Björn Ambos

University of St.Gallen · Institute of Management

Global value chains (GVCs) have revolutionized production processes and many companies no longer produce goods and services entirely in one single country or within their own organizational boundaries. Through offshoring and outsourcing, value chains are sliced up and activities are dispersed to locations and actors where they can be produced or ex...

Distance is a central concept in international business research, yet there is debate about the construct as well as its operationalization. In this editorial, we address three of the most important recurring questions posed by authors, editors, and reviewers by examining the theory, methods, and data of distance research. We discuss (1) how to the...

This study investigates individual managers’ formation of psychic distance perceptions to foreign countries. Adopting a social psychological perspective, we propose that three social-cognitive mechanisms—social comparison, mere exposure, and social learning—help explain why and how country- and individual-level characteristics affect the formation...

Distance is a central concept in international business research, yet there is debate about the construct as well as its operationalization. In this editorial, we address three of the most important recurring questions posed by authors, editors, and reviewers by examining the theory, methods, and data of distance research. We discuss (1) how to the...

Integrating distance research with the behavioral strategy literature on MNC headquarters-subsidiary relations, this paper explores how the distance between headquarters and subsidiaries relates to value added by the headquarters. We show for 124 manufacturing subsidiaries in Europe that, on average, distance is unrelated to value added by headquar...

This study investigates knowledge sharing in globally dispersed teams with distinctive geographical and cultural configurations. We provide fresh insights by contrasting international business and social identity theory and suggest that configurational asymmetries, namely imbalance and isolation, affect team members' average perceptions of knowledg...

With this chapter, we seek to shed light on the question how headquarters (HQ) can cope with geographic distance and effectively transfer relevant knowledge to their subsidiaries. By constructing a mediating model, we aim at disentangling the effects of geographic distance on the relevance of HQ knowledge to their subsidiaries, via the creation of...

Already on its introduction into the international business literature, the concept of 'psychic distance' implied asymmetry in the distance perceptions between country pairs, a characteristic corroborated in subsequent empirical studies. However, predominant empirical operationalizations and their theoretical underpinnings assume psychic distances...

In modern corporations, the corporate headquarters (CHQ) unit is considered central to the fortunes of the overall firm. In light of ever-changing environments, changes at the CHQ have become a crucial concern in management research and practice, and scholars have studied a variety of changes at the CHQ. Despite the common focus on the CHQ entity a...

The exploration–exploitation tension has been resonated and applied in diverse areas of management research. Its applications have deviated substantially from the scope of organisational learning as originally proposed by March [(1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87]. Scholars have develo...

This conceptual paper, which offers an examination of the role of strategic schemas in the multinationality performance relationship, adds to the literature in three important ways. First, by drawing on internalization theory and the dynamic capabilities view we open the black-box of the firm and incorporate the cognition research approach of strat...

Although the adoption of organizational practices by subsidiaries is a key concern in multinational corporations (MNCs), research on the individuals involved in practice adoption is lacking. Despite calls in the MNC literature for investigations of the psychological foundations of managers’ behavior, such investigations are rare and have been compl...

We determine the impact of the macro-design of a firm's alliance portfolio on its open-innovation effectiveness. Three elements of macro-design—international, technological, and partner diversity—are theorized to affect the breadth of knowledge sourcing, which is an important facet of open-innovation effectiveness. We test our hypotheses on a sampl...

Purpose: This paper bridges the gap between two distinct approaches to the concept of psychic distance – measuring it in terms of people’s perceptions of distance or in terms of exogenous national-level differences. The two approaches are reconciled in a ‘refined and integrative’ definition of the concept which is tested empirically using a mediati...

This paper investigates factors affecting the effectiveness of knowledge sharing in globally dispersed expert groups in a professional service MNC. We specifically focus on possible moderating effects of managerial involvement on the relationships of dispersion and trust with the individual satisfaction with knowledge sharing within such groups. We...

The control and coordination of a network of geographically and culturally dispersed subsidiaries is one of the most prominent challenges in international management. However, many empirical findings on the effectiveness of various control mechanisms and combinations thereof are still counterintuitive. This study uses longitudinal case studies and...

This study investigates the entrepreneurial capabilities of MNE units at intermediate geographical levels, between the local subsidiary level and global corporate headquarters. In our conceptual development, we build on the entrepreneurship and MNE embeddedness literature to explain how MNE units at intermediate geographical levels differ from loca...

The effect of distance on firms' performance when entering, operating in and across foreign markets is a central issue in international management. However, our understanding of the impact of distance has long been constrained by flawed conceptualizations and unreliable measures. The papers in this issue break new ground both by advancing our theor...

