Employee engagement in MNEs : the HQ-subsidiary relationship

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