Korean MNEs Research Articles

Exploring the configuration of international HRM strategies for global integration and local responsiveness in MNEs

This study examines the configuration of international HRM strategies to understand how an MNE pursues global integration and local responsiveness simultaneously in HRM. Drawing upon cases of eight South Korean and Japanese MNEs, we identify different patterns of configuration of five international HRM strategies that shape distinct sets of activities. We show that the firms pursue global integration and local responsiveness simultaneously, but in distinct ways, by configuring international HRM strategies for both integration and responsiveness rather than solely just relying on either one. Our findings offer insight into how MNEs actually manage the duality of global integration and local responsiveness at the strategy level beyond the hybridization of global standardization and localization of practices.

A Two-Track Strategy for Sustainability of Korean MNEs Using Text Mining

A Two-Track Strategy for Sustainability of Korean MNEs Using Text Mining

The Effect of Local Stakeholders Pressures on Responsive and Strategic CSR Activities: Evidence from Korean MNEs

This study identifies the relationship between local stakeholder pressures and Korean foreign subsidiaries’ corporate social responsibility (CSR) from the stakeholder theory perspective. We classify local stakeholders into primary and secondary groups by their business relatedness as well as foreign subsidiaries’ CSR activities into responsive and strategic CSR by taking into account their willingness. By analyzing survey data of 177 Korean foreign subsidiaries, the key findings are as follows. First, local primary stakeholders, such as customers, employees and suppliers, have a positive impact on responsive CSR activities, but no influence on strategic CSR. In contrast, directly business related primary stakeholders have greater effect on responsive CSR activities rather than on strategic ones. Second, local secondary stakeholders in host countries, such as governments, non-government organizations (NGOs) and local communities, have strong influence on both responsive and strategic CSR activities, whereas secondary stakeholder groups have more influences on strategic CSR activities rather than responsive ones. This means that local secondary stakeholder groups have a strong expectation about subsidiaries’ aggressive social innovation and resource investment to solve issues with local involvement, while primary groups may have some defensive attitude toward business related strategic CSR. This exploratory study finds that foreign subsidiaries should exercise effective change management programs towards primary local stakeholders to practice business and innovation driven strategic CSR activities successfully.

Performance effects of explorative and exploitative knowledge sharing within Korean chaebol MNEs in China

Do explorative and exploitative nature of knowledge shared within emerging multinational enterprises (EMNEs) (here, Korean chaebol MNEs) affect the EMNE subsidiaries' financial performance? The international business and strategy literature has emphasised the importance of intra-multinational enterprise (MNE) knowledge sharing yet researchers have remained largely silent about explorative and exploitative nature of knowledge shared within EMNEs. Further, when we consider explorative and exploitative nature knowledge shared within emerging economy business groups (EEBGs) (here, Korean chaebols), we still do not know much about how the foreign subsidiaries within EEBGs mobilise their knowledge sharing across networked units in order to promote innovations. Using a sample of 646 subsidiaries in China of 175 Korean MNEs within 37 chaebols, we examine how intra-EMNE sharing of explorative and exploitative knowledge affects an EMNE subsidiary's financial performance. Our findings suggest that there is a positive interaction effect between increased sharing of both explorative and exploitative knowledge and a negative effect of the relative imbalance between sharing of explorative and exploitative knowledge. Our findings show that both the effectiveness in intra-chaebol knowledge sharing and explorative and exploitative nature of knowledge shared within a chaebol have a substantial influence on the chaebol EMNE subsidiary's performance.