The conceptualization of the multinational corporation (MNC) as a differentiated network suggests that the subsidiaries’ level of embeddedness in their local environment is crucial, as it is the basis for subsidiary-specific advantages and entrepreneur ship (Andersson et al., 2002; Frost, 2001). In addition to possessing important resources, the su...

In networked MNCs where knowledge and power are distributed, corporate strategy processes benefit from input arising from many different levels of the organization. Recently, the regional (i.e., supra-national) level has been emphasized as an important additional source of knowledge and input, and as a bridge between local subsidiaries and global c...

The Adidas example illustrates that regional offices (or regional headquarters) are not uniformly welcome. Indeed, some companies have abandoned regional headquarters all together. In contrast, companies like Citibank see the issue rather differently. © 2012 Gabler Verlag | Springer Fachmedien Wiesbaden. All rights are reserved.

This study investigates entrepreneurial capabilities of regional headquarters (RHQs). In our conceptual development, we build on entrepreneurship and MNE embeddedness literature to suggest that intra-regional dissimilarity as well as RHQs’ regional embeddedness are positively related to the level of RHQs’ entrepreneurial capabilities. We illustrate...

What determines the value an MNC’s headquarters adds to its own affiliates? In this paper, we shed light on this question by linking the embeddedness view of the multinational corporation to the literature on parenting advantage. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries located in Europe. Our results indicate...

Prior investigations treated subsidiary autonomy more or less as a static concept, but the headquarters-subsidiary relationship is likely to evolve and result in changing power positions over time. This article examines the static and dynamic impacts of external/internal embeddedness on the autonomy of overseas R&D subsidiaries. Based on data from...

Forschung und Entwicklung zählt traditionell zu den zentralisierten und am stärksten abgeschirmten Aktivitäten der Wertschöpfungskette eines Unternehmens. In letzter Zeit erfährt aber auch diese Funktion eine verstärkte Internationalisierung. Die wissenschaftliche Betrachtung konzentrierte sich bisher aber nur auf Investitionen in zentralen Ländern...

This paper, through a systematic survey of 83 international R&D engagements of 36 German MNCs, seeks to extend previous research on the location decisions of international R&D engagements and inform managers about the critical factors that may be considered when taking this important decision. Covering engagements in 21 countries, we show that the...

This chapter investigates the role Regional Headquarters (RHQs) play in large multinationals and probes to what degree the establishment of RHQs provides hierarchy benefits according to the M-form principles. Nine large multinational corporations (MNCs) provided the empirical setting for 55 in-depth interviews with decision-makers at corporate, reg...

Im Juni des Jahres 2010 saß Jeffrey Kindler, der CEO von Pfizer, beim World Innovation Forum und sprach über die Entwicklung der Pharmaindustrie. Kindler war vor einigen Jahren von McDonald's zu Pfizer gewechselt und hatte viel Energie darauf verwandt, die Pharmaindustrie und Pfizer im Detail zu verstehen. Mit einigen Entwicklungen war er nicht son...

This study investigates the antecedents of psychic distance. Building on original data in 25 of the world's largest economies, we investigate potential drivers of perceived psychic distances to foreign countries. The results show these perceptions to be influenced by a range of cultural, geographic, political and economic factors. Among these, abso...

This paper develops and tests a model that explains how the quality, quantity and timing of knowledge flows from headquarters influence subsidiary performance. It extends recent research on vertical knowledge flows between global headquarters and international subsidiaries. We find a positive quality/performance relationship and a curvilinear quant...

This focused issue examines the role of headquarters in modern multinational corporations (MNCs). We examine how headquarters add value, which roles they play and how existing theory needs to be modified in light of recent developments. We argue that headquarters still play an important role in the MNC. Furthermore, we highlight the possibility tha...

We started this book with a positive statement on globalization. In concluding the book, we want to reiterate this positive tone. More importantly though, we would like to reemphasize that casting the debate in the polar extremes misses the multifaceted complexity that exists in reality. There is an important regional dimension between globalizatio...

In the last four chapters, we have looked at the structural and managerial challenges firms face in setting up their regional operations in Europe. In this and the succeeding chapter, we take a closer look at how US and Japanese firms set up their regional operations, how they configure their global value chains and which managerial challenges they...

It was Thursday, 8 p.m., and Peter Burger was still in the office going through his presentation for the next day’s meeting. It was two weeks ago that he received an urgent telephone call from his boss to meet in his office immediately.

