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How corporate headquarters add value in the digital age

Author

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  • Jan Schmitt

    (WU Vienna University of Economics and Business)

  • Benoit Decreton

    (WU Vienna University of Economics and Business)

  • Phillip C. Nell

    (WU Vienna University of Economics and Business
    Copenhagen Business School)

Abstract

How will digitalization influence the role of corporate headquarters (CHQs) and their relationships with their operating units? We recently asked 67 senior CHQ managers this question. The results suggest that CHQs expect to become more powerful and more involved in their operating units. These conclusions seem to be driven by perceptions that the ongoing digitalization will provide CHQ managers with more timely and better information. In this “Point of View,” we discuss the potential pitfalls of such a narrative. We also offer ideas for how to avoid mistakes and ensure that CHQs increase their value-added in times of digitalization. In particular, we suggest that CHQs place emphasis on social interactions for data to be effectively collected and analyzed, for decision-making power to be adequately allocated, and for CHQ involvement to be informed and necessary.

Suggested Citation

  • Jan Schmitt & Benoit Decreton & Phillip C. Nell, 2019. "How corporate headquarters add value in the digital age," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-10, December.
    • Handle: RePEc:spr:jorgde:v:8:y:2019:i:1:d:10.1186_s41469-019-0049-6
    DOI: 10.1186/s41469-019-0049-6
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    References listed on IDEAS

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    Cited by:

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    2. Sven Kunisch & Markus Menz & David Collis, 2020. "Corporate headquarters in the twenty-first century: an organization design perspective," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-32, December.
    3. Sebastian Firk & André Hanelt & Jana Oehmichen & Michael Wolff, 2021. "Chief Digital Officers: An Analysis of the Presence of a Centralized Digital Transformation Role," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1800-1831, November.
    4. Randi Lunnan & Sverre Tomassen & Ulf Andersson & Gabriel R. G. Benito, 2019. "Dealing with headquarters in the multinational corporation: a subsidiary perspective on organizing costs," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-24, December.
    5. Vrontis, Demetris & Basile, Gianpaolo & Simona Andreano, M. & Mazzitelli, Andrea & Papasolomou, Ioanna, 2020. "The profile of innovation driven Italian SMEs and the relationship between the firms’ networking abilities and dynamic capabilities," Journal of Business Research, Elsevier, vol. 114(C), pages 313-324.

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