• Journal of Korea Trade
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• 제23권4호
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• pp.30-57
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• 2019

Purpose - This study analyzes the effect of internationalization represented as exporting on firm performance on the subject of SMEs operating in Masan Free Trade Zone which has shown poor performance recently despite its status as the oldest and largest free trade zone in Korea. We also analyze the effect of firm size on firm performance, and the moderating role of firm size in relation to internationalization and firm performance. Design/methodology - This study uses multiple regression models for unbalanced panel data as the empirical tools for the estimation of the effect that internationalization has on firm performance (ROA or ROS). Our sample consists of 91 manufacturing SMEs among all 110 companies located in Masan Free Trade Zone as of 2017. Findings - The degree of internationalization has a negative impact on firm performance. However, firm size turns out to have a positive effect and play a positive moderating role in the relation to internationalization and firm performance. This seems to be because most tenant companies operating in Masan Free Trade Zone are small firms whose costs of internationalization may exceed the benefits. Empirical results also show that longer CEO tenure has a greater negative effect on firm performance. Originality/value - The originality/value of this paper can be found in 3 aspects. First, we conducted an empirical analysis on the relationship between the internationalization and firm performance of SMEs in a specific region, namely, Masan Free Trade Zone. Second, while most previous studies focused on listed medium companies, most of the sample of this study are small and medium non-listed enterprises. Third, it is witnessed that firm size has a positive moderating effect on the relation between internationalization and firm performance.

• Journal of Korea Trade
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• 제24권7호
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• pp.54-72
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• 2020

Purpose - This study explores the contextual factors that affect the relationship between CEO overseas experience and firm internationalization. This study incorporates a wide range of contextual factors, including mega, macro, and micro variables. In particular, this study goes a step further from prior studies by incorporating a higher-order variable i.e., the global financial crisis that can constrain the managerial discretion of a CEO. Design/methodology - To structure the balanced data set before and after the 2008 global financial crisis, we used the data for the years from 2002 to 2014 from a sample of Korean manufacturing firms. Ultimately, 1101 firm-year unbalanced panel observations from 101 firms were used for the analysis. Findings - Our main findings can be summarized as follows. CEO overseas experience is positively related to firm internationalization. However, this relationship varies depending on the CEOs level of managerial discretion. As for the constraining moderation, the global financial crisis weakened the positive relationship between CEO overseas experience and firm internationalization. As for the enabling moderation, the CEOs tenure strengthened the relationship. Originality/value - This study adopted the knowledge, skills, and abilities (KSA) framework to explain the relationship between CEO overseas experience and firm internationalization. Moreover, we argue that the CEO-internationalization relationship depends on the specific context of the managerial discretion, focusing on the 2008 global financial crisis. Empirically, this study adopted the 2SLS procedure to correct endogeneity. Instead of taking the actual value of prior internationalization as a control, we estimated prior internationalization using the instrument variables at an industry level. This procedure made our estimation more robust.

• The Journal of Asian Finance, Economics and Business
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• 제8권9호
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• pp.287-300
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• 2021

The study is conducted to find out the impact of the country- and corporate-level governance and firm internationalization on stock liquidity of 120 listed firms in Japan, Hong Kong, Pakistan, and India. Panel data is used in the current study. The annual time span covered in the current study is 10 years. The current study explores results based on secondary data. The findings of the 'robust panel corrected standard error' estimator shows that the internationalization strategy of firms positively influences the stock liquidity. The internationalization strategy of multinational corporations proves to be an effective methodology for improving stock liquidity in the home market as well as abroad. The study also shows that a stronger relationship exists between stock liquidity and internationalization in those countries where the regulatory settings are effective, the judiciary system is efficient and shareholders' rights are protected. Corporate governance and stock liquidity are negatively associated. The study also finds a negative relationship between country-level governance mechanisms and stock liquidity. Whereas the 'robust panel corrected error' estimator shows a positive association between corporate governance mechanisms and firm internationalization. The study depicts that effective corporate governance motivates multinational companies to expand their business abroad.

