Notes

2 Transfer and Hybridization in MNEs

1. Some authors take a middle ground. Wilkinson et al. (1995), for example, arecritical about the emancipatory potential of Japanese production system butsee their transfer as generally feasible.

2. It is also interesting to note that a number of authors in this body ofresearch have increasingly combined American and European Institutional-ism to understand the constitution of HRM practices in MNEs (e.g. Ferner andQuintanilla, 1998; Tempel et al., 2006).

3. While institutional context have found only little attention, there are a fewcontributions that focus on the impact of cultural context (e.g. Bahgat et al.,2002; Subramaniam and Venkatraman, 2001; Chini, 2004; Cui et al., 2006).

4. It should be noted, however, that an increasing number of approaches in thearea of Strategic International Human Resource Management – which couldbe viewed as a subfield of IB – have integrated New Institutionalist or Culturalperspectives into their models (e.g. Schuler et al., 1993; Taylor et al., 1996;Schuler et al., 2002).

5 The Case of Maruti–Suzuki India

1. Price who researched SMC’s production system in Japan points in the samedirection and states ‘the absence of job descriptions for workers meant thatSMC employees had no specific job assignment or classification and could berotated or transferred relatively easily’ (Price, 1997, p. 165).

2. MSI prides itself to have implemented ‘a flat organisational structure’ with‘only three levels of responsibilities ranging from the Board of Directors,Division Heads to Department Heads’ (Maruti, 2003).

3. These three work dispositional transfer goals can also be read as problem areasthat require particular focus in the beginning.

6 The Case of Fiat India

1. Camuffo describes the corner stones of the Fabbrica Integrata concept as fol-lows: ‘This model, named Fabbrica Integrata, is an Italian, adapted version oflean manufacturing developed in the early ’90s and fully implemented in thehighly successful greenfield plant in Melfi, South Italy. Following ‘lean’ prin-ciples, the main features (Camuffo and Volpato, 1995) of Fabbrica Integrataare: advanced and flexible production technology, the adoption of lean man-ufacturing concepts (just in time, synchronous kanban, kaizen, job rotation,management by sight, quality tracking, etc.), key partner suppliers located

274

Notes 275

close to the assembly plant, a ‘flat’ organizational structure, organizationalunits based on process logic and linked to client-supplier logic, decentralisa-tion of responsibilities and functions, focus on skills and human resources asperformance drivers.’ (Camuffo, 2000/2001, p. 42).

7 The Case of Mercedes-Benz India

1. The higher the segment of vehicles, the bigger the profit margins and the lowerthe price sensitivity of customers and the lower the volumes – making scaleeconomies difficult – the more attractive it becomes, to import non-labourintensive parts and components despite penalizing import tariffs.

2. See the parallels between MBI’s family model and J.B.P Sinha’s (1990a) conceptof a ‘nurturant task leader’, which D. Sinha (1999) has called a ‘blend of exoge-nous and indogenous’, i.e. a blend between foreign and Indian managementpractices.

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Index

Active adaptation 11, 12Adaptation modes 11, 20, 22, 35, 39,

42see also recontextualization modes

Adaptation requirements 11, 16, 25,33, 205

Adoption 14, 18, 19, 33, 38, 109, 125,226

patterns of 19American Institutionalism 17–18, 22,

39, 45see also Neo-Institutionalism

Application–Adaptation Dilemma 11Audi 91, 92, 216, 217Aurangabad 70, 93, 168, 218Automotive Components

Manufactures Association(ACMA) xv, 71, 91, 96, 97, 130

Balance of payment (BOP) crisis 88Bangalore, Karnataka 93, 168Best practice 11, 15, 122BMW 91–2Brazil 136–7, 142, 151, 156, 168–9,

214Broad-banding 88–90Business system 22, 23

national business system approach22

Capability 104, 110, 112, 130, 131,143, 145

gap 104, 143, 145, 272of local/host context 114, 267–8

Capacity 88, 90, 97, 101, 140, 141,148, 152, 165, 175, 176, 216, 218,244

Capitalism 15, 17, 22Capital–labour relations 14Capitalist social relations 14Case study 9, 13, 63–7, 72–4, 78, 119Caste 80–1, 83, 233

