The means by which multinational companies (MNCs) develop and diffuse transnational industrial relations practices are the focus of this article. It elaborates different channels through which international management exercises influence over local practice in operations across different countries. Drawing on survey findings, it identifies the kinds of MNC in which the exercise of such transnational influence is most prevalent. The processes involved are investigated through an in-depth study of a European food MNC. This highlights the importance of ‘unobtrusive’ channels of transnational influence operating within a structure which promotes both cooperation and competition between local units.