• Journal of Information Technology Applications and Management
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• 제29권3호
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• pp.25-41
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• 2022

While there exists voluminous literature on the internationalization of the firms, it has focused on mature firms or born-global firms. There is still a lack of research on firm that is in the growth stage between venture and mature firm. To fill this gap, this paper focuses on the newly public firm which is enter the stock market through initial public offerings (IPO). Specifically, I examine the relationship between the early listing and internationalization. In the venture firm aspect, the decision of the IPO necessary to allow to change organization structure, ownership and take a risk from environmental movements. This paper suggests early listing is a behavior of entrepreneur orientation. According to empirical results, there is a positive relationship between early listing and internationalization. It implies that early listing may help international expansion by sourcing finance, reputations from market. Furthermore, this study emphasizes the importance of financial slack resources to international expansion. I conclude that ventures need not only early entering in stock market but also securing sufficient financial slack resources to achieve sustainable growth in the international market.

• 한국산학기술학회논문지
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• 제22권1호
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• pp.221-230
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• 2021

본 연구에서는 기업의 국제화 수준을 개별 기업의 매출액 대비 해외매출비중(FSTS)으로 측정하고 Sloan(1996)의 모형을 활용 당기순이익과 차기순이익 간의 1차 자기상관관계를 회계이익 지속성의 대용치로 사용하여 기업의 이익지속성에 영향을 미치는 다수의 통제변수들과 함께 실증분석을 실시하였다. 2011년부터 2016년까지 유가증권 시장에 상장된 12월 말 결산법인을 대상으로 고정효과모형을 이용하여 실증분석을 실시한 결과, 기업의 국제화와 회계이익의 지속성은 1% 유의수준에서 양(+)의 효과를 나타내어 개별 기업의 국제화 수준이 증가할수록 기업의 이익 지속성 또한 증가하는 것을 확인 할 수 있었다. 또한 기업규모, 재무건전성, 현금 수반성, 성장성, 투자성은 예측과 일치하게 국제화와 통계적으로 유의한 양(+)의 관계를 나타내어 이들이 기업 이익의 지속성을 증진하는데 중요한 보완적 요인임을 검증하였다. 이는 기업의 규모가 크고 재무건전성 및 현금 수반성이 우수할수록, 성장기회와 투자성향이 높을수록 기업의 이익지속성이 증가함을 의미하여 기존 선행연구들의 결과와도 일치하였다. 이러한 결과는 기업이 국제화 전략 추진을 통해 새로운 해외 시장을 확보하고 성장을 도모함으로서 기업 가치를 안정적으로 유지·확장시킬 수 있음을 시사한다.

• The Journal of Asian Finance, Economics and Business
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• 제7권2호
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• pp.281-289
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• 2020

This research analyses the challenges facing SMEs in Oman in their quest for internationalization. The study is based on the OECD Model of Internationalization put forward in the report titled "How to Foster the Internationalization of SMEs through the Pacific Alliance Integration Process" which focuses on four factors namely finance, business environment, firm capabilities and market access, which are appropriate for an emerging economy like Oman. This study used a descriptive and quantitative research design in attempting to analyze the challenges being faced by Omani SMEs in their endeavors to internationalize. The research investigates causal relationship between variables using positivist and deductive approach. Data collected from 102 respondents was analysed by Structural Equation Modeling(SEM) using AMOS. It was found that finance availability was the most significant predictor of internationalization challenges followed by market access and business environment, while firm capabilities had no impact. Thus SMEs need easier access to credit and have to develop their international business networks and their marketing capabilities in order to grow internationally. Keeping in mind the contribution made by SMEs the government has to intervene by opening up easy lines of credit to SME exporters and allowing them relaxations in customs and other duties.

• 동아시아경상학회지
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• 제6권2호
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• pp.49-57
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• 2018

Purpose - to examine the theories related to the internationalization of multinational corporations as well as theories related to internationalization of small and medium-sized enterprises. Research design, data, and methodology - traditional theories, e.g. eclectic paradigm and behavioral theory and product life cycle etc. were examined and recent advances theories - network theory, entrepreneurship - were also examined to outline the theory of internationalization of firm. Results - the main schools of international researches are divided into two; one is the economics school, the other is the behavioral school. The economics school has considered internationalization as a pattern of investment in foreign markets explained by rational economic analysis of internalization, ownership, and location advantages. Apart from the economics approach, a theory relevant to smaller firms highlights slow and incremental overseas market commitment. Recent research on the network perspective is fast emerging and it can be applied and well explained on the internationalization of smaller firms, focusing on firm behavior in the context of a network of interorganizational and inter-personal relationships Conclusions - Small medium-sized enterprises have been recently rising, however, there has still been little consolidation of literature in internationalization and most of the relevant theories have been still focusing on explaining the globalization of multinational corporations. Little studied on the internationalization in the context of smaller firms which are distinctly differentiated from larger firms including international new ventures, which the motivation to study strongly calls for more information and studied on small medium-sized enterprises.

