• Asia-Pacific Journal of Business
• /
• v.13 no.3
• /
• pp.171-182
• /
• 2022

Purpose - The main purpose of this study is to test two competing hypotheses on the relationship between foreignness and corporate philanthropy drawing on the resource dependence theory. Design/methodology/approach - This study used Korean Enterprsie Survey data constructed by Korean Statistical Information Service. This study employed both OLS and Tobit models to test the hypotheses. Findings - A conventional wisdom can argue that MNC subsidiaries are more willing to give charitable donations than local firms do because they may perceive philanthropy in the host country is a good opportunity to reduce liabilities of foreignness (H1-1). On the other hand, one can argue that MNC subsidiaries are less willing to give charitable donations than local firms do because they have operational flexibility when they are coerced to engage in corporate philanthropy by host country government stakeholders (H1-2). Empirical results support the prediction that MNC subsidiaries are less likely to give charitable donations than local firms do in Korea. Research implications or Originality - Our findings can provide useful insights to researchers and managers in the sense that MNC managers can increase or decrease their charitable donations depending on the institutional contingencies in different host countries. These institutional contingencies are particularly important within a transforming context such as Korea.

• Korea Trade Review
• /
• v.46 no.2
• /
• pp.39-54
• /
• 2021

The purpose of this study is as follows. First we investigate the relationship between contact with foreign managers (CFM) of host country nationals (HCNs) working at MNC subsidiaries and their organizational identification with MNC (OIM). Second we examine the moderating effect of MNC subsidiary localization (MSL) on the relationship between CFM and OIM. For this purpose, we set hypotheses on the relationship among CFM, OIM, and MSL. To verify theses hypotheses, we conducted hierarchical regression analysis on the data from 374 HCNs in 56 MNC subsidiaries. The results of this study are as follows: Frist, CFM positively affects OIM. Second, there is a significant moderating effect of MSL on the relationship between CFM and OIM. Our findings have critical implications in that a subsidiary-level variable that has a significant impact on organizational identification with MNC is presented and in that specific managerial guidelines for subsidiaries can be drawn.

• Journal of Korea Trade
• /
• v.24 no.8
• /
• pp.189-206
• /
• 2020

Purpose - This paper attempted to verify the process by which a multinational corporation (MNC)'s subsidiary practices entrepreneurship to create effective knowledge (KC) in the local market. We have looked at whether subsidiary entrepreneurship (SENT) has a moderation effect in creating knowledge for the local market when a subsidiary has been given autonomy (AUT) from the headquarters (HQ). We also argue that when a subsidiary creates meaningful knowledge, the effect of the increased status by the HQ within the MNC network position (NP) has an indirect effect on whether knowledge is transferred to other overseas subsidiaries (KTO). Design/methodology - This paper used a structural equation model (SEM) of 282 effective foreign companies invested in Korea. To test the hypothesis about the process of SENT on KTO, descriptive statistics, confirmatory factor analysis, reliability, convergent and discriminant validities, and common method bias were analyzed using STATA. In addition, the moderation effect was verified along with SEM. The moderation effect of AUT on SENT and KC was presented graphically by confirming \mathrm{\pm1} standard deviation of AUT for the main effect. Findings - Our findings are as follows. First, while the hypothesis about the direct effect of SENT and KC on KTO was not supported, all other hypotheses were supported. Second, both the AUT and moderating effect and the indirect effect of NP were significant. In the conclusion, these findings are discussed in relation to its various theoretical and practical implications. Originality/value - This study attempted to contribute to the knowledge creation theory of MNC by contemplating how subsidiaries can move away from HQ and grow in the local market. Although there is still a shortage of foreign investment in the Korean market, our practical implications offer guidance for how current subsidiaries can develop more than other overseas subsidiaries.

• International Area Studies Review
• /
• v.15 no.2
• /
• pp.275-301
• /
• 2011

This study examines antecedent factors that influence subsidiaries' MNC (multinational corporation) knowledge adoption. I argue that subsidiary local environmental factors(local embeddedness, level of local competition), subsidiary organizational factors(parent investment, subsidiary CEO expatriation, scope of subsidiary value chain), and subsidiary relational factors(subsidiary autonomy, the strength of subsidiary in MNC, social capital) are the important enablers for subsidiaries to adopt knowledge from other MNC units. Especially, I use two data set (knowledge from (1) peer subsidiaries, (2) parent company) to estimate the effect of the factors. The results indicate that subsidiary local embeddedness and scope of subsidiary value chain negatively influence on subsidiary knowledge adoption from peer subsidiaries. Conversely, the strength of subsidiary in MNC and social capital positively influence on that. Subsidiary knowledge adoption from parent company is positively influenced by parent investment and social capital.

• Korea Trade Review
• /
• v.45 no.2
• /
• pp.137-155
• /
• 2020

The purpose of this study is to examine the antecedents and consequences of host country managers (HCMs)' acculturative stress in multinational corporation (MNC) subsidiaries in Korea. We suggest that HCMs' national identification (NI) positively and organizational identification (OI) negatively influence on the HCMs' acculturative stress. In addition, we propose that HCMs' OI negatively moderate the relationship between HCMs' NI and acculturative stress. Moreover, we hypothesize a negative relationship between HCMs' acculturative stress and work engagement. To test these hypotheses, we performed hierarchical regression analysis and mediation analysis of 643 HCMs in 60 MNC subsidiaries that originate from 11 countries. Results of analyses revealed that all the hypotheses were supported except H1 (positive relationship between HCMs' NI and acculturative stress). The present findings provide theoretical and managerial implications, and we provide suggestion for future research.

