MNCs in a Strongly Regulated Economy: Does Labor Relations Really Matter?

Research output: Contribution to conferenceConference abstract for conferenceResearch

As still more and bigger multinational corporations (MNCs) are spreading in still more different business systems, new challenges arises as companies will have to operate in very different business systems.
With the Varieties of Capitalism (VoC) as a starting point, this presentation discusses what happens when a MNC from one market economy overtake enterprises in another market economy. When a MNC originated from a Liberal Market Economy (LME - e.g. UK) operates in LME’s institutional structure (e.g. South Africa) we have a situation with relatively limited potential for conflicts (see Table 1). The MNC operates in a situation where there is a limited tradition for listening to employees as a collective. However, employees’ expectations are often adjusted to that; hence clashes are few and limited. In a way, the same applies for the meeting of a MNC from a Coordinated Market Economy (CME - e.g. Norway) meeting CME institutional structure (e.g. Denmark). Actors inscribed in North European Industrial Relations system with a high union density expect a relatively high level of employee involvement and empowerment. In both cases, the degrees of convergence in terms of a common understanding of management/employee relations are quite high, and hence conflicts are limited
Translated title of the contributionMuilitnationale selskaber i regulerede økonomiske systemer: Hvad betyder arbejdsmarkedsrelationerne?
Original languageEnglish
Publication date16 Dec 2010
Publication statusPublished - 16 Dec 2010

ID: 37425726