How Do Regional Headquarters Influence Corporate Decisions in Networked MNCs?

Mahnke, Volker and Ambos, Björn and Nell, Phillip C. and Hobdari, Bersant (2012) How Do Regional Headquarters Influence Corporate Decisions in Networked MNCs? Journal of International Management, 18 (3). pp. 293-301. ISSN 1075-4253

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Abstract

In networked MNCs where knowledge and power are distributed, corporate strategy processes benefit from input arising from many different levels of the organization. Recently, the regional (i.e., supra-national) level has been emphasized as an important additional source of knowledge and input, and as a bridge between local subsidiaries and global corporate headquarters. This paper builds theory on the antecedents to regional headquarters' influence on corporate decisions (i.e., organizational, behavioral, and motivational). Based on a survey of regional headquarters in Europe and their relations with MNC headquarters, we provide empirical evidence that a regional headquarters' autonomy and signaling behavior have significant effects on its influence on corporate strategy. Furthermore, we find support for our hypothesis that the regional headquarters' charter moderates such bottom-up influence.

Item Type: Article
Keywords: The network MNC / MNC HQ / Managerial intervention and opportunism / Normative integration / Procedural justice
Divisions: Departments > Welthandel > International Business > Nell
Version of the Document: Accepted for Publication
Variance from Published Version: Minor
Depositing User: Kerstin Kvapil
Date Deposited: 11 Apr 2016 10:31
Last Modified: 20 Feb 2020 13:37
URI: https://epub.wu.ac.at/id/eprint/4970

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