• Korea Trade Review
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• v.48 no.4
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• pp.23-45
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• 2023

This study aims to investigate the relationship between institutional distance and FDI and focuses on China's outward FDI. The institutional distance between China and the host country is measured using the institutional quality published by the World Bank. This study collects panel data from 50 countries in which China invested from 2008 to 2019 and use the panel GLS methodology to examine the factors affecting outward FDI through three models. First, this study examines the impact of the absolute value of institutional distance on China's OFDI across all countries in which China invests. Second, this study divides countries with positive and negative institutional distance to China into two groups and examine the relationship between institutional distance and OFDI in each group. Finally, this study examines the non-linear relationship between institutional distance and OFDI from China. To test this, this study adds the squared term of institutional distance to the model. The results of the analysis are as follows Institutional distance is positively related to China's OFDI. The relationship between institutional distance and OFDI is inverted U-shaped in the group of host countries with relatively higher institutional quality than China, but positive in the group of low-quality host countries. In addition, China's OFDI is affected by a combination of institutional and economic factors. The results of this study have implications not only for FDI host countries but also for MNCs' choice of FDI destinations.

• Korea Trade Review
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• v.43 no.1
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• pp.177-197
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• 2018

This paper aims to analyze the effects of external uncertainty on the entry modes decision of multinational firms. On the basic assumption that the entry modes of the firms are dependent on ex-ante or ex-post perceived risk, we empirically analyzed the impacts of perceived risk factors on the investment patterns of firms. We found that the larger the population, the higher the level of GDP per capita, and the larger the trade volume as a ratio of GDP resulted in increased M&A FDI and greenfield FDI. The economic growth rate variables were found to be significantly positive effect on only greenfield entry mode. Regarding the main variables, lower levels of corruption and increased stability regarding political issues resulted in the host country receiving increased M&A investment. However, we found only a positive statistical significance of the political stability variable on the explaining greenfield FDI. Results show that M&A entry mode is affected by both corruption and political instability level. However, the greenfield FDI featuring sunk costs, seems more responsive to political instability.

• International Commerce and Information Review
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• v.16 no.3
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• pp.381-412
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• 2014

Un globalization unfolds, concerns and research toward the differnces international cultures has increased. However, there is a dearth of research regarding how to nature culture align orgainzational performance with leadership style. Accordingly, this study aims to identify the relationship between leadership style and the orgainzational performance with mediating effect of national culture. Understanding the cultures of other countries is not as fast as the speed of internationalization. As globalization advances, interest and research on the characteristics of national culture differences have been increasing. One of the important challenges for business leaders is the ability to understand and deal with cross-cultural management. But there is a lack of research on cross-cultural management. In order to achieve this objective, this study, adopts Hofstede cultural dimensions, and finds the mediating effect on these transformational and transactional leadership on organizational performance.Feminism, collectivism, power distance, and uncertainty avoidance were classified into four factors of national culture has differnct mediating effect on leadership style and performance. This research has concentrated on leadership-styles and organizational performance with mediating effect of national culture.

• International Area Studies Review
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• v.16 no.1
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• pp.197-220
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• 2012

This study is to understand those determinants of performance differences of Korean small and medium firm's subsidiaries in Vietnam based on the resource based view. We have visited 21 Korean SME's subsidiaries in Hochiminh city area in Vietnam and interviewed CEO of those subsidiaries for 1-2 hours to make each case. Based on case content analysis, we can get those results that eight management capabilities such as securing competent local managers, clear and smooth communication with local employees, establishing good labor-management relations, raising the rate of factory operation and subcontracting, firm specific quality control system, timely financing, establishing good relationships with local communities, and fostering friendly relations with local public officers are major determinants of performance differences. Also we can know that various factors including local experiences in Vietnam have influenced those management capabilities. To be a high performer in Vietnam, foreign subsidiaries of Korean SMEs have to build and develop major management capabilities continuously.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.2
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• pp.137-149
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• 2017

This study aims to verify culture-universal invariances and culture-particular differences in the relationship of job stress, flourishing, and job engagement. For this purpose, we selected a global korean company having a local corporation in China in order to minimize the influence of organizational factor and a self-report questionnaire survey was conducted by 141 personnels of head office and 107 personnels of chinese branch. At first, the mediating effect of flourishing on the relationship between job stress and job engagement was significant for both korean and chinese personnel. Second, regression analyses were conducted in order to demonstrate influence of detailed job stress on flourishing and job engagement. As for flourishing, decision making and responsibility factor was significant for korean personnel, and lack of social support factor and job characteristic factor were significant for chinese personnel. Regarding job engagement, lack of social support factor and job characteristic factor were significant for both two samples and decision making and responsibility factor was significant for korean personnel whereas non-significant for chinese personnel. The results could give a meaningful perspectives to companies interested in extending their business abroad. Finally, implications and limitations of the study and suggestions for future research were discussed.

