horizons of International HRM. Human Relations,64(4), 483–505. https://doi.org/10.1177/0018726710396388
Díaz-Foncea, M., & Marcuello, C. (2015). Spatial patterns in new firm formation: Are cooperatives different?Small Business Economics, 44(1), 171–187. https://doi.org/10.1007/s11187-014-9581-5
Edwards, T., & Kuruvilla, S. (2005). International HRM: National business systems, organizational politics and the international division of labour in MNCs. International Journal of Human Resource Management,16(1), 1–21. https://doi.org/10.1080/0958519042000295920
Edwards, T., Marginson, P., & Ferner, A. (2013). Multinational companies in cross-national context: Integration, differentiation, and the interactions between MNCs and nation states. ILR Review,66(3), 547–587. https://doi.org/10.1177/001979391306600301
Edwards, T., Sanchez-Mangas, R., Jalette, P., Lavelle, J., & Minbaeva, D. (2016). Global standardization or national differentiation of HRM practices in multinational companies. ? Journal of International Business Studies, 47(8), 997–1021. https://doi.org/10.1057/s41267-016-0003-6
Errasti, A. (2015). Mondragon’s Chinese subsidiaries: Coopitalist multinationals in practice. Economic and Industrial Democracy,36(3), 479–499. https://doi.org/10.1177/0143831X13511503
Errasti, A., Bretos, I., & Etxezarreta, E. (2016). What do Mondragon coopitalist multinationals look like? The rise and fall of Fagor Electrodomésticos S. Coop. and its European subsidiaries. Annals of Public and Cooperative Economics,87(3), 433–456. https://doi.org/10.1111/apce.12137
Errasti, A., Bretos, I., & Nunez, A. (2017). The viability of cooperatives: The fall of the mondragon cooperative fagor. Review of Radical Political Economics,49(2), 181–197. https://doi.org/10.1177/0486613416666533
Fakhfakh, F., Pérotin, V., & Gago, M. (2012). Productivity, capital, and labor in labor-managed and conventional firms: An investigation on French data. ILR Review,65(4), 847–879. https://doi.org/10.1177/001979391206500404
Fan, D., Zhu, C. J., Huang, X., & Kumar, V. (2021). Mapping the terrain of international human resource management research over the past fifty years: A bibliographic analysis. Journal of World Business, 56(2), 101185. https://doi.org/10.1016/j.jwb.2020.101185
Farndale, E., Bonache, J., McDonnell, A., & Kwon, B. (2023). Positioning context front and center in international human resource management research. Human Resource Management Journal, 33(1), 1–16. https://doi.org/10.1111/1748-8583.12483
Ferner, A., Edwards, T., & Tempel, A. (2012). Power, institutions and the cross-national transfer of employment practices in multinationals. Human Relations,65(2), 163–187. https://doi.org/10.1177/0018726711429494
Flecha, R., & Ngai, P. (2014). The challenge for Mondragon: Searching for the co-operative values in times of internationalization. Organization,21(5), 666–682. https://doi.org/10.1177/1350508414537625
Fleming, P., & Spicer, A. (2014). Power in management and organization science. Academy of Management Annals, 8(1), 237–298. https://doi.org/10.5465/19416520.2014.875671
Fortwengel, J., Gutierrez, G., & Kostova, T. (2023). Three decades of research on practice transfer in multinational firms: Past contributions and future opportunities. Journal of World Business,58(3), 101430. https://doi.org/10.1016/j.jwb.2023.101430
Frenkel, M. (2008). The multinational corporation as a third space: Rethinking international management discourse on knowledge transfer through Homi Bhabha. Academy of Management Review, 33(4), 924–942. https://doi.org/10.5465/amr.2008.34422002
Gamble, J. (2010). Transferring organizational practices and the dynamics of hybridization: Japanese retail multinationals in China. Journal of Management Studies, 47(4), 705–732. https://doi.org/10.1111/j.1467-6486.2009.00876.x
Geary, J., & Aguzzoli, R. (2016). Miners, politics and institutional caryatids: Accounting for the transfer of HRM practices in the Brazilian multinational enterprise. Journal of International Business Studies, 47(8), 968–996. https://doi.org/10.1057/jibs.2016.24
Geppert, M., & Dörrenbächer, C. (2014). Politics and power within multinational corporations: Mainstream studies, emerging critical approaches and suggestions for future research. International Journal of Management Reviews,16(2), 226–244. https://doi.org/10.1111/ijmr.12018
Geppert, M., Becker-Ritterspach, F., & Mudambi, R. (2016). Politics and power in multinational companies: Integrating the international business and organization studies perspectives. Organization Studies,37(9), 1209–1225. https://doi.org/10.1177/0170840616656152
Gospel, H., & Pendelton, A. (2010). Corporate governance and employee participation. In A.Wilkinson, P.Gollan, M.Marchington, & D.Lewin (Eds.), Oxford handbook of participation in organizations (pp. 504–525). Oxford University Press.