• Knowledge Management Research
• /
• v.14 no.3
• /
• pp.1-13
• /
• 2013

This study investigates how relational activities within MNC network affect knowledge transfer and performance of subsidiary. We separated the possible relationships between headquarter and overseas subsidiaries by support level, interaction level, and conflict level, and compared the impact on knowledge transfer, and performance. To understand the knowledge sharing, development and performance, we use structural equation modeling to analyze data from subsidiaries in China.

• Journal of Korea Trade
• /
• v.24 no.1
• /
• pp.99-112
• /
• 2020

Purpose - With the increasing uncertainty of China's domestic political and economic environment in recent years, Korean MNC subsidiaries in the Chinese market face greater challenges and competition. Based on the insufficiency of existing research and the need for enterprise management practices, this paper uses the Chinese subsidiaries of Korean MNCs as an example to study and explore how knowledge management and dynamic capabilities affect ambidextrous innovation and the relationship between ambidextrous innovation and subsidiary performance. Design/methodology - From January to March 2019, this study collected 341 valid questionnaires using a survey company specializing in China for the members of the Chinese subsidiaries of Korean MNCs to verify the hypotheses. Using the collected data, the study model was verified using the Smart PLS 3.0 statistical package. Findings - Knowledge transfer and knowledge sharing have positive effects on dynamic capabilities and ambidextrous innovation, and dynamic capabilities have a positive impact on ambidextrous innovation. Ambidextrous innovation has been shown to have a significant effect on subsidiary performance. In addition, a partial mediating effect of dynamic capabilities on the relationship between knowledge management and ambidexterity innovation was found. Originality/value - In the academic context, this paper contributes theoretically to the relationship between knowledge management and ambidextrous innovation, as well as the mechanism of dynamic capability, and to verify the relationship between ambidextrous innovation and corporate performance. Against the background of MNC management, the results of this study provide further enlightenment for managers of subsidiaries.

• Asia-Pacific Journal of Business
• /
• v.10 no.3
• /
• pp.53-67
• /
• 2019

Reverse knowledge transfer has been an important research theme in the literature on multinational corporations (MNCs). This paper proposes major determinants of MNC headquarters' willingness to adopt and use marketing knowledge from their subsidiaries. We argue that the willingness will be jointly determined by both the headquarter's absorptive capacity and the focal subsidiary's transfer capacity and willingness to transfer. In addition, we argue that these capability and motivation effects are moderated by (1) institutional distance between home and the focal host country, (2) the need to unlearn existing routines, and (3) types of entry modes. This paper contributes to the reverse knowledge transfer literature by proposing the argument that both motivational and capability factors are likely to determine the MNC parents' willingness to adopt and use marketing knowledge from their subsidiaries.

• Journal of Korea Trade
• /
• v.25 no.1
• /
• pp.184-202
• /
• 2021

Purpose - This study empirically investigates the relationship between expatriate CEOs of multinational corporation (MNC) foreign subsidiaries and local philanthropy. Since corporate social responsibility (CSR) enables MNCs to achieve local legitimacy, this research argues that local philanthropy is a valuable strategic means for expatriate CEOs of foreign subsidiaries to secure local legitimacy. Design/methodology - To investigate our argument, we use a sample of 5,459 observations from 576 foreign subsidiaries of MNCs in Korea between 2002 and 2016. We conduct a random-effects panel Tobit regression with subsidiary CEO having foreign nationality as the independent variable and local philanthropy as the dependent variable. Findings - Our main findings are that expatriate CEOs of foreign subsidiaries are more actively engaged in local philanthropy. In addition, the positive relationship between expatriate CEOs and local philanthropy is weaker as their tenure increases. Originality/value - How expatriate CEOs overcome their weak local legitimacy as foreigners in a host country has remained unclear because existing studies mainly focused on the control and coordination aspects of staffing expatriates in CEO positions of foreign subsidiaries. This study broadens the literature on subsidiary CEO staffing and CSR activities of MNCs by identifying complementary relationships between expatriate CEOs and corporate philanthropy in the host country.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.1
• /
• pp.205-215
• /
• 2020

The purpose of this paper is to empirically analyze the determinants of foreign subsidiary's local embeddedness because it is critically important for the subsidiary to build a variegated local network. This paper suggests that a MNC's global capability, the degree of autonomy granted by the headquarters of the multinational corporation to its foreign subsidiary, the foreign subsidiary's absorptive capacity based on local environment, and its level of localization will affect the subsidiary's local network embeddedness. The empirical analysis confirmed that when the headquarters gives the foreign subsidiary more autonomy, this has a positive effect on the local embeddedness of the foreign subsidiary and when the foreign subsidiary has a strong absorptive capacity, this has a positive correlation with the local embeddedness of the foreign subsidiary. And this paper found that when the foreign subsidiary has achieved a high level of staff localization, this foreign subsidiary will have a higher level of local embeddedness. This study identified the preceding conditions necessary for a foreign subsidiary of a multinational corporation to effectively embed itself in the local network by analyzing factors related to the multinational corporation's headquarters and subsidiaries, and thus contributes significantly to continued research on the local embeddedness of subsidiaries.