• International Commerce and Information Review
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• v.15 no.2
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• pp.49-69
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• 2013

It is important for Korean corporations enter the market of Africa, a repository of varied mineral resources including petroleum gas, in terms of resource securement, preoccupancy of emerging market, and expansion of diplomatic influence. Taking account of strategic value of Africa, the African market has an infinite potential for Korea who has insufficient resources, so it is very important to set proper market penetration strategies and to accurately evaluate their performances. This study is to analyze the performance of Korean corporations' market entry to Africa through casual relationship analysis between characteristics of Korean corporations' export environments, market entry strategies to Africa, and their performances. According to the result of analysis, market entry period, corporate management, and marketing strategy among strategic factors for foreign market entry positively influence on corporations' performances. Therefore, Korean corporations need strategies of centralization, segmentation, and marketing to improve their business performances.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.28 no.5D
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• pp.695-703
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• 2008

China water market has huge potential for increased use of BOT mode and one of the most attractive markets of doing business. However, the current China water BOT market shows that many foreign companies are retreating from the market while Chinese water companies fast growing. From the view no domestic companies have track records in China BOT water market, the research identified twenty market access barriers in terms of construction laws, regulations, BOT-related policy and the recent market situation. These are evaluated based on interview results with 10 professionals direct or indirect having a China water BOT experience. All the factors are found to be highly influential to foreign company's decision on the market participation. Among those, no fixed return policy and low water price, difficulty in water price adjustment and approval, and no government guarantees, all directly related to the project viability and under the control of government, were the most critical factors, implying government's role is the key in increasing the market competition by attracting more foreign participation on the market. In addition, new construction law regulating foreign EPC contractor's construction work, namely Decree 113, and requirement of applying competitive bidding in selecting EPC contractor in a BOT project are also considered signigicant barriers on foreign participation, which contradicts international norm and therefore necessitates an adjustment on current decision process in domestic companies.

• The Journal of the Korea Contents Association
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• v.22 no.2
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• pp.514-528
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• 2022

This study attempted to understand the characteristics of foreign direct investment by Chinese companies from the perspective of Dunning's OLI paradigm. This development of OFDI by Chinese companies was influenced by the Chinese government's policy, internal factors of the Chinese economy, and the economic and institutional environment of the investment target country. The characteristic of Chinese companies' OFDI is that investment in developed countries is gradually increasing amid regional concentration in Asia. And the proportion of tertiary industries is high, In the meantime, the structure of the secondary industry is changing. In addition, Chinese companies are gradually expanding and showing characteristics by considering the economic and political factors of the investment target country in the selection of overseas investment areas, and then selecting areas with little cultural difference from China's system. This characteristic of OFDI by Chinese companies is basically evaluated to be in line with the OLI paradigm of Dunning. However, the difference is that Chinese companies' OFDI not only advances in overseas investment using the strengths of companies, but also advances in investment to compensate for their shortcomings.

• International Area Studies Review
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• v.13 no.3
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• pp.163-190
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• 2009

This study tries to analyze the investment determinants of Chinese firms in local Korea, where the Chinese investing ones have been operating since in the middle of 1990s. The main purpose can be mentioned to test empirically some relations between the investment determinants of Chinese firms and the investment types. In detail speaking, the dependent variables of investment types are classified with sole venture and joint venture, while the independent ones are sorted based on the previous studies with the 2 following factors like the competitive advantages of Chinese firms, and the location advantages of local Korea. This study is conducted as the following: the survey of Chinese firms engaging in investment activities in there is implemented by collecting questionnaires. And for testing the hypothesis, the path analysis of structural equation modeling is activated with SPSS. 12.0 and AMOS 11.0 for windows.

• 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.