• Journal of Information Technology Applications and Management
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• v.24 no.4
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• pp.13-24
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• 2017

This study aims to analyze which subsidiary configuration strategy is more effective under uncertainty especially technology base multinational corporations (henceforth MNCs). In previous studies real option theory scholars argue that high breadth subsidiary configuration is most effective strategy because that provides flexibility to MNCs global network. In this study I want unveil more various types of uncertainty such as technology and learning uncertainty which are more important for technology base firm and further more examine the effect of MNCs subsidiary configuration on firm R&D performance each uncertainty case. Empirical study is performed by negative binominal model based on Japanese 108 multinational corporations. The result shows that under technology uncertainty, high breadth subsidiary configuration is better for firm R&D performance but under learning uncertainty high depth subsidiary configuration is better. Thus, the effects of MNCs subsidiary configuration on firm value can differ by types of uncertainty.

• Journal of Distribution Science
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• v.13 no.8
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• pp.15-25
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• 2015

Purpose - There is a lack of research on how much corporate control is sufficient for effective subsidiary business-related decision making. To address this research gap, this study analyzes the impact of the level of control of a Korean corporation's headquarters on its overseas subsidiary performance. Research design, data, methodology - The study's sample comes from the Overseas Korean Business Directory of KOTRA. A multiple regression analysis empirically confirmed the relationship between the headquarters level of control over the subsidiaries and their performance. Results - The results show that the greater an organization's headquarters control over strategic issues, the greater the subsidiary's non-financial performance. However, quick decision-making through decentralization promotes the rapid selection of successful new products that can provide a competitive advantage. Conclusion - This study shows that the impact of control levels on subsidiary performance depends on the type of control involved. Specifically, while low levels of control over operational issues had a positive (+) influence on subsidiary non-financial performance, high control levels led to improved non-financial performance with regard to strategic issues among the subsidiaries.

• International Commerce and Information Review
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• v.18 no.2
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• pp.195-218
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• 2016

This study seeks to find out the determinants of subsidiary performance. In addition, moderating effect of autonomy on the relationship between subsidiary competence, subsidiary relationship and subsidiary configurational focus, and subsidiary performance. In studying the moderating effect of autonomy on subsidiary performance, the results will give invaluable insights to foreign subsidiaries in Korea to better compete in competitive Korean market. The results of empirical study showed that subsidiary with higher level of interaction with its intra-MNC network has higher level of performance. Thus, active interaction with headquarter and its affiliates will lead to better performance. Subsidiary with higher level of competence has higher level of performance. Thus, subsidiary should attain higher level of competence to better compete in Korea. Subsidiary autonomy has moderating effect on the relationship between configurational focus and performance. Thus, optimal MNC subsidiary configuration and attainment of subsidiary autonomy is needed to secure competitiveness in Korean market.

• International Area Studies Review
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• v.15 no.1
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• pp.425-446
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• 2011

There has been a conventional wisdom that a higher level of autonomy of a foreign subsidiary could lead to a higher level of subsidiary performance. Most MNCs seeking for managing localization efficiently followed this wisdom. But there has been no empirical evidence so far in academic journal that there is a clear positive relationship between subsidiary autonomy and performance. Recently most MNCs are trying to pursue a global strategy for managing foreign sudsidiaries, in which the coordination role of parent company is essential. For the MNCs seeking global strategy the coordination role of the parent and subsidiary autonomy appears to have a trade off relationship. It is uncertain in the situation that the positive relationship between subsidiary autonomy and performance is still effective. Therefore the purpose of the study is to provide an empirical evidence of the the hypothesis that there is a positive relationship between subsidiary autonomy and performance, The study utilized the questionaire survey of Korean subsidiaries of MNCs. The empirical results of the study showed the significant positive relationship between two variables, which is cinsistent to the hypotheses.

• Journal of Distribution Science
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• v.14 no.9
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• pp.121-132
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• 2016

