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Why do some multinational corporations relocate their headquarters overseas?

By Julian Birkinshaw, Pontus Braunerhjelm, Ulv Holm and Siri A. Terjesen

Abstract

This paper examines the decision by a multinational corporation (MNC) to relocate business unit or corporate HQ overseas. We argue that business unit HQs move overseas in response to changes in the internal configuration of their unit’s activities, whereas corporate HQs move overseas is response to the demands of external stakeholders, such as overseas shareholders, capital markets, and global customers. Using data on 125 business unit HQs and 35 corporate HQs, we test and find broad support for these arguments. The research highlights important differences between corporate- and business-level strategy, and it suggests ways in which the theory of the MNC needs to be reconsidered

Topics: Headquarters relocation, Strategic management, Sweden, Corporate Headquarters, Division Headquarters, International Business, Institutional Theory
Publisher: John Wiley & Sons Inc
Year: 2006
DOI identifier: 10.1002/smj.541
OAI identifier: oai:eprints.qut.edu.au:4356

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