The Unbalanced Geography of the World's Largest MNES: Institutional Quality and Head Office Distribution Across Countries

Coeurderoy, Régis; Verbeke, Alain

doi:10.1002/gsj.1118

Cited by 23 publications

(26 citation statements)

References 66 publications

(105 reference statements)

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“…The article by Coeurderoy and Verbeke (, this issue) was submitted to GSJ as a competitive paper. After the initial screening, it was (like 75% of all submissions) sent out for review.…”

Section: The History Of a Perspective Paper And A Commentarymentioning

confidence: 91%

“…HQ relocation merits attention by strategy scholars because of the potentially profound implications both for MNEs and for their old and new HQs countries. The two contributions in this issue by Coeurderoy and Verbeke (, this issue) and Meyer and Benito (, this issue), respectively, open up this conversation.…”

Section: The Theme: Location Of Mne Headquartersmentioning

confidence: 91%

“…Or put differently: how footloose are HQs in reality? Coeurderoy and Verbeke (, this issue) argue ‘that head offices are footloose for three reasons. First, the cost of a large MNE head office is typically low as compared to the company's overall cost structure…Second, the benefits of head office activities to the MNE would appear to be at least partly location independent…Third, in line with internalization theory thinking, most of the world's largest firms now operate as ‘global factories,’ wherein both the ownership status and the location of fine‐sliced value chain activities are reassessed on a continuous basis’ (2016, this issue).…”

Section: The Theme: Location Of Mne Headquartersmentioning

confidence: 99%

“…(2016, this issue). In fact, Coeurderoy and Verbeke (, this issue) themselves show that by 2008‐09, only 1.46% of the (2,367) large MNEs they followed had relocated their HQs since company inception.…”

Section: The Theme: Location Of Mne Headquartersmentioning

confidence: 99%

“…Previous issues of Global Strategy Journal include many examples of such research platform content, e.g., point‐counterpoint discussions, perspective papers, and commentaries. This issue of GSJ features another example of research platform content with the perspective paper by Coeurderoy and Verbeke (, this issue) and the commentary by Meyer and Benito (, this issue). It also serves as an illustration of how we try to promote these conversations.…”

Section: Introductionmentioning

confidence: 98%

See 4 more Smart Citations

How we Facilitate Conversations in Global Strategy—and the Location of MNE HQS

Pedersen

Tallman

2016

Global Strategy Journal

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“…The article by Coeurderoy and Verbeke (, this issue) was submitted to GSJ as a competitive paper. After the initial screening, it was (like 75% of all submissions) sent out for review.…”

Section: The History Of a Perspective Paper And A Commentarymentioning

confidence: 91%

Section: The Theme: Location Of Mne Headquartersmentioning

confidence: 91%

Section: The Theme: Location Of Mne Headquartersmentioning

confidence: 99%

Section: The Theme: Location Of Mne Headquartersmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

See 3 more Smart Citations

How we Facilitate Conversations in Global Strategy—and the Location of MNE HQS

Pedersen

Tallman

2016

Global Strategy Journal

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Where do MNEs locate their headquarters? at home!

Meyer

Benito

2016

Global Strategy Journal

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Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry

Giachetti

Lampel²,

Onoz

2022

Global Strategy Journal

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Research SummaryDrawing on signaling theory and the international business literature that addresses the role of institutions, we argue that multinational enterprises (MNEs) that use multimarket contact (MMC)—that is, meet the same competitors in multiple countries—to reduce rivalry in a given country, will have their actions and performance influenced by the institutional quality of that country. More specifically, we contend that action observability is the mechanism that explains why institutional quality facilitates an MNE's use of MMC with competitors in a host country. We also contend that an MNE's ability to successfully reduce rivalry with host country competitors via MMC is contingent on the institutional quality distance between the MNE's home and host country. We test our hypotheses with data from the mobile phone industry.Managerial SummaryMNEs often meet the same rivals simultaneously in multiple countries, a phenomenon known as market overlap or MMC. Prior studies have found that MMC deters rivals from attacking each other in the countries they have in common. However, these studies have not taken into account the heterogeneity of the institutional environments of the countries in which multimarket rivals compete. We contend that the quality of countries' institutions and the institutional quality distance between home and host countries affect the extent to which MNEs can observe each other's actions, which in turn helps rival MNEs to avoid mutually damaging moves for their sales performance in the countries they have in common.

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The Unbalanced Geography of the World's Largest MNES: Institutional Quality and Head Office Distribution Across Countries

Cited by 23 publications

References 66 publications

How we Facilitate Conversations in Global Strategy—and the Location of MNE HQS

How we Facilitate Conversations in Global Strategy—and the Location of MNE HQS

Where do MNEs locate their headquarters? at home!

Do I see what you see? Institutional quality, action observability, and multimarket contact in the global mobile phone industry

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