How regional are regional headquarters? : the "latinization" of control in European structures of a Brazilian MNC

Regionalization of operations is a trend among multinationals. Regional structures bridge the distance between the corporate headquarters and local subsidiaries and markets by acting as integral intermediaries. A growing number of multinationals from emerging markets establish their regional headquarters in Europe, yet little is known about the role of regional structures in emerging multinationals. One of key questions is, how much autonomy and influence does the regional headquarters have in managing regional operations? To examine the relationship between headquarters and regional headquarters we adopt the micro-political perspective. Based on a case study of a Brazilian multinational's activities in Switzerland, this study contributes to the literature about the role of regional headquarters in the internationalization of multilatinas. It also explains how corporate headquarters achieved dominance over the European headquarters by deploying different power capabilities, mainly power over processes and power over meaning.