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The Strategic Location of Regional Headquarters for Multinationals in Africa

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  • John M. Luiz
  • Busi Radebe

Abstract

>The study investigates the criteria used by multinational companies to identify the locations of their African regional headquarters (RHQs) and the importance that multinational companies assign to the respective regional offices. We find that multinationals do assign value to their RHQs but are always aiming to strike a balance between local responsiveness and global integration. The power of standardization and the introduction of relevant controls have allowed multinational companies to operate as a coherent unit in the different markets where they operate. The dominant criteria used by MNEs to choose their locations for RHQs in Africa are linked to the advantages of agglomeration and the accompanying economies of scale, and a sound institutional framework which provides a predictable business climate. Distance has become less important

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Bibliographic Info

Paper provided by Economic Research Southern Africa in its series Working Papers with number 276.

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Length: 29 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:rza:wpaper:276

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Related research

Keywords: FDI and the MNE; Africa; Regional Headquarters; MNEHost Country Relations; Strategic decision making in MNEs;

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  1. B R Baliga & Alfred M Jaeger, 1984. "Multinational Corporations: Control Systems and Delegation Issues," Journal of International Business Studies, Palgrave Macmillan, vol. 15(2), pages 25-40, June.
  2. Hakanson, Lars & Nobel, Robert, 1993. "Foreign research and development in Swedish multinationals," Research Policy, Elsevier, Elsevier, vol. 22(5-6), pages 373-396, November.
  3. Gassmann, Oliver & von Zedtwitz, Maximilian, 1999. "New concepts and trends in international R&D organization," Research Policy, Elsevier, Elsevier, vol. 28(2-3), pages 231-250, March.
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