Liabilities of Origin and Foreign Subsidiary Performance of Korean MNEs - The Moderating Role of Expatriate Utilization -

본 연구는 본국 대비 현지국의 발전 수준이 한국 다국적기업 자회사의 성과에 미치는 영향을 살펴보았다. 사회심리학이론의 집단 간 편향에 대한 기존 연구들에 기반을 두어 본 연구는 본국에 비해 현지국의 발전 수준이 높을수록 다국적기업에 대한 현지국 직원들의 국수주의적인 내집단 편향이 강하게 나타날 것이라고 주장하였다. 현지국 직원들의 국수주의적인 내집단 편향은 다국적기업 자회사에 부정적인 영향을 미치기 때문에 본국 대비 현지국의 발전 수준은 다국적기업 자회사의 성과에 부(-)의 영향을 미칠 것으로 가정하였다. 또한 집단 간 접촉이론에 기반을 두어 자회사의 주재원 활용 정도는 본국 대비 현지국의 발전 수준과 다국적기업 자회사 간의 관계를 정(+)의 방향으로 조절할 것이라고 가정하였다. 47개국에서 경영활동을 수행하고 있는 818개 한국 다국적기업의 1,453개 해외자회사들을 대상으로 이상의 주장들을 실증적으로 검증하였다.

Korean MNEs in China, the Relationship between Control Mechanism and Absorptive Capacity, Knowledge Acquisition

Korean MNEs in China, the Relationship between Control Mechanism and Absorptive Capacity, Knowledge Acquisition

Environmentally responsible management of MNE subsidiaries: stakeholder perspective

Purpose – The aim of this paper is to empirically analyze the extent of the impact stakeholders' pressure has as a determinant of multinational enterprises' MNEs' local environmentally responsible management (ERM), aiming to contribute to the interlocution with stakeholders and ERM strategy establishment of MNE subsidiaries. Design/methodology/approach – To identify key stakeholders, ordinary least squares (OLS) regression analysis was used. The data were collected from 300 foreign subsidiaries established by Korean MNEs from August to December 2012. Findings – The results show the parent company (as a major internal stakeholder) and government, NGOs and media (as external stakeholders) are major factors that promote ERM by subsidiaries. Stakeholder theory provides a comprehensive understanding about stakeholders' pressure as a force to engage overseas subsidiaries with environmental responsibility. Originality/value – The research contributes to environmental and international business literature by investigating antecedents of ERM of overseas subsidiaries. A stakeholder perspective is used as an overarching theory in order to develop an ERM framework.

An Empirical Study on the Determinants of Foreign Subsidiaries' Marketing Knowledge Sharing Activity and its Effect on Marketing Knowledge Sharing Satisfaction

This paper attempts to examine how the relationship factors of peer foreign subsidiaries in MNEs affect marketing knowledge sharing activity between them and whether the activity guarantees the quality of the shared knowledge and leads to marketing knowledge sharing satisfaction. The research model were tested with the data collected from 113 foreign subsidiaries of Korean MNEs publicly listed in the Korean Stock Exchange, using PLS method. The empirical results show that mutual dependence and trust between them were found to positively influence the extent to which they are actively involved in marketing knowledge sharing and more satisfaction is expected in foreign subsidiaries which share marketing knowledge actively. However, active sharing of marketing knowledge does not always satisfy the parties. They are satisfied only when the shared knowledge is of good quality. The result shows more active sharing of marketing knowledge improves the quality of the shared knowledge owing to a kind of experience and a learning effect and consequently, the subsidiaries are more satisfied.

Beyond Global Standardization and Localization: Korean MNEs and Optimization as IHRM Strategy

This article furthers our understanding of the international human resource management (IHRM) strategies of MNEs based in newly industrialized and emerging economies through the examination of corp...

Expatriate Management and Cultural Interface between Asia and Africa

The strategies adopted to manage the interface of cultures between Korea and African markets call for a more systematic investigation. There should be a backdrop for appreciating the organizational profiles by focusing on the following: First, the societal cultures in the cultural zones and the way they shaped the management of the organizations in their zones. Second, the African cultural context and the challenges that it posed to the Korean MNEs for operating in African countries. Finally, the impact that the presence of MNEs had on any of African organizations, and the organizational cultures that both of them jointly created in Africa. In this regard, CCT toolkit should be designed to teach expatriates how to succeed in Africa. At its core is a powerful tool for assessing individual cultural preferences with the ability to contrast and compare with other individual, team and national profiles.