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Overcoming the Liability of Outsidership: The Challenge of HQ of the Global Firm
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2012 (English)In: Journal of International Management, ISSN 1075-4253, Vol. 18, no 3, 224-232 p.Article in journal (Refereed) Published
Abstract [en]

We conceptualize the global firm as being a loosely coupled network of far-flung subsidiaries with hierarchically acting headquarters (HQ) that design a global organization to ensure support of its global strategic agenda. We argue that the process of HQ management in the global firm is a process characterized by uncertainty. Drawing on the Uppsala model for managing under uncertainty, we suggest that the source of uncertainty is a liability of outsidership derived from the fact that HQ is often not knowledgeable about the networks and actions of its subsidiaries. We then offer various actions that need to be taken by HQs to resolve that liability to improve on the efficiency of the coordination and management of the global firm.

Place, publisher, year, edition, pages
2012. Vol. 18, no 3, 224-232 p.
Keyword [en]
Global firm, HQ, Uncertainty, Liability of outsidership, Uppsala model, Tight and loose couplings, HQ management
National Category
Economics and Business
URN: urn:nbn:se:uu:diva-179899DOI: 10.1016/j.intman.2012.04.002ISI: 000306737200002OAI: oai:DiVA.org:uu-179899DiVA: diva2:547507
Available from: 2012-08-28 Created: 2012-08-27 Last updated: 2012-08-28Bibliographically approved

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