Gutierrez, G., Moon, J., Gold, S., & Chapple, W. (2020). Micro-processes of translation in the transfer of practices from MNE headquarters to foreign subsidiaries: The role of subsidiary translators. Journal of International Business Studies, 51(3), 389–413. https://doi.org/10.1057/s41267-019-00234-8
Hardy, C. (1996). Understanding power: Bringing about strategic change. British Journal of Management, 7(s1), S3–S16. https://doi.org/10.1111/j.1467-8551.1996.tb00144.x
Hardy, C., & Leiba, S. (1998). The power behind empowerment: Implications for research and practice. Human Relations,51(4), 451–483. https://doi.org/10.1177/001872679805100402
ICA. (2022). World Cooperative Monitor 2021. International Cooperative Alliance. https://monitor.coop/.
Jackson, G. (2010). Actors and institutions. In G.Morgan, J.Campbell, C.Crouch, O. K.Pedersen, & R.Whitley (Eds.), Oxford handbook of comparative institutional analysis (pp. 63–86). Oxford University Press.
Jarzabkowski, P., Sillince, J. A., & Shaw, D. (2010). Strategic ambiguity as a rhetorical resource for enabling multiple interests. Human Relations,63(2), 219–248. https://doi.org/10.1177/0018726709337040
Klag, M., & Langley, A. (2013). Approaching the conceptual leap in qualitative research. International Journal of Management Reviews,15(2), 149–166. https://doi.org/10.1111/j.1468-2370.2012.00349.x
Kornau, A., Frerichs, I. M., & Sieben, B. (2020). An empirical analysis of research paradigms within international human resource management: The need for more diversity. German Journal of Human Resource Management: Zeitschrift Für Personalforschung, 34(2), 148–177. https://doi.org/10.1177/2397002220908035
Kostova, T., & Roth, K. (2002). Adoption of an organizational practice by subsidiaries of multinational corporations: Institutional and relational effects. Academy of Management Journal,45(1), 215–233. https://doi.org/10.5465/3069293
Koveshnikov, A., Vaara, E., & Ehrnrooth, M. (2016). Stereotype-based managerial identity work in multinational corporations. Organization Studies,37(9), 1353–1379. https://doi.org/10.1177/0170840616634129
Lambru, M., & Petrescu, C. (2014). Surviving the crisis: Worker cooperatives in Romania. Organization,21(5), 730–745. https://doi.org/10.1177/1350508414537807
Lawrence, T. B. (2008). Power, institutions and organizations. In R.Greenwood, C.Oliver, R.Suddaby, & K. Sahlin (Eds.), Sage handbook of organizational institutionalism (pp. 170–197). Sage.
