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Unbundling European operations: regional management and corporate flexibility in American and Japanese MNCS

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  • Lehrer, Mark
  • Asakawa, Kazuhiro

Abstract

Empirical research on the European operations of 19 American and Japanese multinational companies (MNCs) suggested, first, that the strategic importance of the region did not translate into an enhanced role for regional headquarters, and second, that American and Japanese MNCs are "unbundling" their European operations as a means of enhancing their flexibility. American MNCs preferred to carve up regional tasks for delegation to local subsidiaries, with coordination assured increasingly by "councils" bringing top European managers together. Japanese MNCs have not altered the formal organizational structure; but the recent internationalization of basic research labs in Europe has forced them to modify their previously monolithic approach to European subsidiaries.

Suggested Citation

  • Lehrer, Mark & Asakawa, Kazuhiro, 1999. "Unbundling European operations: regional management and corporate flexibility in American and Japanese MNCS," Journal of World Business, Elsevier, vol. 34(3), pages 267-286, October.
    • Handle: RePEc:eee:worbus:v:34:y:1999:i:3:p:267-286
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    Cited by:

    1. Bruno Amann & Jacques Jaussaud & Johannes Schaaper, 2020. "The bridging role of regional headquarters.Multinational companies in theAsia-Pacific region," Post-Print hal-03282204, HAL.
    2. Tomi Laamanen, 2019. "Dynamic attention-based view of corporate headquarters in MNCs," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-15, December.
    3. Mori, Tatsuo, 2002. "THE ROLE AND FUNCTION OF EUROPEAN REGIONAL HEADQUARTERS IN JAPANESE MNCs," EIJS Working Paper Series 141, Stockholm School of Economics, The European Institute of Japanese Studies.
    4. Chakravarty, Dwarka & Hsieh, Ying-Ying & Schotter, Andreas P.J. & Beamish, Paul W., 2017. "Multinational enterprise regional management centres: Characteristics and performance," Journal of World Business, Elsevier, vol. 52(2), pages 296-311.
    5. Kawai, Norifumi & Chung, Chul, 2019. "Expatriate utilization, subsidiary knowledge creation and performance: The moderating role of subsidiary strategic context," Journal of World Business, Elsevier, vol. 54(1), pages 24-36.
    6. Asakawa, Kazuhiro & Lehrer, Mark, 2003. "Managing local knowledge assets globally: the role of regional innovation relays," Journal of World Business, Elsevier, vol. 38(1), pages 31-42, February.
    7. Xufei Ma & Andrew Delios & Shu Yu, 2020. "Innovation in MNC’S strategy and structure: the (re) emergence of host country headquarters in large emerging markets," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 609-632, September.
    8. Bruno Amann & Jacques Jaussaud & Johannes Schaaper, 2014. "Clusters and Regional Management Structures by Western MNCs in Asia: Overcoming the Distance Challenge," Management International Review, Springer, vol. 54(6), pages 879-906, December.
    9. Dirk Ulrich Gilbert & Patrick Heinecke, 2014. "Success Factors of Regional Strategies for Multinational Corporations: Exploring the Appropriate Degree of Regional Management Autonomy and Regional Product/Service Adaptation," Management International Review, Springer, vol. 54(5), pages 615-651, October.
    10. Andreas P. J. Schotter & Maximilian Stallkamp & Brian C. Pinkham, 2017. "MNE Headquarters Disaggregation: The Formation Antecedents of Regional Management Centers," Journal of Management Studies, Wiley Blackwell, vol. 54(8), pages 1144-1169, December.
    11. Verbeke, Alain & Kano, Liena, 2016. "An internalization theory perspective on the global and regional strategies of multinational enterprises," Journal of World Business, Elsevier, vol. 51(1), pages 83-92.
    12. René Belderbos & Helen S. Du & Anthony Goerzen, 2017. "Global Cities, Connectivity, and the Location Choice of MNC Regional Headquarters," Journal of Management Studies, Wiley Blackwell, vol. 54(8), pages 1271-1302, December.
    13. Perttu Kähäri & Iiris Saittakari & Rebecca Piekkari & Wilhelm Barner-Rasmussen, 2017. "Explaining Mandate Loss of Regional Headquarters: The Difference between Full and Partial Loss," Journal of Management Studies, Wiley Blackwell, vol. 54(8), pages 1206-1240, December.
    14. Kazuhiro Asakawa, 2020. "Disaggregating the headquarters: implications for overseas R&D subsidiaries’ reporting and the subsidiaries’ knowledge-sharing patterns," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-30, December.
    15. Ricart, Joan E. & Enright, Michael J. & Ghemawat, Pankaj & Khanna, Tarun & Hart, Stuart L., 2003. "New frontiers in international strategy," IESE Research Papers D/532, IESE Business School.
    16. Lehrer, Mark & Asakawa, Kazuhiro, 2002. "Offshore knowledge incubation: the "third path" for embedding R&D labs in foreign systems of innovation," Journal of World Business, Elsevier, vol. 37(4), pages 297-306, January.
    17. Rebecca Piekkari & Phillip C. Nell & Pervez N. Ghauri, 2010. "Regional Management as a System," Management International Review, Springer, vol. 50(4), pages 513-532, August.
    18. Andreas G. M. NACHBAGAUER, 2016. "Stimulating Sustainability in Multinational Companies: the Significance of Regional Headquarters," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 4(2), pages 215-240, June.
    19. Villar, Cristina & Dasí, Àngels & Botella-Andreu, Ana, 2018. "Subsidiary-specific advantages for inter-regional expansion: The role of intermediate units," International Business Review, Elsevier, vol. 27(2), pages 328-338.
    20. Randi Lunnan & Youzhen Zhao, 2014. "Regional headquarters in China: Role in MNE knowledge transfer," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 397-422, June.
    21. Rudolf R. Sinkovics & Eva A. Alfoldi, 2012. "Progressive Focusing and Trustworthiness in Qualitative Research," Management International Review, Springer, vol. 52(6), pages 817-845, December.

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