Power, institutions and the cross-national transfer of employment practices in multinationals

Abstract

This article argues for the systematic incorporation of power and interests into analysis of the cross-border transfer of practices within multinational companies (MNCs). Using a broadly Lukesian perspective on power it is argued that the transfer of practices involves different kinds of power capabilities through which MNC actors influence their institutional environment both at the ‘macro-level’ of host institutions and the ‘micro-level’ of the MNC itself. The incorporation of an explicit account of the way power interacts with institutions at different levels, it is suggested, underpins a more convincing account of transfer than is provided by the dominant neoinstitutionalist perspective in international business, and leads to a heuristic model capable of generating proposed patterns of transfer outcomes that may be tested empirically in future research.