Where do manufacturing firms locate their headquarters?

J. Vernon Henderson and Yukako Ono ()

Journal of Urban Economics, 2008, vol. 63, issue 2, 431-450

Abstract: Firms often separate headquarters' (HQ) functions physically from their production facilities and construct stand-alone HQs. By locating its HQ in a large, service oriented metro area away from its production facilities, a firm may be better able to outsource service functions in that local metro market and also to gather information about market conditions for their products. However if the firm locates the HQ away from its production activity, the coordination costs in managing plant activities are increased. In this paper, we empirically analyze the trade-off between these two considerations.

Keywords: Headquarters; Coordination; Location; decision; Manufacturing (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (80)

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Related works:
Working Paper: Where Do Manufacturing Firms Locate Their Headquarters? (2005)
Working Paper: Where do manufacturing firms locate their headquarters? (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:63:y:2008:i:2:p:431-450

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