What determines the establishment of Chinese multinational enterprises' Asia regional headquarters?

Ma, Xufei, LI, Donghong, and Wang, Pengji (2012) What determines the establishment of Chinese multinational enterprises' Asia regional headquarters? In: Proceedings of the Academy of International Business Southeast Asia Regional (AIBSEAR) Conference , pp. 1-37. From: 2012 Academy of International Business Southeast Asia Regional (AIBSEAR) Conference, 6-8 December 2012, Xiamen, China.

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Abstract

Although regionalization has gained interests from many scholars, little research has been done to examine why MNEs set up regional headquarters out of their home country but within their home region. We develop a theoretical framework to examine the determinants of Chinese MNEs’ Asia regional headquarters (ARHQs).

We argue that the establishment of ARHQs is a logical choice based on Chinese MNEs’ strategic intent of regional strategy. We differentiate two regional strategies: investing-regionalization with efficiency improvement as the strategic intent and trading-regionalization with legitimacy gaining as the strategic intent.

Based on survey responses from 226 Chinese MNEs, we find that investing-regionalization in Asia would promote MNEs to build ARHQs, while MNEs would set up ARHQs when they have high trading-regionalization outside of Asia. In addition, we find that home-base regional integration and MNEs’ international management capability will not only directly impact the establishment of ARHQs, but also moderate the relationship between trading-regionalization outside of Asia and the establishment of ARHQs.

Item ID: 25360
Item Type: Conference Item (Refereed Research Paper - E1)
Keywords: regionalization, regional headquarters, Chinese MNEs
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ISBN: 978-962-8134-14-0
Funders: Research Grants Council of the Hong Kong Special Administrative Region, Chinese University of Hong Kong
Date Deposited: 15 Apr 2013 06:17
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150308 International Business @ 70%
15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150310 Organisation and Management Theory @ 30%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9104 Management and Productivity > 910402 Management @ 100%
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