![]() ![]() Their bridging role and associated connectivity needs lead mncs to locate their rhqs in highly connected rhq investments. On average, city connectivity is a more important characteristic for rhqs that have an entrepreneurial role.Ībstract = "Regional headquarters (rhqs) perform a crucial bridging function between corporate headquarters, regional affiliates, and other regional actors. Well connected global cities, furthermore, attract investment in rhqs by mncs from more distant countries-of-origin. ![]() We find that while the geographic distance of a global city to the mnc's regional affiliates diminishes the likelihood that a given city is chosen, these distance effects disappear when the global city is highly connected. Our inferences are based on an analysis of location choices for 1031 rhqs among 48 global cities. We examine how the interplay between global city connectivity, geographic distance, and rhq roles determine the likelihood that particular cities are chosen as a location for mncs’ rhq investments. Their bridging role and associated connectivity needs lead mncs to locate their rhqs in highly connected ‘global cities’. Regional headquarters (rhqs) perform a crucial bridging function between corporate headquarters, regional affiliates, and other regional actors. ![]()
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