{"id":{"repo_id":"aalto","oai_identifier":"oai:aaltodoc.aalto.fi:123456789/11179"},"canonical_url":"https://search.dev.ndltd.org/etd/aalto/oai:aaltodoc.aalto.fi:123456789/11179","repository":{"repo_id":"aalto","name":"Aalto University","base_url":"https://aaltodoc.aalto.fi/server/oai/request"},"display":{"title":"Locational changes of headquarters of multinational corporations : a theoretical study on the motives and reasons for relocating Finnish divisional headquarters abroad","abstract":"One of the recent features in the internationalization and growth process of Finnis h multinational companies (MNCs) and also of other Nordic MNCs has been the relocating o f many of their product division headquarters (DHQs) abroad . This relocation has taken plac e from the divisions' home country primarily to Western European `international centers' of high - level international interaction or the `economic hub' areas formed by them of high-leve l international interaction (Helle, 1989, 1990). The phenomenon of relocating headquarters abroad has been little analyzed and there are only a few studies with some preliminary aspects concerning the possible background causes of the phenomenon . This research work seeks to deepen the understanding of the background aspect s and problems of DHQ relocation abroad . It penetrates some of the operational and cognitiv e aspects in a holistic mode, essentially from a theoretical point of view . The theoretical aspects consist of cognitive psychology, and the aspect of management research which is represented b y strategic reference point theory and transaction cost theory, both of which rest on behavioral psychology. In the theoretical approach, these are used as avenues of deduction : 1 . explanations given in public by managers of the relocated DHQ and received through the researcher's ow n personal interviews, 2a . literature representing logistic and cognitive information processing an d behavioral aspects in the field of management research, 2b . literature on spatio-temporal and other cognitive research in experimental psychology, and 3 . the researcher's own rather long experience as a consultant in relocation studies of firms in various industries . This theoretical approach results in propositions consisting of an holistic cognitive-logisti c paradigm, a conceptual framework, with reference to the MNC division's growth developmen t abroad . According to the paradigm, this growth development characteristically contain s recurrent dynamic and reciprocal cognitive-logistic information processes of the DHQ, and consequently decisions based on these processes . In operationalizing the paradigm presented a set of detailed propositions is introduced in a consequential and justified system . These propositions concern the 1 . logistic information process, and the 2 . cognitive information process. In an evolutive sequence this latter process consists of the 2a. identity formation, 2b . social cognition, and 2c . spatio-temporal cognition of DHQ management and staff . As a concluding argument for the propositions, it is maintained that in a situation of identit y changed by strong foreign growth and of the consequently changed social and environmenta l cognition of DHQ managers and staff, a strong need for new social knowledge arises . This need for new knowledge in carrying it intentionally into effect as a logistic information process i s perceived phenomenologically and experientially as an event in space and time by the manager s and staff of the DHQ. This perception, in the situation of a peripherally located and peripheral perceived DHQ, leads subsequently, under the various logistic information processing problem s perennially encountered, to the relocation of the DHQ . The DHQ relocation is thus proposed to be a result of a continued reciprocal and dynami c action between the cognitive information process and the logistic information process in th e course of sustained international growth of Finnish MNCs, and the relocation is intended t o reduce DHQ management's boundednes of rationality. It is argued in this hermeneutic and deductive research that the proposed paradigm represent s the explaining variable and the relocation decision of and by a DHQ represents the explaine d variable . The theoretical implications of the work include a comparison of the proposed paradigm with the stages-model of internationalization of the firm, an evaluation of the research results in respect to `managerial logics' of transnational corporations and the international location o f various functions of MNCs . The managerial implications include important understanding o f the organizational `self' through the cognitive-logistic paradigm . Some very central and timel y topics for further paradigm-based research work are put forward .","abstract_html":"One of the recent features in the internationalization and growth process of Finnis h multinational companies (MNCs) and also of other Nordic MNCs has been the relocating o f many of their product division headquarters (DHQs) abroad . This relocation has taken plac e from the divisions&#x27; home country primarily to Western European `international