Leaving Home: An Institutional Perspective on Intermediary HQ Relocations

Alfredo Valentino, Jan Schmitt, Benno Koch, Phillip Christopher Nell

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Abstract

We investigate the effect of changing national institutions on relocations of intermediary HQs. Using a dataset of 154 cross-border relocations between the period from 2000 to 2015, we draw on the intermediary HQ’s middle position within the MNC and investigate how a decrease in institutional quality in the HQ’s host country and a change in institutional distance between different MNC units affect the relocation decision. Our findings advance the emergent literature on HQ relocations as well as our knowledge of intermediary HQs and the effect of changing institutions on organizational location choices. Beyond our theoretical contributions, we offer policy and managerial implications.
Original languageEnglish
JournalJournal of World Business
Volume54
Issue number4
Pages (from-to)273-284
Number of pages12
ISSN1090-9516
DOIs
Publication statusPublished - Jun 2019

Bibliographical note

Published online: 18 September 2018

Keywords

  • HQ relocation
  • Intermediary headquarters
  • Institutional quality
  • ICRG
  • Institutional distance
  • National governance system

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