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Reverse Diffusion in US Multinationals: Barriers from the American Business System
Author(s) -
Edwards Tony,
Almond Phil,
Clark Ian,
Colling Trevor,
Ferner Anthony
Publication year - 2005
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/j.1467-6486.2005.00541.x
Subject(s) - multinational corporation , subsidiary , business , reverse logistics , diffusion , affect (linguistics) , business practice , parent company , industrial organization , marketing , business administration , supply chain , sociology , finance , communication , physics , thermodynamics
This paper addresses the issue of ‘reverse diffusion’ of employment practices in multinational companies, which is defined as the transfer of practices from foreign subsidiaries to operations in the country of origin. It adds to the literature by examining the influence of the parent business system in multinationals. Specifically, it addresses how the dominant institutions and established organizational structures and practices in the home country affect the extent and impact of reverse diffusion of employment practices. Drawing on fresh evidence from American‐owned multinationals in the UK we argue that there is considerable potential for reverse diffusion to occur among this group of firms. However, we highlight a number of barriers to reverse diffusion that the American business system presents, demonstrating that these constrain both the prevalence and the impact of it in practice.