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| Author: | Li, G-H. Yu, C-M. Seetoo, D-H. |
| Title: | Toward a theory of regional organization: The emerging role of sub-regional headquarters and the impact on subsidiaries |
| Journal: | Management International Review
2010 : VOL. 50:1, p. 5-33 |
| Index terms: | multinational companies subsidiary companies international Asia |
| Freeterms: | regional organizations |
| Language: | eng |
| Abstract: | This paper explores the organizational adjustment in host regions when multinational corporations (MNCs) switch from their original strategy to a regional one. MNCs set up sub-regional headquarters (HQs) under a regional HQs. A regional HQs is replaced by a sub-regional HQs directly managing subsidiaries within the sub-region. The emergence of sub-regional HQs is in response to the need for a balance btw. global integration and local responsiveness. Sub-regional HQs makes an increasing number of decisions instead of a parent, subsidiaries, or regional HQs. Authority delegation from a parent to regional and sub-regional HQs are affected by industry characteristics and firm's specific advantages (FSAs). |
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