Entrepreneurial Capabilities at the Regional Level in Multinational Enterprises: The Roles of Intra-Regional Dissimilarity and Embeddedness

This study investigates entrepreneurial capabilities of regional headquarters (RHQs). In our conceptual development, we build on entrepreneurship and MNE embeddedness literature to suggest that intra-regional dissimilarity as well as RHQs’ regional embeddedness are positively related to the level of RHQs’ entrepreneurial capabilities. We illustrate our arguments on the basis of data on European RHQs. In addition, our study opens up for an interesting discussion of these mechanisms’ interdependence. This contributes to our understanding of RHQs as important entrepreneurial actors within the MNE, the structuring of regions, and the importance of MNE external embeddedness.