Ceremonial adoption 108Challenge 3, 33, 86, 97, 126, 131,

144, 246, 273‘Challenge 50’ 112of transfer 3

Charterdefinition of 31–2of subsidiary 31–2

Chennai (former Madras) 92, 93, 168China 5, 65, 99, 100, 137, 173, 214,

216, 217, 246Citroën 137Company union 86–7, 125–9, 205Completely knocked down (CKD) kits

259, 260Fiat 138Mercedes-Benz India 173–8, 180,

186–9, 192–3, 206–7, 209–10,213

Skoda 214–16, 218–20, 222–3,226–8, 243–4, 249

see also Semi knocked down (SKD)kits

Components 25–6, 44, 60–1, 73, 97,263, 275

Fiat 166, 168–9,Maruti–Suzuki 129–33Mercedes-Benz India 188, 207, 209,Skoda 214, 222, 227–9, 233, 243,

246Conditions

institutional context conditions 26,146, 262

strategic context conditions 7, 34,77, 114, 116, 120, 152, 179, 186,230

Configuration mandate 129, 149,154, 165, 178, 265–9

Consumers, Indian 91consumer electronics 11consumer goods 87consumer industries 88consumer preferences 30

296

Index 297

Contextbusiness context 3, 5, 7, 11, 40, 77,see institutional context; strategic

contextwork context 78, 82–3, 118, 155,

190, 202Context free 15Contextual constitution 4, 16, 18, 22,

23, 28, 30–2, 35, 36, 38–40, 45–6,106, 273

Contextual distance 4, 7, 41, 51, 54,58, 60

Contextual misfits 36, 54, 58, 270,270

see also misfitsContingencies 15, 21, 28–9, 40, 42,

272see also strategic context

Continuous improvement 116, 117,123, 153–7, 193, 196

see also KaizenControl

cost control 58, 115quality control 154, 156, 157, 236

Convergenceconvergence of consumer

preference 30global convergence 22

Coordination 29, 30, 205Culture xi, 10, 12, 36, 86, 100, 103,

115, 116, 119, 121, 124Customization 6, 46–7, 50–2, 100,

106, 113–15, 134, 152, 171, 172,187, 189, 211–13, 223, 230,247–8,

core findings 251–2, 254, 257,259–60

Czech Republic 215, 226, 228–9, 232,239

Daewoo 92, 235Daimler-Benz (DB) 66, 173–8, 195,

205–10DaimlerChrysler (DC) 66, 174–6, 204,

205, 207–10Data analysis 72–4Data collection 67–72, 74

method of 67, 74

DCM 92Demand market conditions 55–7, 89,

104, 133, 172, 177, 185, 190, 221,249, 251

compare supply market conditionsDifferentiated network 31, 33, 40, 55

see also transnationalDominance effects 15

Economic reform 87–8Economies of scale 30, 246Education 77, 78–83

educational systems 54, 72, 223,254, 256

caste, stratification principles 80,81, 107, 118, 155, 193

higher education 79, 83, 97–8, 196,223

Ethnocentrism 32Eicher 71Embeddedness 63

social 12, 18of subsidiary 4, 18, 23–5, 28, 37–9,

54, 57, 254, 256Emulation 14Entry mode 57, 60, 61, 64, 143, 181,

216, 220, 259, 262–4definition of 59–60of Fiat India 138–9of Maruti–Suzuki 100–1of Mercedes-Benz India 174–5of Skoda Auto India 216–18see also establishment and equity

modeEnvironment

selection, creation, change 49Environment Strategy Structure

perspective/paradigm 38Environmental forces 29–31Environmental pressures 29–31Equity mode 59–61, 66, 68, 100, 101,

106, 108, 109, 138, 139, 172, 174,175, 180, 216, 217, 250

see also entry modeEstablishment mode 11, 59–61, 66,

68, 85, 100, 104, 138, 174, 216,228, 250, 258, 263–5, 270–1

see also entry mode

298 Index

European Institutionalism 17, 22,272, 274

Exportexport requirements 90, 208production for 58, 136, 175,

Fabbrica Integrata 141, 145, 149, 161,274

Family 77, 81, 198Fiat 136–72

Fiat India (FI) 92, 136–72,250–73

India Auto Limited (IAL) 66, 139Ford 90, 94, 95, 137, 235Ford India 92, 94, 95Foreign Direct Investment (FDI) 3, 8,

