• Title/Summary/Keyword: internationalization of firms

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A Study on the Determinant of Foreign Market Entry Mode and Performance of Korean Manufacturing Firms (한국제조기업의 해외시장진입방식 선택요인과 성과)

  • Park, Tae-Ho;Kim, Seog-Soo;Seo, Min-Kyo
    • International Commerce and Information Review
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    • v.11 no.4
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    • pp.183-214
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    • 2009
  • We identify key theoretical approaches, constructs, and primary variables of interest that exist in the foreign market entry mode articles. This provides fertile ground for continued development in our foreign market entry mode research. Using the integrated framework, this paper examines the determinants of foreign market entry mode choice by Korean firms and the impact of the entry mode choice on performance in a unified model. Using a database of KIS-VALUE in Korea from 2003 to 2005, we find that the hypothesized effects of related factors on entry modes are partially supported.

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Stock Market Response to Acquisitions and Alliances in the European Telecom Industry: An Information Asymmetry Perspective

  • Sanchez-Lorda, Pablo
    • ETRI Journal
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    • v.28 no.5
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    • pp.638-647
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    • 2006
  • This paper investigates two kinds of strategic combinations carried out by the European telecom operators between 1986 and 2001: acquisitions, on the one hand, and strategic alliances, on the other. The aim of the paper is twofold. First, it analyzes the behavior adopted by these companies to adapt to an environment that, after the processes of globalization and privatization presents a clearly different structure. Second, it focuses on the effect that internationalization and diversification could exert over the returns obtained by the European telecom firms involved in acquisitions and alliances, differentiating when such strategic combinations are more profitable for the shareholders of the firms that carry them out.

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A Study on the SMEs' Internet Direct Marketing as an entry mode to foreign markets (중소기업의 해외시장진입방식으로서 인터넷 직접마케팅에 관한 연구)

  • 홍성태;신종칠
    • The Journal of Society for e-Business Studies
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    • v.4 no.2
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    • pp.133-159
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    • 1999
  • It is likely that the Internet play a significant role in international marketing strategies. Especially small and medium sized enterprises that have suffered from lack of resources and information, are able to make the best use of information technology to overcome various barriers. The purpose of this study is to explore the availability of the Internet as a means for small and medium sized firms to enter into international markets. To do this we reviewed previous researches on obstacles faced by small and medium sized firms to go abroad. And we suggest that the Internet marketing can be used as an entry mode to foreign markets and some tasks should be executed to gain competitive advantage. Finally some public policies to support SMEs' internationalization are indicated

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When Does Human Capital Facilitate the Corporate Innovation Performance?: The Moderating Effect of International Experience (인적자본은 언제 기업의 혁신성과를 향상시킬 수 있는가?: 국제화 경험의 조절효과를 중심으로)

  • Gwon, Sun-Hwan;Kwon, Jong-Wook;Shin, Mann-Soo
    • Asia-Pacific Journal of Business
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    • v.11 no.3
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    • pp.47-61
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    • 2020
  • Purpose - This study investigates the relationship between firm-specific, general human capital and corporate innovation performance. Also, we examine when this relationship is more salient. Design/methodology/approach - We collected 1,195 survey data related to a sample of corporate innovation performance and human capital from 1) Korea Research for Vocational Education and Training and 2) NICE information service in Korea. In order to examine the corporate innovation performance, we use the ordered logit model. Findings - First, we find robust supports for our hypothesis that firm-specific and general human capital increase corporate innovation performance. Second, the effect of general human capital on corporate innovation performance is stronger when this relationship is combined with the firm international experience. Research implications or Originality - By integrating the human capital theory and corporate innovation literature, we propose that firm-specific and general human capital are the important determinant of innovation performance. The firm-specific human capital may increase innovation efficiencies. Also, retaining higher-quality general human capital is considered as an important innovation strategy since firms with higher-quality general human capital make greater innovation performance. Further, we show that the firm international experience is the crucial boundary condition. As a firm's experience in internationalization increases, firms can enhance the opportunities to develop new products by combining the skills and knowledge derived from general human capital with the experience gained through internationalization.

