Clusters and Regional Management Structures by Western MNCs in Asia: Overcoming the Distance Challenge

Amann, Bruno; Jaussaud, Jacques; Schaaper, Johannes

doi:10.1007/s11575-014-0222-7

Cited by 20 publications

(11 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Third, indirect FDI can be a dynamic process and can be considered as a growth strategy to break barriers to market entry. In practice, facing high start‐up costs if directly holding an affiliate in the final destination country, multinational companies often divide a target region into several clusters of countries and pursue a regional management structure, where regional management centres are established first with strategic and operational roles in each cluster (Amann, Jaussaud, & Schaaper, ). Moreover, FDI can be a consequence of experience accumulated and can be conceived as a sequential process when crossing multiple country borders (Kogut, ).…”

Section: Introductionmentioning

confidence: 99%

The indirect effects of foreign direct investment on trade: A network perspective

et al. 2017

View full text Add to dashboard Cite

The relationship between international trade and foreign direct investment (FDI) is one of the main features of globalization. In this paper we investigate the effects of FDI on trade from a network perspective, since FDI takes not only direct but also indirect channels from origin to destination countries because of firms' incentive to reduce tax burden, to minimize coordination costs, and to break barriers to market entry. We use a unique data set of international corporate control as a measure of stock FDI to construct a corporate control network (CCN) where the nodes are the countries and the edges are the corporate control relationships. Based on the CCN, the network measures, i.e., the shortest path length and the communicability, are computed to capture the indirect channel of FDI. Empirically we find that corporate control has a positive effect on trade both directly and indirectly. The result is robust with different specifications and estimation strategies. Hence, our paper provides strong empirical evidence of the indirect effects of FDI on trade. Moreover, we identify a number of interplaying factors such as regional trade agreements and the region of Asia. We also find that the indirect effects are more pronounced for manufacturing sectors than for primary sectors such as oil extraction and agriculture.

show abstract

Section: Introductionmentioning

confidence: 99%

The indirect effects of foreign direct investment on trade: A network perspective

et al. 2017

View full text Add to dashboard Cite

show abstract

“…MNCs with geography-based organizational structure are more focused on business in a particular geographic area (Galbraith, 1973). 14 The literature on regional management classifies different roles of regional HQ and regional management mandates (RMMs); i.e., the former enhances vertical information flows (Schotter et al, 2017;Alfoldi et al, 2012), and the latter enhances "lateral information flows between subsidiaries within a region" (Schotter et al, 2017;Hoenen and Kostova, 2015;Ambos and Schlegelmilch, 2010;Verbeke and Asmussen, 2016;Mahnke, et al, 2012;Amann, Jaussaud and Schaaper, 2014;Asakawa and Lehrer, 2003;Piekkari, Nell and Ghauri, 2010). However, in our data, we only had the "regional HQ" category in our questionnaire, which encompassed the concept of RMMs as well, given the nature of regional HQ responsible for supervising overseas R&D subsidiaries.…”

Section: Interpretations Of the Main Resultsmentioning

confidence: 99%

Disaggregating the headquarters: implications for overseas R&D subsidiaries’ reporting and the subsidiaries’ knowledge-sharing patterns

Asakawa

2020

J Org Design

View full text Add to dashboard Cite

This study explores the relations between the different parts of headquarters (HQ) to which subsidiaries report and the knowledge-sharing patterns of subsidiaries in multinational corporations (MNCs). Despite the growing interest in the disaggregation of HQ, little is known about how subsidiaries’ reporting relationships with different parts of HQ are associated with the knowledge-sharing patterns of subsidiaries. Based on this motivation, we disaggregated HQ into different parts, i.e., corporate R&D HQ, top management, divisional HQ, and regional HQ, and explored how knowledge-sharing patterns of overseas R&D subsidiaries vary according to the different parts of the HQ to which they report. We found that subsidiaries reporting to corporate R&D HQ show the highest level of external knowledge sharing (EKS), while those reporting to divisional HQ show the lowest level; in addition, subsidiaries reporting to top management show the highest level of internal knowledge sharing (IKS), while those reporting to regional HQ show the lowest level. The study implies that the knowledge-sharing patterns of overseas R&D subsidiaries in MNCs cannot be fully understood without examining the subsidiaries’ reporting relationships with differing parts of the HQ.

show abstract

“…Moreover, there is considerable diversity in how MNEs group countries and assign responsibilities to different HQ units. Ideally, we would use each MNE's idiosyncratic definition of regions, in order to accurately map RHQs and RMMs to the countries for which they are responsible (Amann et al, ; Nell et al, ). However, our large‐sample approach makes it impractical to collect such fine‐grained data from each individual MNE.…”

Section: Methodsmentioning

confidence: 99%

“…This fine‐slicing of activities results in complex spatial structures, sometimes referred to as ‘corporate geographies’ (Clark and Wrigley, ; Hagström, ; Jiang et al, ). Region‐focused hierarchical structures, such as RMCs, can help MNEs manage these increasingly complex corporate geographies (Amann et al, ; Iammarino and McCann, ; Kim et al, ; Verbeke and Asmussen, ).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

MNE Headquarters Disaggregation: The Formation Antecedents of Regional Management Centers

Schotter

Stallkamp

Pinkham

2017

J Management Studies

View full text Add to dashboard Cite

This research examines region-bound headquarters disaggregation in multinational enterprises (MNEs). We link the formation of regional management centres -both dedicated regional headquarters (RHQs) and regional management mandates (RMMs) granted to operating subsidiaries -to the complexity argument underlying organizational information processing theory. We demonstrate how different dimensions of complexity associated with the number and dispersion of an MNE's subsidiary network in a focal region affect whether, and in which form, region-bound headquarters disaggregation takes place. Additionally, we consider boundary conditions affecting RMC formation based on within-region experience, global MNE footprint, and between-region effects. Empirically, we utilize a large global dataset of Japanese MNE foreign investments between 1992 and 2014, which allows us to perform event history analyses.

show abstract

Clusters and Regional Management Structures by Western MNCs in Asia: Overcoming the Distance Challenge

Cited by 20 publications

References 26 publications

The indirect effects of foreign direct investment on trade: A network perspective

The indirect effects of foreign direct investment on trade: A network perspective

Disaggregating the headquarters: implications for overseas R&D subsidiaries’ reporting and the subsidiaries’ knowledge-sharing patterns

MNE Headquarters Disaggregation: The Formation Antecedents of Regional Management Centers

Contact Info

Product

Resources

About