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An Empirical Analysis on MNC's Investment Performances in a Host Country through Market Orientation Mediation Effects

현지시장지향성의 매개변수 효과를 통한 다국적기업의 해외시장 투자성과에 대한 실증연구

  • Lim, Sung-Hoon (Department of International Trade, Konkuk University)
  • 임성훈 (건국대학교 국제무역학과)
  • Received : 2019.04.05
  • Accepted : 2019.04.16
  • Published : 2019.04.30

Abstract

Multinational corporations (MNCs) usually face indigenous business environments in host countries which are different from a home country's. In this circumstance, MNCs would accomplish low-investing performance if they pursuit the same as the home oriented business strategy in the host country. The more different kinds of specialized environments a host countries have, the more pressure of modifying the international strategy needed for MNCs. This paper examines that how a different market environment between a home country and a host country, through MNC's local responsive managements, can influence investing performance in a host country. This paper conducts structural equation analyses with collected empirical data focusing upon a MNC's market orientation efforts and the realization of management localization (i.e., increasing local sourcing intensity or local sales intensity) as mediators between the specialized environment in a host country and the MNC's investing performance. This paper has several contributions in developing the prior approaches: first, the market orientation variables are regarded not as normal independent factors but mediators; second, two step mediation model is examined to make link between host market's heterogeneity and MNC's performance.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2017S1A5A2A01027749).

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