• Title/Summary/Keyword: Internal Network Embeddedness

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The Determinants of Foreign Subsidiary CEO Selection: Effects of Internal and External Network Embeddedness of Foreign Subsidiaries and Market Characteristics of Host Country

  • Lee, Jae-Eun;Yang, Young-Soo
    • Journal of Korea Trade
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    • v.25 no.2
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    • pp.134-151
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    • 2021
  • Purpose - This study empirically analyzes the impact of the internal and external network embeddedness of foreign subsidiaries and local market characteristics of the host country on the CEO selection whether or not to appoint an expatriate as the CEO of a foreign subsidiary. Design/methodology - To conduct an empirical analysis, we obtained a list of the headquarters of Korean MNCs from the Korea Chamber of Commerce and Industry. Based on the list of HQs, we identified a final list of overseas subsidiaries of Korean MNCs that have entered the world from KOTRA (Trade-Investment Promotion Agency for Korea). Then we conducted an empirical analysis based on the results of 391 questionnaires by employing logistic regression analysis. Findings - The results of empirical analysis are as follows. First, the higher the subsidiary's internal network embeddedness, the higher the tendency appoint an expatriate as the CEO. Second, the higher the volatility of the local market, the higher the tendency to appoint an expatriate as the CEO. Third, the stronger the competition in the local market, the lower the tendency to appoint a PCN. Originality/value - This study has significant theoretical implications in that it examines the link between the internal and external embeddedness of overseas subsidiaries and the appointment of parent country nationals (PCNs) as the CEO that prior research has not examined.

The Mediating Effect of Network Embeddedness on Investment Performance of Multinational Manufacturers in China (중국시장에 진출한 다국적제조기업의 투자성과에 미치는 네트워크 배태성의 매개효과 실증분석)

  • Song Gao;Sung-Hoon Lim
    • Korea Trade Review
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    • v.48 no.2
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    • pp.1-26
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    • 2023
  • The purpose of this study is to demonstrate how internal capability adjustments made by subsidiaries in response to local market adaption and market changes, together with the use of internal and external networks, have an impact on the investment performance of such subsidiaries. From the empirical results, it was proven that the larger the extent of internal capability adjustment made by subsidiaries, and the more quickly and flexibly it is implemented, the more positive the investment performance is. The empirical findings also showed that in this process, the use of internal/external network embeddedness has a positive mediating impact on the investment performance. Additionally, the results of statistical analysis support the research hypothesis that external embeddedness has a greater mediating influence on multinational manufacturing companies entering Chinese market than internal embeddedness. It implies to the top managers of subsidiaries that the subsidiary should actively utilize external embeddedness to create a new locational competitive advantage in the local region, as well as develop a strategy to reduce foreignness costs such as cost of adapting to the local system.

Effects of Embeddedness and Structural Holes on Innovation Performance: The Moderating Role of Environmental Uncertainty

  • Minjung KIM
    • The Journal of Industrial Distribution & Business
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    • v.14 no.7
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    • pp.9-18
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    • 2023
  • Purpose: The ability of a firm to acquire resources through marketing networks is crucial for its competitiveness. Nonetheless, the influence of these networks on the performance of a firm's innovation is still uncertain, particularly in the face of environmental uncertainty. This research investigates the impact of marketing networks, specifically network embeddedness and structural holes, on the performance of innovation in situations characterized by environmental uncertainty. Research design, data and methodology: The empirical examination was carried out within the framework of internal network entities, specifically the manufacturer-supplier-sub supplier relationships, involving the primary suppliers of a Korean engineering firm. Construct measures utilized in this study were derived from existing measures and prior research. A questionnaire survey was conducted with a major first-tier supplier of a Korean engineering firm. Proposed hypotheses were tested using structural equation modeling. Results: The survey findings suggest that only network embeddedness has an impact on the perception of major first-tier suppliers regarding the buyer's innovation performance. Conclusions: To strengthen the empirical evidence regarding the effects of marketing networks on innovation performance, future research should take into account cultural factors such as collectivism, which is indicative of the distinctive business-to-business marketing relationships observed in the Korean context.