9, 88, 90, 101, 129, 186, 207, 209,213, 218, 229, 230

Foreign Exchange Regulation Act(FERA) 88, 90

Foreign ownership development 69

Gandhi, Indira 65Gandhi, Rajiv 88Gandhi, Sanjay 66, 100General Motors (GM) 92Generic product strategies 5, 28, 42,

270see also generic strategies and global

product strategiesGeneric Strategies 5, 28, 42, 65, 57–8,

100, 137–8, 174, 215–16, 250,254, 257–63, 270

definition of 57–8see also global product strategy

Germany 174, 177, 181, 185, 187–91,196, 199–202, 206, 209, 226, 232,236

Global efficiency 30Global integration 29–30Global product strategy 57–8, 100,

137–8, 174, 215–16see also generic strategies

Gujarat 92Gurgaon, Haryana 70, 71, 93, 113,

126, 128

Halol, Gujarat 92Haryana 70, 93, 101Hindustan Motors (HM) 92Heavy Commercial Vehicle (HCV) 96Honda Motors 92–3Honda-Siel 92–3Hosur, Karnataka 92Human resources (Indian automobile

industry) 97, 98, 103, 116–17,141, 153–62, 192, 202, 205,230–8, 255–6

Hybridizationbreadth of process 25–6definition of 5, 45–7modes of 25nature of process 25–6of production system 44–7ratios of 12trajectories of 26–7

Hybridization outcomesdefinition of 45–7

Hybridization profilecompared 251–2definition of 5explained 251–70Fiat India’s 140–72Maruti–Suzuki’s 102–35Mercedes-Benz India’s 176–213Skoda Auto India’s 219–49

Hybridization research 3–5, 14–16,65, 250, 271–2

definition of 3Hybridization theory 4Hyundai Motors 87, 93–5

Igatpuri, Maharashtra 92Import tariffs 90–1, 129, 149, 168,

189, 208, 227, 244, 247, 249, 275Incentive system 123, 126–8India

automobile industry 87–98business context 77–98FDI regime 88–95

Indian Automobile industrymajor players 92–3suppliers 95, 97

Indian Institute of Technology (IIT)97

Index 299

Indian passenger car marketdevelopment of 91, 94, 95by manufacturer 92–3market share 94, 95by segment 96

Indore, Madhya Pradesh 92Industrial Disputes Act 83Industrial Relations (IR)

Fiat India’s 160–5India’s 82–7Maruti–Suzuki’s 125–9Mercedes-Benz India’s 203–6Skoda Auto India’s 240–3

Industrial Training Institute (ITI) 79,83, 109, 122, 158, 201, 233, 235

Institutional context 51–4, 99–249,250–73

constraints and opportunities 26–7definition of 54India’s 77–87

Institutional distance 7, 8, 14, 18, 19,41, 47–54, 104, 117, 125–8, 143,147, 163, 190, 192, 204, 225, 231,234, 237, 240, 251–6

Institutional duality 17–19Institutionalist approaches 16–28Integration-responsiveness framework

28–9, 39–40Internationalization experience 173,

260–1, 270Internationalization strategies 29–31,

40, 259, 270Inventories 97, 113, 135, 165, 168,

207Italy 136, 138–41, 146, 151–3,

158–69, 274Isomorphism 17–20

Japan 12, 13 20, 21, 99–135, 269Japanese production system 9–14Japanization literature 8–16Jati 81Just in sequence (JIS) 206, 208Just in time (JIT) 129, 165, 274

Kaizen 117, 124, 274,Kirloskar 93Knowledge flow perspective 33–6, 41

Kosai plant 102–14

Labour relationssee industrial relations

Labour Process perspective 13–16Labour unrest 116, 161–2Lean Production perspective 9–13Learning cycle model 35Level of analysis 9, 13, 18, 23, 28, 29,

33, 64Light commercial vehicles (LCV) 96Local content 47, 89–92, 129, 149,

166–70, 178–9, 186–9, 207–9,221, 227, 230, 244–9

Local differentiation 30see also environmental forces

Local responsiveness 29–30see also environmental forces

Logistics 97, 113, 129, 130, 133,167–8, 179, 188, 206–9, 222,229–30, 243–4, 249

Madhya Pradesh 71Maharashtra 70, 92–3, 138–40, 152Mahindra & Mahindra 93

Mahindra Renault 93Management by objectives 78Manufacturers

in India 92–3Manesar, Haryana 93, 101Market reform 174

see also economic reformMarket segmentation 91Market share

Fiat’s 139–40By manufacturer 94–5Maruti–Suzuki’s 102Mercedes-Benz India’s 175–6By segment 96Skoda Auto India’s 218–19

