Toward a Theory of Regional Organization

Li, Guey-Huey; Yu, Chwo‐Ming Joseph; Seetoo, Dah-Hsian

doi:10.1007/s11575-009-0021-8

Cited by 24 publications

(10 citation statements)

References 32 publications

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“…The literature on RHQs is largely focused on Asia (Enright 2005a; Li et al . 2010; Schütte 1997). These studies show that when RHQs manage a region for which a single regional strategy is insufficient due to the region's size or complexity, MNCs tend to segment the region into subregions and build new sub‐IUs (Li et al .…”

Section: Intermediate Units: Definitions and Typesmentioning

confidence: 99%

Intermediate Units in Multinational Corporations: Advancing Theory on their Co‐parenting Role, Dynamics and Outcomes

Barber

Botella-Andreu

Villar

2020

Int J Management Reviews

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Due to the dispersion of headquarters’ activities across organizational and geographical boundaries, intermediate units (IUs) are emerging as a key actor in international business. These units are intermediate structural layers between headquarters (HQ) and local subsidiaries with specific HQ responsibilities. Through a systematic review of 68 studies published between 1996 and 2020, we develop a conceptual framework that integrates complementary streams of theoretical and empirical research with IUs as the focal unit of analysis. Our aims are to disentangle how the main theories in this field address the antecedents of IU creation, and explain the dynamism in the roles and functions of IUs and their outcomes. We also propose a conceptualization of IUs as co‐parents in a dynamic system in which parenting functions are shared by IUs and headquarters. Finally, we highlight avenues for future research, emphasizing opportunities to advance the understanding of IUs using different theoretical lenses that may help scholars position their work within the broader stream of literature.

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Section: Intermediate Units: Definitions and Typesmentioning

confidence: 99%

Intermediate Units in Multinational Corporations: Advancing Theory on their Co‐parenting Role, Dynamics and Outcomes

Barber

Botella-Andreu

Villar

2020

Int J Management Reviews

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“…MNEs define regions based on activities, industries, and their development stage. Li, Yu & Seetoo, 2010 Case study Sub-regional HQs are established in response to integration-responsiveness forces. Industry characteristics and firm-specific advantages (FSAs) affect the delegation of authority from a parent to RHQs and sub-regional HQs.…”

Section: Surveymentioning

confidence: 99%

Multinational enterprise regional management centres: Characteristics and performance

Chakravarty

Hsieh

Schotter

et al. 2017

Journal of World Business

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In multinational enterprises (MNEs), regional management centres (RMCs) most frequently take the form of either dedicated regional headquarters (RHQs) or regional management mandates (RMMs) assigned to operating subsidiaries. We identify a series of critical differences in characteristics and performance between RHQs and RMMs, using a longitudinal sample of 855 Japanese RMCs across 41 countries. We also investigate parent-level differences between MNEs with distinct RMC configurations. We propose a structural complement to regional strategy extensions of the integration-responsiveness framework, and provide an important large sample baseline, aiding new theoretical and empirical research into MNE regional management strategy and structure.

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“…There is also a longstanding stream of research specifically devoted to RHQ (e.g., Ambos and Schlegelmilch, ) and the roles and tasks they carry out on behalf of superior HQ units, with a focus on Europe (Daniels, ; Nell et al, ), and Asia Pacific (Enright, ; Li et al, ). An important way in which RHQ add value is by providing MNCs with parenting, knowledge and organisational advantages (Ambos and Schlegelmilch, ).…”

Section: Literature Reviewmentioning

confidence: 99%

Explaining Mandate Loss of Regional Headquarters: The Difference between Full and Partial Loss

Kähäri

Saittakari

Piekkari

et al. 2017

J Management Studies

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The fluidity of regional headquarters (RHQ) mandates is a core aspect of disaggregating HQ activities in MNCs. While 'slicing' of global value chains has received attention in previous research, the parallel disaggregation of management activities has not. Our longitudinal study of 374 RHQ between 1998 and 2010 redresses this omission by asking why RHQ lose their mandates. We apply the concept of absorptive capacity and find two different explanatory mechanisms for full and partial mandate loss driven by RHQ-specific capabilities and location-specific capabilities. Full mandate loss is associated with deficient RHQ-specific capabilities and realised absorptive capacity. By contrast, partial mandate loss is driven by an RHQ's lack of the location-specific capabilities to respond to local changes, leading to removal of mandates for some subunits only. The distinction between full and partial loss offers a more nuanced and granular explanation of how geographic regions of MNCs are composed.

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Toward a Theory of Regional Organization

Cited by 24 publications

References 32 publications

Intermediate Units in Multinational Corporations: Advancing Theory on their Co‐parenting Role, Dynamics and Outcomes

Intermediate Units in Multinational Corporations: Advancing Theory on their Co‐parenting Role, Dynamics and Outcomes

Multinational enterprise regional management centres: Characteristics and performance

Explaining Mandate Loss of Regional Headquarters: The Difference between Full and Partial Loss

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