Similar, but Still Different: How US-MNCs in Germany and Switzerland use Host-Country Training & Skill Practices

Abstract:     
In this exploratory study, we first examine in how far US-subsidiaries in Germany and Switzerland display characteristics of a strategic fit with their host-country. We find mostly support for our predictions, e.g. US-subsidiaries in Germany are characterised by less of a price orientation and ICT intensity than US-subsidiaries in Switzerland. Subsequently we determine each subsidiary’s host-country fit and test for resulting within country differences in using local training & skill practices. We find the extent to which a subsidiary engages in continuing vocational education & training and to which training on the job is important to vary with subsidiary host-country fit in Germany, while in Switzerland – as per our prediction – we find no such relation.

Number of Pages in PDF File: 28

Keywords: host-country fit, employment relations, multinationals, training

JEL Classification: F23, J24, M54

working papers series