• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.43 no.3
• /
• pp.29-40
• /
• 2020

Korean firms have been vigorously searching and exploring overseas market opportunities through export and overseas investment. As of end of 2019, there were more than 80,000 Korean overseas subsidiaries all over the world. With Korean overseas direct investment increasing recently, it became one of the important issues for overseas investors to be successful in the global market. There are a lot of studies on factors influencing the performance of overseas subsidiaries such as 'firm' and 'country' factors. This study empirically examines subsidiary performance determinants with 'industry architectures' by using a sample of 292 overseas Korean firm subsidiaries. Industry architectures are the stable but evolving sets of rules and roles through which labor is divided within a sector. This article considers how industry architectures shape success in international expansion. Industry architectures differ between countries, are not necessarily technologically determined, shape firms' capabilities and their competitive environment, and constitute a distinct level of analysis. We extract antecedents of related theory and empirically test its impact with a survey of Korean firms expanding in emerging economies. We would say this is the first study which tries to focus on industry architectures with the performance of Korean overseas subsidiaries. We find that separability and similarity of industry architectures across countries and localization of subsidiaries are robust and important predictors of success in international expansion. Our results suggest that industry architectures should be added to firm and country as an intermediate level of analysis that helps explain success in international expansion. While we established a pattern, much more remains to be done. We focus on the success of foreign operations, but we do not consider the broader benefits of going abroad, such as the learning or network effects that accrue at the level of the entire firm. The next obvious question is whether the results would differ in the developed market context. These we leave for future research to consider.

• International Area Studies Review
• /
• v.13 no.2
• /
• pp.371-392
• /
• 2009

The paper examines the determinants factor and business performance of global supply chain management. Precess innovation, information capability and partnership were used as proxy for the characteristics of determinants factor of global supply chain management. Agility of business performance was used as proxy for the business performance of global supply chain management. Overseas expansion were used as proxy for the intermediate factor. Based on the analysis of seventy two global supply chain management cases, the following results are found. Firstly, it was found that the process innovation, information capability and partnership of determinants factor affects agility of improved business performance. Secondly, process innovation, information capability and partnership of determinants factor improved more agility as overseas expansion. However, there are several limitations such as characteristics of process innovation, information capability and partnership, etc.

• Korea Trade Review
• /
• v.46 no.1
• /
• pp.1-21
• /
• 2021

The main purpose of this research is to analyze the changes in investment motivation by year through time series and cross-sectional analysis of the factors and investment decisions of Korean manufacturing companies. According to the investment pattern for Asean from the 1980s to the 19th, the first expansion period was 82 to 86, the average increase in overseas investment for securing foreign raw materials due to the second oil shock, and the second expansion period was a gradual increase in exports to the U.S. in 1987 to 1996. During the first stagnation period, direct investment in Asean stagnated in the aftermath of the 1998-05 Asian crisis, and in the third expansion period, part of the production facilities invested in China were relocated to Asean, increasing Asean's investment to become Korea's largest manufacturing investment in 17. Korea's proportion of investment in Asean surpassed that of mass investment since 10 years ago, and the proportion of investment in manufacturing sector has been transferred from China to Asean, and after 17 years, it has served as an overseas production base connecting China. As such, The main purpose of the research will be to extract the determinant factors and key factors for overseas direct investment and investment patterns in conjunction with global manufacturing companies' production base relocation and investment trends through empirical analysis. This research paper gave basic reference to the motivation and determinant of investment 16 years ago, and analyzed the changes in investment motivation by year and content through empirical analysis, contributing some reasonable purpose to the decision of companies and policy makers interested in overseas direct investment.

• International Area Studies Review
• /
• v.13 no.3
• /
• pp.385-412
• /
• 2009

This study first analyzes economical environment change (factor) of investment nation Japan and Japanese enterprise at the analysis of Japanese enterprise's over-seas expansion factor and influence. As a result of an analysis of the factor about Japanese enterprise's overseas expansion from 1990 to 1996 and from 1998 to 2006, commonly applied factors were Yen exchange rate, interest rates, wage, enterprise profit, facility investment, and consumption expenditure. Especially, as a result of regression analysis, a sudden change of "low interest rate" was main factor at Japanese enterprise's overseas expansion from 1990 to 1996, and Japan's "Yen ex-change rate" was drawn as an important factor from 1998 to 2006. That is, from 1990 to 1996, a shock by a sudden rise in Yen value could be viewed gradually accumulated and absorbed inside Japanese economy from 1998 to 2006. Whereas it could be said that Japanese enterprise's overseas expansion was accelerated under Japanese government's overseas supporting policy and "low interest rate" together with the factor in the rise of Yen value from 1998 to 2006.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.10 no.1
• /
• pp.199-210
• /
• 2015

This study analyzes various aspects of the successful overseas expansion of SMEs that export consumer goods with their own brands. Through in-depth interviews with CEOs and marketing practitioners of fifteen SMEs that export consumer goods of their own brands, researchers examined the determinants of the decisions to export own-brand products, forms of expansion into foreign markets, firms' distribution networks, firms' technological and marketing capabilities, export barriers, and export support services offered by the government. The results indicate that these companies obtained competitiveness in the design and quality of their products through steady R&D investment, with a focus on niche markets. This study also shows that they established foreign branches, participated in overseas trade fairs, and tapped into foreign markets with Korean home shopping channels and department stores to build distribution channels and to find new buyers. However, the findings of this study reveal that many of those companies export both OEM/OEM products as well as their own-brand products due to the low level of brand awareness in foreign markets. Thus, efforts to improve their brand awareness in the global market are much needed. In addition, this paper demonstrates that the programs and services provided by state-run organizations need improvement in credibility and expertise. This research suggests recommendations for successful export programs, and provides meaningful insights for consumer-goods SMEs establishing foreign market entry strategies with their own brands.

