Location changes of headquarters of multinational corporations : a theoretical study on the motives and reasons for relocating Finnish divisional headquarters abroad

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en
dc.contributor.author Euro, Kalevi
dc.date.accessioned 2013-10-22T13:15:09Z
dc.date.available 2013-10-22T13:15:09Z
dc.date.issued 2001
dc.identifier.isbn 951-791-646-9
dc.identifier.issn 1237-556X
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/11179
dc.description.abstract One of the recent features in the internationalization and growth process of Finnis h multinational companies (MNCs) and also of other Nordic MNCs has been the relocating o f many of their product division headquarters (DHQs) abroad . This relocation has taken plac e from the divisions' home country primarily to Western European `international centers' of high - level international interaction or the `economic hub' areas formed by them of high-leve l international interaction (Helle, 1989, 1990). The phenomenon of relocating headquarters abroad has been little analyzed and there are only a few studies with some preliminary aspects concerning the possible background causes of the phenomenon . This research work seeks to deepen the understanding of the background aspect s and problems of DHQ relocation abroad . It penetrates some of the operational and cognitiv e aspects in a holistic mode, essentially from a theoretical point of view . The theoretical aspects consist of cognitive psychology, and the aspect of management research which is represented b y strategic reference point theory and transaction cost theory, both of which rest on behavioral psychology. In the theoretical approach, these are used as avenues of deduction : 1 . explanations given in public by managers of the relocated DHQ and received through the researcher's ow n personal interviews, 2a . literature representing logistic and cognitive information processing an d behavioral aspects in the field of management research, 2b . literature on spatio-temporal and other cognitive research in experimental psychology, and 3 . the researcher's own rather long experience as a consultant in relocation studies of firms in various industries . This theoretical approach results in propositions consisting of an holistic cognitive-logisti c paradigm, a conceptual framework, with reference to the MNC division's growth developmen t abroad . According to the paradigm, this growth development characteristically contain s recurrent dynamic and reciprocal cognitive-logistic information processes of the DHQ, and consequently decisions based on these processes . In operationalizing the paradigm presented a set of detailed propositions is introduced in a consequential and justified system . These propositions concern the 1 . logistic information process, and the 2 . cognitive information process. In an evolutive sequence this latter process consists of the 2a. identity formation, 2b . social cognition, and 2c . spatio-temporal cognition of DHQ management and staff . As a concluding argument for the propositions, it is maintained that in a situation of identit y changed by strong foreign growth and of the consequently changed social and environmenta l cognition of DHQ managers and staff, a strong need for new social knowledge arises . This need for new knowledge in carrying it intentionally into effect as a logistic information process i s perceived phenomenologically and experientially as an event in space and time by the manager s and staff of the DHQ. This perception, in the situation of a peripherally located and peripheral perceived DHQ, leads subsequently, under the various logistic information processing problem s perennially encountered, to the relocation of the DHQ . The DHQ relocation is thus proposed to be a result of a continued reciprocal and dynami c action between the cognitive information process and the logistic information process in th e course of sustained international growth of Finnish MNCs, and the relocation is intended t o reduce DHQ management's boundednes of rationality. It is argued in this hermeneutic and deductive research that the proposed paradigm represent s the explaining variable and the relocation decision of and by a DHQ represents the explaine d variable . The theoretical implications of the work include a comparison of the proposed paradigm with the stages-model of internationalization of the firm, an evaluation of the research results in respect to `managerial logics' of transnational corporations and the international location o f various functions of MNCs . The managerial implications include important understanding o f the organizational `self' through the cognitive-logistic paradigm . Some very central and timel y topics for further paradigm-based research work are put forward . en
dc.format.extent 342 s.
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher Helsinki School of Economics en
dc.publisher Helsingin kauppakorkeakoulu fi
dc.relation.ispartofseries Acta Universitatis oeconomicae Helsingiensis. A fi
dc.relation.ispartofseries 194 fi
dc.title Location changes of headquarters of multinational corporations : a theoretical study on the motives and reasons for relocating Finnish divisional headquarters abroad en
dc.type G4 Monografiaväitöskirja fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.identifier.urn URN:ISBN:951-791-646-9
dc.type.dcmitype text en
dc.programme.major Kansainvälinen liiketoiminta fi
dc.programme.major International Business en
dc.type.ontasot Väitöskirja (monografia) fi
dc.type.ontasot Doctoral dissertation (monograph) en
dc.contributor.supervisor Luostarinen, Reijo, professor
dc.opn Kogut, Bruce, professor, University of Pennsylvania, USA
dc.opn Nyman, Göte, professor, University of Helsinki, Finland
dc.subject.helecon Kansainväliset yhtiöt
dc.subject.helecon Sijainti
dc.subject.helecon Muutos
dc.subject.helecon International companies
dc.subject.helecon Location
dc.subject.helecon Change
dc.date.defence 2001-12-18
dc.dissid 15
dc.identifier.bibid 273331

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