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Towards a Regional Strategy: The Role of Regional Headquarters of Foreign Firms in Singapore

Department of Geography, National University of Singapore, 1 Arts Link, Singapore 117570, HenryYeung{at}nus.edusg and MartinPerry{at}nus.edu.sg

Jessie Poon

Department of Geography, University of Buffalo-SUNY, Wilkeson Quad, Buffalo, New York 14261, USA, jesspoon{at}acsu.buffalo.edu

Martin Perry

Department of Geography, National University of Singapore, 1 Arts Link, Singapore 117570, MartinPerry{at}nus.edu.sg

This paper presents a framework for analysing the role of regional headquarters in the globalisation strategies of transnational corporations (TNCs). Drawing upon a theoretical gap in existing urban studies and international business literature, we argue that the triadisation and regionalisation of TNC activities increase the demand for control and co-ordination functions previously performed by the global headquarters. Many global corporations consequently establish regional headquarters to penetrate into emerging markets, which may be too geographically distant to be co-ordinated and managed by the global HQs, and to achieve simultaneously global integration and local responsiveness. Based upon an empirical survey of 130 RHQs in Singapore and 20 follow-up personal interviews, we test some of the propositions of this regional strategy framework. Our findings tentatively confirm that three independent variables play a statistically significant role in shaping the strategic decision by global corporations to establish RHQs in Singapore: geographical distance, strategic necessity and the availability of business services.

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