Purpose - This study has the following objectives. First, it seeks to build an integrated model that can analyze the path through which headquarters, subsidiary competence, and knowledge transfer performance influence subsidiary performance. Second, it analyzes the influence of the specificity of technology as a moderating effect factor on knowledge transfer process. Third, it will conduct an empirical analysis on distributive manufacturing MNEs and suggests an implication for companies that actually need technological localization. The difference of this study are as follows. First, unlike the existing studies, this study can expand a theoretical discussion as it uses subsidiary performance as the dependent variable. Second, it sets the specificity of technology as a moderating effect factor, not an antecedent, and can draw a theoretical implication. Research design, data, and methodology - This study built a path analysis model to identify the influence of the disseminative capacity and absorptive capacity of distributive manufacturing MNEs on subsidiary performance. Based on the previous studies, it set 19 items as 5 latent variables, and established 6 hypotheses by including the moderating effect of the specificity of technology between them. The final 203 companies were selected as analysis samples through a survey questionnaire. For empirical analysis, the study used PLS (Partial Least Square) that is based on structural equation model. Results - The empirical analysis result demonstrated that both headquarters' disseminative capability and subsidiaries absorptive capacity had a positive influence on knowledge transfer performance. Knowledge transfer performance also had a positive influence on subsidiary performance. In the analysis of moderating effect, the specificity of technology acted as a significant moderating variable only between knowledge transfer performance and subsidiary performance; it did not show a statistically significant moderating effect among disseminative capability, absorptive capacity, and knowledge transfer performance. Conclusions - The empirical analysis results of this study demonstrate the importance of disseminative capability and absorptive capacity in knowledge transfer to subsidiaries from the distributive manufacturing MNEs in Korea. The analysis on the moderating effect indicates that the specificity of technology in Korean companies influences on the process of making achievement by using the transferred knowledge.

• Knowledge Management Research
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• v.14 no.3
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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.

• Journal of Korea Trade
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• v.25 no.4
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• pp.108-127
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• 2021

Purpose - On the basis of knowledge transfer theory, we empirically explored how three types of human resource (HR) innovation knowledge exchange within a Chaebol drive the global subsidiary performance of the headquarters (HQ) of a Chaebol's globally affiliated companies. Design/methodology - Using a sample of 176 Korean HQ firms of the top 53 Chaebols and 1,061 of their foreign manufacturing subsidiaries (n = 1,061), we tested the relationship between the exchange of explorative and exploitative sustainable HR innovation knowledge among HQ firms of Chaebols, their subsequent transfer of technical HR knowledge via technical schemas, and the subsequent impact on the global subsidiary performance. Findings - The Chaebols' decisions about the three strategic knowledge management options (i.e., the degree of exchange of explorative and exploitative technological HR innovation knowledge and the extent of HQ-subsidiary HR knowledge transfer) have highly significant relationships with the global subsidiary performance. The results help explains the conditions under which the explorative versus exchange of exploitative sustainable HR innovation knowledge pays off by showing the moderating role of the degree of HQ-to-subsidiary technical HR knowledge transfer, at least in the case of the Chaebol as one representative type of the emerging-market business groups. Originality/value - As the first of its kind in the field of sustainable HR innovation knowledge management at the business group level, the present study makes a clear contribution in demonstrating how the performance of Chaebols' manufacturing subsidiaries depends greatly on their strategy for management of knowledge, as reflected in the choices they make about sharing both explorative and exploitative sustainable HR innovation knowledge among HQ firms and the subsequent transfer of HQ's sustainable HR innovation knowledge to the foreign subsidiaries.

• Transactions of the Korean hydrogen and new energy society
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• v.23 no.6
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• pp.612-618
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• 2012

In this paper, in order to prevent electric shock of high voltage system of HFCV after crash test, insulation performance measurement methods were studied. Under conditions of in-use, insulation performance tests can be divided into measurement method using the vehicle's own RESS as DC voltage source and measurement method using DC voltage from off-vehicle sources. However, these tests can not be applied after a post-crash because parts of high voltage system cover should be removed, and insulation performance can be influenced during these tests. Therefore, we proposed post-crash insulation performance test methods for preventing electric shock through problem analysis of previous post-crash insulation performance tests. Also, test equipment which can measure voltage absence and total energy was developed. We verified performance of the equipment through experiments with vehicle test.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.67 no.8
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• pp.1106-1112
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• 2018

In this paper, measurement techniques are presented to test the performance of insulation without interruption if it is difficult to measure insulation resistance. Especially, non-contact voltage phase detection techniques have been developed that can be applied in environments where it is difficult to find voltage measurement locations such as component receptors. The performance verification of the non-interrupting insulation resistance measuring devices has been tested against existing products using standard calibration equipment and test jigs. The validation confirmed performance within 2 % for direct contact type and within 10 % for non-contact type. In addition, the procedure to make continuous insulation test using the equipment was proposed.

• Transactions of the Korean hydrogen and new energy society
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• v.22 no.6
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• pp.810-818
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• 2011

This paper analyzed the suitability about the isolation performance criteria which was based on human impedance and effect of current in IEC 60479-1 on the safety of human being was examined. The method of evaluation by megger and DC voltmeter was analyzed. The differences of isolation performance according to design of high-voltage system were analyzed. The factors which affect the insulation performance were analyzed for HFCV, EV, HEV, etc. through analysis of the isolation performance evaluation method. Finally, design for improved isolation performance was proposed.