• Title/Summary/Keyword: Network Embeddedness

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Dual Network Embeddedness of the Host Country, Organizational Improvisational Capability, and International Entrepreneurial Performance

  • Qixia Du;Yeong-Gil Kim
    • Journal of Korea Trade
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    • v.27 no.4
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    • pp.61-76
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    • 2023
  • Purpose - Along with emerging international entrepreneurship, there is a need for exploring the influencing mechanism of dual network embeddedness of the host country on international entrepreneurial performance. Drawing on network embeddedness theory and organizational improvisational theory, the present study constructs a theoretical model regarding the logic relationships between the dual network embeddedness of the host country, organizational improvisational capability, and international entrepreneurial performance. Design/methodology - Using a questionnaire survey, our study conducted data in two ways. The final research sample comprised 129 international new ventures. To test the hypotheses, a three-step mediation test method was conducted. Findings - Our empirical results suggested that both host-country social network embeddedness and industrial network embeddedness significantly affected the international entrepreneurial performance. Organizational improvisational capability significantly affected the international entrepreneurial performance. Third, organizational improvisational capability partially played mediating role in the relationship between the dual network embeddedness of the host country and international entrepreneurial performance. Originality/value - This study mainly concentrates on the two important types of host-country networks, host-country social network embeddedness and industrial network embeddedness, that may help international new ventures access the strategic resources necessary to support performance. Thus, it extends the existing network embeddedness theory and improvisational theory to encompass international entrepreneurship.

An Empirical Analysis on the Determinants of Foreign Subsidiary's Local Embeddedness: Focusing on Korean MNCs in China

  • KIM, Byoung-Goo;KIM, Gyu-Bae
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.1
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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.

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.

A Study of Relationship between Relational Embeddedness of Supply Chain and Financial Performance (공급사슬의 관계적 내재성과 재무적 성과와의 관계)

  • Chung, Yeon-Joo;Kang, Nak-Jung
    • Management & Information Systems Review
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    • v.31 no.3
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    • pp.141-160
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    • 2012
  • This study investigate the relationship between embeddedness of supply chain on supply chain performance. The development of research model is based on network embeddedness that the literature of strategic management and sociology. To examine the research model and hypotheses, we have used an empirical method based on field survey in which most of measurements used and verified in previous studies are selected as measurements. The data from survey was analyzed using Partial Least Squares(PLS). The result from empirical model suggest as follow; First, relational embeddedness of supply chain effects on supply chain performance. Especially, reciprocal dependance affects interfirm relation performance. Also trust and tie strength of relational embeddedness affects interfirm relation performance. Second, interfirm relation performance affects financial performance.

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A Study on the Effect of Network Embeddedness on Collaboration and Performance in the Project Supply Chain : Focusing on Second-tier Suppliers (프로젝트 공급망에서 네트워크 배태성이 협업과 기업성과에 미치는 영향연구 : 2차 협력업체를 중심으로)

  • Park, Seong Taek;Rhe, MoonKi Kyle;Ryu, Seonjeong
    • Journal of Digital Convergence
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    • v.12 no.6
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    • pp.93-103
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    • 2014
  • The rapid trends toward outsourcing have created more complex and fragmented multi-tier supply chains for Engineering, Procurement & Construction(EPC) industry. Working with suppliers and sub-suppliers requires continuous integration activities during project execution. The purpose of this study is to identify the factors influencing the performances and relationship satisfaction of second-tier suppliers participating in the project-based supply chain. This study proposes the network embeddedness, collaboration, information-sharing and flexibility as antecedents variables, and collected the survey responses from the second-tier suppliers having experiences with complex projects. The statistical results indicate that the collaboration with supply chain leading firm and first-tier supplier has significant impact on the performances and relationship satisfaction of second-tier suppliers. It was also found that the information-sharing and flexibility influence the network embeddedness as well as collaboration, and that the embeddedness have significant impact on the collaboration.

Knowledge Management Research Based on Social Network Theories: A Review with Future Directions

  • Tae Hun Kim
    • Asia pacific journal of information systems
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    • v.32 no.1
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    • pp.168-190
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    • 2022
  • This review aims to synthesize social network theories by drawing on the importance of social network perspectives in understanding knowledge management with technology in organizations. I provide an overview of prior social network research with the following core ideas: the primacy of relations between organizational actors, the utility of actors' embeddedness in social fields, the social utility of network connections, and the structural patterning of social life. On top of that, I summarize critical social perspectives (the social capital theory, the structural hole theory, the embeddedness perspective, the social exchange theory, the organizational learning theory, and the innovation diffusion theory) to suggest potential research questions for future studies in social network research in the knowledge management discipline.

Knowledge Acquisition in the Global Strategic Alliance Network

  • Lee, Eon-Seong
    • Journal of Navigation and Port Research
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    • v.38 no.3
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    • pp.307-315
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    • 2014
  • This paper aims to empirically examine how shipping companies can effectively acquire knowledge from their strategic alliance partners. This paper adopts cooperative network embeddedness mechanism, such as network density and tie closeness, as a channel through which to acquire more knowledge for shipping participants within a strategic alliance network. This study also examines the moderating role of competition between alliance partners in reinforcing the effectiveness of the cooperative relationships on the knowledge acquisition. Based on the literature, hypotheses to predict the aforementioned associations between cooperative network embeddedness and knowledge acquisition and the moderating role of competition in facilitating that association are established. A quantitative research method using survey data conducted in the Korean shipping industry was employed in order to empirically test the presented hypotheses. The results show that if players in a shipping alliance network are embedded in a dense network and have close relationships with their alliance partners, this helps to facilitate a greater degree of knowledge acquisition from the partners; and the impact of network density on the knowledge acquisition would be intensified with the higher level of competition between shipping companies.

A Study on Relations Between Trust in e-Government and Trust in Government - Focused on the Factors of Truster and Trustee - (전자정부 신뢰와 정부신뢰의 영향관계에 관한 연구 - 신뢰주체 및 신뢰대상 요인을 중심으로 -)

  • Lee, Sun Joong
    • Informatization Policy
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    • v.18 no.2
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    • pp.49-71
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    • 2011
  • This study aims at finding what factors influence trust in e-government and how trust in e-government and satisfaction with e-government services affect trust in government. Despite of the importance of trust in e-government, there has not been sufficient research. Giving light on the factors of affecting trust in e-government is of academic significance. Therefore, the purpose of this study is to explore the nature, driving forces and consequences of citizens'trust in e-government and in government. The empirical results indicated that temporal embeddedness, network embeddedness, information provision quality, information security quality and e-participation quality affect satisfaction with e-government services and trust in e-government. Also, satisfaction with e-government services and trust in e-government influence trust in government, and satisfaction with e-government services affect trust in e-government.

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