This article
examines the factors affecting HRM subsidiary autonomy within multinational
companies (MNCs). Drawing on institutional theory arguments, along with an
analysis of the impact of international HRM structures, it attempts to identify
the multiplicity of factors influencing subsidiary autonomy with regard to HRM.
Using data gathered from a highly representative survey of foreign MNC
subsidiaries located in Spain, the results identify a number of factors that
hold explanatory power. First, the distance between the home and the host
country in terms of variety of capitalism is crucial in explaining variations
in subsidiary autonomy. In addition, international HR structures, such as the
existence of an international policy-making body and the use of HR shared
service centres or HR data reporting mechanisms, are also important in
accounting for the degree of autonomy over HR issues experienced by the MNC
subsidiaries in our study.