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This paper analyses the consequences of multinational corporations’ (MNCs) move towards integrated transnational networks (ITNs) which leads to an increase in the interdependency of organizational entities. We suggest that this increased interdependency requires new ways of coordination that change the nature of international human resource management (IHRM) practices in MNCs. In this paper, we present a framework that addresses these effects and empirically test it using data from a questionnaire survey among 142 overseas subsidiaries of German MNCs. The findings suggest that shifts towards integrated transnational networks have consequences for the use and design of a number of IHRM instruments. We conclude by discussing the implications of our findings for IHRM practitioners and scholars.