centers&#x27; of high - level international interaction or the `economic hub&#x27; areas formed by them of high-leve l international interaction (Helle, 1989, 1990). The phenomenon of relocating headquarters abroad has been little analyzed and there are only a few studies with some preliminary aspects concerning the possible background causes of the phenomenon . This research work seeks to deepen the understanding of the background aspect s and problems of DHQ relocation abroad . It penetrates some of the operational and cognitiv e aspects in a holistic mode, essentially from a theoretical point of view . The theoretical aspects consist of cognitive psychology, and the aspect of management research which is represented b y strategic reference point theory and transaction cost theory, both of which rest on behavioral psychology. In the theoretical approach, these are used as avenues of deduction : 1 . explanations given in public by managers of the relocated DHQ and received through the researcher&#x27;s ow n personal interviews, 2a . literature representing logistic and cognitive information processing an d behavioral aspects in the field of management research, 2b . literature on spatio-temporal and other cognitive research in experimental psychology, and 3 . the researcher&#x27;s own rather long experience as a consultant in relocation studies of firms in various industries . This theoretical approach results in propositions consisting of an holistic cognitive-logisti c paradigm, a conceptual framework, with reference to the MNC division&#x27;s growth developmen t abroad . According to the paradigm, this growth development characteristically contain s recurrent dynamic and reciprocal cognitive-logistic information processes of the DHQ, and consequently decisions based on these processes . In operationalizing the paradigm presented a set of detailed propositions is introduced in a consequential and justified system . These propositions concern the 1 . logistic information process, and the 2 . cognitive information process. In an evolutive sequence this latter process consists of the 2a. identity formation, 2b . social cognition, and 2c . spatio-temporal cognition of DHQ management and staff . As a concluding argument for the propositions, it is maintained that in a situation of identit y changed by strong foreign growth and of the consequently changed social and environmenta l cognition of DHQ managers and staff, a strong need for new social knowledge arises . This need for new knowledge in carrying it intentionally into effect as a logistic information process i s perceived phenomenologically and experientially as an event in space and time by the manager s and staff of the DHQ. This perception, in the situation of a peripherally located and peripheral perceived DHQ, leads subsequently, under the various logistic information processing problem s perennially encountered, to the relocation of the DHQ . The DHQ relocation is thus proposed to be a result of a continued reciprocal and dynami c action between the cognitive information process and the logistic information process in th e course of sustained international growth of Finnish MNCs, and the relocation is intended t o reduce DHQ management&#x27;s boundednes of rationality. It is argued in this hermeneutic and deductive research that the proposed paradigm represent s the explaining variable and the relocation decision of and by a DHQ represents the explaine d variable . The theoretical implications of the work include a comparison of the proposed paradigm with the stages-model of internationalization of the firm, an evaluation of the research results in respect to `managerial logics&#x27; of transnational corporations and the international location o f various functions of MNCs . The managerial implications include important understanding o f the organizational `self&#x27; through the cognitive-logistic paradigm . Some very central and timel y topics for further paradigm-based research work are put forward .","abstract_has_math":false,"creators":["Euro, Kalevi"],"institution":"Helsinki School of Economics","degree_name":null,"degree_level":null,"degree_discipline":null,"degree_department":null,"school":null,"contributors":["Aalto-yliopisto","Aalto University"],"advisors":["Luostarinen, Reijo, professor"],"committee_chairs":[],"committee_members":[],"year":2001,"date_issued":"2001","date_published":"2001","updated_at":"2026-07-27T18:39:42Z","subjects":[],"languages":["en"],"rights":[],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":"https://aaltodoc.aalto.fi/handle/123456789/11179","outbound_label":"Repository record","outbound_source":"dc:identifier.uri"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Aalto-yliopisto","Aalto University"]},{"key":"dc:contributor.supervisor","label":"Supervisor","values":["Luostarinen, Reijo, professor"]},{"key":"dc:creator","label":"Author","values":["Euro, Kalevi"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date.accessioned","label":"Dc Date Accessioned","values":["2013-10-22T13:15:09Z"]},{"key":"dc:date.available","label":"Dc Date