Competence development and learning in British and German subsidiaries of MNCs: Why and how national institutions still matter

This paper develops a deeper understanding of the origin, development and implementation of overall change management strategies in multinationals and their implications for competence development and learning practices in UK and German subsidiaries.

The cross‐national research project applies mainly qualitative research methods.

Despite increased integrative attempts by headquarters, especially in two out of three cases, significant differences were found between German and UK subsidiaries in key capabilities and strategic competences as well as in knowledge sharing and learning.

Future research should focus more on micro‐political issues of learning and knowledge sharing, a topic hardly addressed in international management research.

This study shows the enduring influence of national institutional diversity on the management of the MNC.