The dynamic interaction between internal and external pressures for MNCs’ HR management practices: The case of Lidl Finland

Abstract

In this paper we build on the debates on cross-national transfer of management practices in MNCs, and especially examine how internal and external institutional pressures shape the way MNCs’ HRM practices evolve upon new market entry. In our longitudinal case study we examine the evolution of multinational hard discounter Lidl’s labour relations in Finland between 2002-2012. We show how Lidl Finland’s entry to Finnish markets was labelled by constant struggles between cross-border standardization and local adaptation of labour practices. We identify several tactics employed by Lidl management in order to weaken the effects of institutional pressures. Our analysis emphasises the dynamic interplay between labour market institutions and Lidl’s global retail strategy.