Comparative industrial relations theory: the role of national culture

This paper explores the use of national culture in comparative industrial relations theory to explain the cross-national pattern of industrial relations institutions. A critical review of the existing body of theory argues that it has not adequately explained cross-national differences in the main industrial relations variables. The review also establishes that, with few exceptions, national culture is currently given negligible weight as an explanatory variable. It is argued that a cultural theory of cross-national difference is required. Following a critical assessment of the work of Hofstede, a cultural model is developed based on his definition and specification of culture. Some hypotheses linking Hofstede's dimensions of culture with our industrial relations variables are derived. As an empirical test of the model, industrial relations variables are regressed on Hofstede's cultural indices. National culture is found to be significantly associated with all the major characteristics of industrial relations systems investigated. The paper concludes that national culture is the primary determinant of cross-national variations in industrial relations institutions and that culture is likely to be a force for ongoing diversity in labour market systems.