• The Journal of Asian Finance, Economics and Business
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• 제7권1호
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• pp.205-215
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• 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.

• 무역학회지
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• 제44권2호
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• pp.221-237
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• 2019

Multinational corporations (MNCs) usually face indigenous business environments in host countries which are different from a home country's. In this circumstance, MNCs would accomplish low-investing performance if they pursuit the same as the home oriented business strategy in the host country. The more different kinds of specialized environments a host countries have, the more pressure of modifying the international strategy needed for MNCs. This paper examines that how a different market environment between a home country and a host country, through MNC's local responsive managements, can influence investing performance in a host country. This paper conducts structural equation analyses with collected empirical data focusing upon a MNC's market orientation efforts and the realization of management localization (i.e., increasing local sourcing intensity or local sales intensity) as mediators between the specialized environment in a host country and the MNC's investing performance. This paper has several contributions in developing the prior approaches: first, the market orientation variables are regarded not as normal independent factors but mediators; second, two step mediation model is examined to make link between host market's heterogeneity and MNC's performance.

• Journal of Korea Trade
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• 제24권8호
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• pp.189-206
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• 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.

• 지식경영연구
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• 제14권3호
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• pp.1-13
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• 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.

• 국제지역연구
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• 제15권2호
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• pp.275-301
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• 2011

본 연구는 자회사의 다국적기업 내 존재하는 지식의 습득에 영향을 미치는 요인을 밝히는 것을 목표로 하고 있다. 자회사의 기존 지식 습득에 대한 기존 연구들이 존재하는 상황에서 본 연구는 지식 습득 활동의 결정 요인을 크게 세 가지 개념으로 정리하였다. 첫째, 자회사가 속한 현지 환경 속성, 둘째, 자회사의 조직 속성, 마지막으로 자회사가 다국적기업와 구축하고 있는 관계 속성이 그것이다. 특히 본 연구는 관계적 속성에서 다국적기업 내 자회사의 영향력 변수를 추가하였고, 종속변수인 자회사의 지식습득의 속성을 지식원에 따라 두 가지로 구분하여 접근하였다. 즉, 모기업으로부터의 지식습득과 동료 자회사들로부터의 지식습득에 각각의 속성들이 미치는 영향력을 측정했다는 점에서 기존 연구의 확장을 꾀하였다. 그 결과 자회사의 동료자회사 지식 습득은 현지협력관계와 가치사슬로부터 부정적인 영향, 사회적자본 및 자회사 영향력의 긍정적인 영향을 받는 것으로 나타났으며, 자회사의 모기업 지식 습득은 자회사에 대한 모기업의 투자비율 및 사회적자본에 긍정적인 영향을 받는 것으로 나타났다.

• 무역학회지
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• 제45권2호
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• pp.137-155
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• 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.

• Journal of East Asia Management
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• 제3권2호
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• pp.1-19
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• 2022

This study suggests an integrated theoretical framework for the relationship between political risk and multinational corporation (MNC) subsidiary's performance in the emerging market. The political risk would have a negative impact on MNC subsidiary's performance in the emerging countries that are developing in Asia, the Commonwealth of Independent States, Africa, and South America. The major reason is that political risks could generate a loss of benefit or a loss of control for MNC's subsidiary. In this study, I suggest that corporate social responsibility (CSR) strategy would be a solution to overcome various political risks. Specifically, the affiliated firms with diversified industries or greater financial resources could mitigate the negative impact of political risk than unaffiliated firms. Because they can use their tangible or nontangible asset such as information, technology, and construction in order to gain legitimacy and trust from local government, local community, and local firms in the emerging market. Finally, I claimed the costs of the affiliated firms would exceed the benefits at the initial stages, while the benefits of affiliated firms would exceed the costs over time when political risks become higher. The reason is that the trust gained from local stakeholders accumulates over time and the impact of CSR strategy would become an important solution to overcome the risks in and unstable context.

