IDEAS home Printed from https://ideas.repec.org/a/nup/jrmdke/v4y2016i2p215-240.html
   My bibliography  Save this article

Stimulating Sustainability in Multinational Companies: the Significance of Regional Headquarters

Author

Listed:
  • Andreas G. M. NACHBAGAUER

    (University of Applied Sciences BFI)

Abstract

Recently, regional headquarters have gained practical importance and theoretical attention. Traditionally considered a mere transmission facility to manage complex organisations, advanced approaches, however, locate regional headquarters in a field of tension between hierarchical integration and strategic independence. Given the growing concern for global responsibility, stimulating sustainability also and particularly addresses regional headquarters. This conceptual article combines the call for sustainability with the upcoming importance of regional headquarters: which contributions can the regional headquarters of a multinational company deliver to stimulate the development of sustainable corporate strategy and operations? The main topics are the effects different versions of embedding regional headquarters into the corporate context have on opportunities to implement sustainability policies: Are there different chances for successful implementation depending on the strategic setup of the company? Does the distribution of competences matter? Which types of interaction between headquarters and branch are suitable to introduce sustainability sustainably? Is the mix of national contexts of headquarters and branch of importance? First results show that depending on the companywide strategy, and especially on the structure and distribution of competences, regional headquarters can play a significant role as trigger of sustainability. The literature favours strong involvement and large autonomy of both branches as well as regional headquarters for the development and management of sustainability. The parts of the company involved in a critical environment often are the starting point of sustainability policies.

Suggested Citation

  • 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.
    • Handle: RePEc:nup:jrmdke:v:4:y:2016:i:2:p:215-240
    as

