Articlehybrid2019

How corporate headquarters add value in the digital age

Jan Schmitt · Benoit Decreton · Phillip C. Nell

41 citations0/0 files storedJournal of Organization Design

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Corporate Management and Leadership Information Technology Governance and Strategy Organizational Management and Leadership

Abstract

Abstract How will digitalization influence the role of corporate headquarters (CHQs) and their relationships with their operating units? We recently asked 67 senior CHQ managers this question. The results suggest that CHQs expect to become more powerful and more involved in their operating units. These conclusions seem to be driven by perceptions that the ongoing digitalization will provide CHQ managers with more timely and better information. In this “Point of View,” we discuss the potential pitfalls of such a narrative. We also offer ideas for how to avoid mistakes and ensure that CHQs increase their value-added in times of digitalization. In particular, we suggest that CHQs place emphasis on social interactions for data to be effectively collected and analyzed, for decision-making power to be adequately allocated, and for CHQ involvement to be informed and necessary.

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References

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2019Dealing with headquarters in the multinational corporation: a subsidiary perspective on organizing costs

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