Regional headquarters in China: Role in MNE knowledge transfer

To improve control and coordination with operations in distant locations, multinational enterprises (MNEs) establish regional headquarters (RHQs). The number of RHQs in Shanghai registered with the Shanghai Municipal Commission of Commerce has increased from 154 in 2006 to more than 400 in 2012. Man...

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Bibliographic Details
Published in:Asia Pacific journal of management 2014-06, Vol.31 (2), p.397-422
Main Authors: Lunnan, Randi, Zhao, Youzhen
Format: Article
Language:English
Subjects:
Business and Management
Corporate headquarters
Knowledge
Knowledge management
Knowledge sharing
Management
Multinational corporations
Studies
Subsidiaries
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Summary:To improve control and coordination with operations in distant locations, multinational enterprises (MNEs) establish regional headquarters (RHQs). The number of RHQs in Shanghai registered with the Shanghai Municipal Commission of Commerce has increased from 154 in 2006 to more than 400 in 2012. Managing knowledge constitutes one of the major strategic advantages of an MNE, but little is known about RHQs and their role in MNE knowledge flows. Based on interviews with regional, subsidiary, and global managers, we explore knowledge flows involving the RHQ. Our data suggest that RHQs can have a role in inflows and outflows of knowledge, and that this involvement is influenced by RHQ management, structure, and position within the subsidiary network.
ISSN:0217-4561
1572-9958
DOI:10.1007/s10490-013-9358-4