HRM Practices and MNC knowledge Transfer

The purpose of the paper is to determine and empirically examine the effect of human resourcemanagement practices on knowledge transfer within multinational corporations. It is suggested thatthe employment of human resource practices, which affect absorptive capacity of knowledgereceivers and support organizational learning environment, is positively related to the degree ofknowledge transfer to the subsidiary. Moreover, the higher degree of knowledge transfer isexpected when human resource management practices are applied as an integrated system ofinterdependent practices. Hypotheses derived from these arguments are tested on the data from 92subsidiaries of Danish multinational corporations located in 11 countries.Key words: knowledge transfer, multintional corporations, HRM, complementarity