KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
WHY DO SOME MULTINATIONAL CORPORATIONS RELOCATE THEIR HEADQUARTERS OVERSEAS?
(), Pontus Braunerhjelm
(), Ulf Holm
() and Siri Terjesen
Abstract: This paper examines the decision by a multinational
corporation (MNC) to relocate its business unit and/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 and the
demands of the product markets in which they operate, whereas corporate HQs
move overseas is response to the demands of external stakeholders, in
particular global financial markets and shareholders. Using data on 125
business unit HQs and 35 corporate HQs, we test and find 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.
Keywords: Multinational Corporation; Headquarters; Corporate Strategy; Internationalization; (follow links to similar papers)
JEL-Codes: D21; F23; G34; L22; O31; O33; (follow links to similar papers)
40 pages, March 28, 2006
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom