Abstract:
This research harnesses the employee engagement framework to investigate the
impact that the Head Quarter (HQ)-Subsidiary relationship has on employees of
South African subsidiaries to MNEs headquartered in advanced economies. In
particular, it focuses on organisational justice as well as the paradoxical tensions
that employees in subsidiaries might experience while trying to meet both local and
global demands. Having a strong international strategy is a key differentiator for
large organisations. There remains a substantial interdependency between
countries that is unlikely to reduce over time despite pressures to deglobalise.
Human capital in organisations remains one of the most important determinants of
success, with employee engagement being strongly linked to company
performance. In this light, this study sought to further understand employee
engagement in subsidiaries as employee performance is a key performance driver
for MNEs. A qualitative, exploratory research approach was used to gain deeper
understanding and insights into some of the micro-dynamics that may influence
employee engagement in this context. Data was collected through twelve in-depth,
semi-structured interviews with subsidiary employees based in South Africa. The
findings centre around procedural justice, communication and leadership
