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Multinational enterprise regional management centres: Characteristics and performance

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  • Chakravarty, Dwarka
  • Hsieh, Ying-Ying
  • Schotter, Andreas P.J.
  • Beamish, Paul W.

Abstract

In multinational enterprises (MNEs), regional management centres (RMCs) most frequently take the form of either dedicated regional headquarters (RHQs) or regional management mandates (RMMs) assigned to operating subsidiaries. We identify a series of critical differences in characteristics and performance between RHQs and RMMs, using a longitudinal sample of 855 Japanese RMCs across 41 countries. We also investigate parent-level differences between MNEs with distinct RMC configurations. We propose a structural complement to regional strategy extensions of the integration-responsiveness framework, and provide an important large sample baseline, aiding new theoretical and empirical research into MNE regional management strategy and structure.

Suggested Citation

  • Chakravarty, Dwarka & Hsieh, Ying-Ying & Schotter, Andreas P.J. & Beamish, Paul W., 2017. "Multinational enterprise regional management centres: Characteristics and performance," Journal of World Business, Elsevier, vol. 52(2), pages 296-311.
    • Handle: RePEc:eee:worbus:v:52:y:2017:i:2:p:296-311
    DOI: 10.1016/j.jwb.2016.12.011
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    2. 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.
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    4. Conroy, Kieran & Gammelgaard, Jens & Jooss, Stefan, 2023. "Operating in the middle-power position: Conceptualising the role of regional headquarters through loaned and owned power," International Business Review, Elsevier, vol. 32(5).
    5. Andreas P. J. Schotter & Maximilian Stallkamp & Brian C. Pinkham, 2017. "MNE Headquarters Disaggregation: The Formation Antecedents of Regional Management Centers," Journal of Management Studies, Wiley Blackwell, vol. 54(8), pages 1144-1169, December.
    6. Lee, Jong Min, 2019. "Intra- and inter-regional diversification, subsidiary value chain activities and expatriate utilization," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    7. Pla-Barber, José & Botella-Andreu, Ana & Villar, Cristina, 2021. "Intermediate units in multinational corporations: A resource dependency view on coordinative versus entrepreneurial roles," International Business Review, Elsevier, vol. 30(1).
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