Toward a Theory of Regional Organization

Guey-Huey Li (), Chwo-Ming Yu and Dah-Hsian Seetoo
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Guey-Huey Li: Shih-Hsin University
Chwo-Ming Yu: National Chengchi University
Dah-Hsian Seetoo: National Chengchi University

Management International Review, 2010, vol. 50, issue 1, No 3, 5-33

Abstract: Abstract This paper explores the organizational adjustment in host regions when MNCs switch from their original strategy to a regional strategy. MNCs set up sub-regional headquarters (e.g., Greater China sub-regional headquarters) under a regional headquarters (e.g., Asia regional headquarters). A sub-regional headquarters replaces a regional headquarters directly managing subsidiaries within the sub-region. The emergence of sub-regional headquarters is in response to the need for a balance between global integration and local responsiveness. An increasing number of decisions are made by sub-regional headquarters, instead of by subsidiaries, a parent, or regional headquarters. Industry characteristics and firm’s specific advantages (FSAs) affect the delegation of authority from a parent to regional and sub-regional headquarters.

Keywords: Sub-regional headquarters (SRHQ); Regional strategy; MNC Structure; Subsidiary; Integration-responsiveness framework; Firm’s specific advantages (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s11575-009-0021-8

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