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Regional Headquarters Capabilities as Key Facilitator of the Coordination of Transnational Business Activities

Author

Listed:
  • Jörg Freiling

    (University of Bremen - Faculty of Business Studies and Economics & ZenTra)

  • Sven M. Laudien

    (Otto von Guericke University Magdeburg & ZenTra)

Abstract

Transnational corporations (TNCs) recently face a dilemma: they coevally have to exploit global-based as well as locally enrooted business opportunities ('glocal dilemma'). This brings the aspect of formal and informal coordination to an issue. In our conceptual paper we focus on formal coordination and employ a capability-based perspective to address the specific coordination role regional headquarters (RHQ) as structural coordination tool play in this context. Based on a framework borrowed from entrepreneurship theory, we outline necessary capabilities of RHQs to be able to carry out their coordinative function in a sufficient way. Our paper enhances existing knowledge by highlighting the up to now widely disregarded coordinative power of RHQ structures subject to specific competences.

Suggested Citation

  • Jörg Freiling & Sven M. Laudien, 2012. "Regional Headquarters Capabilities as Key Facilitator of the Coordination of Transnational Business Activities," ZenTra Working Papers in Transnational Studies 02 / 2012, ZenTra - Center for Transnational Studies, revised Oct 2012.
    • Handle: RePEc:zen:wpaper:02
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    File URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2164351
    File Function: First version, 2012
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    Cited by:

    1. 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.

    More about this item

    Keywords

    transnational corporations; regional headquarters; coordination; competences; entrepreneurial functions;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D29 - Microeconomics - - Production and Organizations - - - Other
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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