This research delves into the dynamic shifts in human resource management strategies prompted by the COVID-19 pandemic. It investigates the mediating influence of information technology (IT) challenges on the connection between pandemic-induced international human resource management (IHRM) practices and the competitiveness of multinational corporations (MNCs) in Malaysia with focusing on sustainable development. Through the analysis of data collected from 172 respondents via self-administered questionnaires in Malaysian MNCs across various sectors including education, general services, ICT, property, construction, and healthcare, the study employs partial least squares structural equation modeling (PLS-SEM) to validate the proposed hypotheses. The findings highlight the substantial impact of compensation and staffing practices on technology transfer challenges within MNCs. Furthermore, the study reveals that the implementation of remote work, particularly during and post-lockdowns, is associated with elevated compensation and enhances overall company competitiveness. These outcomes offer theoretical and practical insights, furnishing human resource managers, especially in multinational corporations, with valuable guidance for maintaining competitiveness amidst the disruptions of a pandemic and promoting sustainability in HR practices. By highlighting the potential benefits of working from home in terms of both IHRM outcomes and competitiveness, the study contributes to ongoing discussions about the future of work and the role of technology-enabled practices in driving organizational success and sustainable development.