The Dynamics of the Strategic Apex - Investigating Antecedents and Outcomes of Corporate Headquarters Change
Type
dissertation project
Start Date
01 January 2011
End Date
31 December 2011
Status
completed
Keywords
Corporate strategy
corporate headquarters
corporate headquarters change
Description
A distinct organizational entity, by Mintzberg (1979) depicted as the strategic apex and nowadays frequently referred to as corporate headquarters (CHQ), earmarks the multi-business corporation. This entity has attracted considerable scholarly attention and managerial interest over the last decades. How CHQ of multi-business corporations should manage the portfolio of businesses is indeed one of the key concerns of corporate strategy. Accordingly, previous studies explored raison d'être, roles and distinctive characteristics of this entity.
An essential tenet of extant research on CHQ holds that this entity fulfills internal and external-oriented roles. Both, the internal and external environment continually evolve. Ever changing business demands as well as complex and turbulent environments eventually raise questions about the dynamics of CHQ. Yet, most research directly examining CHQ is static and, thus, leaves us with little knowledge about the specific phenomenon of CHQ change. This is astonishing considering the vast amount of research on the dynamics of other corporate strategy facets. The lack of knowledge is also in contrast to the privileged status attributed to this entity and recurring calls for redesigning or downsizing of CHQ.
By means of a cumulative Ph.D. thesis, we aim at investigating CHQ change. We propose three studies: In study A and B, we intend to examine the phenomenon based on a quantitative, deductive theory-testing approach. In each of the studies, we apply a distinct theoretical lens. While in the former, we investigate antecedents to CHQ change from an upper echelons perspective, in the latter we rely on organizational contingency theory to research into antecedents and outcomes of CHQ change. In study C, we seek a qualitative research approach to investigate corporate-level functional strategies. Overall, the studies address distinct aspects of the contemporary phenomenon of CHQ change.
The proposed thesis strives for several contributions to theory and practice. Mainly, the thesis draws attention to the dynamics of CHQ and thereby adds to corporate strategy literature. The findings also inform activities of corporate managers, boards and strategy consultants.
Leader contributor(s)
Funder(s)
Topic(s)
Corporate strategy
corporate headquarters
corporate headquarters change
Method(s)
Quantitativ
Range
Institute/School
Range (De)
Institut/School
Division(s)
Eprints ID
70140

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Publication

Are CEOs Getting the Best from Corporate Functions?

2012-03-20 , Campbell, Andrew , Kunisch, Sven , Müller-Stewens, Günter

At too many large companies, corporate functions like HR and IT don't get enough strategic direction from the CEO. Four basic steps can help. Few CEOs give enough direction to the heads of their corporate-level functions. That's the conclusion of a survey we conducted of more than 50 function heads at some of Europe's leading companies. We are referring here to larger companies in which corporate-level functions such as finance, human resources, information technology, strategy, purchasing and legal provide policies, controls and services to decentralized operating divisions. Fortunately, some CEOs have found ways to address the problem. In our survey, fewer than one in 10 function heads felt they had received sufficient guidance on how their function should contribute to the company's overall strategy. Instead, they were expected to develop their own ideas and functional strategies.

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Publication

Corporate Headquarters Change : Antecedents and Performance Implications

2011-11-09 , Kunisch, Sven

In his seminal study Strategy and Structure, Chandler (1962) turned the spotlight not only on the multi-business corporation but also on corporate headquarters. Since then scholars have explored a variety of phenomena related to this specific organizational entity. Yet, corporate headquarters change defined as changes in size and scope of corporate headquarters has received little attention thus far. This study aims at investigating antecedents and outcomes of corporate headquarters change. We argue that strategic change serves as an important antecedent to corporate headquarters change and that those corporations which adapt their corporate headquarters to changes in the business portfolio achieve superior performance. Rather counterintuitive, our findings contest previous conceptions of predominant inertial forces with respect to corporate headquarters. The study mainly contributes to corporate headquarters literature and to the classic strategy/structure debate.

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Publication

Too Much is Too Much! Antecedents and Consequences of Change in the Size of Corporate Headquarters

2013-08-09 , Kunisch, Sven

This study explores structural change at the corporate headquarters (CHQ) of the contemporary corporation. Data from a large-scale survey and public sources reveal a counterintuitive finding: While changes in the related elements of the business portfolio encourage change in the CHQ size, the two corporate-level changes combined result in negative firm performance when the level of the changes in the related business portfolio is high. The finding exposes the disruptive nature of high levels of corporate strategic change. The study contributes to research on the CHQ, and corporate strategic change.

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Publication

Housekeeping at Corporate Headquarters: International Trends in Optimizing the Size and Scope of Corporate Headquarters

2012 , Kunisch, Sven , Müller-Stewens, Günter , Collis, David J.

Survey Report - Purpose: This international guide on changes at CHQ provides data and insights on changes in CHQ design over a four-year time period (2007-2010), as well as on the status quo of recent CHQ design and effectiveness (2010). Surveys: The guide is based on large-scale surveys of 761 of the largest corporations in 21 countries in North America and Europe. The overall company-level response rate accounting for 28.4 % of the sample indicates a large interest in changes at CHQ. Key findings: The surveys indicate an overall trend towards stronger CHQ - in contrast to the more prominent cases of CHQ cutbacks frequently published in the business press. Many companies have tightened the reins of CHQ and increased CHQ influence over divisional decisions.

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