Title: Mobility of headquarters in multinational corporations

Authors: Wilhelm Barner-Rasmussen, Rebecca Piekkari, Ingmar Bjorkman

Addresses: Management and Organisation, Hanken – Swedish School of Economics and Business Administration, P.O. Box 479, FI-00101 Helsinki, Finland. ' International Business, Helsinki School of Economics, P.O. Box 1210, FI-00101 Helsinki, Finland. ' Management and Organisation, Hanken – Swedish School of Economics and Business Administration, P.O. Box 479, FI-00101 Helsinki, Finland

Abstract: In the present paper, we aim to explain the dynamic phenomenon of Headquarters (HQ) relocation. The relocation of sales, marketing and production activities has been widely studied, but the strategic decision to relocate a HQ unit across borders has attracted far less attention. Drawing on a multiple case study of Finnish multinationals we conceptualise HQ relocation as an outcome of six key drivers each involving pragmatic and symbolic dimensions. Moreover, we identify a diversity of relocation patterns such as direct, hidden, full, partial and virtual. Based on evidence of extreme mobility in terms of repeated relocations and virtual HQ, we argue that under particular circumstances HQ may be highly mobile.

Keywords: corporate HQ; corporate headquarters; divisional headquarters; HQ location; relocation patterns; HQ mobility; multinational corporations; MNCs; case study; internationalisation; globalisation; international management; Finland.

DOI: 10.1504/EJIM.2007.014697

European Journal of International Management, 2007 Vol.1 No.3, pp.260 - 274

Published online: 25 Jul 2007 *

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