Ligthart, P. E., Poutsma, E., & Brewster, C. (2022). The development of financial participation in Europe. British Journal of Industrial Relations, 60(3), 479–510. https://doi.org/10.1111/bjir.12629
Luzarraga, J. M. (2008). Mondragon multi-localisation strategy. Lanki.
Martin, G., Farndale, E., Paauwe, J., & Stiles, P. G. (2016). Corporate governance and strategic human resource management: Four archetypes and proposals for a new approach to corporate sustainability. European Management Journal,34(1), 22–35. https://doi.org/10.1016/j.emj.2016.01.002
Meardi, G., & Tóth, A. (2006). Who is hybridizing what? Insights on MNCs’ Employment Practices in Central Europe. In A.Ferner, J.Quintanilla, & C.Sánchez-Runde (Eds.), Multinationals, institutions and the construction of transnational practices (pp. 155–183). Palgrave.
Morgan, G. (2016). New actors and old solidarities: Institutional change and inequality under a neo-liberal international order. Socio-Economic Review, 14(1), 201–225. https://doi.org/10.1093/ser/mwv033
Patton, M. Q. (2015). Qualitative research & evaluation methods (4th ed.). Sage.
Pendleton, A., & Robinson, A. (2011). Employee share ownership and human capital development: Complementarity in theory and practice. Economic and Industrial Democracy,32(3), 439–457. https://doi.org/10.1177/0143831X10387650
Poutsma, E., Blasi, J. R., & Kruse, D. L. (2012). Employee share ownership and profit sharing in different institutional contexts. The International Journal of Human Resource Management, 23(8), 1513–1518. https://doi.org/10.1080/09585192.2012.661994
Ratner, C. (2013). Cooperation, community and co-ops in a global era. Springer.
Reed, D., & McMurtry, J. (Eds.). (2009). Co-operatives in a global economy. Cambridge Scholars Press.
Rodgers, L. (2017). How to think about global employee ownership. In J. R. (Ed.), Oxford handbook of mutual, co-operative, and co-owned business (pp. 195–208). Oxford University Press.
Sasaki, I., Kotlar, J., Ravasi, D., & Vaara, E. (2020). Dealing with revered past: Historical identity statements and strategic change in Japanese family firms. Strategic Management Journal, 41(3), 590–623. https://doi.org/10.1002/smj.3065
Soehardjojo, J., Delbridge, R., & Meardi, G. (2023). The hidden layers of resistance to dominant HRM transfer: Evidence from Japanese management practice adoption in Indonesia. Economic and Industrial Democracy, 44(3), 679–702.https://doi.org/10.1177/0143831X221086019
Trif, A. (2016). Surviving frontal assault on collective bargaining institutions in Romania. European Journal of Industrial Relations,22(3), 221–234. https://doi.org/10.1177/0959680116643207
Värlander, S., Hinds, P., Thomason, B., Pearce, B. M., & Altman, H. (2016). Enacting a constellation of logics: How transferred practices are recontextualized in a global organization. Academy of Management Discoveries, 2(1), 79–107. https://doi.org/10.5465/amd.2015.0020
Whittle, A., Mueller, F., Gilchrist, A., & Lenney, P. (2016). Sensemaking, sense-censoring and strategic inaction: The discursive enactment of power and politics in a multinational corporation. Organization Studies,37(9), 1323–1351. https://doi.org/10.1177/0170840616634127
Wilkinson, B., Gamble, J., Humphrey, J., Morris, J., & Anthony, D. (2001). The new international division of labour in Asian electronics: Work organization and human resources in Japan and Malaysia. Journal of Management Studies, 38(5), 675–695. https://doi.org/10.1111/1467-6486.00254
Yahiaoui, D., Nakhle, S. F., & Farndale, E. (2021). Culture and performance appraisal in multinational enterprises: Implementing French headquarters’ practices in Middle East and North Africa subsidiaries. Human Resource Management,60(5), 771–785. https://doi.org/10.1002/hrm.22063
Yin, R. (2013). Case study research (5th ed.). Sage.