Toward a Theory of Regional Organization |
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| Authors: | Guey-Huey Li Chwo-Ming Yu Dah-Hsian Seetoo |
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| Affiliation: | (1) Department of Communications Management, College of Journalism and Communications, Shih-Hsin University, Taipei, Taiwan;(2) Department of Business Administration, College of Commerce, National Chengchi University, Taipei, Taiwan |
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| Abstract: |
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This paper explores the organizational adjustment in host regions when MNCs switch from their original strategy to a regional
strategy.
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MNCs set up sub-regional headquarters (e.g., Greater China sub-regional headquarters) under a regional headquarters (e.g.,
Asia regional headquarters). A sub-regional headquarters replaces a regional headquarters directly managing subsidiaries within
the sub-region.
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The emergence of sub-regional headquarters is in response to the need for a balance between global integration and local responsiveness.
An increasing number of decisions are made by sub-regional headquarters, instead of by subsidiaries, a parent, or regional
headquarters.
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Industry characteristics and firm’s specific advantages (FSAs) affect the delegation of authority from a parent to regional
and sub-regional headquarters.
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| Keywords: | |
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