Time to Move On? The Impact of Institutions and Economic Crises on Headquarter Mobility

Alfredo Valentino, Phillip Nell, Jasper Hotho, Matteo Giuliano Caroli

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    Abstract

    Building on prior research, we examine theoretically the institutional factors that push top managers to relocate HQ units overseas. To this end, we first discuss how coercive, isomorphic, and normative pressures may differentially affect HQ relocation decisions. Subsequently, we consider how economic crises influence the effects of the institutional factors in our model. We argue that economic crises have a dual effect on the international configuration of HQ activities. First, during times of crisis, we expect firms to react stronger to coercive, isomorphic, and normative pressures. Second, we expect economic crises to decrease the overall institutional quality in a given country context, pushing firms to move out. Our theoretical framework contributes to an improved understanding of how institutional factors influence firm behaviour under varying environmental conditions. Furthermore, we contribute to the literature on the role of economic crises in shaping economic organization.
    Original languageEnglish
    Title of host publicationProceedings of the 55th Annual Meeting of the Academy of International Business
    EditorsPatricia McDougall-Covin, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2013
    Pages133
    Publication statusPublished - 2013
    EventAIB 2013 Annual Meeting : Bridging the Divide: Linking IB to Complementary Disciplines and Practice - Sabancı University, Koç University, and Özyeğin University, Istanbul, Turkey
    Duration: 3 Jul 20136 Jul 2013
    Conference number: 55
    http://aib.msu.edu/events/2013/

    Conference

    ConferenceAIB 2013 Annual Meeting
    Number55
    LocationSabancı University, Koç University, and Özyeğin University
    CountryTurkey
    CityIstanbul
    Period03/07/201306/07/2013
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings
    Volume55
    ISSN2078-4430

    Cite this

    Valentino, A., Nell, P., Hotho, J., & Caroli, M. G. (2013). Time to Move On? The Impact of Institutions and Economic Crises on Headquarter Mobility. In P. McDougall-Covin, & T. Kiyak (Eds.), Proceedings of the 55th Annual Meeting of the Academy of International Business (pp. 133). Academy of International Business. Academy of International Business. Annual Meeting. Proceedings, Vol.. 55 http://aib.msu.edu/events/2013/pdfs/AIB2013_Proceedings.pdf