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How Do MNC Headquarters Add Value?

Author

Listed:
  • Björn Ambos

    (Vienna University of Economics and Business)

  • Volker Mahnke

    (Copenhagen Business School)

Abstract

This focused issue examines the role of headquarters in modern multinational corporations (MNCs). We examine how headquarters add value, which roles they play and how existing theory needs to be modified in light of recent developments. We argue that headquarters still play an important role in the MNC. Furthermore, we highlight the possibility that the conceptualization of headquarters as a distinct organizational entity may need to be modified. We also suggest that further studies may benefit from focusing on problems of “dual agency” and how subsidiary managers deal with multiple parents.

Suggested Citation

  • Björn Ambos & Volker Mahnke, 2010. "How Do MNC Headquarters Add Value?," Management International Review, Springer, vol. 50(4), pages 403-412, August.
    • Handle: RePEc:spr:manint:v:50:y:2010:i:4:d:10.1007_s11575-010-0040-5
    DOI: 10.1007/s11575-010-0040-5
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    References listed on IDEAS

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    Cited by:

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    4. Leanne Chung, 2014. "Headquarters’ Managerial Intentionality and Reverse Transfer of Practices," Management International Review, Springer, vol. 54(2), pages 225-252, April.
    5. Conroy, Kieran M. & Collings, David G., 2016. "The legitimacy of subsidiary issue selling: Balancing positive & negative attention from corporate headquarters," Journal of World Business, Elsevier, vol. 51(4), pages 612-627.
    6. 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.
    7. Riviere, Monica & Romero-Martínez, Ana M., 2021. "Network embeddedness, headquarters entrepreneurial orientation, and MNE international performance," International Business Review, Elsevier, vol. 30(3).
    8. Julian Birkinshaw & Tina C. Ambos & Cyril Bouquet, 2017. "Boundary Spanning Activities of Corporate HQ Executives Insights from a Longitudinal Study," Journal of Management Studies, Wiley Blackwell, vol. 54(4), pages 422-454, June.
    9. Farah, Bassam & Chakravarty, Dwarka & Dau, Luis & Beamish, Paul W., 2022. "Multinational enterprise parent-subsidiary governance and survival," Journal of World Business, Elsevier, vol. 57(2).
    10. Covin, Jeffrey G. & Garrett, Robert P. & Kuratko, Donald F. & Shepherd, Dean A., 2020. "Short leash or long leash? Parenting style, initial strategic clarity, and the development of venture learning proficiency," Journal of Business Venturing, Elsevier, vol. 35(4).
    11. Dellestrand, Henrik & Kappen, Philip, 2011. "Headquarters Allocation of Resources to Innovation Transfer Projects within the Multinational Enterprise," Journal of International Management, Elsevier, vol. 17(4), pages 263-277.
    12. Kunisch, Sven & Menz, Markus & Birkinshaw, Julian, 2019. "Spatially dispersed corporate headquarters: A historical analysis of their prevalence, antecedents, and consequences," International Business Review, Elsevier, vol. 28(1), pages 148-161.
    13. 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.
    14. Debmalya Mukherjee & Satish Kumar & Naveen Donthu & Nitesh Pandey, 2021. "Research Published in Management International Review from 2006 to 2020: A Bibliometric Analysis and Future Directions," Management International Review, Springer, vol. 61(5), pages 599-642, October.
    15. Christine Holmström Lind & Olivia H. Kang, 2017. "The Value-Adding Role of the Corporate Headquarters in Innovation Transfer Processes: The Issue of Headquarters Knowledge Situation," Management International Review, Springer, vol. 57(4), pages 571-602, August.
    16. Swoboda, Bernhard & Morbe, Lukas & Hirschmann, Johannes, 2018. "International strategy’s effects on retailers’ local implementation and performance," International Business Review, Elsevier, vol. 27(3), pages 642-653.
    17. 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.
    18. Cerar, Jelena & Dimitrova, Mihaela & Nell, Phillip C., 2022. "Fostering operational management “Best Practices” in subsidiary plants in the Western Balkans: The role of MNC home-country environment and resource allocation," Journal of International Management, Elsevier, vol. 28(2).
    19. Benz Lena & Block Jörn H. & Johann Matthias S., 2024. "Hidden champions as a determinant of regional development: An analysis of german districts," ZFW – Advances in Economic Geography, De Gruyter, vol. 68(1), pages 9-39.
    20. Lee, Hyoungjin & Chung, Chris Changwha & Beamish, Paul W., 2019. "Configurational characteristics of mandate portfolios and their impact on foreign subsidiary survival," Journal of World Business, Elsevier, vol. 54(5), pages 1-1.
    21. Su, Cong & Ciabuschi, Francesco & Kong, Lingshuang, 2023. "Headquarters parenting advantage in Chinese MNEs: The moderating role of top managers’ political and International experience," International Business Review, Elsevier, vol. 32(2).
    22. 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.
    23. 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.

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