Principal or Agent? Managing dual identities in regional headquarters: An agency perspective

Despite the increased delegation of responsibility from the CHQ to the rest of the MNE, and the rise in studies on the importance of the RHQ, there has been very little empirical work that has explored the CHQ-RHQ... [ view full abstract ]

Despite the increased delegation of responsibility from the CHQ to the rest of the MNE, and the rise in studies on the importance of the RHQ, there has been very little empirical work that has explored the CHQ-RHQ relationship. Our study adds originality to this perspective, considering it from an agency theory approach, a theoretical lens that is not well explored in the MNE in general. We find that the RHQ manages a ‘dual agency’ role when dealing with CHQ, and this places dual identification pressures on the RHQ. As such, the RHQ identifies as both a principal, seeking to increase alignment with CHQ, and an agent, seeking to pursue its own self-interests. Alignment and self-interest seeking behaviours from the RHQ manifest through different knowledge mechanisms both internally and externally. More generally, our study adds to arguments for a multiple agency perspective of the MNE.

Regional Headquarters (RHQ); Agency Theory; Knowledge Transfer; Corporate Headquarters (CHQ). [ view full abstract ]

Regional Headquarters (RHQ); Agency Theory; Knowledge Transfer; Corporate Headquarters (CHQ).