'Vanguard' Subsidiaries and the Diffusion of New Practices: A Case Study of German Multinationals

German companies, used to operating in their distinctive domestic business environment, have had to learn new 'rules of the game' as they have internationalized. There are signs that they are adopting some of the characteristics of more mature international companies, particularly those from an 'Anglo-Saxon' tradition. This 'Anglo-Saxonization' is seen in international HR policy, in areas such as training and development and performance management. Drawing on research into German multinationals, this paper explores the role of 'vanguard' subsidiaries in spreading 'Anglo-Saxon' practices to German companies. It also analyses the impact of such innovations on pre-existing patterns of behaviour. Copyright Blackwell Publishers Ltd/London School of Economics 2000.