Discretion in employment relations policy among foreign-controlled multinationals in Canada

Author:

Bélanger Jacques1,Lévesque Christian2,Jalette Patrice3,Murray Gregor3

Affiliation:

1. Université Laval, Canada

2. HEC Montréal, Canada

3. Université de Montréal, Canada

Abstract

This article assesses the extent to which the foreign-controlled subsidiaries of multinational firms have the discretion to establish their employment relations policies. Drawing on a survey of the activities of foreign-controlled multinational companies in Canada, it considers three lines of analysis: the parent company’s country of origin, the subsidiary’s specific organizational capabilities and its position in global value chains. While our results confirm that US-controlled subsidiaries have lower discretion than those from continental Europe and Asia, they also highlight the need to go beyond country-of-origin analysis. Organizational capabilities and the subsidiary’s role in global value chains are also important predictors of subsidiary discretion on employment relations policy.

Publisher

SAGE Publications

Subject

Management of Technology and Innovation,Strategy and Management,General Social Sciences,Arts and Humanities (miscellaneous)

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