• 경영과정보연구
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• 제33권1호
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• pp.157-172
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• 2014

기업 국제화에 영향을 미치는 요소들에 대한 선행연구들은 주로 선진국 다국적 기업을 대상으로 진행되어 온 반면, 신흥국 기업의 국제화에 영향을 미치는 요소들에 대한 연구는 매우 부족한 실정이다. 본 논문에서는 2011-2013년 '중국500대기업 발전보고서'에 포함된 총 237개 상장기업들을 대상으로, 각 기업 최고경영자팀(TMT)의 국제화관련 교육 및 경험적 배경특성들과 기업의 국제화 정도 간의 관계와 사외이사 비율과 CEO/이사회 의장직 분리로 측정한 이사회 독립성의 조절효과를 분석하였다. 다중회귀분석결과는 중국 다국적기업 TMT의 해외업무경험비율은 기업의 국제화 정도와 정의 관계가 있는 것으로 나타났다. 하지만 TMT의 해외교육배경과 국제화관련전공자비율은 기업의 국제화 정도와 유의한 관계가 없는 것으로 나타났다. 또한 이사회 독립성의 조절효과와 관련해서는 사외이사비율과 CEO/이사회 의장직 분리 모두 TMT의 해외업무경험비율과 국제화 간의 정의 관계를 약화시키는 반면, 국제화관련전공자비율과 국제화 간의 정의 관계는 강화시키는 것으로 나타났다. 연구결과는 실무차원의 국제운영지식에 영향을 미치는 TMT의 해외업무경험은 국제화 전략에 대한 최고경영자들의 과신과 위험감수성향을 강화시켜 기업의 국제화 정도를 강화시키는 반면, 관련시장에 대한 지식과 정보 제공과 관련한 교육적인 배경특성들은 최고경영자들의 과신과 위험감수성향에 영향을 강화하지 않음을 시사한다.

• 동아시아경상학회지
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• 제7권4호
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• pp.1-13
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• 2019

Purpose - Based on transaction cost perspective and institution-based perspective, this research attempts to investigate the effect of outsourcing on a firm's performance and how it interacts with institutional context in which the firms operate. Research design, data, and methodology -With a sample of 164 manufacturing firms form South Korea, we examine the direct effects of outsourcing on the a firm's level of product innovation and internationalization and the moderating effects of competitive pressure and property right protection as important external factors that could affect the effectiveness of outsourcing decision. Result - The findings show that outsourcing not only enhance a firm's capability to concentrate on its core competencies, but also to increase a firm's combinative capacity to acquire external knowledge. Furthermore, we finds that in a highly competitive environment, potential knowledge spillovers to other competitors may attenuate the potential benefits of outsourcing. Conclusion - Outsourcing can enhance a firm's innovation activities by providing valuable access to external knowledge and also to complementary resources from the external partners, which in turn enables firms to focus on core competences.

• 무역학회지
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• 제47권6호
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• pp.97-117
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• 2022

Amid the growing importance and growth potential of venture firms worldwide, this study aimed to figure out the effect of new product development capabilities (NPDC) on the internationalization of Korean venture firms and the moderating impact of founders' human capital. NPDC is a core competency that can cope with the rapidly changing market environment and is required when entering multinational markets. Therefore, we subdivided founders' human capital into professional experience, startup experience, education level, and marketing capacity and examined each moderating effect on a venture firm's internationalization. As a result of empirical analysis of 1,362 Korean venture firms using the Tobit model, this study found that venture firms with excellent NPDC tend to achieve a higher level of internationalization. In addition, among the founder's human capitals, professional experience, education level, and marketing competency moderated the positive relationship between NPDC and internationalization. In contrast, the founder's startup experience was insignificant. The results of this empirical analysis explain the factors that trigger the internationalization performance of venture firms from the perspective of dynamic capabilities and suggest that the founder's human capital played an essential role in the internationalization.