Management International Review

, Volume 50, Issue 1, pp 5–33 | Cite as

Toward a Theory of Regional Organization

The Emerging Role of Sub-regional Headquarters and the Impact on Subsidiaries
  • Guey-Huey LiEmail author
  • Chwo-Ming Yu
  • Dah-Hsian Seetoo
Research Article


  • This paper explores the organizational adjustment in host regions when MNCs switch from their original strategy to a regional strategy.

  • MNCs set up sub-regional headquarters (e.g., Greater China sub-regional headquarters) under a regional headquarters (e.g., Asia regional headquarters). A sub-regional headquarters replaces a regional headquarters directly managing subsidiaries within the sub-region.

  • The emergence of sub-regional headquarters is in response to the need for a balance between global integration and local responsiveness. An increasing number of decisions are made by sub-regional headquarters, instead of by subsidiaries, a parent, or regional headquarters.

  • Industry characteristics and firm’s specific advantages (FSAs) affect the delegation of authority from a parent to regional and sub-regional headquarters.


Sub-regional headquarters (SRHQ) Regional strategy MNC Structure Subsidiary Integration-responsiveness framework Firm’s specific advantages 



The constructive comments of the two reviewers are gratefully acknowledged. We also thank Chris Brainerd for proofreading the English.


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Copyright information

© Gabler-Verlag 2009

Authors and Affiliations

  1. 1.Department of Communications Management, College of Journalism and CommunicationsShih-Hsin UniversityTaipeiTaiwan
  2. 2.Department of Business Administration, College of CommerceNational Chengchi UniversityTaipeiTaiwan

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