0 this paper explores the organizational adjustment in host regions when MNcs switch from their original strategy to a regional strategy.
0MNcs set up sub-regional headquarters (e.g., Greater china sub-regional headquarters) under a regional headquarters (e.g., asia regional headquarters). a sub-regional headquarters replaces a regional headquarters directly managing subsidiaries within the sub-region. 0 the emergence of sub-regional headquarters is in response to the need for a balance between global integration and local responsiveness. an increasing number of decisions are made by sub-regional headquarters, instead of by subsidiaries, a parent, or regional headquarters. 0 Industry characteristics and firm's specific advantages (FSAs) affect the delegation of authority from a parent to regional and sub-regional headquarters.
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