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The role of HQ in the contemporary MNC has recently received a good deal of research attention. This article argues that the contemporary MNC requires an organizational model that can embrace different perspectives of the HQ role. The same HQ must at times hierarchically lead the firm and at other times assume a more passive, facilitative role that allows direct interaction and decision making among the subunits to coordinate interdependency within the firm. To achieve this integration, the article proposes a contingency model that specifies when the HQ should assume a hierarchical role and when it should assume a facilitative role.

Despite increased interest in headquarters (HQ) and their activities, we still lack a comprehensive understanding of the drivers of HQ relocations and their consequences. We seek to address this gap by examining whether HQ relocations are primarily driven by cost-reduction or value-creation motives, whether these motivations vary by HQ type and how these relocation patterns vary over time. We explore these questions on the basis of a unique hand-collected database of 227 HQ relocations in Europe between 2000 and 2012. Our findings illustrate that different types of HQ units play their orchestrating role in different ways and that their relocations are driven by different motives. Furthermore, our data suggest that although all types of HQ units are increasingly mobile, the implications of relocations for the MNC may differ considerably by HQ type. These findings contribute to a more fine-grained understanding of the drivers of HQ relocations and open up various new avenues for future research on HQ relocation and the role of HQ units in the orchestration of MNCs’ internal networks.

This empirical chapter contributes to international business (IB) research on the United Nations’ sustainable development goals (SDGs) by opening a new research trajectory on sustainable headquarters (HQ) buildings. This multidisciplinary study conceptualizes the notion of a sustainable HQ based on a case study and three streams of literature – research on HQs, sustainable office design and the SDGs in IB. It offers a novel angle to prior research on HQs that has largely focused on their functional roles. While IB scholars are increasingly embracing the SDGs, limited attention has been devoted to SDG 11, “sustainable cities and communities.” This chapter draws on a real-time, longitudinal, single case study of a Nordic multinational in renewable products. The authors adopt a future-facing, phenomenon-based approach to envision and reimagine the modern wooden corporate HQ building on a culturally sensitive site in the heart of Helsinki, Finland. The findings emphasize the environmental, social, economic and cultural considerations of HQ buildings. By combining HQ premises with commercial spaces, and by opening the building to citizens, sustainable HQ buildings create a lively city space and increase urban social cohesion. The use of wood as a construction material and the application of design principles that promote human–nature relationships, have a positive impact on climate and human health. By focusing on the physical building, the authors aim to change the way IB scholars understand and study the role of HQ as a part of sustainable cities.

The article develops a model which conceptualizes headquarter-subsidiary relations in the multinational corporation as a multilevel discursive struggle between key managers. At the first level, the relations are conceptualized as a discursive struggle over decisions and actions using rationalistic discourses. At the second level, they are viewed as a discursive struggle over power relations using control and autonomy discourses. Finally, underlying the first two, at the third level, headquarter-subsidiary relations are conceptualized as a discursive struggle over managers’ worldviews using cultural (pre)conceptions about “the self” and “the other.”

In this paper, we focus on ethnocentrism as a practice that persists among top managers at MNC headquarters and steers their efforts in orchestrating the global network of subsidiaries. While the extant literature has viewed ethnocentrism as a detrimental attitude that top management seek to remedy, we offer a different reading. On the basis of our fieldwork in Danish MNCs, we argue that top management may deliberately cling to ethnocentrism. At the same time, however, they silence ethnocentrism and conceal it from view. In turn, people in subsidiaries engage in self-silencing. We argue that this sustained yet concealed and silenced ethnocentrism has important implications for orchestration of the global MNC network.

Rolling out lean operations practices in MNCs’ plants is a complex knowledge transfer process whose design and implementation, though critical to operations performance, to date has not been investigated by operations management, international business, strategy, and organizational design research. Applying conceptual tools drawn from various theoretical approaches to knowledge management, transfer and diffusion, this exploratory study: (a) classifies and interprets lean roll-out processes in MNCs, framing them in terms of (i) knowledge replication strategies (template vs. principles-based), (ii) decentralization of decision making (degree of plant autonomy), and (iii) type of organizational ambidexterity (structural vs. contextual) underlying the process; (b) develops, through seven case studies of lean roll-outs in MNCs’ plants, three testable propositions about what might enhance the lean roll-out process performance, arguing about the individual and combined effect of the three above mentioned dimensions on lean roll-out effectiveness and efficiency. We posit that an approach characterized by principles-based knowledge replication, larger decentralization, and prevalence of contextual ambidexterity positively impacts on roll-out process performance.

Purpose – Multinational corporations (MNCs) are often presented as harbingers of global practices, thus promoting a process of convergence between different national business systems. However, this view disregards the fact that MNCs, too, are rooted in countries of origin, and that this may have an enduring influence on the practices employed within these organizations. This chapter aims to throw new light upon this issue.

Methodology – Using a survey methodology we compare company practices for around 150 MNC subsidiaries from four different countries (the USA, the UK, Germany, and Japan) at two points of time (1995 and 2002).

Findings – Our findings show that even the most internationalized companies in the world continue to show unique country patterns. In particular, strong differences between US and Japanese MNCs endure. However, MNCs from the US and from the UK, already very similar in 1995, have become even more alike in 2002. German MNCs show an interesting picture. While remaining similar to Japanese MNCs (and very different from their US and UK counterparts), in some limited respects German MNCs seem to have adapted to the US/UK practices.

Originality – Previous studies, focusing at different groups of countries and different practices, and conducted at various points in time, have been insufficiently cumulative to form a basis for firm conclusions. This study provides a systematic comparison of MNC company practices at two points in time.

The rapidly evolving competitive global marketplace with its culturally diverse customers has increased demand for multinational corporations (MNCs) to accelerate global innovation. Leaders increasingly face the challenge of facilitating global and local team knowledge in order to improve strategic planning and execution for new products and services worldwide. An unresolved question in this regard is how global leaders can facilitate multicultural team collaboration aimed at improving performance of global innovation initiatives? Addressing this research question, a qualitative study was conducted focusing on the role of global leadership in facilitating multicultural collaboration and global innovation performance. The study included interviews with 105 global project leaders at 36 MNCs with headquarters based in Europe, Asia, and North America. These exploratory findings demonstrate how global leadership behaviors can facilitate cross-cultural collaboration for international project performance.

This chapter investigates the role Regional Headquarters (RHQs) play in large multinationals and probes to what degree the establishment of RHQs provides hierarchy benefits according to the M-form principles. Nine large multinational corporations (MNCs) provided the empirical setting for 55 in-depth interviews with decision-makers at corporate, regional and local levels. Case reports were developed for each MNC and the industries they operated in. Observations, company documents, detailed workshops with managers and a follow-up survey within one of the MNCs complemented the data. We find evidence for benefits of hierarchy when RHQs are introduced very much along the lines of the classic M-form organisation with product divisions. However, M-form principles are taken ad absurdum by the fact that there seems to be constant reorganisation regarding the mandates and the geographic scope of the regions. The practical implications of the chapter show that MNCs need to be aware that RHQs and the regional divisions they manage seem to be more difficult to manage in a stable way than product divisions. A clear rationale needs to underlie regional groupings to minimise instability, dissatisfaction among subsidiaries and, hence, ruptures of the M-form principles. Further research is needed to compare the stability of product versus regional divisionalisation. Future research on organisational structures should focus on firm-specific definitions of regional scope.