• Journal of Global Scholars of Marketing Science
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• v.6
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• pp.185-210
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• 2000

범세계적 환경에서 시스템 전체가 대응하는 단일조직으로 국제기업의 기본 틀을 유지하면 서 해외자회사를 효율적으로 통제하는 것은 국제기업의 의사결정과점에서 고려되어야 할 중요한 과제이다. 또한 한국기업의 국제화가 성숙되고 있는 현시점에서 볼 때 진출초기단계의 의사결정문제에서 벗어나 실행된 투자에 대한 사후 관리적 측면에 대한 연구의 필요성이 증 가하고 있다. 이러한 관점에서 본 연구는 한국기업 해외자회사를 대상으로 모-자회사간의 의 사결정과정에서 발생되는 자원준거요인, 상황요인, 해외직접투자 요인에 의한 전략적 통제문제에 관해 실증 분석하였다. 연구의 분석결과, 모회사와 해외자회사 내부자원의 상호의존성이 높으면 높을수록 해외자 회사에 대한 모회사의 전략적 통제는 높을 것이라는 가설검정결과, 고통제집단의 경우, 재무 마케팅 기술 국제경영능력으로 측정된 내부능력에 있어 모두 높은 정의 상관관계가 있는 것으로 분석되었고, 저통제집단의 경우 국제경영능력을 제외한 3개 부분에서는 상관관 계를 보이지 않아, 연구가설의 이론적 예상을 부분적으로 반영하고 있다. 둘째, 해외자회사의 과업환경의 불확실성이 높을수록 해외자회사에 대한 모회사의 전략적 통제는 낮을 것이라는 가설검증결과, 환경의 불확실성이 높은 집단이 낮은 집단 보다 인사 마케팅 생산 재무 등의 4개 부문 모두에서 상대적으로 모기업의 통제가 낮게 나타났지만 생산부문은 통계적으로도 유의하지 않는 것으로 나타났다. 과업환경의 불확실성이 높을수록 모회사의 전략적 통제는 낮다는 이론적 예상을 부분적으로 반영하고 있다. 셋째, 해외자회사의 소유지분과 전략적 통제사이에는 유의 적인 상관관계가 존재할 것이라 는 가설의 검증결과는, 마케팅 분야에서만 완전소유 자회사가 다수소유 자회사보다 모회사의 통제의 정도가 상대적으로 높은 것으로 나타났지만 통계적으로 유의하지 않게 나타났다.

• International Area Studies Review
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• v.16 no.3
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• pp.209-237
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• 2012

Multinational enterprises(MNEs) try to strengthen their global innovative capabilities by incorporating the foreign subsidiaries' knowledge bases. Foreign subsidiaries play an important role in MNEs' knowledge creation activities. This study develops a strategy model that strengthening the knowledge creation capabilities of Korean firms' foreign subsidiaries. Four strengthening strategy types are derived from three research areas related with center of excellence, subsidiary strategic roles, and knowledge creation capabilities. The strategies that strengthen knowledge creation capabilities are including organizational culture and autonomy reinforcing strategy, subsidiary's absorptive capacity reinforcing strategy, local environment management strategy, and network building strategy. Strategic fit conditions which support the success of each strategy type are also discussed.

• International Commerce and Information Review
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• v.15 no.1
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• pp.227-256
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• 2013

Existing multinational subsidiary typologies seem to have limitations in two respects. First, the prevalence of subsidiary classification along two-dimensions fails to capture many distinct subsidiary types. Failure to reflect a sufficient richness in dimensionality can give rise to a partial picture of subsidiary typologies in the international business literature. A new typology developed from multi-dimensional approach will be required for reflecting various subsidiary roles in the multinational enterprise. Second, multinational subsidiary performing a number of activities is hard to be defined functionally across the value chain activities. In addition, multinational subsidiary roles can vary dramatically. In conclusion, despite a growing amount of work on subsidiary typologies, there seems to be limited convergence of results. the study regarding subsidiary roles still remain a challenge. In this respect, the purpose of this study is to develop a new typology based on multi-dimensional approach in order to overcome the limitations of traditional typologies. To classify subsidiary types, we propose 8 types of multinational subsidiary according to three dimensions that are adopted: (1) number of required value chain activities (2) subsidiary's sourcing capability and autonomy (3) global orientation (3) The case study analyzing Korean foreign subsidiaries appropriate for 8 types is performed to establish the validity of this study.

• International Area Studies Review
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• v.22 no.1
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• pp.61-78
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• 2018

Foreign subsidiary operation modes can be broadly divided into horizontal subsidiaries and vertical subsidiaries. According to institutional theory, foreign subsidiary operation mode differs depending on the host country institution. This study examines the effects of formal and informal institution on the foreign subsidiary operational mode of Korean firms. As a result of the empirical analysis, the higher the cultural distance and the lower political risks, the more favored the vertical foreign operation mode than the horizontal foreign operation mode. On the other hand, the higher the economic freedom and the lower corruption, the more favored the horizontal foreign operation mode than the vertical foreign operation mode.

