Headquarters location decisions under conflicts at home: Evidence from a configurational analysis

Authors

  • Mariano Méndez-Suárez ESIC Business & Marketing School. Av. Valdenigrales s/n 28223 Pozuelo de Alarcón, Madrid. Spain

Abstract

This study identifies the necessary and sufficient conditions to relocate firms’ headquarters (HQ) under circumstances of high political and economic risk (the illegal referendum of Catalonia in 2017). One of the most promising advances in the discussion of relocation decisions lies in combining non-economic conditions with traditional production factors. We use fsQCA methodology to test the model. QCA is a method based on set theory in which the outcome depends on combinations of elements, that have the nonlinear property and permits that certain conditions act in opposite ways under different circumstances. Using a database of 42 companies of different sectors, 28 of them that maintained HQ and 14 that relocated, the study provides evidence that family firms under similar circumstances may make decisions to stay or relocate as a function of the origin of the founders and the production factors of the relocation region. Second, we found that relocation decisions of subsidiaries under political and economic uncertainty are not affected by economic factors and there is inertia in their behavior.

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Published

2021-03-04

Issue

Vol. 31 No. 1 (2021)

Section

Articles

License

Copyright (c) 2021 Mariano Méndez-Suárez

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How to Cite

Headquarters location decisions under conflicts at home: Evidence from a configurational analysis. (2021). Journal of Small Business Strategy (archive Only), 31(1), 1-9. https://libjournals.mtsu.edu/index.php/jsbs/article/view/1973