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.
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 language | English |
|---|---|
| Publication date | 2012 |
| Number of pages | 24 |
| Publication status | Published - 2012 |
| Event | AIB 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 2012 → 3 Jul 2012 Conference number: 54 http://aib.msu.edu/events/2012/ |
Conference
| Conference | AIB 2012 Annual Meeting |
|---|---|
| Number | 54 |
| Location | George Washington University and University of Maryland |
| Country/Territory | United States |
| City | Washington |
| Period | 30/06/2012 → 03/07/2012 |
| Internet address |