• Nuclear Engineering and Technology
• /
• v.53 no.1
• /
• pp.314-321
• /
• 2021

As Indonesia is rich in natural resources, nuclear power remains a low priority among energy alternatives. However, Indonesia needs to introduce nuclear power to improve the atmospheric environment and to support sustainable economic growth. This study conducted a two-stage survey of logit-probit and analytic hierarchy process to analyze the perception of Indonesian energy policymakers regarding the introduction of nuclear power, the potential for change, and key decision factors. The analysis confirms that the perception of nuclear power is positive and that the willingness to expand nuclear power can improve if negative conditions, such as underdeveloped technology level, foreign aid and assistance, and safety issues are addressed. In addition, it is confirmed that the policy makers consider political/social and environmental factors to be more important for decision-making. The results of this study can give inplications and be used as a key reference for Indonesia's nuclear power policy

• International Commerce and Information Review
• /
• v.18 no.4
• /
• pp.3-29
• /
• 2016

Recently, the market size of the global electronic-commerce is rapidly growing. The global market size of an overseas direct-purchase is expected to reach 1 trillion won by 2020. This study intends to determine the decision making factors of B2B overseas direct-purchase(DP) and reverse direct-purchase(RDP), and the impact on the vitalization of the small to middle-sized companies'(SMC) overseas DP and RDP. Ultimately, the purpose of this study is to provide a policy insight on the expansion of exports by SMC. For this, we determined the necessary elements for getting good results by Korean SCM in the overseas DP and RDP market through a preceding research based on resource-based theory and industry structure theory. Afterwards, we used the multiple regression model for positive analysis of the survey documents. We were able to confirm through analysis that the company information, logistics delivery, customs process, law and regulations have positive effects on the overseas DP and RDP. This study surveyed the entire overseas DP market, rather than focusing on the cases of harm and responses of the overseas DP, which was the topic for the preceding research, and can be differentiated from the previous study by deducting influence factors for the Korean SMC to succeed in the overseas DP and RDP market. Moreover, the results of this study is meaningful in proposing a strategic direction for the SMC participating in the overseas DP market and the government enacting policies.

• Journal of Navigation and Port Research
• /
• v.45 no.5
• /
• pp.238-251
• /
• 2021

It is understood that carriers evaluate several features of ports when fixing the T/S port. Those features can be enumerated as Geographic condition of port, Service network with overseas ports, Level of port productivity, Port infrastructure, Port services level, Port Authority's Policy direction mand Cost competitiveness. The objectives of this study are to: 1) determine if those factors could affect the T/S competitiveness of the port; and 2) to evaluate how Busan port conforms to those determinants factors in such extent. According to results of the analysis after surveying National global carrier, Intra-Asia carriers, Global overseas carriers, Terminal operators, and Busan Port Authority known to be highly influential samples, all factors were proven to be factors affecting the T/S competitiveness of the port. Meanwhile, in the analysis through AHP (Analytic Hierarchy Process) methodology about the order of weight among those factors, Cost competitiveness was answered as the most important factor. On the other hand, in the analysis to find the situation if Busan port conforms to those factors, Busan port was proven to satisfy those conditions to a moderate extent. In the analysis about the order of strength among those factors, Busan port was answered to have the highest strength in the geographic condition. However, it showed the bottom level of strength in the Cost competitiveness which was answered as the most important factor among samples for determining the T/S competitiveness of the port. This indicates that Government and Port Authority of Busan have to concentrate policy capabilities on the improvement of cost competitiveness of Busan port to enhance the T/S competitiveness. In this paper, four policy recommendations are given : Integration of Busan port operation into New port, Combining multiple operators into one or a few, Attracting Global mega carriers as the New port terminal operators, and Continuous Infrastructure expansion.

• Journal of Korea Port Economic Association
• /
• v.28 no.1
• /
• pp.159-178
• /
• 2012

Recently, Global network expansion strategy of GTOs(Global Terminal Operator) coupled with each country's port policy, plays huge role for the evolution of modern container port. The Chinese ports can be regarded as the major markets to the GTOs. However, there are scant of researches for finding the key success factors of GTOs' strategies when they consider to invest in overseas. In this respect, the aims of this study were to draw out the evaluation variables for successful investment strategies of GTOs, and to calculate the selected target ports. The 14 variables are selected including the variable named 'development potentiality of a port' through literature reviews. Using the Factor Analysis (FA) based on selected variables, four principal factors were extracted such as 'ability for port operating and cargo generating', 'the trade route and volume', 'the calling potentiality for large vessels' and 'the possibility of utilization of existing infrastructure'. In addition, the weights of factors and variables are evaluated through Fuzzy AHP method. As a result, 'ability for port operating and cargo generating' is chosen as the most important factor among principal factors as scored 0.343, and 'the development potentiality of a port' (0.107) is represented as the most important variable among 14 detailed variables. In overall, from the Global Terminal Operator's point of view, Shanghai is ranked as most suitable port for operating new terminal among the top 5 Chinese ports.