Policy transfer from advanced to less-advanced institutional environments: Labour market orientations of US MNEs in Turkey

Abstract

The extant research on policy transfer insufficiently addresses two issues. First, transfer to less-advanced countries. Second, micro-institutional pressures on subsidiaries, particularly the role of local partners in joint ventures (JVs). This study investigates the transfer of labour market orientations by American multinational enterprises to their Turkish subsidiaries by focusing on the influences of macro- and micro-institutional factors when the ‘transferor’ is an advanced and ‘transferee’ is a less-advanced economy, ‘dominance effects’, and the role of local JV partners. Case study findings provide evidence for ‘smooth’ transfer of the policy. This uncommon finding is discussed as a result of ‘ideal combination’ of ‘encouraging pressures’ at the macro- and micro-institutional levels, including role of local JV partners and the nature of the policy transferred.