Multi-domestic MNCs that undertake global integration : HRM convergence and knowledge sharing?
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- Master Thesis 
The main purpose of this thesis is to analyse how changes in internationalization strategy affect human resource management (HRM) convergence and the degree of knowledge sharing within MNCs. In order to answer our two research questions, we collaborated with the Telenor head office and two Telenor subsidiaries. We had the opportunity to interview people from different business units (BUs) and to derive a general picture of how HRM functions in the company. During our research we found evidence that HRM convergence was affected by two main external factors: cultural and socio-economical factors and institutional factors. We found evidence that these dimensions foster the need for local adaption of practices cascading from the group level. Furthermore, we concluded that: 1) a low degree of similarity between a subsidiary and parent’s HRM practices is shown as the company has moved from a multi-domestic to a more globally integrated strategy; 2) knowledge sharing has increased remarkably as the company has moved from a multi-domestic to a more globally integrated strategy; 3) the increase in the degree of knowledge sharing was driven by alternative, management-initiated practices (i.e. transmission channels) that happen independently of HRM convergence. It has been perhaps a first attempt to understand how and if HR represents a function that is likely to be centralized and it offers fresh insights on how to foster knowledge sharing when multi-national corporations (MNCs) are moving from a multi-domestic to a more globally integrated internationalization strategy. It is a remarkable theoretical development in the field of internationalization and MNCs and opens up a new agenda for future research. Furthermore, our research offers noteworthy implications for MNC managers as it provides guidelines on how better to approach changes in the internationalization strategy as well as on how to foster knowledge sharing within MNCs.