• 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.

• Korea Trade Review
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• v.42 no.1
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• pp.189-215
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• 2017

This study analyzes the determinants of the choice of foreign direct investment mode by Korean fashion firms in entering into foreign markets. We have established hypotheses regarding their choice among three classical entry modes including a wholly-owned subsidiary, a joint venture and an M&A based on factors such as the investing firm's size, international experience and international strategy type, host market potentials, cultural distance and foreign investment risk. By conducting multiple logistic regression over secondary data on 100 Korean fashion firms, we found that all variables but cultural distance were statistically significant. The results may contribute to advancing international business theory on the fashion industry and developing fashion firms' global strategy.

• Journal of Industrial Convergence
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• v.1 no.1
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• pp.71-97
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• 2003

In this study, the main goal is conduct an empirical research for MNC's(multinational companies) contingency factors and entry modes. Through examining elements of success and limitations of foreign companies in the domestic market, a resulting purpose can be suggested such as developing attractive foreign investment policy. The results in this study are as below. The results from Logistic Regression Analysis there were indications for preference factors for WOS (Wholly Owned Subsidiary). The factors were 'Strategic Motivation', 'Intelligent Property', and 'Market Latent Purchasing Power'. For JV (Joint Venture) there were preferred factors such as 'Degree of Using Product Factors', 'Differential Products Development Ability', and 'Systematic Incentives'. However, this thesis is limited to identifying clear causal relationship between the 'Performance' of foreign investment enterprise which entered WOS or JV and various factors which were suggested in the contingency factors (independent variables).

• Journal of Global Scholars of Marketing Science
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• v.18 no.4
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• pp.277-306
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• 2008

Knowledge1 is considered to be a key element of understanding how organizations gain and sustain competitive advantages. But very few firms are capable of creating the requisite knowledge and thus, firms should acquire and exploit new knowledge through knowledge transfer processes. The empirical part of this study involves examining relationships among adaptability of knowledge and knowledge transfer and marketing performance and testing the moderating roles of absorptive capacity, socialization and local marketing knowledge. This study is organized as follows: (1) Previous literature on knowledge, knowledge transfer and absorptive capacity is summarized, followed by the development of hypotheses derived from the knowledge-based view and absorptive capacity. (2) The hypotheses are tested with data collected from MNCs' subsidiaries performing marketing activities in Korea.Thestudyisclosedwithfindings,implications,andconclusions. Following six research hypotheses are drawn from literature review in related areas: H1: Adaptability of knowledge transferred from the MNCs' headquarters and other subsidiaries is positively associated with knowledge inflows into the receiving subsidiary. H2: The level of marketing knowledge transferred from the MNCs' headquarters and other subsidiaries is positively associated with marketing performance of the receiving subsidiary. H3: Increases in potential absorptive capacity will enhance the relationship between adaptability of knowledge and the level of marketing knowledge transfer. H4: Increases in realized absorptive capacity will enhance the relationship between the level of knowledge transfer and marketing performance of the receiving subsidiary. H5: Increases in socialization activity among the headquarters and subsidiaries will enhance the relationship between adaptability of knowledge and the level of marketing knowledge transfer. H6: Increases in the level of locally developed marketing knowledge will enhance the relationship between the level of knowledge transfer and marketing performance of the receiving subsidiary. The research framework that illustrates the proposed hypotheses is presented in figure 1. The unit of analysis for this study is knowledge transfer from the MNCs' headquarters and other subsidiaries to their subsidiaries operating in South Korea. The population for this study consists of subsidiaries established either as joint ventures or as wholly-owned subsidiaries. A group of 603 foreign firms were drawn from diverse industry organizations and business societies. After personal contact, telephone, fax, and e-mail to request that the respondents complete the questionnaire, 282 valid questionnaires from 133 initial sample companies were collected. The results of the empirical analyses significantly support all of the proposed hypotheses except hypothesis 3. Adaptability of external knowledge promotes knowledge transfer and the relationship is moderated by a firm's potential knowledge absorptive capacity. On the other hand, knowledge transfer improves a firm's marketing performance and a firm's realized knowledge absorptive capacity and local marketing knowledge moderate the relationship. The theoretical and practical implications of the findings in this study are as follows: (1) firms must take seeking, transferring, sharing and exploiting of external knowledge into serious consideration, while simultaneously creating knowledge to support the necessary business operations, remain competitive, and achieve superior performance. (2) Firms should continuously seek to develop their knowledge absorptive capacity (both potential and realized capacity) to absorb, learn and utilize valuable external knowledge. (3) Firms should emphasize not only absorptive capacity, but also development of local knowledge. Firms with strong absorptive capability and local knowledge can learn and transfer more external knowledge, which can be translated into greater levels of competence and performance.

• International Area Studies Review
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• v.15 no.2
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• pp.3-23
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• 2011

Existing studies have argued that, compared to the 1990s, the Japanese foreign direct investment (FDI) in the 2000s became multi-faceted in terms of investment motivation, ownership structure and entry mode, and diversification strategy. We have conducted a cross-sectional analysis and compared our results with the recent findings. We have found that the Japanese FDI in the mid 2000s became globally focused and regionally diversified. Ownership strategy and entry mode of the Japanese FDI in the Asian countries shows a remarkable shift from joint venture to wholly-owned subsidiary. In contrast, the preference of greenfield investments was observed consistently across regions. It seems that, after the Asian financial crisis, the Japanese firms began to re-optimize global FDI strategy and to regionally differentiate investments.

• International Commerce and Information Review
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• v.16 no.4
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• pp.409-437
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• 2014

The purpose of this study is to present the specific ways of successful localization by analyzing the success and failures case for localization within the framework of the strategic models through a theoretical background and strategic models of localization. The strategic models of localization are divided by management aspects such as the localization of product and sourcing, the localization of human resources, the localization of marketing, the localization of R&D, harmony with a local community and delegation of authority between headquarters and local subsidiaries. The results, by comparing and analyzing the success and failures case for localization of individual companies operating in India, indicate that in terms of localization of product and sourcing, there are successful companies which procure a components locally and produce a suitable model which local consumers prefer and the failed companies which can not meet local consumers' needs. In case of localization of human resources, most companies recognize the importance of this portion and make use of superior human resource aggressively through a related education. In case of localization of marketing, It is found that the successful companies perform pre-market research & management and build a effective marketing skills & after service network and select local business partner which has a technical skills and carry out a business activities, customer support, complaint handling with their own organization. In terms of localization of R&D, the successful major companies establish and operate R&D center to promote a suitable model for local customers. In part of harmony with a local community, it shows that companies which made a successful localization understand the cultural environment and contribute to the community through CSR. In aspect of delegation of authority between headquarters and local subsidiaries, it is found that most of Korean companies are very weak for this part. there is a tendency to be determined by the head office rather than local subsidiaries. Implication of this thesis is that Korean enterprises in India should carry forward localization of products and components, foster of local human resource who recognize management and system of company and take part in voluntary market strategy decision, wholly owned subsidiary, establishment and operation of R & D center, understanding of local culture and system, corporate social responsibility, autonomy in management.