Where do manufacturing firms locate their headquarters?

J. Vernon Henderson, Yukako Ono

Research output: Contribution to journalArticle

58 Citations (Scopus)

Abstract

Firms often separate headquarters' (HQ) functions physically from their production facilities and construct stand-alone HQs. By locating its HQ in a large, service oriented metro area away from its production facilities, a firm may be better able to outsource service functions in that local metro market and also to gather information about market conditions for their products. However if the firm locates the HQ away from its production activity, the coordination costs in managing plant activities are increased. In this paper, we empirically analyze the trade-off between these two considerations.

Original languageEnglish
Pages (from-to)431-450
Number of pages20
JournalJournal of Urban Economics
Volume63
Issue number2
DOIs
Publication statusPublished - 2008 Mar 1
Externally publishedYes

Keywords

  • Coordination
  • Headquarters
  • Location decision
  • Manufacturing

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

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