Does the use of HRM practices by multinational companies (MNCs) reflect their national
origins or are practices similar regardless of context? To the extent that practices are
similar, is there any evidence of global best standards? The authors use the system,
societal, and dominance framework to address these questions through analysis of 1,100 MNC
subsidiaries in Canada, Ireland, Spain, and the United Kingdom. They argue that this
framework offers a richer account than alternatives such as varieties of capitalism. The
study moves beyond previous research by differentiating between system effects at the
global level and dominance effects arising from the diffusion of practices from a dominant
economy. It shows that both effects are present, as are some differences at the societal
level. Results suggest that MNCs configure their HRM practices in response to all three
forces rather than to some uniform global best practices or to their national
institutional contexts.
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