Taming the Dragon: Works Councils’ Strategies in German Subsidiaries Acquired by Chinese MNEs

We study two cases of German companies being acquired by Chinese multinational enterprises (MNEs) to advance our understanding of the micro-level mechanisms producing negotiation outcomes in the employment relations sphere. Using qualitative data, we unpack how similar ‘best owner’ agreements in our two case studies have remarkably different microfoundational underpinnings: in one case, the agreement was reached despite conflictual relationships, and in the other case the agreement is the outcome of cooperative relationships. Our study complements existing research at the intersection of employment relations and international business research by illustrating how similar outcomes can still exhibit markedly different micro-level mechanisms. We contribute to comparative institutional theory by unpacking how exactly micro-level actors leverage institutional resources to arrive at negotiated outcomes.