Maruti Udyog Ltd. 93, 99–100, 113,126–7, 132, 135,

Maruti Production System 113Maruti–Suzuki India (MSI) 7, 65–73,

93, 99–135, 137, 159, 170, 182–3,186, 217

Mass production 190of peoples’ car 102

300 Index

Mazda 90Memorandum of Understanding

(MoU) 90–1Mercedes-Benz (MB) 66–7, 68, 173–6Mercedes-Benz India (MBI) 7, 65–73,

69, 84, 93, 173–213, 215, 219,226, 251–68

Mercedes-Benz Production System177

Middle class 102Misfits 6, 10, 21–2, 35–6, 42, 47–63,

104–34, 143–71, 178–212,221–48, 254–72

kinds of 6, 47–57see also recontextualization pressure

Mitsubishi 90, 93, 173Model diffusion 25Monopolies and Restrictive Trade

Practices Act (MRTP) 89–90Multinational enterprises

Strategies of 29–31Structures of 29–31

Multi Utility Vehicles (MUVs) 92, 96Mumbai (formerly Bombay) 92–4,

138–9, 148, 152, 168

Nashik, Maharashtra 92New Delhi 71, 82, 168New Institutionalism 17–18, 20, 254,

see also American InstitutionalismNoida, Uttar Pradesh 92North America 9, 11

Opel 92Organization structure 44, 46, 103,

106, 142, 145, 177, 180, 220Organizational relations 45–6

inter-organizational relations 45–6Outright application 11Outsourcing 129, 131, 133, 141, 165,

169, 188Overcapacity 95, 216Ownership development 69

Passive adaptation 11–12Peugeot 93

Phased Manufacturing Program (PMP)89–90

see also Local contentPithampur, Madhya Pradesh 71,

92Polytechnics 79, 83Public Sector Undertakings (PSUs)

100, 106–11, 124Premier Automobiles Ltd. (PAL) 66,

91–4, 136, 138, 146, 163Process organization 44, 46, 103, 140,

189Profit strategy 27, 137, 215

see also generic strategy and globalproduct strategy

Production location 92–3Fiat’s 139–40Maruti–Suzuki’s 101–2Mercedes-Benz India’s 175–6Skoda Auto India’s 218–19

Product ownership 143–5, 172,267–8, 273

Production model 26Production system

definition of 44–5Functional differentiation 44,

103–6, 142–5, 177–80, 220–3,251–4

Hierarchical differentiation 44,106–10, 145–7, 180–5, 223–6,251–4

Industrial relations 45, 125–9,160–5, 203–6, 240–3, 251–4

Supplier relations 45, 129–35,165–72, 206–13, 243–9, 251–4

Technical configuration 44–5,110–15, 147–52, 185–90, 226–30,251–4

Work organization and humanresource profile 45, 115–25,152–60, 190–203, 230–40, 251–4

Production template 43, 47, 102–3,140–2

definition of 47Productive model 25

requirements 26Productivity 89, 112, 114–16, 118,

123, 132, 230, 233

Index 301

QualityQuality circle 117, 119, 124, 155,

196Quality system 222, 231–2, 235–6,

238

Recontextualizationkinds of 36, 47–51see also recontextualization pressurecompare transfer scenarios;

recontextualization modesRecontextualization mode 6, 36, 42,

49, 51–4, 57, 58, 60, 61, 63,104–34, 143–71, 178–212,221–48, 254–72

Recontextualization pressure 6, 35,47–51, 104–34, 143–71, 178–212,221–48, 254–72

see also misfitRelational context 19–20, 39Research gap 3, 7Research traditions 4, 9, 14, 17, 51Resources and capabilities 31–2, 60Responsibility

taking of 77–8, 82–3, 117, 119, 156,193, 195–204, 234

Revised application 11–12Russia 215

SEAT 214, 216Semi knocked down (SKD) kits 260,

265Mercedes-Benz India 173–4, 176,

178, 180, 186Skoda 217–20, 222–3, 226–9,

243–4, 249Skoda 215–16Skoda Auto India (SAI) 65, 67, 69–73,

93, 214–49, 251–69Skoda Production System 219, 230–7,

265Socialization 77–8, 83, 121, 124,

157–60, 197, 237, 239Social constitution

of organizations 16–17Societal effect (approach) 22, 54, 254Society for Indian Automobile

