MNCS ADAPTATION TO SWEDISH LABOUR MARKET PRACTICES AND THE ‘SWEDISH MODEL’ - A Qualitative Study on non-Swedish MNCs and the Role of Employer Associations in Connection to Organisational Restructuring

Abstract

Purpose: The purpose of this study is to explore non-Swedish multinational corporations (MNCs) operating on the Swedish labour market in connection to organisational restructuring, and to understand what role employer associations play for the MNCs. Theory: To address the purpose and research questions of this study, institutional theory in the form of isomorphic pressures and institutional actors will be employed. Method: The empirical data consists of 15 semi-structured interviews, nine of them conducted with Human Resources (HR) professionals within non-Swedish MNCs serving as host country nationals (HCNs), and six of them conducted with employer association representatives in Sweden. Result: The result showed that how non-Swedish MNCs adapt to the Swedish labour market practices seems to partly depend on the local subsidiary’s level of autonomy in decision-making and implementation. MNCs might face challenges throughout organisational restructuring because of differences in the institutional environments between the home country and the host country. The HCN in Sweden seems to play an important role in the representation and maintenance of the Swedish labour market practices and the Swedish model. Furthermore, the result highlights that employer associations support and provide guidance for non-Swedish MNCs in understanding the Swedish institutional context. They act as institutional actors that represent, shape and maintain the Swedish model.