Towards a regional strategy: The role of regional headquarters of foreign firms in Singapore

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.