Abstract/Summary

This thesis examines the role of regional headquarters (RHQs) in multinational enterprises (MNEs), exploring how RHQs contribute value to MNEs by enhancing cross-border knowledge flow and utilization. It offers an in-depth exploration of the knowledge management activities employed by RHQs and assesses their influence on the propensity for knowledge hiding within subsidiaries. Drawing on boundary spanning perspectives, this thesis posits that RHQs function as boundary spanning entities that facilitate interactions between headquarters (HQ) and subsidiaries. As intermediary units, RHQs have the potential to enhance the overall MNE capacity by bridging and influencing subunits in both home and host countries. A qualitative multiple case study of Korean MNEs allows this thesis to identify four specific knowledge management activities and propose an integrative framework that elucidates the distinct mechanisms underpinning each activity across the cases. Moreover, the thesis uncovers essential contextual factors that influence the value-generating process of each knowledge management activity, demonstrating that not all RHQs benefit equally from the same activities. This thesis also scrutinizes the relational aspects of RHQs and their impact on subsidiary knowledge hiding behavior. This thesis offers several important contributions to both theoretical and practical aspects. It advances the MNE management and knowledge management literature by exploring the multifaceted roles of RHQs in shaping knowledge flow within MNEs, moving beyond the traditional knowledge transfer process. In-depth qualitative findings demonstrate that RHQs not only support knowledge transfer between HQ and subsidiaries but also play a critical role in deciphering and fostering knowledge sharing among distant subunits, providing region-specific insights to MNEs. Furthermore, this thesis presents a comprehensive framework for the relationship between RHQs and subsidiaries, an aspect previously overlooked, and explores how these relationships impact subsidiaries. This thesis also finds that organizational design, regional characteristics, and value chain activities influence the value-generating process of RHQ’s knowledge management activities. In doing so, the thesis presents a well-defined framework for each knowledge management process, addressing prior overlap and ambiguity.