• Journal of the Korean Data and Information Science Society
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• v.28 no.3
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• pp.605-615
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• 2017

Recently, financial supervisory authority of Korea and international credit rating agencies have been concerned about a stand-alone rating that is calculated without incorporating guaranteed support of parent companies. Guaranteed by parent companies, most foreign subsidiaries keeps good credit rate in spite of weak financial status. However, what if the parent companies stop supporting the foreign subsidiaries, they could have a probability to go bankrupt. In this paper, we have validated a credit rating model through statistical measurers such as performance, calibration, and stability for Korean companies owning foreign subsidiaries.

• International Area Studies Review
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• v.15 no.1
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• pp.425-446
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• 2011

There has been a conventional wisdom that a higher level of autonomy of a foreign subsidiary could lead to a higher level of subsidiary performance. Most MNCs seeking for managing localization efficiently followed this wisdom. But there has been no empirical evidence so far in academic journal that there is a clear positive relationship between subsidiary autonomy and performance. Recently most MNCs are trying to pursue a global strategy for managing foreign sudsidiaries, in which the coordination role of parent company is essential. For the MNCs seeking global strategy the coordination role of the parent and subsidiary autonomy appears to have a trade off relationship. It is uncertain in the situation that the positive relationship between subsidiary autonomy and performance is still effective. Therefore the purpose of the study is to provide an empirical evidence of the the hypothesis that there is a positive relationship between subsidiary autonomy and performance, The study utilized the questionaire survey of Korean subsidiaries of MNCs. The empirical results of the study showed the significant positive relationship between two variables, which is cinsistent to the hypotheses.

• International Commerce and Information Review
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• v.16 no.2
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• pp.221-249
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• 2014

This study analyzed the sufficient conditions for Korean firm's foreign subsidiaries in order to evolve into a center of excellence for knowledge creation and diffusion. In this respect, the purpose of this study is to develop a new framework based on literatures related to subsidiary knowledge creation and a center of excellence. Specifically, we created seven decisive factors for subsidiary knowledge creation: two general factors, two strategic important factors, and three excellent factors. Each factor can be a necessary condition or sufficient condition according to research purpose. For example, the decentralized organizational structure belonging to general factors become a sufficient factor for facilitating subsidiary's knowledge creation but it become a necessary condition for a center of excellence because all subsidiaries with decentralized organizational structure cannot be strategically important subsidiaries. By using seven decisive factors, this study examines the determinants' validity theoretically and practically.

• Korea Trade Review
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• v.41 no.2
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• pp.1-28
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• 2016

The purpose of this study is to identity the relationship between CAGE distance and Korean foreign subsidiaries' social responsibility, which is divided into responsive and strategic activities. The hypothesis is that CAGE distance has positive relationships with subsidiaries' social responsibility to overcome local liabilities of foreignness and acquire social legitimacy. The key findings are as follows. Firstly, culture distance has positive significant impacts on subsidiaries' social responsibility activities. It especially has positive influences on strategic CSR. Secondly, administration distance has no impacts on subsidiaries' social responsibility. Thirdly, geographic distance also has positive impacts on subsidiaries' social responsibility activities, especially on responsive CSR. Lastly, economic distance has significantly negative effects on social responsibility. This empirical study identifies the relationships between cross national distance and subsidiaries' social responsibility. Culture and geographic distance has positive influences on subsidiaries' social responsibility. Market seeking subsidiaries group shows more positive relationship between culture distance and social responsibility activities, which means that foreign subsidiaries would engage in social responsibility activities for strategic purpose.

• International Area Studies Review
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• v.20 no.3
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• pp.81-100
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• 2016

In this study we analyze the performance of overseas subsidiaries of Korean multinationals with localization in sales, purchase, and employment. We use the data of 2,116 overseas subsidiaries in 61 countries between 2008 and 2011 provided by The Export-Inport Bank of Korea. As a result, analysis shows that the effect of localization on the performance is quite different by sectors and countries which the subsidiaries have entered. In the manufacturing sector, increase of local sales has positive effect only in China, while local purchase improves the performance of the subsidiaries in developing counties excluding China. However, the subsidiaries which had made a foray to service sector in advanced countries aquired better performance with localization of sales, purchase, and employment, whereas those in China had no merit except localization of purchase.

• International Commerce and Information Review
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• v.15 no.1
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• pp.117-134
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• 2013

This study examines the moderating effect of HQ-subsidiary cooperation on the relationships between standardization and on-time completion of new product development (NPD) and international new product rollout (INPR). It was empirically tested by a Korean sample to verify the validity of the research framework. The results show that the higher the HQ-subsidiary/agent cooperation, the stronger the effect of NPD timeliness on INPR timeliness. However, HQ-subsidiary cooperation does not moderate the relationship between standardization and INPR timeliness. Under conditions in which the subsidiary and headquarters have a positive relationship, open communications, and regular interactions, more successful new product development in terms of planned time schedule is strongly associated with a much faster introduction to overseas markets.