Towards a Regional Strategy: The Role of Regional Headquarters of Foreign Firms in Singapore

Wai Chung Henry Yeung, Jessie Poon and Martin Perry
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Jessie Poon: Department of Geography, University of Buffalo-SUNY, Wilkeson Quad, Buffalo, New York 14261, USA, jesspoon@acsu.buffalo.edu
Martin Perry: Department of Geography, National University of Singapore, 1 Arts Link, Singapore 117570, MartinPerry@nus.edu.sg

Urban Studies, 2001, vol. 38, issue 1, 157-183

Abstract: This paper presents a framework for analysing the role of regional headquarters in the globalisation strategies of transnational corporations (TNCs). Drawing upon a theoretical gap in existing urban studies and international business literature, we argue that the triadisation and regionalisation of TNC activities increase the demand for control and co-ordination functions previously performed by the global headquarters. Many global corporations consequently establish regional headquarters to penetrate into emerging markets, which may be too geographically distant to be co-ordinated and managed by the global HQs, and to achieve simultaneously global integration and local responsiveness. Based upon an empirical survey of 130 RHQs in Singapore and 20 follow-up personal interviews, we test some of the propositions of this regional strategy framework. Our findings tentatively confirm that three independent variables play a statistically significant role in shaping the strategic decision by global corporations to establish RHQs in Singapore: geographical distance, strategic necessity and the availability of business services.

Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:38:y:2001:i:1:p:157-183

DOI: 10.1080/00420980124278

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