Department of Business Development and Technology

Spatially Dispersed Corporate Headquarters: A Historical Analysis of their Prevalence, Antecedents, and Consequences

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Spatially Dispersed Corporate Headquarters: A Historical Analysis of their Prevalence, Antecedents, and Consequences. / Kunisch, Sven; Menz, M.; Birkinshaw, J.

In: International Business Review, Vol. 28, No. 1, 02.2019, p. 148-161.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

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Kunisch, Sven ; Menz, M. ; Birkinshaw, J. / Spatially Dispersed Corporate Headquarters: A Historical Analysis of their Prevalence, Antecedents, and Consequences. In: International Business Review. 2019 ; Vol. 28, No. 1. pp. 148-161.

Bibtex

@article{1db22c77d14b46f89019e9cc6449f87e,
title = "Spatially Dispersed Corporate Headquarters:: A Historical Analysis of their Prevalence, Antecedents, and Consequences",
abstract = "Our study, which complements recent works challenging the traditional conceptualization of the CHQ as a single organizational unit, has a dual purpose. First, in descriptive terms, we set out to explore the prevalence of spatially dispersed CHQs in a historical context. Second, we aim to shed additional light on the CHQ{\textquoteright}s spatial design by exploring internal antecedents and potential consequences. Building on arguments from information-processing theory, we propose that the strategic complexity facing the CHQ (affecting its information-processing demands) is associated with the likelihood of a spatially dispersed CHQ (affecting its information-processing capacity). In line with our dual purpose, we conduct a historical study drawing on survey and archival data covering 156 public firms domiciled in four countries (Germany, the Netherlands, the UK, and the US) in the late 1990s. Our results provide empirical support for the hypothesized associations between strategic complexity and the CHQ{\textquoteright}s spatial design. Moreover, although we find no empirical support for the expected contingency effects, the results suggest that a spatially dispersed CHQ can have negative effects on CHQ and firm performance. Overall, our theoretical arguments and empirical results advance our knowledge about complex CHQ configurations.",
keywords = "Corporate headquarters; Multi-business firm; Information-processing theory; Corporate strategy; Parenting approach; Organizational design; Spatial design, Information-processing theory, Multi-business firm, Spatial design, Organizational design, Parenting approach, Corporate strategy, Corporate headquarters, DIVERSIFICATION, PERFORMANCE, STRATEGY, SIZE, MANAGEMENT RESEARCH, COORDINATION COSTS, TOBIN-Q, ENDOGENEITY, MULTINATIONAL-CORPORATIONS, FIRM",
author = "Sven Kunisch and M. Menz and J Birkinshaw",
year = "2019",
month = feb,
doi = "10.1016/j.ibusrev.2018.07.002",
language = "English",
volume = "28",
pages = " 148--161",
journal = "International Business Review",
issn = "0969-5931",
publisher = "Pergamon Press",
number = "1",

}

RIS

TY - JOUR

T1 - Spatially Dispersed Corporate Headquarters:

T2 - A Historical Analysis of their Prevalence, Antecedents, and Consequences

AU - Kunisch, Sven

AU - Menz, M.

AU - Birkinshaw, J

PY - 2019/2

Y1 - 2019/2

N2 - Our study, which complements recent works challenging the traditional conceptualization of the CHQ as a single organizational unit, has a dual purpose. First, in descriptive terms, we set out to explore the prevalence of spatially dispersed CHQs in a historical context. Second, we aim to shed additional light on the CHQ’s spatial design by exploring internal antecedents and potential consequences. Building on arguments from information-processing theory, we propose that the strategic complexity facing the CHQ (affecting its information-processing demands) is associated with the likelihood of a spatially dispersed CHQ (affecting its information-processing capacity). In line with our dual purpose, we conduct a historical study drawing on survey and archival data covering 156 public firms domiciled in four countries (Germany, the Netherlands, the UK, and the US) in the late 1990s. Our results provide empirical support for the hypothesized associations between strategic complexity and the CHQ’s spatial design. Moreover, although we find no empirical support for the expected contingency effects, the results suggest that a spatially dispersed CHQ can have negative effects on CHQ and firm performance. Overall, our theoretical arguments and empirical results advance our knowledge about complex CHQ configurations.

AB - Our study, which complements recent works challenging the traditional conceptualization of the CHQ as a single organizational unit, has a dual purpose. First, in descriptive terms, we set out to explore the prevalence of spatially dispersed CHQs in a historical context. Second, we aim to shed additional light on the CHQ’s spatial design by exploring internal antecedents and potential consequences. Building on arguments from information-processing theory, we propose that the strategic complexity facing the CHQ (affecting its information-processing demands) is associated with the likelihood of a spatially dispersed CHQ (affecting its information-processing capacity). In line with our dual purpose, we conduct a historical study drawing on survey and archival data covering 156 public firms domiciled in four countries (Germany, the Netherlands, the UK, and the US) in the late 1990s. Our results provide empirical support for the hypothesized associations between strategic complexity and the CHQ’s spatial design. Moreover, although we find no empirical support for the expected contingency effects, the results suggest that a spatially dispersed CHQ can have negative effects on CHQ and firm performance. Overall, our theoretical arguments and empirical results advance our knowledge about complex CHQ configurations.

KW - Corporate headquarters; Multi-business firm; Information-processing theory; Corporate strategy; Parenting approach; Organizational design; Spatial design

KW - Information-processing theory

KW - Multi-business firm

KW - Spatial design

KW - Organizational design

KW - Parenting approach

KW - Corporate strategy

KW - Corporate headquarters

KW - DIVERSIFICATION

KW - PERFORMANCE

KW - STRATEGY

KW - SIZE

KW - MANAGEMENT RESEARCH

KW - COORDINATION COSTS

KW - TOBIN-Q

KW - ENDOGENEITY

KW - MULTINATIONAL-CORPORATIONS

KW - FIRM

U2 - 10.1016/j.ibusrev.2018.07.002

DO - 10.1016/j.ibusrev.2018.07.002

M3 - Journal article

VL - 28

SP - 148

EP - 161

JO - International Business Review

JF - International Business Review

SN - 0969-5931

IS - 1

ER -