Unraveling Home and Host Country Effects: An Investigation of the HR Policies of an American Multinational in Four European Countries

Abstract

This article argues that the institutional “home” and “host” country effects on employment policy and practice in multinational corporations (MNCs) need to be analyzed within a framework which takes more account both of the multiple levels of embeddedness experienced by the MNC, and processes of negotiation at different levels within the firm. Using in‐depth case study analysis of the human resource (HR) structure and industrial relations and pay policies of a large U.S.‐owned MNC in the IT sector, across Germany, Ireland, Spain, and the United Kingdom, the article attempts to move towards such a framework.