The Use of Feed-forward and Feedback Learning in Firm-University Knowledge Development: The Case of Japan

  • Oh, In-Gyu
    • Asian Journal of Innovation and Policy
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    • v.1 no.1
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    • pp.92-115
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    • 2012
  • The problem Japanese universities face is exactly the same as that of German universities: no international recognition in world rankings of universities despite their high levels of postwar economic and technological developments. This was indeed one reason why world-class Japanese firms, such as Toyota and Sony, have avoided working closely with Japanese universities for R&D partnership and new technology commercialization. To resolve this problem, the Japanese government has continuously implemented aggressive policies of the internationalization, privatization, liberalization, and privatization of universities since the onset of the economic recession in 1989 in order to revitalize the Japanese economy through radical innovation projects between universities and firms. National projects of developing medical robots for Japan's ageing society are some of the ambitious examples that emphasize feed-forward learning in innovation. However, this paper argues that none of these programs of fostering university-firm alliances toward feed-forward learning has been successful in promoting the world ranking of Japanese universities, although they showed potentials of reinforcing their conventional strength of introducing $kaizen$ through feedback learning of tacit knowledge. It is therefore argued in this paper that Japanese universities and firms should focus on feedback learning as a way to motivate firm-university R&D alliances.

The Differences in the Selection of Outward FDI Locations between State- and Privately Owned Enterprises of China: Focusing on the Effects of Host Country Factors (중국 국유기업과 민간기업 간 해외직접투자 입지 차이 분석: 현지국 요인의 영향을 중심으로)

  • Ra, Wonchan;Wu, Mengqiu
    • Korea Trade Review
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    • v.44 no.6
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    • pp.345-361
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    • 2019
  • In recent years, Chinese firms have explosively increased outward foreign direct investment (oFDI). While state-owned enterprises (SOEs) are still dominant in Chinese oFDI, privately-owned enterprises (POEs) are also accelerating their internationalization. These two types of Chinese firms differ in their behavior regarding oFDI. The objective of this paper is to analyze the differences in the choice of oFDI locations between Chinese SOEs and POEs by considering host country factors. By integrating the literature on Chinese firms' oFDI and on FDI locations, we developed six hypotheses concerning how host country factors affect their choice of location. We tested our hypotheses by conducting multiple regression analysis with recent secondary data on 413 Chinese MNEs in 88 countries between 2005 and 2016. The results of the test show that in selecting oFDI locations, Chinese SOEs invest relatively more in countries with richer natural resources, more abundant strategic assets, less production efficiency, higher political risk, and lower institutional quality compared with Chinese POEs. It is our hope that the empirical results of this paper will contribute to research on Chinese oFDI.

The Performance Determinants of Chinese overseas M&A (중국기업의 해외 인수 합병의 성과 결정요인)

  • Yu, Seung-Hun
    • Management & Information Systems Review
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    • v.35 no.4
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    • pp.79-98
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    • 2016
  • A large number of Chinese enterprises have grown up and become increasingly competitive. Chinese firms have ventured abroad to search for new sources of growth. Overseas mergers and acquisitions of Chinese companies has been developed rapidly through extensive opening policy and active support system by government. The main purpose of this study is to identify the factors that affect the outcomes of overseas mergers and acquisitions made by Chinese firms in recent years, particularly, financial performance of the acquiring firms. This study aims to analyze systematically financial performance and its determinants of Chinese overseas M&A in recent years. This study chooses a sample of 167 overseas mergers and acquisitions in the manufacturing industry in China and the relevant data were collected during the period 2006 to 2012. The data were analyzed by using a multiple regression analysis to identify determinants of corporate performance. We showed that cultural distance, past performance, state ownership, and interaction between cultural distance and past performance. Findings of this study can provide useful guidance to outward Chinese M&A in the future.

