How does the transfer of human resource practices take place from Finnish Multinational Corporation to a Swedish subsidiary? A case study of transfer and harmonization of HR practices within a medium-sized family-owned MNC

摘要

This master thesis is both a contribution to the academic and practical field of humanresource management; with an explanatory case study to explain how the transfer ofhuman resource practices takes place from Finnish MNC to its subsidiary in Sweden.Earlier studies demonstrate that planned transfers of management practices fromMNCs headquarters to foreign subsidiaries are not always successful. This is oftendue to the fact that foreign subsidiaries often operate in different institutionalenvironment and the social dimension of the harmonization of the practices isneglected. This master thesis will focus on these three aspects by using differenttheoretical lenses. Neo-institutional theory is used to analyse the subsidiary’sinstitutional environment and social capital theory is used to explain the cognitivedimension of practice transfer. By combining these two theoretical lenses this thesishas a conceptual framework. Methodological tool for this thesis include the use ofqualitative case study and semi-structured interviews to be able to provideinformation that enters through the organizational surface in order grasp more holisticunderstanding of the problem. Results indicate that the transfer of HR practices isindeed a social process and as foreign subsidiaries operate in different institutionalenvironments it is important to understand these differences both in country andindustry levels.