• Journal of Korean Society for Quality Management
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• v.29 no.3
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• pp.18-38
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• 2001

This paper attempts to identify variables which affect Korean electronic commerce(EC) venture's strategies for the international market entry decision making. Especially in the perspective of quality management perspective, it is highly relevant question which factors are critical when the industry has high technology driven characteristics such as EC, product quality related factors or environmental factors. Technology competence, operational competence, local marketing competence, psychological barriers, domestic competition level, and local infrastructure level are included to generate the explaining model for international market entry decision. The result is that the higher technology competence and local marketing competence are the significant factors. The higher the perception in these factors, the higher the intention to enter the international market in EC industry. These factors play a pivotal role in determining to go abroad the foreign EC market. Our finding implies that the subjective confidence on quality of EC solution(technology competence) and venture's capability of maintaining it(local marketing competence) are the important factors, when EC ventures make the decisions to enter the foreign markets.

• Asia Marketing Journal
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• v.11 no.2
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• pp.21-35
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• 2009

In December 5, 2006, "The Economic Times", India's the most famous economy daily newspaper, reported Korea Lotte Mart is planning to enter into India's market. Lotte group, marking number 7^th in Korea's list of conglomerates, established VRIC(Vietnam, Russia, India, China)'s strategy. This strategy is targeted to enter into emerging markets such as Vietnam, Russia, India, China and etc. As of 2007, Lotte Group aggressively is placing its subsidiaries such as Lotte Department Store in Russia and China, Lotte Mart in Vietnam and China and Lotte Confectionery in China and India, into emerging markets. From this case, Based on the assumption of Lotte Mart's India market entry scenario, this study considers various decision-making factors such as market attractiveness evaluation, timing of entry, entry mode, location, scale, positioning, operation strategy, and others, while developing an overseas market entry strategy. This case study also provides India's distribution market environment that Korean companies can utilize when entering into the Indian market in the near future.

• Journal of Distribution Science
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• v.15 no.12
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• pp.5-19
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• 2017

Purpose - This study involves the following questions: "Does internalization theory fully explain reality?" and "Which additional factors may add extra value to the theory?" To answer these, this study divides market entry mode into two steps, initial and subsequent and then, focuses on the subsequent distribution step; that is, the post-entry strategy after initial entry. In addition, this study relies on finding strategic orientations that affect the decision of post-entry into foreign markets. Research design, data, and methodology - To investigate this, this study examines 252 cases of Korean online games for each foreign market and the distribution mode at the product-team level. Results - The result shows that companies use different distribution strategies as a post-entry mode, like licensing, or joint distribution rather than exclusive distribution, through subsidiaries even if they already have wholly owned local subsidiaries which have enough experience and resources to select the entry modes among various types and then provide full commitment and control. Additionally, it finds that strategic orientation affects post-entry strategies differently. Conclusions - Therefore, this study is noteworthy and significant, as it practically extends the existing theories such as an internalization and distribution for decision making regarding the overseas expansion of entertainment businesses.

• Journal of the Korean Society of Clothing and Textiles
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• v.33 no.11
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• pp.1719-1732
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• 2009

A firm seeking to enter a foreign market must make an important strategic decision of which market entry mode to use. Because entry modes involve resource commitments, the initial choice by a firm on a particular entry mode is difficult to change without a considerable loss of time and money. Substantial prior research has been undertaken to explain why firms select a particular entry mode into global markets. However, there exists limited research on this area in the field of foreign apparel brands in Korea, although some research has analyzed influential entry mode factors when Korean textile and clothing companies went overseas. This study reviews prior research on the entry mode choice and analyzes the factors that influence the entry mode choice for 510 foreign clothing brands in Korea. Price range, clothing types, distribution strategy, and cultural distance were considered as influential determinants for different entry mode choices. Crosstabs with a chi-square test and logistic regression are used for analysis. This study shows that high-priced brands and luxury brands are associated with the export orientated entry mode in the Korean market. Brands that pursued the strategy of multiple distribution channels showed a preference for a licensing mode or direct investment over other entry modes, and brands from higher-cultural-distance countries entered the Korean clothing market by licensing mode. The findings of this study are appropriate for the strategic planning of foreign apparel intent on entering the Korean market or for Korean apparel firms planning to enter the global market.

• Journal of Korea Trade
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• v.23 no.4
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• pp.115-130
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• 2019

Purpose - This paper examines the impact of labor market regulations on FDI and the production of foreign firms. Design/methodology - We use an index of employment protection along with data on the FDI and production of foreign affiliates that are provided by the OECD. Findings - The empirical results show that strict employment protection discourages both the production and initial entry of foreign firms, with its impact on production being larger than that on the initial entry decision. The result is robust to various specifications in which instrumental variable estimations are used by applying a unionization rate and a severance pay for redundancy dismissal as instruments, respectively. Therefore, policymakers should not limit their focus to tax incentives, cash grants, and relaxation of market regulations, but they should also extend their attention to labor market deregulation and decreasing non-wage cost to attract more foreign firms into their countries. Originality/value - This paper attempts to answer the question on the impact of employment protection rules on the foreign firm's decisions regarding production as well as initial entry.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.652-655
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• 2007

Due to stagnation of domestic market, increasing number of domestic construction companies started to make inroads into foreign market recently. Yet compared to domestic market, there are much more risks in the foreign market which companies may confront. So deliberate and rational decision making skills are required. Accordingly, there has been many researches which analyzed the risk of individual markets and also studies covering decision support models. In this study, we suggest a model concerning financial issues when branching out into a new market, specially in the construction companies' point of view. For this we used a real options game which shows real competition status of a new market and deduced a feature of that market, Upon these results, we also suggest a model which helps firms to decide whether investing in the expansion is smart action or not. The model developed in this study is made in specific circumstances of limited conditions. The future study makes more realistic models considering subjects like disproportion in information and generalization of competing companies.