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Does Environmental Responsibility Lower 'Double Hurdle'? Emerging Multinationals in Global Natural-Resource Industry

  • Qingwei NAN;Bo Kyung KIM;Jooyoung KWAK
    • Asian Journal of Business Environment
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    • v.13 no.4
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    • pp.19-28
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    • 2023
  • Purpose: Emerging markets under industrialization have become increasingly influential over the global natural-resource transactions. However, their average deal completion rates have been relatively low. The international business (IB) literature regards the low rate as evidence of 'double hurdle', the extra disadvantages in doing overseas business for firms from developing countries. Because legitimacy building mitigates liability of foreignness, we argue that an acquirer's environmental responsibility effectively builds legitimacy. Research design, data and methodology: Stakeholders in the host country spread the acquirer's environmental responsibility so that, by raising legitimacy, they may strengthen the link between environmental responsibility and deal completion. Our dataset consists of the 608 cross-border acquisition deals announced by the 196 firms in Brazil, Russia, India, and China over 2008-2019 period. Results: A logit regression result confirms that environmental responsibility increases the likelihood of acquisition deal completion. Also, host-market stakeholders positively moderate the relationship between environmental responsibility and the likelihood of deal completion. Conclusions: Overall, this study contributes to the IB literature by identifying environmental responsibility as a key approach to lowering the double hurdle in internationalization of firms in emerging markets. Any emerging multinationals interested in the foreign, brownfield entries to the natural-resource industries must enhance the environmental responsibility, which turns out extremely important.

Foreign Entry Strategies for Korean Fishery Firms (한국수산업의 해외진출전략에 관한 연구)

  • 김회천
    • The Journal of Fisheries Business Administration
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    • v.15 no.1
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    • pp.131-153
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    • 1984
  • Fishery resources are still abundant compared with other resources and the possibility of exploitation is probably great. The Korean fishery industry has grown remarkably since 1957, and Korea is ranked as one of the major fishery countries. Its of fishery products reached the 9th in the world and the value of exports was 5th in 1982. But recently a growth rate has slowed down, due to the enlargement of territorial seas by the declaration of the 200 mile, Exclusive Economic Zone, the tendency to develop fishery resources strate-gically in international bargaining, the change in function of the international organizations, the expansion of regulated waters, the illegal arrest of our fishing boats, the rapid rise in oil prices, and the fall in fish prices, the development of fishery resources as a symbol of nationalism, the fishing boats decreptitude, the rise of crew wages, regulations on fishing methods, fish species, fishing season, size of fish, and mesh size, fishing quotas and the demand of excessive fishing royalties. Besides the the obligation of coastal countries, employing crews of their host countries is also an example of the change in the international environment which causes the aggravation of foreign profit of fishing firms. To ameliorate the situation, our Korean fishery firms must prepare efficient plans and study systematically to internationalize themselves because such existing methods as conventional fishing entry and licence fishing entry are likely to be unable to cope with international environmental change. Thus, after the systematic analysis of the problem, some new combined alternatives might be proposed. These are some of the new schemes to support this plan showing the orientation of our national policy: 1. Most of the coastal states, to cope with rapid international environmental change and to survive in the new era of ocean order, have rationalized their higher governmental structure concerning the fishery industries. And the coastal countries which are the objectives of our expecting entry, demand excessive economic and technical aid, limit the number of fishing boats’entry and the use of our foreign fishing bases, and regulate the membership of the international fishery commissions. Especially, most of the coastal or island countries are recently independent states, which are poorer in national budget, depend largely on fishing royalties and licence entry fees as their main resources of national finance. 2. Alternatives to our entry to deep sea fishing, as internationalization strategies, are by direct foreign investment method. About 30 firms have already invested approximately US $ 8 million in 9 coastal countries. Areas of investment comprise the southern part of the Atlantic Ocean, the Moroccan sea and five other sea areas. Trawling, tuna purse seining and five other fields are covered by the investment. Joint-venture is the most prominent method of this direct investment. If we consider the number of entry firms, the host countries, the number of seas available and the size of investment, this method of cooperation is perhaps insufficient so far. Our fishery firms suffer from a weakness in international competitive ability, an insufficiency of information, of short funds, incompetency in the market, the unfriendliness of host coastal countries, the incapability of partners in joint-ventures and the political instability of the host countries. To enlarge our foreign fishing grounds, we are to actively adopt the direct investment entry method and to diversity our collaboraboration with partner countries. Consequently, besides proper fishing, we might utilize forward integration strategies, including the processing fied. a. The enterprise emigration method is likely to be successful in Argentina. It includes the development of Argentinian fishing grounds which are still not exploited in spite of abundant resources. Besides, Arentina could also be developed as a base for the exploitation of the krill resources and for further entries into collaboration with other Latin American countries. b. The co-business contract fishing method works in American territorial seas where American fishermen sell their fishery products to our factory ships at sea. This method contributes greatly to obtaining more fishing quotas and in innovation bottom fishing operation. Therefore we may apply this method to other countres to diffuse our foreign fishing entry. c. The new fishing ground development method was begun in 1957 by tuna long-line experimental fishing in the Indian Ocean. It has five fields, trawling, skipjack pole fishing and shrimp trawling, and so on. Recently, Korean fisheries were successful in the development of the Antarctic Ocean krill and tuna purse seining. 3. The acceleration of the internationalization of deep sea fishing; a. Intense information exchange activities and commission participation are likely to be continues as our contributions to the international fishery organizations. We should try to enter international fishery commissions in which we are not so far participating. And we have to reform adequately to meet the changes of the function of the international commissions. With our partner countries, we ought to conclude bilateral fishery agreements, thus enlarging our collaboration. b. Our government should offer economic and technical aids to host countries to facilitate our firms’fishery entry and activities. c. To accelerate technical innovation, our fishery firms must invest greater amount in technical innovation, at the same time be more discriminatory in importing exogeneous fishery technologies. As for fishing methods; expanded use of multi-purpose fishing boats and introduction of automation should be encuraged to prevent seasonal fluctuations in fishery outputs. d. The government should increases financial and tax aid to Korean firms in order to elevate already weak financial structure of Korean fishery firms. e. Finally, the government ought to revise foreign exchange regulations being applied to deep sea fishery firms. Furthermore, dutes levied on foreign purchaed equipments and supplies used by our deep sea fishing boats thould be reduced or exempted. when the fish caught by Korean partner of joint-venture firms is sold at the home port, pusan, import duty should be exempted.

