The renewed ‘American Challenge’: a review of employment practice in US multinationals

Despite the extensive literature concerned with IR practice in American multinational companies (MNCs), there are serious gaps in our understanding of how this group of firms manages their international workforces. In this paper, we set out a framework of ‘four key influences’ on the way MNCs approach the management of labour and go on to use this framework to assess existing literature concerned with US MNCs. While this review reveals a number of general tendencies—for example, American MNCs tend to be highly centralised in the decision making on IR matters—it also reveals a number of gaps and weaknesses. In particular, we argue that previous research has failed to develop a convincing understanding of how the ‘embeddedness’ of US MNCs in their country of origin informs the behaviour of these firms as employers outside the USA. The paper ends by outlining a programme of research into US MNCs.