Available","values":["2013-10-22T13:15:09Z"]},{"key":"dc:date.issued","label":"Date","values":["2001"]},{"key":"dc:publisher","label":"Institution","values":["Helsinki School of Economics","Helsingin kauppakorkeakoulu"]},{"key":"dc:type","label":"Dc Type","values":["G4 Monografiaväitöskirja"]},{"key":"dc:type.dcmitype","label":"Dc Type Dcmitype","values":["text"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language.iso","label":"Language (ISO)","values":["en"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier.uri","label":"Identifier URI","values":["https://aaltodoc.aalto.fi/handle/123456789/11179"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["One of the recent features in the internationalization and growth process of Finnis h multinational companies (MNCs) and also of other Nordic MNCs has been the relocating o f many of their product division headquarters (DHQs) abroad . This relocation has taken plac e from the divisions' home country primarily to Western European `international centers' of high - level international interaction or the `economic hub' areas formed by them of high-leve l international interaction (Helle, 1989, 1990). The phenomenon of relocating headquarters abroad has been little analyzed and there are only a few studies with some preliminary aspects concerning the possible background causes of the phenomenon . This research work seeks to deepen the understanding of the background aspect s and problems of DHQ relocation abroad . It penetrates some of the operational and cognitiv e aspects in a holistic mode, essentially from a theoretical point of view . The theoretical aspects consist of cognitive psychology, and the aspect of management research which is represented b y strategic reference point theory and transaction cost theory, both of which rest on behavioral psychology. In the theoretical approach, these are used as avenues of deduction : 1 . explanations given in public by managers of the relocated DHQ and received through the researcher's ow n personal interviews, 2a . literature representing logistic and cognitive information processing an d behavioral aspects in the field of management research, 2b . literature on spatio-temporal and other cognitive research in experimental psychology, and 3 . the researcher's own rather long experience as a consultant in relocation studies of firms in various industries . This theoretical approach results in propositions consisting of an holistic cognitive-logisti c paradigm, a conceptual framework, with reference to the MNC division's growth developmen t abroad . According to the paradigm, this growth development characteristically contain s recurrent dynamic and reciprocal cognitive-logistic information processes of the DHQ, and consequently decisions based on these processes . In operationalizing the paradigm presented a set of detailed propositions is introduced in a consequential and justified system . These propositions concern the 1 . logistic information process, and the 2 . cognitive information process. In an evolutive sequence this latter process consists of the 2a. identity formation, 2b . social cognition, and 2c . spatio-temporal cognition of DHQ management and staff . As a concluding argument for the propositions, it is maintained that in a situation of identit y changed by strong foreign growth and of the consequently changed social and environmenta l cognition of DHQ managers and staff, a strong need for new social knowledge arises . This need for new knowledge in carrying it intentionally into effect as a logistic information process i s perceived phenomenologically and experientially as an event in space and time by the manager s and staff of the DHQ. This perception, in the situation of a peripherally located and peripheral perceived DHQ, leads subsequently, under the various logistic information processing problem s perennially encountered, to the relocation of the DHQ . The DHQ relocation is thus proposed to be a result of a continued reciprocal and dynami c action between the cognitive information process and the logistic information process in th e course of sustained international growth of Finnish MNCs, and the relocation is intended t o reduce DHQ management's boundednes of rationality. It is argued in this hermeneutic and deductive research that the proposed paradigm represent s the explaining variable and the relocation decision of and by a DHQ represents the explaine d variable . The theoretical implications of the work include a comparison of the proposed paradigm with the stages-model of internationalization of the firm, an evaluation of the research results in respect to `managerial logics' of transnational corporations and the international location o f various functions of MNCs . The managerial implications include important understanding o f the organizational `self' through the cognitive-logistic paradigm . Some very central and timel y topics for further paradigm-based research work are put forward ."]