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Re-Examining the Host-Country Effect to Include Hybrid Market Economies: Is it Sufficient to Consider Host- and Home-Country, and What Role Do the Subsidiary Size and Incorporation Type Play?

Two so far unexplored issues regarding host-country effects are addressed that contribute to a better understanding of findings for hybrid host-market economies such as Switzerland. Host-country effects are differentiated by practices belonging rather to IR and education & training as per the varieties of capitalism approach (1). Then it is investigated to what extent foreign subsidiaries’ overall uptake of host-country employment relations is determined by the subsidiary incorporation type and size for IR and education & training related practices (2). Analysing US-subsidiaries in Switzerland and in contrast Germany and the UK, mostly support for the propositions distinguishing between IR and education & training host-country effects are found.