Companies aiming to succeed in Europe must develop a thorough understanding of Europe as a region. How are European countries interlinked? Are European states completely different, or does the continent show signs of homogeneity? And what about European consumers? Are consumption patterns similar across national borders, or do country differences a...

In late fall of 2005, Piotr Cichecki, general manager, was sitting together with the sales and retail director of Puma Prague discussing the marketing, sales and finance budget for the following year. The team was preparing the final budget proposal for 2006, which had to be sent to the regional headquarters. They were aware that pending changes to...

As outlined in the introduction to this book, one of the most persistent challenges for any firm doing business at an international scale is to manage the latent trade-off between global integration and local adaptation.1 On the one hand, there are pressures to respond to the unique needs of the individual country markets. On the other hand, there...

Managing a regional headquarters is not an easy task. In this chapter, we will draw attention to a few factors that are germane in managing a regional headquarters. These issues include managing the dual tension between subsidiaries on the one hand and corporate headquarters on the other hand. Furthermore, we will explore how much autonomy regional...

In 2007, Dr Bina Montemayor, senior partner of a large multinational consulting company stared absentmindedly at the display of her new notebook. She had just received an e-mail from Astellas’s European Vice President for corporate strategy, Mr Tadashi Yukino, asking her to prepare some notes for the annual board meeting at Astellas’s European head...

From the preceding chapters, we learned that many multinationals today are better off developing a regional strategy than going for a pure global or multidomestic strategy. The bare necessity, however, does say little about how managers can actually build successful strategies for a region such as Europe. This overarching question will guide us thr...

Having discussed some of the key challenges and solutions from the vantage points of the United States going to Europe, we are now taking the perspective of the Japanese companies going west. Specifically, we are presenting a cross-sectional analysis covering the automobile, pharmaceutical and sports footwear and apparel industries. Our primary obj...

Regional management has taken on a new role and is becoming more important. This book explores the challenges of European, US and Asian companies. It outlinines how regional headquarters can develop into Dynamic Competence Relay centers to master these challenges. © Björn Ambos and Bodo B. Schlegelmilch 2010. All rights reserved.

This paper investigates the role Regional Headquarters (RHQs) play in large multinationals. It investigates if the establishment of a RHQ creates “hierarchy benefits” to the firm that are in line with eh M-form principles. Based on rich qualitative data that we collected for nine different firms (MNCs) in three different industries, we find evidenc...

In developing and testing a mediating model of psychic distance, this paper bridges the gap between two distinct approaches to the concept on psychic distance - defining and measuring the construct in terms of exogenous national level differences, and defining and measuring it in terms of the individual decision-maker's perceptions. The paper confi...

Cross-border integration is the central management issue for banks that expand internationally, and this is especially true in Central and Eastern Europe, where the pace of internationalisation through mergers and acquisitions has been rapid. A critical challenge in cross-border integration is aligning a multinational company's formal organizationa...

Effective coordination is crucial to managing a global network of subsidiaries. Although much has been said on the instruments multinational companies use to control their foreign operations, only very little is known on how they develop over time. An empirical longitudinal analysis of 40 multinationals shows that as subsidiaries mature, control st...

Corporate R&D, one of the most shielded and centralised activities in the value chain, has recently experienced rapid internationalisation. However, academic writing has primarily concentrated on investments within 'core', i.e. triad, countries. The question to what extent firms invest in R&D in non-triad economies remains fairly uncharted territor...

This paper aims to shed light on the interplay of knowledge transfer mechanisms and distance within the MNC. While it is largely undisputed that cross-boarder knowledge flows contribute to the firm's success, our knowledge on the effects of specific transfer mechanisms is scarce. We examine the impact of different dimensions of distance to test the...

This paper aims to shed light on the interplay of knowledge transfer mechanisms and distance within the MNC. While it is largely undisputed that cross-boarder knowledge flows contribute to the firm's success, our knowledge on the effects of specific transfer mechanisms is scarce. We examine the impact of different dimensions of distance to test the...

Abstract and Key Results Using a dataset of 139 R&D laboratories located in 21 countries, this study empirically tests whether a fit among R&D laboratory mission and national culture impacts R&D performance. Specifically, we assume that some cultures possess a natural advantage when it comes to capability augmenting tasks, while other cultures are...

Sowohl für Manager als auch für Ökonomen und politische Entscheidungsträger ist ein besseres Verständnis unternehmerischer Standortwahl für ausländische Forschungs- und Entwicklungs- (F&E-) Einheiten essenziell. Da verschiedene Investitionsmotive verschiedene Strategien erfordern, sind Unternehmen gezwungen diverse Fähigkeiten und organisationale S...

