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THE ROLE AND FUNCTION OF EUROPEAN REGIONAL HEADQUARTERS IN JAPANESE MNCs

Author

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  • Mori, Tatsuo

    (Hirosaki University)

Abstract

Multinational Corporations (MNCs) that establish Regional Headquarters (RHQ) expect the RHQs to become a management centre in the region. In this paper, the author focuses on three expected roles, that of a decision-maker, a coordinator, and as a transferor of knowledge on local operations and markets to the MNC. An interview survey examines the existence and roles of RHQs, defines minimal conditions for being defined as a RHQ, and determines seven such companies to be RHQs. All seven RHQs can be described as coordinators. Some RHQs coordinate their subsidiaries by controlling the flow of parts/products. Other RHQs assign their managers two titles or positions for coordinating subsidiaries. In other words, one manager has two functions: managing the region and a local company at the same time. From the point of the knowledge-based management, however, RHQs do not seem to work well. Though they are expected to transfer local knowledge to headquarters and other subsidiaries in MNCs, they often fail to systematically do so. To sum up, the author claims that the function and role of RHQs as knowledge based management centres needs to be bolstered.

Suggested Citation

  • Mori, Tatsuo, 2002. "THE ROLE AND FUNCTION OF EUROPEAN REGIONAL HEADQUARTERS IN JAPANESE MNCs," EIJS Working Paper Series 141, Stockholm School of Economics, The European Institute of Japanese Studies.
    • Handle: RePEc:hhs:eijswp:0141
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    References listed on IDEAS

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    1. J H Dunning & G Norman, 1983. "The Theory of the Multinational Enterprise: An Application to Multinational Office Location," Environment and Planning A, , vol. 15(5), pages 675-692, May.
    2. Lehrer, Mark & Asakawa, Kazuhiro, 1999. "Unbundling European operations: regional management and corporate flexibility in American and Japanese MNCS," Journal of World Business, Elsevier, vol. 34(3), pages 267-286, October.
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    Cited by:

    1. Bruno Amann & Jacques Jaussaud & Johannes Schaaper, 2020. "The bridging role of regional headquarters. Multinational companies in the Asia-Pacific region," Post-Print hal-03264624, HAL.
    2. Bruno Amann & Jacques Jaussaud & Johannes Schaaper, 2014. "Clusters and Regional Management Structures by Western MNCs in Asia: Overcoming the Distance Challenge," Management International Review, Springer, vol. 54(6), pages 879-906, December.
    3. Andreas G. M. NACHBAGAUER, 2016. "Stimulating Sustainability in Multinational Companies: the Significance of Regional Headquarters," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 4(2), pages 215-240, June.

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    More about this item

    Keywords

    regional headquarters; Japanese MNCs; headquarters-like function; coordinator; knowledge flow;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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