• Journal of the Economic Geographical Society of Korea
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• v.3 no.2
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• pp.43-61
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• 2000

This study investigate the spatial characteristics and corporate networks of foreign business service firms in Korea. Specifically intrafirm and extrafirm organization of foreign firms are addressed utilizing the corporate network perspective. For this purpose, this study conducted questionnaire and interview surveys for the foreign firms. Parent-subsidiary relationships are focused on the mechanisms by which Transnational Corporations (TNCs) headquarters control and coordinate their foreign affiliates and subsidiaries in order to achieve investment purpose in Korea (overseas market expansion). But extrafirm networks of foreign business services firms in Korea do not appear to play an important role in regional development to date. A low proportion of foreign firms is engaged in academics-industry linkages, and a low number o( foreign firms is formally linked with government organizations, research institutes, and trade associations. To conclude, Foreign direct investment firms in business services in Korea are characteristics by globalized intrafirm networks and localized interfirm and extrafirm networks. It is understood that regional development can be vitalized when Korean local firms have close relationships with technologically advanced foreign firms in tacit knowledge capacity. Foreign firms are able to play an important role in the development of business services in Korea. This study suggests that regional foreign direct investment policy should be targeted towards the corporate networking with foreign firms and domestic firms and incrementation of the potential of foreign firms as a knowledge-intensive industry.

• 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.

• Knowledge Management Research
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• v.19 no.3
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• pp.1-29
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• 2018

This study focuses on the mediating role of creativity on the knowledge management process. To confirm focal hypotheses, we conducted survey on 538 employees of foreign subsidiaries of global enterprises. Main findings are: first, creativity turned out to positively mediate the effect of knowledge transfer on the firm's performance; second, the mediating role of creativity differs depending on the domain of acquiring knowledge such as exploitation and exploration. This research found that the influence of exploitative knowledge on knowledge creation and innovative performance was stronger. As such, among tension view and foundational view, which are two competing views on the relationship between knowledge and creativity, the latter is more soundly supported.

• East Asian Economic Review
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• v.16 no.2
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• pp.205-225
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• 2012

I use panel data of sales by the foreign subsidiaries of the U.S. MNCs to examine whether trading blocs create more or less FDI and the impacts on FDI of the extended market size created by forming blocs. By employing a region-fixed effects model, I find that countries forming trading blocs attract more FDI, particularly from non-member countries, but that FDI does not always increase with the market size of the blocs. As the market size increases, FDI increases only for large blocs. However, these findings are sensitive to model specifications. A policy implication is that a country considering forming or joining a trading bloc with a view to attract FDI may want to form a trading bloc with a country or countries with a large market size.

• Korea Trade Review
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• v.44 no.2
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• pp.21-35
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• 2019

This study analyzes factors that affect the corporate value of Korean companies operating in Latin American countries. Primary factors are associated with characteristics of the host country, the parent company, and subsidiaries. Empirical results show that asset specificity is the main factor influencing firm value. This region is geographically far from Korea and culturally different. Therefore, the source of competitive advantage such as asset specificity should be large enough to offset liability of foreignness for successful entry into the region. This paper also found that joint ventures are more advantageous than direct investments. Joint ventures in Latin American can minimize risk, complement technology and information, and reduce trade barriers.

• Korean Journal of Labor Studies
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• v.24 no.1
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• pp.65-105
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• 2018

This study examines the employment relations of TNC subsidiaries in Central and Eastern Europe(CEE). Specifically, this study analyzes the employment relations of Volkswagen subsidiaries, which has led the restructuring the CEE's automobile industry since the collapse of socialist regimes, and Hyundai subsidiaries, which has sought to cast employment relations through Greenfield Investment as a latecomer. After the collapse of socialism, with the massive inflow of foreign direct investment and the social legacy of weak labor unions, CEE has been included in the global production network as low-wage production base. Both VW and Hyundai have entered the CEE with their own characteristics and global strategies that have been developed in their home countries and have developed the local production. In the process, both have formed local employment relations, combining low-wage, unstable employment, and weak labor unions of CEE under their own strategy. In recent years, however, it has been doubtful of the sustainability of employment relations based on the advantages of low-wage production bases, as the pools of low-wage workforce decline and new union movements occur in CEE. These changes in CEE are an indication of the inherent contradiction of low-wage production base strategies.

• International Commerce and Information Review
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• v.16 no.5
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• pp.203-221
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• 2014

This study examines the effect of external environments such as technological change and competitive intensity on HQ-subsidiary cooperation. It was empirically tested by a Korean sample to verify the validity of the research framework. The empirical result confirms that external environments increase the odds of HQ-subsidiary cooperation. The result also indicates that technology change and HQ-subsidiary cooperation are related. The data support that firms facing a high rate of technology change stress the relationship between headquarters and foreign subsidiaries. The result also confirms that competitive intensity directly influences HQ-subsidiary cooperation.

• Management & Information Systems Review
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• v.25
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• pp.297-319
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• 2008

Dramatic increase of social concerns on the environments has led companies to take into account environmental issues in strategic decision-making. The strategic consideration on environmental management is essential to the modern companies. This study was initiated with a research purpose to explain the level and the characteristics of corporate environmental strategy through comparing the Hyundai, GM and Toyota Motor Company. The research method adopted by this research is a case analysis. The degree of environmental management strategy was evaluated in functional sectors or value chain including the production, research and development, procurement, logistic and recycling etc. Consequently, this study could find that Toyota is the most advanced company in the level of environmental management strategy. Also there are many differences among three companies in the level and degree of environmental management strategy. Hyundai and GM did not consider environmental management in foreign subsidiaries as much as Toyota. Motor Company. Also the study find out there are actual gaps between the rhetoric and reality in environmental management strategy in Hyundai Motor Co. All companies included in this study consider importantly ISO14001 as the tool to maintain the environmental management of their companies.

• The Korean Journal of Applied Statistics
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• v.26 no.6
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• pp.857-871
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• 2013

Export credit insurance is a policy tool for export growth. In the era of free trade under the governance of WTO, export credit insurance is still allowed as one of the few instruments to increase exports. This paper, using data on short-term export insurance contracts issued to foreign subsidiaries of Korean companies, calculates the expected loss per exposure by combining the effect of risk factors (credit rate of foreign importers, size of mother company, and payment period) on loss frequency and loss severity in different levels. We, applying generalized linear models (GLM), first fit loss frequency and loss severity to negative binomial and lognormal distribution, respectively, and then estimate the loss frequency rate per contract and the ratio of loss severity to coverage amount. Finally, we calculate the expected loss per exposure for each level of risk factors by combining these two rates. Based on the result of statistical analysis, we present the implication for the current premium rate of export insurance.

• International Commerce and Information Review
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• v.18 no.2
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• pp.195-218
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• 2016

This study seeks to find out the determinants of subsidiary performance. In addition, moderating effect of autonomy on the relationship between subsidiary competence, subsidiary relationship and subsidiary configurational focus, and subsidiary performance. In studying the moderating effect of autonomy on subsidiary performance, the results will give invaluable insights to foreign subsidiaries in Korea to better compete in competitive Korean market. The results of empirical study showed that subsidiary with higher level of interaction with its intra-MNC network has higher level of performance. Thus, active interaction with headquarter and its affiliates will lead to better performance. Subsidiary with higher level of competence has higher level of performance. Thus, subsidiary should attain higher level of competence to better compete in Korea. Subsidiary autonomy has moderating effect on the relationship between configurational focus and performance. Thus, optimal MNC subsidiary configuration and attainment of subsidiary autonomy is needed to secure competitiveness in Korean market.