Are large headquarters unproductive?

Masayuki Morikawa

Journal of Economic Behavior & Organization, 2015, vol. 119, issue C, 422-436

Abstract: Headquarters play an important role in modern companies, but the downsizing of headquarters is often advocated as a way to improve organizational efficiency. Using a panel of Japanese companies for the period 2001–2011, this paper empirically analyzes the determinants of the size of headquarters functions and their relationship with productivity. The cross-sectional dispersion of the size of headquarters functions is very large even within an industry. The complication of businesses leads to smaller headquarters. Headquarters functions contribute positively to a company's TFP. Headquarters functions and ICT network have a complementary role for productivity.

Keywords: Headquarters; Centralization; Decentralization; ICT network; TFP (search for similar items in EconPapers)
JEL-codes: D23 L22 L25 M10 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016726811500253X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:119:y:2015:i:c:p:422-436

DOI: 10.1016/j.jebo.2015.09.010

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().