How do Regional Headquarters Influence Corporate Decisions in Networked MNCs?

Volker Mahnke, Björn Ambos, Phillip Christopher Nell, Bersant Hobdari

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    In networked MNCs where knowledge and power are distributed, corporate strategy processes benefit from input arising from many different levels of the organization. Recently, the regional (i.e., supra-national) level has been emphasized as an important additional source of knowledge and input, and as a bridge between local subsidiaries and global corporate headquarters. This paper builds theory on the antecedents to regional headquarters' influence on corporate decisions (i.e., organizational, behavioral, and motivational). Based on a survey of regional headquarters in Europe and their relations with MNC headquarters, we provide empirical evidence that a regional headquarters' autonomy and signaling behavior have significant effects on its influence on corporate strategy. Furthermore, we find support for our hypothesis that the regional headquarters' charter moderates such bottom–up influence.
    Original languageEnglish
    JournalJournal of International Management
    Volume18
    Issue number3
    Pages (from-to)293-301
    ISSN1075-4253
    DOIs
    Publication statusPublished - 2012

    Keywords

    • Headquarter Value-Added
    • Upwards Influence
    • Networked MNC

    Cite this

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    title = "How do Regional Headquarters Influence Corporate Decisions in Networked MNCs?",
    abstract = "In networked MNCs where knowledge and power are distributed, corporate strategy processes benefit from input arising from many different levels of the organization. Recently, the regional (i.e., supra-national) level has been emphasized as an important additional source of knowledge and input, and as a bridge between local subsidiaries and global corporate headquarters. This paper builds theory on the antecedents to regional headquarters' influence on corporate decisions (i.e., organizational, behavioral, and motivational). Based on a survey of regional headquarters in Europe and their relations with MNC headquarters, we provide empirical evidence that a regional headquarters' autonomy and signaling behavior have significant effects on its influence on corporate strategy. Furthermore, we find support for our hypothesis that the regional headquarters' charter moderates such bottom–up influence.",
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    author = "Volker Mahnke and Bj{\"o}rn Ambos and Nell, {Phillip Christopher} and Bersant Hobdari",
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    How do Regional Headquarters Influence Corporate Decisions in Networked MNCs? / Mahnke, Volker; Ambos, Björn; Nell, Phillip Christopher; Hobdari, Bersant.

    In: Journal of International Management, Vol. 18, No. 3, 2012, p. 293-301.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - How do Regional Headquarters Influence Corporate Decisions in Networked MNCs?

    AU - Mahnke, Volker

    AU - Ambos, Björn

    AU - Nell, Phillip Christopher

    AU - Hobdari, Bersant

    PY - 2012

    Y1 - 2012

    N2 - In networked MNCs where knowledge and power are distributed, corporate strategy processes benefit from input arising from many different levels of the organization. Recently, the regional (i.e., supra-national) level has been emphasized as an important additional source of knowledge and input, and as a bridge between local subsidiaries and global corporate headquarters. This paper builds theory on the antecedents to regional headquarters' influence on corporate decisions (i.e., organizational, behavioral, and motivational). Based on a survey of regional headquarters in Europe and their relations with MNC headquarters, we provide empirical evidence that a regional headquarters' autonomy and signaling behavior have significant effects on its influence on corporate strategy. Furthermore, we find support for our hypothesis that the regional headquarters' charter moderates such bottom–up influence.

    AB - In networked MNCs where knowledge and power are distributed, corporate strategy processes benefit from input arising from many different levels of the organization. Recently, the regional (i.e., supra-national) level has been emphasized as an important additional source of knowledge and input, and as a bridge between local subsidiaries and global corporate headquarters. This paper builds theory on the antecedents to regional headquarters' influence on corporate decisions (i.e., organizational, behavioral, and motivational). Based on a survey of regional headquarters in Europe and their relations with MNC headquarters, we provide empirical evidence that a regional headquarters' autonomy and signaling behavior have significant effects on its influence on corporate strategy. Furthermore, we find support for our hypothesis that the regional headquarters' charter moderates such bottom–up influence.

    KW - Headquarter Value-Added

    KW - Upwards Influence

    KW - Networked MNC

    U2 - 10.1016/j.intman.2012.04.001

    DO - 10.1016/j.intman.2012.04.001

    M3 - Journal article

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    JO - Journal of International Management

    JF - Journal of International Management

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