The Strategic Location of Regional Headquarters for Multinationals in Africa
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 InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 276.
Length: 29 pages
Date of creation: 2012
Date of revision:
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More information through EDIRC
FDI and the MNE; Africa; Regional Headquarters; MNEHost Country Relations; Strategic decision making in MNEs;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-04-10 (Africa)
- NEP-ALL-2012-04-10 (All new papers)
- NEP-CSE-2012-04-10 (Economics of Strategic Management)
- NEP-URE-2012-04-10 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Hakanson, Lars & Nobel, Robert, 1993. "Foreign research and development in Swedish multinationals," Research Policy, Elsevier, Elsevier, vol. 22(5-6), pages 373-396, November.
- 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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