Practical managerial HRM implications which can be drawn from the Lincoln case are the following. Lincoln’s HRM strategy is based on a best fit approach designed to achieve an optimal vertical fit with the overall corporate strategy with a strong alignment towards the competitive strategic objectives of employee productivity and product quality on the company’s domestic American market (Basset 1999). Lincoln is immensely successful on the U.S. market because it matches HR approaches to corporate, competitive and functional level strategy to achieve a sustainable competitive advantage.

Internationally, Lincoln is not able to transfer the U.S. model of best fit to its subsidiaries. Environmental factors like legal requirements and cultural differences make it impossible to use a system which is based on individual performance (Bjorkman & Galunic 2003). Lincoln is limited in fitting its HR approach to what would be best for reinforcing its efficiency and quality driven competitive advantage.

The Lincoln case illustrates that in a global context companies are influenced by a multitude of contingences. A universalist HRM approach within a MNC applying a certain bundle of HRM best practices will not render an optimal outcome for the entire organization (Sims 2007). According to Dowling et al (2008) International managers need to take a more detailed approach by identifying individual circumstances of national subsidiaries and fitting HRM strategies to achieve a mutual enforcement between local requirements and corporate strategy. For some a best practice approach might be a superior solution while for other subsidiaries only certain best practice elements (e.g. hiring, training, rewards etc.) might prove to be effective: In Europe Lincoln fails to develop any sort of HRM strategy which can satisfy the environmental requirements and reinforce its competitive differentiation strategy at the same time. Due to a lack of international knowledge Lincoln’s managers rely on the status quo (Hastings 1999). In Europe an introduction of best practice methods with a HPWS would have immediately allowed ensuring better control and performance in the