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The Effects of International Entrepreneurial-orientation on the Export performance of Chinese Export company - The moderating Effects of degree of International and Market dynamism - (중국 수출기업의 국제기업가지향성이 수출성과에 미치는 영향 - 국제화정도와 시장역동성의 조절효과를 중심으로 -)

  • Piao, Zeng-Nan;Yu, Seung-Hun
    • Management & Information Systems Review
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    • v.36 no.5
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    • pp.99-120
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    • 2017
  • Recent studies shows that international entrepreneurship orientation is recognized as a very important tool for improving corporate performance in international business activities. However, these relationships show various research results. Therefore, it can be a very interesting research topic to examine whether these relationships are linear or non-linear when selected as a target in developing country like China. The purpose of this study is to examine whether the effects of international entrepreneurship orientation on the export performance is non-liner type in China's manufacturing firms. And investigated the moderating role of degree of internationalization and market dynamism relative to the relationship between the international entrepreneurial-orientation and the export performance. A total of 478 questionnaires were used for the hypothesis test. The results of this study are summarized as follows: First, there is a J-shaped. relationship between international entrepreneurship orientation and export performance. Second, degree of Internationalization strengthened the reverse J-shaped relationship between international entrepreneurship orientation and export performance. Finally, degree of internationalization and market dynamics show that J-shaped relationship between international entrepreneurial orientation and export performance is strengthened. The results of the study's theoretical contribution and the managerial contribution is as followed. As a theoretical contribution, it is confirmed that international entrepreneurial orientation (J-shaped) and export performance form a non-linear relationship, and it is possible to make an empirical contribution that can newly approach the relationship between international entrepreneurial orientation and export performance. The managerial contribution suggests that China's exporting companies have a higher degree of Internationalization in their international business activities and that the higher the dynamics of the overseas markets, the more advanced the international entrepreneurial behavior should be required to improve the export performance.