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Towards a Regional Strategy: The Role of Regional Headquarters of Foreign Firms in Singapore

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  • Henry Wai-chung Yeung

    (Department of Geography, National University of Singapore, 1 Arts Link, Singapore 117570, HenryYeung@nus.edusg and MartinPerry@nus.edu.sg)

  • Jessie Poon

    (Department of Geography, University of Buffalo-SUNY, Wilkeson Quad, Buffalo, New York 14261, USA, jesspoon@acsu.buffalo.edu)

  • Martin Perry

    (Department of Geography, National University of Singapore, 1 Arts Link, Singapore 117570, MartinPerry@nus.edu.sg)

Abstract

This paper presents a framework for analysing the role of regional headquarters in the globalisation strategies of transnational corporations (TNCs). Drawing upon a theoretical gap in existing urban studies and international business literature, we argue that the triadisation and regionalisation of TNC activities increase the demand for control and co-ordination functions previously performed by the global headquarters. Many global corporations consequently establish regional headquarters to penetrate into emerging markets, which may be too geographically distant to be co-ordinated and managed by the global HQs, and to achieve simultaneously global integration and local responsiveness. Based upon an empirical survey of 130 RHQs in Singapore and 20 follow-up personal interviews, we test some of the propositions of this regional strategy framework. Our findings tentatively confirm that three independent variables play a statistically significant role in shaping the strategic decision by global corporations to establish RHQs in Singapore: geographical distance, strategic necessity and the availability of business services.

Suggested Citation

  • Henry Wai-chung Yeung & Jessie Poon & Martin Perry, 2001. "Towards a Regional Strategy: The Role of Regional Headquarters of Foreign Firms in Singapore," Urban Studies, Urban Studies Journal Limited, vol. 38(1), pages 157-183, January.
    • Handle: RePEc:sae:urbstu:v:38:y:2001:i:1:p:157-183
    DOI: 10.1080/00420980124278
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    4. Olds, Kris, 2007. "Global Assemblage: Singapore, Foreign Universities, and the Construction of a "Global Education Hub"," World Development, Elsevier, vol. 35(6), pages 959-975, June.
    5. 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.
    6. Hanane Beddi & Ulrike Mayrhofer, 2010. "The role of location in headquarters-subsidiaries relationships: An analysis of French multinationals in emerging markets," Post-Print halshs-00690213, HAL.
    7. Pan, Yigang & Teng, Lefa & Yu, Mingyang & Lu, Xiongwen & Huang, Dan, 2014. "Host-country Headquarters of U.S. Firms in China: An Empirical Study," Journal of International Management, Elsevier, vol. 20(4), pages 379-389.
    8. Araujo, Luis & Rezende, Sergio, 2003. "Path dependence, MNCs and the internationalisation process: a relational approach," International Business Review, Elsevier, vol. 12(6), pages 719-737, December.
    9. Rigg, Jonathan & Promphaking, Buapun & Le Mare, Ann, 2014. "Personalizing the Middle-Income Trap: An Inter-Generational Migrant View from Rural Thailand," World Development, Elsevier, vol. 59(C), pages 184-198.
    10. Hyung Min Kim, 2017. "Ethnic connections, foreign housing investment and locality: a case study of Seoul," European Journal of Housing Policy, Taylor and Francis Journals, vol. 17(1), pages 120-144, January.
    11. Conroy, Kieran & Gammelgaard, Jens & Jooss, Stefan, 2023. "Operating in the middle-power position: Conceptualising the role of regional headquarters through loaned and owned power," International Business Review, Elsevier, vol. 32(5).
    12. Danny T Wang & Simon X Zhao & Flora F Gu & Wendy Y Chen, 2011. "Power or Market? Location Determinants of Multinational Headquarters in China," Environment and Planning A, , vol. 43(10), pages 2364-2383, October.
    13. Yee-Siong Tong, 2021. "China’S Outbound Investment In Asean Economies In Three Periods: Changing Patterns And Trends," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 66(01), pages 105-142, March.
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    16. 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.

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