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Multinational enterprise regional management centres: Characteristics and performance

Published on Feb 1, 2017in Journal of World Business
· DOI :10.1016/j.jwb.2016.12.011
Dwarka Chakravarty1
Estimated H-index: 1
(UWO: University of Western Ontario),
Ying-Ying Hsieh1
Estimated H-index: 1
(UWO: University of Western Ontario)
+ 1 AuthorsPaul W. Beamish62
Estimated H-index: 62
(UWO: University of Western Ontario)
Sources
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.
  • References (73)
  • Citations (16)
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References73
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#1Alain Verbeke (University of Reading)H-Index: 48
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This paper provides an overview of the main insights arising from the ‘regional strategy’ literature. It also develops the contours of a new, rich research agenda for future international strategy scholarship, whereby the region should be introduced as an explicit, third geographic level of analysis, in addition to the country-level and the global level. Regional strategy analysis requires a fundamental rethink of mainstream theories in the international strategy sphere. This rethink involves, i...
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#1Alain Verbeke (University of Reading)H-Index: 48
#2Liena Kano (U of C: University of Calgary)H-Index: 11
Many multinational enterprises (MNEs) claim to be pursuing a ‘global strategy’, but the majority of MNEs is not global, in the sense that these firms cannot emulate their domestic success outside of their home region. This inability is largely caused by compounded distance among regions and can be mitigated in part, by infusing a regional component into the MNE's international strategy. In this paper, we explore whether internalization theory can address the global versus regional strategy pheno...
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#1Randi Lunnan (BI Norwegian Business School)H-Index: 12
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To improve control and coordination with operations in distant locations, multinational enterprises (MNEs) establish regional headquarters (RHQs). The number of RHQs in Shanghai registered with the Shanghai Municipal Commission of Commerce has increased from 154 in 2006 to more than 400 in 2012. Managing knowledge constitutes one of the major strategic advantages of an MNE, but little is known about RHQs and their role in MNE knowledge flows. Based on interviews with regional, subsidiary, and gl...
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#1David W. Edgington (UBC: University of British Columbia)H-Index: 16
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Purpose The purpose of this paper is to theorize and empirically examine the effects of intra- and inter-regional geographic diversification on firm performance in China. Furthermore, it investigates they key firm capabilities, which moderate the relationships between intra- and inter-regional geographic diversification and firm performance. Design/methodology/approach In this research, the authors studied 366 listed companies that invest in mainland China. The authors used the Taiwan Economy Jo...
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Abstract This paper explores the impact of regional and firm level heterogeneity on MNE performance from an operational perspective. We find that the underlying economic growth of a region and the MNE’s overall product diversity significantly impact returns from downstream operations in specific regions. Based on a 10 year panel dataset of 1249 US based MNEs, results show that the incremental impact of the degree and speed of operations within a given region, is greater for regions exhibiting fa...
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