The emerging approach to employee relations in German overseas affiliates: A role model for international operation?

Abstract

In light of current changes in the German industrial relations’ landscape and the wider and deeper integration of German multinationals into the world economy, this study investigates the relative importance of the country-of-origin effect in employee relations of German affiliates in an Anglo-American setting. The paper addresses important issues that relate to the wider international business domain. The comparative analysis to US affiliates in the UK and British owned firms points to a distinctively German flavored hybrid approach that integrates the best practice elements of the US model with the collective orientation of the German model. This bears a resemblance to an emerging trend in the parent companies’ home locations. The intra-German analysis revealed that affiliates of multinationals that face pressures for international integration are at the forefront of this development. The findings suggest that this might provide a suitable model of international operation for multinationals from strongly institutionalized countries.