Now showing 1 - 9 of 9
  • Publication
    Does Headquarter Structure Follow Corporate Strategy? An Empirical Study of the Relations between Corporate Strategic Change and Changes in the Size of Corporate Headquarters
    (Routledge, Taylor & Francis, 2017)
    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.
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    Scopus© Citations 5
  • Publication
    Changes at Corporate Headquarters: Review, Integration and Future Research
    (Blackwell Publ., 2015-07-01) ; ;
    In modern corporations, the corporate headquarters (CHQ) unit is considered central to the fortune 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 and the potential for cross-fertilization across several research tracks, a coherent picture of this dispersed body of knowledge is lacking. In this article, we review 25 years of research on changes at the CHQ. In so doing, we advance a common language and an overarching framework that integrates the existing knowledge in the intellectual domains of strategy, organizational design and international business research. On this basis, we suggest directions for future research to advance our knowledge of: (1) the pressure for and resistance to changes at the CHQ, (2) interrelationships among changes at the CHQ, (3) change processes at the CHQ, (4) agents involved in changes at the CHQ and (5) adaptive and disruptive effects of changes at the CHQ. Overall, the study provides a conceptual basis for combining the existing knowledge of changes at the CHQ and serves as a guide for future research.
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    Scopus© Citations 60
  • Publication
    Why Corporate Functions Stumble
    (Harvard Business School Publ. Corp., 2014-12-01) ; ;
    Campbell, Andrew
    A survey of 761 of the largest corporations in North America and Europe showed that the number of corporate functions had increased at about a third from 2007 to 2010. Leaders at three out of four companies believed that their functions' influence had grown. At the same time, complaints about the performance of those functions were increasing. The authors combined their survey data with insights from structured interviews at large European multibusiness organizations to understand why corporate functions so often underperform and what might be done about it. They learned that the performance of these functions may well be related to how they respond to the varying management challenges they face at different life-cycle stages. In "youth," for example, the function may not be seen as valuable by all the businesses. Its mandate may be unclear, its staffing problematic, and its efforts to get up and running overhasty. In "adolescence," the function may have a tendency to expand its activities without due regard for how that affects its relationships with the business divisions. In "maturity," when it is well established and its mandate is fairly stable, it may spend too much time benchmarking and searching for best practices, diverting attention from the needs of its internal clients. In the fourth stage, which calls for change, the function's managers may fall into the trap of looking for opportunities to redeploy their skills rather than acquiring new ones. The authors discuss these and other challenges and offer remedies. [http://hbr.org/2014/12/why-corporate-functions-stumble Online-Version] [https://archive.harvardbusiness.org/cla/web/pl/product.seam?c=36597&i=36599&cs=68ad625f2eb0b64cbca1120dc8370210 PDF-Version]
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  • Publication
    A New Look for the Head Office : Corporate Headquarters Redesigns during Times of Crisis
    Companies appear to have adopted a new perspective on the role of their corporate headquarters (CHQ). Instead of considering it a cost factor that can be easily slashed, companies seem to have recognized the need for a stronger corporate hand. By analyzing recent patterns of CHQ change, this article provides valuable lessons on how companies handle this conflict between CHQ cost efficiency and value contribution. [http://performance.ey.com/2012/11/14/chq-redesigns-during-times-of-crisis/ Snapshot] [http://performance.ey.com/wp-content/uploads/downloads/2012/11/New-look-for-head-office.pdf Full Article]
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  • Publication
    Too Much is Too Much! Antecedents and Consequences of Change in the Size of Corporate Headquarters
    (Academy of Management, 2013-08-09)
    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.
  • Publication
    Corporate Headquarters Change : Antecedents and Performance Implications
    (SMS Strategic Management Society, 2011-11-09)
    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.
  • Publication
    Corporate Headquarters Change : Investigating Antecedents from an Upper Echelons Perspective
    (Academy of Management, 2009-08-07) ;
    Since Chandler (1962) drew attention to the multi-business corporation, scholars have explored a variety of phenomena related to corporate headquarters. Yet, the phenomenon of corporate headquarters change has been widely disregarded while prima facie evidence for its importance persists. In this study, we seek to explore CEO successions as antecedents to changes in corporate headquarters structures. We argue that both, the nature of the succession event as well as individual characteristics of the CEO successor have effects on such changes. Applying the well-established UPPER ECHELONS perspective, the study is among the first to scholarly investigate the contemporary phenomenon of corporate headquarters change.
  • Publication
    Housekeeping at Corporate Headquarters: International Trends in Optimizing the Size and Scope of Corporate Headquarters
    (University of St.Gallen/Harvard Business School, 2012) ; ;
    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.
  • Publication
    What Do We Know About Corporate Headquarters? A Review, Integration, and Research Agenda
    (Harvard Business School Working Paper No. 14-016., 2013) ; ;
    Collis, David J.
    During the past five decades, scholars have studied the corporate headquarters (CHQ) - the multidivisional firm's central organizational unit. The purpose of this article is to review the diverse and fragmented literature on the CHQ and to identify the variables of interest, the dominant relationships, and the contributions. We integrate, for the first time, the existing knowledge of the CHQ into an organizing framework. Based on a synthesis of the literature, we identify major shortcomings and gaps, and present an agenda for future research that contributes to our understanding of the CHQ and the multidivisional firm. [http://ssrn.com/abstract=2316198 Available at SSRN]