MNC Headquarters as Activity Systems: The Consequences of Differentiating and Relocating MNC Headquarters?

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    Abstract

    Recent literature has questioned why multinational corporations (MNC) relocate their headquarters activities overseas. In this paper, we investigate the consequences of this phenomenon. To do this, we conceptualize the MNC headquarters activities as an interdependent system, and develop a set of propositions that links headquarters unbundling and relocation to complexity and rising coordination costs. Moreover, we argue that the coordination costs are often neglected in the headquarters reconfiguration process. In sum, we provide a novel perspective on modern MNC headquarters configurations, derive consequences for MNC research, and develop a model that aims at explaining the stability of such systems.
    Original languageEnglish
    Title of host publicationProceedings of the 54rd Annual Meeting of the Academy of International Business
    EditorsSusan Feinberg, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2012
    Pages74
    Publication statusPublished - 2012
    EventAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, United States
    Duration: 30 Jun 20123 Jul 2012
    Conference number: 54
    http://aib.msu.edu/events/2012/

    Conference

    ConferenceAIB 2012 Annual Meeting
    Number54
    LocationGeorge Washington University and University of Maryland
    CountryUnited States
    CityWashington
    Period30/06/201203/07/2012
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings
    Volume54
    ISSN2078-4430

    Cite this

    Nell, P. C., & Møller Larsen, M. (2012). MNC Headquarters as Activity Systems: The Consequences of Differentiating and Relocating MNC Headquarters? In S. Feinberg, & T. Kiyak (Eds.), Proceedings of the 54rd Annual Meeting of the Academy of International Business (pp. 74). Academy of International Business. Academy of International Business. Annual Meeting. Proceedings, Vol.. 54 http://aib.msu.edu/events/2012/AIB2012_ConferenceProceedings.pdf