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Leaving home: An institutional perspective on intermediary HQ relocations

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  • Valentino, Alfredo
  • Schmitt, Jan
  • Koch, Benno
  • Nell, Phillip C.

Abstract

We investigate the effect of changing national institutions on relocations of intermediary HQs. Using a dataset of 154 cross-border relocations between the period from 2000 to 2015, we draw on the intermediary HQ’s middle position within the MNC and investigate how a decrease in institutional quality in the HQ’s host country and a change in institutional distance between different MNC units affect the relocation decision. Our findings advance the emergent literature on HQ relocations as well as our knowledge of intermediary HQs and the effect of changing institutions on organizational location choices. Beyond our theoretical contributions, we offer policy and managerial implications.

Suggested Citation

  • Valentino, Alfredo & Schmitt, Jan & Koch, Benno & Nell, Phillip C., 2019. "Leaving home: An institutional perspective on intermediary HQ relocations," Journal of World Business, Elsevier, vol. 54(4), pages 273-284.
    • Handle: RePEc:eee:worbus:v:54:y:2019:i:4:p:273-284
    DOI: 10.1016/j.jwb.2018.08.004
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    Cited by:

    1. Farah, Bassam & Chakravarty, Dwarka & Dau, Luis & Beamish, Paul W., 2022. "Multinational enterprise parent-subsidiary governance and survival," Journal of World Business, Elsevier, vol. 57(2).
    2. Ana Botella Andreu & Katiuscia Lavoratori, 2022. "History Matters: Colonial-Based Connectivity and Foreign Headquarter Location Choice," Management International Review, Springer, vol. 62(5), pages 711-739, October.
    3. Panitz Robert & Glückler Johannes, 2023. "Post-Brexit: Do board interlocks make banks take similar relocation decisions?," ZFW – Advances in Economic Geography, De Gruyter, vol. 67(2-3), pages 127-141, August.
    4. Kalanoski, Dimitrija & Cappa, Francesco & Pinelli, Michele & Bonardi, Jean-Philippe, 2025. "The Impact of International Mergers and Acquisitions on Rivals’ Performance: The Role of Formal and Informal Institutions," Journal of World Business, Elsevier, vol. 60(3).
    5. Kum-Sik Oh & Yeon-Sik Ryu, 2019. "FDI, Institutional Quality, and Bribery: An Empirical Examination in China," Sustainability, MDPI, vol. 11(15), pages 1-11, July.
    6. Tang, Ryan W., 2023. "Institutional unpredictability and foreign exit−reentry dynamics: The moderating role of foreign ownership," Journal of World Business, Elsevier, vol. 58(2).
    7. Valentino, Alfredo & Mayrhofer, Ulrike & Caroli, Matteo, 2022. "Internal and external drivers of anticorruption policies in multinationals," International Business Review, Elsevier, vol. 31(6).
    8. Andrews, Daniel S. & Meyer, Klaus E., 2023. "How much does host country matter, really?," Journal of World Business, Elsevier, vol. 58(2).
    9. Hartwell, Christopher A. & Devinney, Timothy, 2021. "Populism, political risk, and pandemics: The challenges of political leadership for business in a post-COVID world," Journal of World Business, Elsevier, vol. 56(4).
    10. Ryan W. Tang & Ying Zhu & Hongbo Cai & Jinrong Han, 2021. "De-internationalization: A Thematic Review and the Directions Forward," Management International Review, Springer, vol. 61(3), pages 267-312, June.
    11. Xu, Kai & Hitt, Michael A. & Brock, David & Pisano, Vincenzo & Huang, Lulu S.R., 2021. "Country institutional environments and international strategy: A review and analysis of the research," Journal of International Management, Elsevier, vol. 27(1).
    12. Musteen, Martina & Liu, Xialu & Chakravarty, Dwarka, 2025. "Abandonment of cross-border acquisitions: The role of target country context," Journal of World Business, Elsevier, vol. 60(4).
    13. Michael Holmes Jr., R. & Xu, Kai & Hitt, Michael A., 2025. "Political institutions, the institutional milieu, and inward foreign direct investment," Journal of Business Research, Elsevier, vol. 197(C).
    14. Hendriks, Guus, 2020. "How the spatial dispersion and size of country networks shape the geographic distance that firms add during international expansion," International Business Review, Elsevier, vol. 29(6).
    15. Botella Andreu, Ana & Lavoratori, Katiuscia, 2025. "Two heads are better than one: Determinants of European MNC's headquarters dispersion in their home region," Journal of International Management, Elsevier, vol. 31(5).
    16. Àngels Dasí & Torben Pedersen & José Pla-Barber, 2024. "MNCs’ Intermediate Units and Their Choice of Control Mechanisms," Management International Review, Springer, vol. 64(1), pages 59-88, February.
    17. Panicker, Vidya Sukumara & Georgiadou, Elena & Hodgkinson, Ian R., 2024. "Generous to a fault: Differential impact of CSR investments on financial gains in Indian market multinationals," Journal of International Management, Elsevier, vol. 30(3).
    18. Fodouop Kouam Arthur William, 2024. "Navigating the Relocation Trend: The Rising Shift of Multinational Corporations from China to Other Countries," International Journal of Science and Business, IJSAB International, vol. 34(1), pages 62-75.

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