The effects of cultural, institutional and parent company influences upon training and development in British and French subsidiaries of a Swedish multinational corporation: a comparative international study

National cultural and institutional factors and the influence of the parent company affect the ways in which Multinational Corporation subsidiaries train and develop their staff. However, existing studies have not compared training and development using a comprehensive range of comparative factors. Thus the key determinants of the organization, planning and conduct of training and development are not identified or explained. This study develops a comprehensive series of factors that can be used to compare training and development in the British and French subsidiaries of a Swedish Multinational Corporation. The hypothetical implications of national culture, the national institutional context and the national origin of the parent company are identified. It is expected that national cultural and institutional factors will have a greater influence upon training and development than the actions of the parent company, and that cultural factors will be more influential than institutional factors. The hypotheses are tested in a study that involves interviewing company staff and training providers in Britain, France and Sweden. A range of company documents is also gathered. Analysis of the data reveals that the parent company has virtually no influence on the training and development actions of the subsidiaries, although there are signs that this ‘lack of management’ may be under review. Further analysis reveals that national culture is the key determinant of the ways in which training is conducted in the subsidiaries. However, cultural explanations for the ways in which the subsidiaries organize and plan training and development are rejected. The competitive market environment that the subsidiaries operate in, especially the ability (or not) to gain market share seems to be the key determinant of the organization and planning of training and development in the subsidiaries. It is concluded that this is a significant finding which should be explored in future studies