Why do some multinational corporations relocate their headquarters overseas?

Birkinshaw, Julian, Braunerhjelm, Pontus, Holm, Ulv, & Terjesen, Siri A. (2006) Why do some multinational corporations relocate their headquarters overseas? Strategic Management Journal, 27(7), pp. 681-700.

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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.

Impact and interest:

64 citations in Scopus
53 citations in Web of Science®
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ID Code: 4356
Item Type: Journal Article
Refereed: Yes
Additional Information: Nominated for Best Paper, Academy of International Business, 2002.
Keywords: Headquarters relocation, Strategic management, Sweden, Corporate Headquarters, Division Headquarters, International Business, Institutional Theory
DOI: 10.1002/smj.541
ISSN: 0143-2095
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2006 John Wiley & Sons
Copyright Statement: The definite version is available on publication at www3.interscience.wiley.com
Deposited On: 30 May 2006 00:00
Last Modified: 10 Aug 2011 14:43

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