    Download full text from publisher

    File URL: http://www.managementdynamics.ro/index.php/journal/article/download/175/124
    Download Restriction: no
    File URL: http://www.managementdynamics.ro/index.php/journal/article/view/175/124
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anne-Wil Harzing, 2000. "An Empirical Analysis and Extension of the Bartlett and Ghoshal Typology of Multinational Companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(1), pages 101-120, March.
    2. Ambos, Tina C. & Ambos, Björn & Schlegelmilch, Bodo B., 2006. "Learning from foreign subsidiaries: An empirical investigation of headquarters' benefits from reverse knowledge transfers," International Business Review, Elsevier, vol. 15(3), pages 294-312, June.
    3. Najafi-Tavani, Zhaleh & Giroud, Axèle & Andersson, Ulf, 2014. "The interplay of networking activities and internal knowledge actions for subsidiary influence within MNCs," Journal of World Business, Elsevier, vol. 49(1), pages 122-131.
    4. Wiig, Arne & Kolstad, Ivar, 2010. "Multinational corporations and host country institutions: A case study of CSR activities in Angola," International Business Review, Elsevier, vol. 19(2), pages 178-190, April.
    5. Arnold Schuh, 2013. "Do Regional Headquarters for Central and Eastern Europe Have a Future?," Central European Business Review, Prague University of Economics and Business, vol. 2013(1), pages 53-54.
    6. 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.
    7. Petter Gottschalk, 2011. "Stages of Corporate Responsibility," World Scientific Book Chapters, in: Corporate Social Responsibility, Governance And Corporate Reputation, chapter 8, pages 97-116, World Scientific Publishing Co. Pte. Ltd..
    8. Muller, Alan, 0. "Global Versus Local CSR Strategies," European Management Journal, Elsevier, vol. 24(2-3), pages 189-198, April.
    9. Caroline D. Ditlev-Simonsen & Petter Gottschalk, 2011. "Stages of growth model for corporate social responsibility," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 2(3/4), pages 268-287.
    10. Alexandro Kleine & Michael Hauff, 2009. "Sustainability-Driven Implementation of Corporate Social Responsibility: Application of the Integrative Sustainability Triangle," Journal of Business Ethics, Springer, vol. 85(3), pages 517-533, April.
    11. Rugman,Alan M., 2005. "The Regional Multinationals," Cambridge Books, Cambridge University Press, number 9780521842655, September.
    12. Luc Fransen, 2013. "The Embeddedness of Responsible Business Practice: Exploring the Interaction Between National-Institutional Environments and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 115(2), pages 213-227, June.
    13. 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.
    14. Y. L. Doz & C. K. Prahalad, 1991. "Managing DMNCs: A search for a new paradigm," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 145-164, June.
    15. Dunning, John H, 1979. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 269-295, November.
    16. Alfred D. Chandler, 1991. "The functions of the HQ unit in the multibusiness firm," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 31-50, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    2. Su, Cong & Holm, Ulf & Martín Martín, Oscar, 2024. "Liability of political embeddedness in Chinese multinationals: Implications for headquarters’ roles and reverse knowledge transfer," International Business Review, Elsevier, vol. 33(3).
    3. 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.
    4. Scott-Kennel, Joanna & Giroud, Axele, 2015. "MNEs and FSAs: Network knowledge, strategic orientation and performance," Journal of World Business, Elsevier, vol. 50(1), pages 94-107.
    5. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    6. 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.
    7. Williams, Christopher & Colovic, Ana & Zhu, Jiqing, 2017. "Integration-responsiveness, local hires and subsidiary performance amidst turbulence: Insights from a survey of Chinese subsidiaries," Journal of World Business, Elsevier, vol. 52(6), pages 842-853.
    8. Julius H. Johnson, Jr. & Dinesh A. Mirchandani & Seng-Su Tsang, 2008. "Competitive Dynamics, Global Industry Cycles, Integration-Responsiveness, and Financial Performance in Emerging and Industrialized Country Markets," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 7(1), pages 61-88, April.
    9. 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.
    10. Elizabeth L. Rose & Kiyohiko Ito, 2009. "Past Interactions and New Foreign Direct Investment Location Decisions," Management International Review, Springer, vol. 49(5), pages 641-669, October.
    11. Ackah-Baidoo, Abigail, 2012. "Enclave development and ‘offshore corporate social responsibility’: Implications for oil-rich sub-Saharan Africa," Resources Policy, Elsevier, vol. 37(2), pages 152-159.
    12. Luo, Yadong & Tan, J. Justin, 1997. "How much does industry structure impact foreign direct investment in China?," International Business Review, Elsevier, vol. 6(4), pages 337-359, August.
    13. Luo, Yadong & Tan, J. Justin, 1998. "A comparison of multinational and domestic firms in an emerging market: A strategic choice perspective," Journal of International Management, Elsevier, vol. 4(1), pages 21-40, July.
    14. 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.
    15. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2017. "Gone are the creatures of yesteryear? On the diffusion of technological capabilities in the ‘modern’ MNC," Journal of World Business, Elsevier, vol. 52(1), pages 1-16.
    16. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2019. "Geographically Dispersed Technological Capability Building and MNC Innovative Performance: The Role of Intra-firm Flows of Newly Absorbed Knowledge," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    17. Teresa da Silva Lopes & Mark Casson & Geoffrey Jones, 2019. "Organizational innovation in the multinational enterprise: Internalization theory and business history," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1338-1358, October.
    18. Mashiho Mihalache & Oli Mihalache & Jan Ende, 2021. "International Diversification and MNE Innovativeness: A Contingency Perspective of Foreign Subsidiary Portfolio Characteristics," Management International Review, Springer, vol. 61(6), pages 769-798, December.
    19. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    20. Bruno Amann & Jacques Jaussaud & Johannes Schaaper, 2020. "The bridging role of regional headquarters.Multinational companies in theAsia-Pacific region," Post-Print hal-03282204, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nup:jrmdke:v:4:y:2016:i:2:p:215-240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cristian-Mihai VIDU (email available below). General contact details of provider: https://edirc.repec.org/data/fmsnsro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.