Regionalization in Central and Eastern Europe: A Discussion of Strategic and Organizational Aspects of Its Implementation
Regionalization in Central and Eastern Europe: A Discussion of Strategic and Organizational Aspects of Its Implementation

Summary/Abstract: Our study shows that regionalization is a commonly used and effective ma-nagement model for large multinational corporations (MNCs) in Central and Eastern Europe (CEE). From a strategic perspective the different environmental and market conditions in CEE require a certain degree of adaptation of global strategies for CEE to be successful. Cost savings from regional standardization and the pooling of resources are the main benefits resulting from regionalization. Regional headquarters (RHQs) are identified as adequate organizational model for the development and implementation of regional strategies. In the eyes of the regional management the advantages of RHQs outweigh by far certain drawbacks of this organizational model. A more comprehensive research design including all three involved parties – corporate, regional and local management – could be a next step to validate the findings of this explorative study.

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