• 국제지역연구
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• 제13권1호
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• pp.309-340
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• 2009

다국적기업은 새로운 제조 및 기술을 협업에 의해 개발하기 위하여 점차로 전 세계에 걸쳐 연구개발(R&D)센터를 설치하고 있다. 이러한 범세계적인 현상은 기업의 글로벌 전략과 맞물려 신흥 공업국을 포함하는 추세다. 이는 다국적기업의 전략과 신흥공업국의 개발전략 양자에 있어 더욱 더 그 중요성이 커지고 있다. 본 연구에서는 다국적기업의 R&D이전에 따른 운영활동의 구체적인 요인들을 살펴보고 다국적기업들이 다른 국가에 비해 R&D센터 설립을 선호하는 중국과 한국에서의 R&D센터 운영을 둘러싼 각 요인을 비교 분석한다. 본 연구에서는 다국적기업의 R&D이전과 관련된 8가지 차원을 통하여 특히 입지결정 요인, 시장특성, 정부의 지원정책, R&D네트워킹에 있어 중국과 한국이 큰 차이를 보이고 있음을 밝혀냈다. 또한 다국적기업의 R&D센터 운영과 관련하여 한국보다는 중국이 긍정적인 요인이 많은 것도 비교연구로 나타났다. 본 연구의 결과는 다국적기업의 R&D센터 운영자들과 한국의 다국적기업의 유치와 관련된 정책결정자들에게 많은 시사점을 제공 할 수 있을 것이다.

• 지식경영연구
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• 제12권1호
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• pp.111-121
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• 2011

Multinational Corporations (MNCs) are establishing globally-distributed R&D centers around the world. Firms can overcome resource constraints and achieve superior innovative performance not only by using internal resources but also acquiring knowledge from oversea R&D centers. This paper explores the key factors that have been cited as significant influences on the ability to transfer knowledge, an important area of knowledge management of MNCs. Also, we identify the emerging outcomes in terms of R&D transfer and for the education, employment, and retention of knowledge works in MNCs. The result will be helpful for both MNC's managers and governments' decision makers with respect to R&D centers.

• 무역상무연구
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• 제18권
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• pp.159-188
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• 2002

International joint ventures are usually formed and managed by domestic companies and foreign investors for the common objectives. They offer an opportunity for each partner to benefit significantly from the comparative advantages of the other. Local partners bring knowledge of the domestic market; familiarity with government bureaucracies and regulations; understanding of local labor markets; and existing manufacturing facilities. Foreign partners can offer advanced process and product technologies, management know-how, and access to export markets. In Korea, joint ventures have been encouraged to usher in foreign investors with foreign currency capital badly needed during the IMF financial crisis. In the meantime, Korean laws and regulations with respect to joint ventures have been largely overhauled to promote foreign direct investment (FDI) both inbound and outbound. They include four types of FDI, i.e., acquisition of foreign stocks, provision of long-term loans, participation in joint operations like resources development, and establishment of foreign offices. From the legal point of view, the formal joint venture agreement must be an offspring of a series of tough negotiations between domestic and foreign partners. They usually stress the long-term relationship with the good will and dedication to each other, and restrict the free transfer of stocks. Both partners are earnestly interested in the ownership and management of the joint venture. So they keep a close eye on the articles of incorporation, changes of business environment, conflict resolution methods, transparency of accounting and other financial matters. When a multinational corporation (MNC) is involved in the joint venture, conflicts over management strategies, marketing and other issues take place more often than not between the MNC and local partners. We have to pay attention to joint ventures, particularly, in China and North Korea. As witnessed in other transition economies, China is eagerly bringing in foreign direct investments for the development of nation's economy. China encourages foreign investors to establish ordinary joint ventures, contractual joint ventures, solely invested foreign capital companies and jointly operated development companies with local partners. In North Korea, however, joint ventures have a different meaning like contractual joint ventures in China, in which North Korean partners have an initiative in the management. Rather, jointly operated companies or simply processing-for-wage companies are recommended in view of the unpredictable legal infrastructure in North Korea.