The Embeddedness of Farmers Groups in Rural Areas : The Case of an Organic Farmers Group in Asan City (지역농업 추진주체의 형성 및 발전과정 -아산시 친환경농업 생산자 단체의 사례-)

  • Kim, Tae-Yeon
    • Korean Journal of Organic Agriculture
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    • v.15 no.2
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    • pp.131-150
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    • 2007
  • This study explores the development process of an farmers' group in Asan City that now plays an important role in the development of organic farming of the region. While increase in income in general may be one of main purposes making farmers join or form a group, the farmers group in Asan, instead, has tried to form a cooperative of local organic farmers. In doing so, they experienced a lot of difficulties and leant by trial and error. As a result, the farmers' group has recently developed in terms of business and organisational growth. The growth is not merely due to the growth of organic food markets but also due to the strong internal ties and trust that made possible to expand into food processing as well as to do social and cultural activities fur the rural residents. It implies that trust and cooperative identity between farmers should be the most important thing to be locally embedded farmers groups in a specific region.

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Theory of Network city and perspective on development of the Yeongnam region (네트워크도시 이론과 영남권 지역의 발전 전망)

  • Choi, Byung-Doo
    • Journal of the Korean association of regional geographers
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    • v.21 no.1
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    • pp.1-20
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    • 2015
  • This paper is to provide some suggestions to complement and extend theory of network city, and to consider preliminarily its applicability for development of the Yeongnam region, exploring its normative implications for urban and regional policy and its significance of empirical research. In order to resolve some limitations and problems of network city theory and of empirical research, we need to reconsider systematically analysis methods, to extend indices of connectivity, to reconfirm normative characters inherent in network city theory, to suggest the constitution of cooperative governance, and to develop policies for embedding functional connectivity into internal community. In a preliminary analysis of Yeongnam region on the basis of network city theory, it is not clear whether the urban system of the region is entirely a type of network city, even though it seems to be close to network city. However, in order for the Yeongnam region to orient towards network city, we can point out importance of policy issues such as expansion of transportation and communication infrastructure, strengthening of economic connectivity, constitution of cooperative governance, and local embeddedness of functional network within the region.

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Evaluating the Strategic Reaction of Labor Union Movement toward Labor Reforms: The Two National Centers' Reaction toward Park, Guen-Hye Government's Labor Market Restructuring (노동개혁국면에 있어 노조운동의 대응전략에 관한 평가: 박근혜정부의 노동시장 구조개혁에 대한 양노총의 대응을 중심으로)

  • Lee, Byoung-Hoon
    • 한국사회정책
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    • v.23 no.1
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    • pp.1-23
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    • 2016
  • This study evaluates the strategic capacity of Korean labor union movement by examining policy alternatives and strategic steps that the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions have shown in response to Park Geun-Hye government's labor market structuring policies. While the government-led labor reform was carried out as intended, organized labor has not simply failed to achieve progressive labor reforms to enhance employment security, but also to exert their strategic capacity effectively for preventing Park's labor market flexibilization policies. The two national centers have not been able to exert their strategic capacity (such as intermediating, framing, articulating, learning) for mobilizing the resources of internal solidarity, network embeddedness, narrative discourse, and organizational infrastructure. In particular, the formation and diffusion of public discourse is a significant part of strategic capacity of labor unions dealing with the labor politics of labor market restructuring, since organized labor, which is under the unfavorable constraints of limited movement resources and power imbalance with the business circle, needs to mobilize massive support and participation from union members and civil society organizations. In this light, it becomes of more importance for labor union movement to exert their strategic capacity toward internal solidarity and network embeddedness in the stage of labor market reforms. Under the recent stage of labor reforms, however, the labor unions has not harnessed their movement resources effectively, but undertaken their protest in a traditional manner, thereby losing its public efficacy from inside and outside. Moreover, it is necessary to build and activate the network of organic solidarity among organized labor, civil society organizations and progressive political parties, in order to cope with the pro-business coalition of power elites for accomplishing pro-labor reforms.