This study focuses on control mechanisms used by multinational corporations (MNCs) to manage their extra-national R&D units. Drawing on both the literature on organizational power and contingency theory, this study develops and empirically tests a set of hypotheses aimed at explaining how headquarters control their overseas R&D units. Data collecte...

Corporate R&D, traditionally one of the most shielded and most centralized activities in the corporate value chain, has experienced a rapid internationalization over the last decade and a half. The risks of technology leakages, expensive double inventions, difficulties to control and a desire to reap economies of scale have traditionally led firms...

Within MNCs, the traditional role of headquarters as prime source of knowledge and competencies is changing. Increasingly, headquarters act as a receiver of knowledge from their internationally dispersed subsidiaries. But what drives the benefits headquarters can gain from such reverse knowledge transfers? Drawing on an empirical sample of 294 intr...

This paper aims to shed light on the interplay of capabilities and knowledge transfer effectiveness. Adopting a dynamic capabilities perspective, we provide a new angle on knowledge transfers within MNCs. Empirical data on 324 knowledge transfer relationships of MNC units, i.e. headquarters and subsidiaries, was used to test the impact of coordinat...

The emergence of perception gaps between headquarters and subsidiaries has an important bearing on research practice as well as on managerial issues. This study is among the first to systematically investigate the link between the MNC unit’s strategic environment and perception gaps. Evidence was found that certain strategic environments bear a hig...

This paper reports on the international research and development (R&D) investments of German multinational corporations (MNCs). Based on a detailed empirical survey of laboratory sites established by 49 German MNCs, we examine (i) the level and pace of R&D internationalization, (ii) the motivations and mandates of overseas R&D laboratories, as well...

The emergence of perception gaps between headquarters and subsidiaries has an important bearing on research practice as well as on managerial issues. This study is among the first to systematically investigate the link between the MNC unit's strategic environment and perception gaps. Evidence was found that certain strategic environments bear a hig...

For former monopolies, the liberalization of European utility markets leads to a drastically changed competitive environment. Multi‐utility, i.e. the bundling of various utility services, is often seen as a strategic response to these changes. However, consumer preferences and attitudes towards such Multi‐Utility‐Bundles are widely unknown. Using c...

Today, many organizations are adopting streamlined, adaptive hierarchies that increasingly employ teams in daily operations. This paper focuses on the use of teams in international R&D networks. Specifically, it investigates the incidence of R&D teams and analyses the influence of four contingency factors on team utilization. The four contingency f...

The global dispersion of knowledge and technological capabilities has moved MNCs to assign lead responsibilities to offshore units in order to take advantage of this phenomenon. Moving core competencies to the periphery enables the firm to take advantage of resources not present in its home country, posing at the same time issues of integration and...

Reverse knowledge transfers are beneficial to MNCs, but just how much so depends on the subsidiaries’ strategic mission, its country’s economic development and the ability of headquarters to absorb incoming information. Within MNCs, the traditional role of headquarters as prime source of knowledge and competencies is changing. Increasingly, headqua...

1. Introduzione I flussi informativi di ritorno (reverse knowledge) avvantaggiano le imprese multinazionali in proporzione alla missione strategica delle imprese controllate e consociate, allo sviluppo economico del loro Paese e all'abilità del quartier generale della "casa madre" di far proprie le informazioni provenienti dall'esterno. All'interno...

Reverse knowledge transfers are beneficial to MNCs, but just how much so depends on the subsidiaries' strategic mission, its country's economic development and the ability of headquarters to absorb incoming information. Within MNCs, the traditional role of headquarters as prime source of knowledge and competencies is changing. Increasingly, headqua...

Industrielle Forschung und Entwicklung wird auch in Zukunft eine wichtige Quelle von firmenspezifischen Wettbewerbsvorteilen darstellen. Zugleich ist davon auszugehen, dass sich der Trend einer zunehmenden Internationalisierung von FuE auch in Zukunft fortsetzen wird. Unternehmen stehen deshalb zusehends vor dem Problem, ein Netz an weltweit vertei...

In einer Zeit, in der Wissen global verteilt ist, stellen sich für viele Unternehmen neue und grundlegende Fragen: Wie und mit welchen Mitteln kann das Stammhaus dezentrale Entwicklungen steuern? Welche Koordinationsinstrumente sollten dabei wann eingesetzt werden? Wie können Unternehmen die Effizienz ihrer ausländischen Forschungs- und Entwicklung...