This article explores how IKEA subsidiaries in Korea and Japan influence the employment systems in those countries by transferring HRM practices. The subsidiaries not only adapted to differences in the institutional environment but also shaped the host country's employment systems. The study shows that the subsidiaries' actions are influenced by the contexts they are in and that they play a significant role in transferring HRM practices. This research highlights the potential for MNE subsidiaries to act as agents in shaping institutional environments.