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Does headquarter structure follow corporate strategy? An empirical study of antecedents and consequences of changes in the size of corporate headquarters

The Journal of Business Economics and Management

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Field Value
 
Title Does headquarter structure follow corporate strategy? An empirical study of antecedents and consequences of changes in the size of corporate headquarters
 
Creator Kunisch, Sven
 
Subject corporate headquarters
corporate headquarters change
corporate strategy
strategic change
organizational contingency theory
organizational adaptation
 
Description Despite the importance that scholars and practicing managers attribute to the organizational design of the corporate headquarters (CHQ), research on changes in CHQ size is lacking. In an attempt to empirically explore the antecedents and potential consequences of such changes, I draw on the contingency and organizational-adaptation perspectives to develop a set of hypotheses for the relationships between corporate-level strategic change (CSC) – defined as changes in the firm’s business portfolio –, changes in the size of the CHQ and firm performance. To test the hypotheses, I analyse data from a comprehensive survey of large public firms in Europe and the US, and data from public sources pertaining to the surveyed firms. While the empirical results lend support to the hypothesized role of CSC, they also reveal differences between related CSC and unrelated CSC. However, I find no support for the expected performance implications. The study contributes to research on the CHQ, corporate-level strategic change, and the relationship between strategy and structure in the contemporary corporation. The findings also inform corporate managers and those involved in advising firms, such as strategy consultants.
 
Publisher VGTU Press Technika
 
Date 2017-06-16
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journals.vgtu.lt/index.php/JBEM/article/view/1211
10.3846/16111699.2017.1295277
 
Source Journal of Business Economics and Management; Vol 18 No 3 (2017); 390-411
2029-4433
1611-1699
 
Language eng
 
Relation https://journals.vgtu.lt/index.php/JBEM/article/view/1211/950