How corporate headquarters add value in the digital age

Schmitt, Jan and Decreton, Benoit and Nell, Phillip C. (2019) How corporate headquarters add value in the digital age. Journal of Organization Design, 8 (9). pp. 1-10. ISSN 2245-408X

Available under License Creative Commons: Attribution 4.0 International (CC BY 4.0).

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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.

Item Type: Article
Keywords: Digitalization, Corporate strategy, Headquarters, Subunit, Centralization, Delegation, Involvement
Divisions: Departments > Welthandel > International Business > Nell
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 24 Apr 2019 08:01
Last Modified: 24 Apr 2019 09:00
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