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Leaving home: An institutional perspective on intermediary HQ relocations
Institution:1. Università Luiss Guido Carli, Department of Business and Management, viale Romania 32, 00197 Rome, Italy;2. Institute for International Business, WU Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria;3. LMU Munich, Ludwigstr. 28, 80539 Munich, Germany;4. Institute for International Business, WU Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria;5. Department of Strategy and Innovation, Copenhagen Business School, Frederiksberg, Denmark;1. Faculty of Economics and Business, University of Zagreb, J. F. Kennedy square 6, 10000, Zagreb, Croatia;2. Nottingham Business School, Nottingham Trent University, Burton Street, NG1 4BU, Nottingham, UK;1. Universidad ESAN, ESAN Graduate School of Business, Alonso de Molina 1652, Monterrico Chico, Surco (Lima 33), Lima, Peru;2. Florida International University, Department of Management and International Business, MANGO 447, 11200 S.W. 8th Street, Miami, FL, United States;3. University of South Carolina, Sonoco International Business Department, Darla Moore School of Business, 1014 Greene Street, Columbia, SC 29208, United States;4. Universidad Rey Juan Carlos, Paseo de los Artilleros, s/n, 28032, Madrid, Spain;5. STAR Eco Works Society, Santiago A De Mayolo Nro. 460 Coo. Pablo Boner, La Molina (Lima 12), Lima, Peru;1. University of Calgary, McCaig Chair in Management, Haskayne School of Business, 2500 University Drive NW, Calgary, AB T2N 1N4, Canada;2. Assistant Professor of Strategy and International Business Haskayne School of Business, University of Calgary, Calgary, Alberta T2N 1N4, Canada;3. Associate Professor Stu Clark Chair in Entrepreneurship and Innovation Asper School of Business, University of Manitoba, Winnipeg, Manitoba R3T 5V4, Canada;1. University of Sussex Business School, Falmer, Brighton, BN1 9SL, United Kingdom;2. Henley Business School, University of Reading, Whiteknights, Reading, RG6 6UD, United Kingdom;1. School of Business and Economics, Loughborough University, Loughborough, United Kingdom;2. Strategic Management Area, Indian Institute of Management, Kozhikode, Kerala, India;1. College of Business, New Mexico State University, 1320 East University Avenue, Las Cruces, NM 88003, United States;2. Nanyang Business School, Nanyang Technological University, 50 Nanyang Drive, Singapore 639798;3. School of Business, University of Hong Kong, K. K. Leung Building, Pokfulam Road, Hong Kong
Abstract:We investigate the effect of changing national institutions on relocations of intermediary HQs. Using a dataset of 154 cross-border relocations between the period from 2000 to 2015, we draw on the intermediary HQ’s middle position within the MNC and investigate how a decrease in institutional quality in the HQ’s host country and a change in institutional distance between different MNC units affect the relocation decision. Our findings advance the emergent literature on HQ relocations as well as our knowledge of intermediary HQs and the effect of changing institutions on organizational location choices. Beyond our theoretical contributions, we offer policy and managerial implications.
Keywords:HQ relocation  Intermediary headquarters  Institutional quality  ICRG  Institutional distance  National governance system
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