Identifying the bona fide VeLLOs in the Gould Belt's clouds

  • Kim, Mi-Ryang;Lee, Chang-Won;Kim, Gwan-Jeong;Dunham, M.;Allen, L.;Myers, Philip C.;Evans, N.
    • The Bulletin of The Korean Astronomical Society
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    • v.37 no.1
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    • pp.82.1-82.1
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    • 2012
  • We present results of searching for the Very Low Luminosity Objects (VeLLOs; internal luminosity Lint<0.1Lo) candidates in the Gould Belt's clouds using infrared observations from 3.6 to 70 micron by the Spitzer Space Telescope. More than 100 VeLLO candidates were selected through the criteria by Dunham et al. and our additional ones. The candidates in Northern sky were recently observed with high density tracers such as N2H+ (1-0) and HCN (1-0) using Korea VLBI Network (KVN) 21m telescope at Yonsei site to check their embeddedness in dense gas envelopes. A total of 25 out of 74 VeLLO candidates were detected in either N2H+ or HCN (1-0) line while 9 candidates were detected in both tracers. These are more likely bona fide VeLLOs which need to be studied further in future. In this study the bolometric luminosities for 40 VeLLOs (25 from this study and 15 from Dunham et al.) were estimated and found to be significantly smaller than those given by various theoretical model tracks with constant accretion rate in a BLT diagram, indicating the constant accretion process suggested by standard star formation models can not explain the faintness of the VeLLOs. In the talk we will discuss on some possible explanation of why the VeLLOs are faint.

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The Effect of Synchronous CMC Technology by Task Network: A Perspective of Media Synchronicity Theory (개인의 업무 네트워크 특성에 따른 동시적 CMC의 영향 : 매체 동시성 이론 관점)

  • Kim, Min-Soo;Park, Chul-Woo;Yang, Hee-Dong
    • Asia pacific journal of information systems
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    • v.18 no.3
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    • pp.21-43
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    • 2008
  • The task network which is formed of different individuals can be recognized as a social network. Therefore, the way to communicate with people inside or outside the network has considerable influence on their outcome. Moreover, the position on which a member stands in a network shows the different effects of the information systems supporting communication with others. In this paper, it is to be studied how personal CMC (computer-mediated communication) tools affect the mission that those who work for a network perform through diverse task networks. Especially, we focused on synchronicity of CMC. On this score, the perspective of Media Synchronicity Theory was taken that had been suggested by criticizing Media Richness Theory. It is the objective, from this perspective, to find which characteristics of networks make the value of IT supporting synchronicity high. In the research trends of social networks, there have been two traditional perspectives to explain the effect of network: embeddedness and diversity ones. These differ from the aspect which type of social network can provide much more economic benefits. As similar studies have been reported by various researchers, these are also divided into the bonding and bridging views which are based on internal and external tie, respectively, Size, density, and centrality were measured as the characteristics of personal task networks. Size means the level of relationship between members. It is the total number of other colleagues who work with a specific member for a certain project. It means, the larger the size of task network, the more the number of coworkers who interact each other through the job. Density is the ratio of the number of relationships arranged actually to the total number of available ones. In an ego-centered network, it is defined as the ratio of the number of relationship made really to the total number of possible ones between members who are actually involved each other. The higher the level of density, the larger the number of projects on which the members collaborate. Centrality means that his/her position is on the exact center of whole network. There are several methods to measure it. In this research, betweenness centrality was adopted among them. It is measured by the position on which one member stands between others in a network. The determinant to raise its level is the shortest geodesic that represents the shortest distance between members. Centrality also indicates the level of role as a broker among others. To verify the hypotheses, we interviewed and surveyed a group of employees of a nationwide financial organization in which a groupware system is used. They were questioned about two CMC applications: MSN with a higher level of synchronicity and email with a lower one. As a result, the larger the size of his/her own task network, the smaller its density and the higher the level of his/her centrality, the higher the level of the effect using the task network with CMC tools. Above all, this positive effect is verified to be much more produced while using CMC applications with higher-level synchronicity. Among the a variety of situations under which the use of CMC gives more benefits, this research is considered as one of rare cases regarding the characteristics of task network as moderators by focusing ITs for the operation of his/her own task network. It is another contribution of this research to prove empirically that the values of information system depend on the social, or comparative, characteristic of time. Though the same amount of time is shared, the social characteristics of users change its value. In addition, it is significant to examine empirically that the ITs with higher-level synchronicity have the positive effect on productivity. Many businesses are worried about the negative effect of synchronous ITs, for their employees are likely to use them for personal social activities. However. this research can help to dismiss the concern against CMC tools.