The CEO Effect in Headquarters’ Relocation Decisions: A Microfoundational Perspective

Aktivität: Vortrag › Wissenschaftlicher Vortrag (Science-to-Science)

Beschreibung

What triggers multinational corporations (MNCs) to relocate their headquarters (HQs) across borders? Building on problemistic search and upper echelons theory, I argue that performance feedback, leadership succession, and upper echelon attributes jointly impact a firm’s HQ relocation decision. In particular, I theorize how (i) performance below aspiration level is positively related to the likelihood of HQ relocation and how (ii) CEO outside succession as well as (iii) certain CEO characteristics (i.e., educational background and nationality) moderate the relationship between performance shortfall and likelihood of HQ relocation. I test the hypotheses with a hand-collected multi-country panel dataset of 213 corporate HQ relocations in Europe between 2000 and 2019. In line with my hypotheses, I find that performance below aspiration level triggers HQ relocations and that outside CEO succession and foreign CEOs further strengthen this effect, while the CEO’s educational background does not have an impact. My findings contribute to research on the antecedents of HQ relocations, on organizational change from a behavioral theory of upper echelon decisions, and on the importance of microfoundations in global strategy. Beyond my theoretical contributions, I offer policy and managerial implications.
Zeitraum11 Dez. 2025 → 13 Dez. 2025
EreignistitelEIBA 2025: The Myth of Harmony! Strategic Realities in IB Practices
VeranstaltungstypKonferenz
Konferenznummer51
OrtAthens, GriechenlandAuf Karte anzeigen
BekanntheitsgradInternational

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