• International Commerce and Information Review
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• v.11 no.1
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• pp.485-515
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• 2009

In this study aims to research and analyze what are decision factors between a wholly-owned subsidiary and a international company cooperation in the internationalization process. From 57 primary studies found 26 observed variables for aggregation of effect size in the using "Fixed Effect Model" on this mata-analysis. The article also links the theories that are used in the literature, not considered in the most of primary studies, to the empirical results and recommends global management strategy which is needed for business practical affairs. According to the result, the meta-analysis suggests that the number of employees of a MNC, the geological and cultural differneces between the host country and home country, the country-specific international experience of the MNC and export intensity, the international product diversification, the market growth and the market size of the foreign operations, and resource intensity of the foreign operations, the legal restrictions in the host country and the country risk of the home country do exert a significant effect on the decision between cooperative arrangement and a wholly-owned subsidiary. Conversely, for a large number of variables, no significant relationship seems to exist based on the combined results. This is the case, for example, for factor specificity, the r&d-intensity, the subsidiary size, the assets of the MNC and the sales volume of the MNC.

• Journal of Distribution Science
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• v.18 no.5
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• pp.71-81
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• 2020

Purpose: This case study illustrates the successful entry of Saudi Aramco in the Korean market and how it grows to become one of the world's largest integrated energy enterprises. Research design, data and methodology: This case investigates diverse secondary sources to examine the entry strategy of Aramco in Korea, such as several interviews including public and anonymous dialogues, periodicals, dispatches (i.e. news articles and magazines), annual reports, industrial reports, and others. Results: The main concern for the international strategic approaching of Saudi Aramco is to enter into Korean market by joint venture with SsangYong Oil (today's S-Oil Corporation) in 1991 and finally, ending by Acquisition of S-Oil in 2015. This acquisition of local No.3 company, S-Oil, in Korea is the successful case in Asian Markets overcoming liability of foreignness. Moreover, Saudi Aramco's global distribution strategy through localization in the Korean market is appropriate given the market conditions, timing, effectiveness, and efficiency by sharing their resources and collaborating. Conclusions: It would be valuable, unique, and real story to analyze global leading company's entry and globalization strategy in overseas market. In addition, this study provides decision-makers with a significant and more strategic implication for the overseas expansion of businesses.

• Korean Journal of Construction Engineering and Management
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• v.10 no.5
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• pp.135-147
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• 2009

The world has witnessed the dramatic expansion of international construction markets during the last decades, particularly around the developing economies and energy resource-rich countries. However, despite the booming markets, the risks of emerging regions have also increased under the rapidly changing environments confronting the global contractors. Most of all, success in overseas business mainly depends on selecting the right market to enter. Accordingly, the right market selection requires global firms to carefully carry out the scientific market entry decision by evaluating country risks, market prospects, firm's capability, level of competition, and among others. This study aims at developing a market entry model by the use of real option analysis (ROA) and scenario planning, which addresses the corporate strategic flexibility against the uncertainties encompassing the overseas construction markets. Based on the suggested approach, global contractors are expected to make a better decision rather than a typically static approach in pursuing, postponing, or abandoning a prospective market to their capacity with a concurrent consideration of uncertainties as well as its option value.

• Review of Culture and Economy
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• v.17 no.2
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• pp.29-62
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• 2014

Game industry, one of cultural-content industry which is considered as a typical knowledge-based industry and creative industry, is not like the overseas expansion of traditional manufacture, and has different strategy and performance of export expansion through product or project-based strategy. Therefore, it should be approached by each content unit, and necessary to look at the factors that make their decision makings of foreign market entry vary. This study focuses on discovering creativity, absorptive capacity and strategic orientation(market orientation and innovation orientation) which affect the difference of distribution's decision making of entry into foreign market in game industry This paper examined 252 cases of online games in order to investigate creativity, absorptive capacity and strategic orientations for each foreign market and what entry type(among licensing, joint distribution, exclusive distribution) they chose according to the products developed in team level. This helps us analyze the factors affecting market orientation and innovation orientation in the perspectives of creativity and absorptive capacity in comprehensive way, and notice the phenomena which use different foreign distribution strategy though there are company incorporated abroad and their results. This study supplements the limit of the existing Resource-Based View, Resource-Dependent View, and traditional international business theories such as Transaction Cost Theory or OLI Paradigm(Eclectic Framework), and proves how company could reduce asymmetry of uncertainty and information in creative industry and whether they accomplish successful overseas expansion according to strategic orientations.