How Do Regional Headquarters Influence Corporate Decisions in Networked MNCs?

Volker Mahnke, Björn Ambos, Phillip C. Nell, Bersant Hobdari

Publication: Scientific journalJournal articleResearchpeer-review

Abstract

In networked MNCs where knowledge and power are distributed, corporate strategy processes benefit from input arising from many different levels of the organization. Recently, the regional (i.e., supra-national) level has been emphasized as an important additional source of knowledge and input, and as a bridge between local subsidiaries and global corporate headquarters. This paper builds theory on the antecedents to regional headquarters' influence on corporate decisions (i.e., organizational, behavioral, and motivational). Based on a survey of regional headquarters in Europe and their relations with MNC headquarters, we provide empirical evidence that a regional headquarters' autonomy and signaling behavior have significant effects on its influence on corporate strategy. Furthermore, we find support for our hypothesis that the regional headquarters' charter moderates such bottom-up influence.
Original languageEnglish
Pages (from-to)293-301
JournalJournal of International Management
Volume18
Issue number3
DOIs
Publication statusPublished - 2012

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