Manufactures (SIAM) 71, 95–7,130, 176, 218, 219

Social stratification 80–2Socio-professional

distance/demarcationStaffing policy 231, 234, 240, 242,

262, 267–9Standard Motors Products of India

Ltd. (SMPIL) 91Strategic choices 4–7, 57–63

corporate level 58–9Fiat’s 137–9Maruti–Suzuki’s 66, 68, 100–1Mercedes-Benz India’s 66, 68,

174–5Skoda Auto India’s 66, 68,

215–18subsidiary level 59–63

Strategic context 7, 28, 34, 54–7, 77,87, 99–249, 255–9

definition of 57Strategic distance 7, 33, 41, 51–9,

144–5, 154, 172, 174–80, 185–7,191–2, 196, 201, 207–10, 174,177–80, 185–7, 190–2, 196, 201,207–10, 215, 220, 222, 226–7,231–3, 243–4, 250–62

Strategic role perspective 28, 31–3,41, 55, 173, 215, 272

see also subsidiary roleStrikes 84, 126–7, 139, 162–5, 206Subsidiary evolution 31

Definition of 31see also strategic rolecharter 31–2, 57

Subsidiary role 31, 34, 39–41, 55Subsidiary production system 7

see also production systemSupply market conditions 95–8,

104–5, 116, 133, 166, 249, 251,254–5

Surajpur, Uttar Pradesh 92Suzuki Motors Corp. (SMC) 66, 99,

103System imperatives

of capitalism 55

Talegaon, Maharashtra 92Task environment 11, 37, 177, 179,

221, 222

302 Index

Tata Motors 66, 92–5, 137, 139see also TELCO

Tata Nano 93, 102Technical configuration 46, 110, 134,

147, 171, 185, 226, 252TELCO 66, 174–6, 181–2, 189, 192,

195, 200–1, 204–5, 207, 209see also Tata

Templateavailability 254, 259–66see production template

Theoretical foundations 1, 5, 7, 8–42Theoretical sampling 64–5, 68Tierization

of suppliers 130, 166–7, 207Toyota 95, 93Toyota Kirloskar 93Trade unions

see unionsTraining

Vocational and technical in India79, 83, 107, 119–22, 124, 133,153–64, 190–7, 201, 219, 230–7,255–6

Transfercapability of 15content 10, 24cross-national 9,failure 26intent 28, 103, 130, 140, 143, 145,

147, 165–6, 182, 219–20, 229,238, 254, 260–2

of knowledge 30of organizational forms and

practices 15–16, 21, 38, 260of production systems 9, 11, 13propensity of 11, 13, 15, 32, 36–7,

65–2, 270of templates 6, 36, 47–8, 53,

57–61,102, 106, 110–15, 126,143–4, 149, 165, 171–2, 180–1,189, 208–10, 224, 226, 229, 244,247, 253, 260–4, 269

Transferability question 17Transfer outcomes

complex view 41definition of 45–7dichotomous views 41see also Hybridization outcomes

Transfer scenarios 53, 56compare misfits; recontextualization

pressure; recontextualizationmodes

Transnational (corporation andstrategy) 29–33, 38–40

Transportation 30, 86, 97, 124, 134,166–8, 172

Unions 82–7, 111, 125–33, 159–65,205–6, 241–3

United States 9, 12, 173Universities 79UTE 142, 143, 145, 152–60Utility Vehicles 102Uttar Pradesh 92, 93Uttarpara, West Bengal 92

Vadodara, Gujarat 92Varieties of Capitalism (VoC) 17, 22Varna 81Vertical Integration 104–5, 150, 179,

187–9, 222, 227, 229Volkswagen (VW) 67, 68, 93, 215–16,

Work discipline 77, 86, 117–19, 124,195, 201, 203–6, 234–5, 237

World car 68, 136–8, 140–2, 258, 267Fiat’s world car project 136, 138,

140–2, 145Worldwide diffusion 30

Zaheerabad, Andhra Pradesh 93