},{"key":"dc:format.mimetype","label":"Dc Format Mimetype","values":["application/pdf"]},{"key":"dc:title","label":"Title","values":["Locational changes of headquarters of multinational corporations : a theoretical study on the motives and reasons for relocating Finnish divisional headquarters abroad"]}]}],"canonical_facts":{"dc:contributor":["Aalto-yliopisto","Aalto University"],"dc:contributor.supervisor":["Luostarinen, Reijo, professor"],"dc:creator":["Euro, Kalevi"],"dc:date.accessioned":["2013-10-22T13:15:09Z"],"dc:date.available":["2013-10-22T13:15:09Z"],"dc:date.issued":["2001"],"dc:description.abstract":["One of the recent features in the internationalization and growth process of Finnis h multinational companies (MNCs) and also of other Nordic MNCs has been the relocating o f many of their product division headquarters (DHQs) abroad . This relocation has taken plac e from the divisions' home country primarily to Western European `international centers' of high - level international interaction or the `economic hub' areas formed by them of high-leve l international interaction (Helle, 1989, 1990). The phenomenon of relocating headquarters abroad has been little analyzed and there are only a few studies with some preliminary aspects concerning the possible background causes of the phenomenon . This research work seeks to deepen the understanding of the background aspect s and problems of DHQ relocation abroad . It penetrates some of the operational and cognitiv e aspects in a holistic mode, essentially from a theoretical point of view . The theoretical aspects consist of cognitive psychology, and the aspect of management research which is represented b y strategic reference point theory and transaction cost theory, both of which rest on behavioral psychology. In the theoretical approach, these are used as avenues of deduction : 1 . explanations given in public by managers of the relocated DHQ and received through the researcher's ow n personal interviews, 2a . literature representing logistic and cognitive information processing an d behavioral aspects in the field of management research, 2b . literature on spatio-temporal and other cognitive research in experimental psychology, and 3 . the researcher's own rather long experience as a consultant in relocation studies of firms in various industries . This theoretical approach results in propositions consisting of an holistic cognitive-logisti c paradigm, a conceptual framework, with reference to the MNC division's growth developmen t abroad . According to the paradigm, this growth development characteristically contain s recurrent dynamic and reciprocal cognitive-logistic information processes of the DHQ, and consequently decisions based on these processes . In operationalizing the paradigm presented a set of detailed propositions is introduced in a consequential and justified system . These propositions concern the 1 . logistic information process, and the 2 . cognitive information process. In an evolutive sequence this latter process consists of the 2a. identity formation, 2b . social cognition, and 2c . spatio-temporal cognition of DHQ management and staff . As a concluding argument for the propositions, it is maintained that in a situation of identit y changed by strong foreign growth and of the consequently changed social and environmenta l cognition of DHQ managers and staff, a strong need for new social knowledge arises . This need for new knowledge in carrying it intentionally into effect as a logistic information process i s perceived phenomenologically and experientially as an event in space and time by the manager s and staff of the DHQ. This perception, in the situation of a peripherally located and peripheral perceived DHQ, leads subsequently, under the various logistic information processing problem s perennially encountered, to the relocation of the DHQ . The DHQ relocation is thus proposed to be a result of a continued reciprocal and dynami c action between the cognitive information process and the logistic information process in th e course of sustained international growth of Finnish MNCs, and the relocation is intended t o reduce DHQ management's boundednes of rationality. It is argued in this hermeneutic and deductive research that the proposed paradigm represent s the explaining variable and the relocation decision of and by a DHQ represents the explaine d variable . The theoretical implications of the work include a comparison of the proposed paradigm with the stages-model of internationalization of the firm, an evaluation of the research results in respect to `managerial logics' of transnational corporations and the international location o f various functions of MNCs . The managerial implications include important understanding o f the organizational `self' through the cognitive-logistic paradigm . Some very central and timel y topics for further paradigm-based research work are put forward ."],"dc:format.mimetype":["application/pdf"],"dc:identifier.uri":["https://aaltodoc.aalto.fi/handle/123456789/11179"],"dc:language.iso":["en"],"dc:publisher":["Helsinki School of Economics","Helsingin kauppakorkeakoulu"],"dc:title":["Locational changes of headquarters of multinational corporations : a theoretical study on the motives and reasons for relocating Finnish divisional headquarters abroad"],"dc:type":["G4 Monografiaväitöskirja"],"dc:type.dcmitype":["text"]},"updated_at":"2026-07-27T18:39:42Z"}