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Table 2 CHQ in the twentieth versus twenty-first century

From: Corporate headquarters in the twenty-first century: an organization design perspective

Key inquiries In Menz et al. (2015) Twentieth century Twenty-first century
Determinants External environment Technology: 1st to 3rd Industrial revolution; 1st Machine age
Unlimited natural resources
Technology: 4th Industrial revolution; 2nd Machine age
Planetary boundaries/natural environment
Additional stakeholders
Organizational environment Clear boundaries; hierarchical structures
Vertically integrated firms, for example, large industrial firms diminishing economies of scale
Public ownership
Tangible resources
Blurred boundaries
Horizontally specialized firms; network organizations; ecosystems; platforms; network economies
Private ownership
Intangible resources: data
CHQ Design CHQ roles and functions Drive economic outcomes
Relatively static “classic” roles
Not purely economic purpose
Dynamic roles that allow for transformation and managerial capabilities
CHQ size and structure CHQ as single fully integrated entity Disaggregated and internationally dispersed CHQ
CHQ as Hardware and Software
Increasingly complex CHQ configuration (e.g., multiple HQ layers and blurred boundaries between CHQ and operating units)
CHQ location and buildings All CHQ functions at one location Internationally dispersed CHQ
Distance between CHQ and operating units becomes increasingly important
Return of the symbolic CHQ (e.g., large campuses of tech firms); back to the cities
CHQ personnel Traditional C-suite and functional heads, e.g., strategic planners
Predominantly internally focused
Increasing focus on externally facing tasks
Diversity of backgrounds and responsibilities
CHQ systems and processes Hierarchical and authoritarian Information and data become central
New ways of internal organizing
Outcomes CHQ outcomes Efficiency, effectiveness, value added Efficiency, effectiveness, value added
Organizational and societal outcomes Profitability and growth
Shareholder value
Profit and purpose
Stakeholder value; ESG (environmental, social, and governance)
Agility and resilience