Towards explaining subsidiary implementation, integration, and internalization of MNC headquarters HRM practices

We conceptualize the transfer of organizational practices from headquarters to subsidiaries of multinational corporations as encompassing three dimensions: implementation, integration and internalization. To shed light on the distinct natures of the different dimensions of transfer we examine how different organizational factors relate to each of the dimensions. We test our hypotheses on a sample of 105 subsidiaries from 11 Nordic corporations. Our results confirm the distinct nature of the dimensions of transfer, showing that formal control, inter-unit social capital, and subsidiary capabilities differ in how they are associated with subsidiary implementation, integration and internalization of HRM practices from headquarters.