How Do Regional Headquarters Influence Corporate Decisions in Networked MNCs?

Journal of International Management, 2012

31 Pages Posted: 24 Apr 2014 Last revised: 28 Apr 2014

See all articles by Volker Mahnke

Volker Mahnke

Copenhagen Business School - Department of International Economics & Management

Björn Ambos

University of St. Gallen - Institute of Technology Management; Vienna University of Economics and Business

Phillip C. Nell

Vienna University of Economics and Business - Department of Global Business and Trade; Copenhagen Business School - Department of Strategy and Innovation

Bersant Hobdari

Copenhagen Business School

Date Written: September 1, 2012

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.

Keywords: Headquarter value-added, Networked MNC, Upwards influence

Suggested Citation

Mahnke, Volker and Ambos, Bjorn and Nell, Phillip C. and Hobdari, Bersant, How Do Regional Headquarters Influence Corporate Decisions in Networked MNCs? (September 1, 2012). Journal of International Management, 2012 , Available at SSRN: https://ssrn.com/abstract=2428115

Volker Mahnke

Copenhagen Business School - Department of International Economics & Management ( email )

Frederiksberg, 2000
Denmark

Bjorn Ambos

University of St. Gallen - Institute of Technology Management ( email )

Dufourstrasse 40a
St. Gallen, CH-9000
Switzerland

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Phillip C. Nell (Contact Author)

Vienna University of Economics and Business - Department of Global Business and Trade ( email )

Welthandelsplatz 1
Building D1
Vienna, 1020
Austria

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilevej 14
Frederiksberg, 2000
Denmark

HOME PAGE: http://www.cbs.dk/

Bersant Hobdari

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

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