Reasoning a Use of Regional Headquarters in TNCs as Structural Instrument of Coordination

Posted: 10 Sep 2010

See all articles by Sven M. Laudien

Sven M. Laudien

affiliation not provided to SSRN

Jörg Freiling

University of Bremen - Faculty of Business Studies and Economics

Date Written: September 9, 2010

Abstract

In our paper we analyze possible effects caused by a use of regional headquarters in transna-tional companies (henceforth: TNCs). We understand regional headquarters as an innovative structural coordination instrument being used to solve the problem of coordinating transnational business activities in an adequate and cost-efficient way. Although the use of regional headquarters seems to be quite common in business practice, the theory of business admini-stration so far widely ignores this new practice-driven approach. Therefore, we try to over-come this shortfall by critically analyzing possible assets of utilizing regional headquarters both on a theoretical and praxeological base. Our main intentions are to put regional head-quarters in the perspective of business administration theory and to reason their existence by showing how their use can beneficial for TNCs.

Keywords: Organizational Structure, Regional Headquarters, Transnational Companies, Information-Cost Approach, Promoter Model, Global-Local-Dilemma

JEL Classification: M1, M19

Suggested Citation

Laudien, Sven M. and Freiling, Jörg, Reasoning a Use of Regional Headquarters in TNCs as Structural Instrument of Coordination (September 9, 2010). Available at SSRN: https://ssrn.com/abstract=1674389 or http://dx.doi.org/10.2139/ssrn.1674389

Sven M. Laudien (Contact Author)

affiliation not provided to SSRN

Jörg Freiling

University of Bremen - Faculty of Business Studies and Economics ( email )

Wilhelm-Herbst-Str. 5
Bremen, D-28359
Germany
++49 421 218 66870 (Phone)
++49 421 218 66902 (Fax)

HOME PAGE: http://www.lemex.uni-bremen.de

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