Works council effectiveness in subsidiaries of MNCs during reorganizations: Case study evidence from the Netherlands

Saraï Sapulete and Annette van den Berg
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Saraï Sapulete: Tilburg University, the Netherlands
Annette van den Berg: Utrecht University School of Economics, the Netherlands

Economic and Industrial Democracy, 2017, vol. 38, issue 4, 677-700

Abstract: Internationalization of organizations has been a threat for (national) industrial relations. This study compares three cases to test the influence of works councils on decision-making in multinational companies (MNCs), going through reorganizations. The authors argue it is important to take account of internal factors in the subsidiary, namely the power capabilities and interests of the actors involved. They study these by looking at the network partners of works councils and aligned interests of local management and works council. The findings show that aligned interests form an important prerequisite for positive management attitude, trust and informal relations, positively affecting reorganizations in subsidiaries of MNCs.

Keywords: Internationalization; reorganization; works councils (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecoind:v:38:y:2017:i:4:p:677-700

DOI: 10.1177/0143831X15586436

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