WHY DO SOME MULTINATIONAL CORPORATIONSRELOCATE THEIR HEADQUARTERS OVERSEAS?
2006 (English)Report (Other academic)
This paper examines the decision by a multinational corporation (MNC) to relocate itsbusiness unit and/or corporate HQ overseas. We argue that business unit HQs move overseasin response to changes in the internal configuration of their unit’s activities and the demandsof the product markets in which they operate, whereas corporate HQs move overseas isresponse to the demands of external stakeholders, in particular global financial markets andshareholders. Using data on 125 business unit HQs and 35 corporate HQs, we test and findsupport for these arguments. The research highlights important differences betweencorporate- and business-level strategy, and it suggests ways in which the theory of the MNCneeds to be reconsidered.
Place, publisher, year, edition, pages
CESIS, KTH Royal Institute of Technology , 2006. , 40 p.
CESIS Working Paper Series in Economics and Institutions of Innovation, 54
Multinational Corporation, Headquarters, Corporate Strategy, Internationalization
IdentifiersURN: urn:nbn:se:kth:diva-72321OAI: oai:DiVA.org:kth-72321DiVA: diva2:487470
QC 201202082012-02-082012-01-312012-02-08Bibliographically approved