Overseas Expansion Research Articles

Governance, financial development and China's outward foreign direct investment.

Deeply investigating the relationship between governance, financial development, and outward foreign direct investment (OFDI) is beneficial to formulating effective policies to accelerate Chinese firms’ pace of overseas expansion. Based on the theoretical mechanism analysis, this paper empirically analyzes the impact of Asian governance and financial development on China’s OFDI using the panel data of 37 Asian countries from 2003 to 2017. The results show that the host country governance has a negative and statistically significant impact on China’s direct investment in Asia. The conclusion remains valid even after overcoming the interference of endogenous and economic cycle fluctuations. Moreover, using the mediating effect model, we find that financial development is an important channel through which host country governance affects China’s OFDI. In further discussion, the findings suggest that with the scale of OFDI expanding, the role of governance takes an inverted "U" shape, and the "Belt and Road" initiative (BRI) weakens the negative impact of governance quality on China’s OFDI. Furthermore, governance has shown more remarkable restraint on China’s OFDI in neighboring, coastal, and low-income countries in the heterogeneity test. ​From the perspective of host country governance, this paper provides more specific guidance to formulate China’s direct investment policy in Asia.

ANALISIS STRATEGI PEMASARAN ERIGO STORE BRAND FASHION LOKAL INDONESIA YANG MENDUNIA

In doing business, business actors must be able to keep up with the times so that they are not left behind and remain in demand by the public, as well as marketing strategies in business that must continue to be able to expand market reach and innovate in the products they offer. One of the businesses that implements a marketing strategy by participating in the export program on the Shopee platform to optimize sales and introduce their products to the international scene is Erigo Store. The study aims to determine the strategy and marketing mix carried out by local fashion brand Erigo Store so that they could enter the international market. The main theory used is the theory of segmenting, targeting, positioning and the 4P marketing mix. The research used is a descriptive qualitative approach. Data collection is done by library research or literature study. The results of this research show that the analysis shows that Erigo Store uses a promotional strategy to follow the bazaar, create an official erigo website, endorse influencers, sell through various e-commerce, advertising through billboards, promotion through TikTok, and overseas expansion.

해외진출을 통한 한국중부발전의 동반성장에 관한 탐색적 연구

Inclusive growth in Korea intends to overcome economic inequality and pursues sustainable growth for large companies and SMEs. This is a corporate social responsibility which also works as a competitive strategy for both parties. Korea Midland Power is operating five power plants in Indonesia, including Cirebon and Tanjung Jati thermal power plants as bases of overseas projects for partnered SMEs. This study aims to explore Korea Midland Power's efforts for shared growth and differentiated development models, and intends to share practical applications of overseas expansion with partnered SMEs. We examine the paradigm shift for shared growth of Korea Midland Power by analyzing the K-Jangbogo project, the unique shared growth platform for SMEs and contribution cases to local communities in Indonesia. Korea Midland Power leads the overseas expansion with partnered SMEs by organizing a joint overseas expansion council and providing shared growth opportunities using KOMIPO ASIA and KOMIPO Factory. Korea Midland Power is also able to maximize operating profits based on a partnership with Korean competitive SMEs. This study provides a practical application case for the network theory and derives successful strategies for shared growth through cooperative relationships between large companies and SMEs.

A Study on the Overseas Expansion Strategy and Government Support Policy of Korean Knowledge Service Startups in Northeast Asia

본 연구는 동북아시아 지역에 진출한 우리나라 지식서비스스타트업들의 해외진출에 필요한 역량과 현지화 노력을 확인하고 이를 통해 해외진출에 필요한 역량을 구분하고 이를 사회자본과 연계하여 시장에서 요구하는 사회자본을 확인하고자 하였다. 특히, 현지에서 요구하는 단순한 현지화 정보의 나열이 아닌 스타트업 대표의 역량을 중심으로 현지에서 필요로 하는 역량을 파악하고 이를 확보하는 방안에 대해서 연구하였다. 이를 위해 사례연구를 통해 도출된 명제의 타당성을 확인하고 이를 기반으로 의미있는 시사점을 도출하고자 하였다. 또한 스타트업만의 노력으로 해외진출에 성공하는데 여러 어려움이 발생하기 때문에 정부지원정책의 방향성을 제시하고 이를 기반으로 한 정부지원사업의 효율적인 운영과 지원이 가능토록 하였다. 이를 통해 우리나라 지식서비스 스타트업들은 해외진출에 필요한 역량을 확인하고 이를 효과적으로 지원하는 정부지원사업을 통해 역량을 확보할 수 있을 것이며 이를 통해 국가적인 경쟁력과 국가발전의 새로운 동력으로 작용하게 될 것이다.This study aims to identify the competencies and localization efforts required for overseas expansion of Korean knowledge service startups that have entered the Northeast Asian region, classify the competencies required for overseas expansion, and link them with social capital to identify the social capital required by the city. did. In particular, we studied how to identify and secure the capabilities needed in the local area, focusing on the capabilities of startup representatives, rather than simply listing localization information required locally. To this end, the validity of the proposition derived through case studies was checked and meaningful implications were derived based on this. In addition, since there are many difficulties in successful overseas expansion through the efforts of startups, the direction of government support policies was presented and based on this, efficient operation and support of government support projects were made possible. Through this, Korean knowledge service startups will be able to identify the capabilities necessary for overseas expansion and secure their capabilities through government-supported projects that effectively support them, which will serve as a new engine for national competitiveness and national development.

Are the Russian Banks Threatened with Removal from SWIFT? A Multiple Case Study on Interbank Financial Messaging Systems

When Russia invaded Ukraine in February 2022, the United States, European Union, and their allies removed the Russian banks from the main interbank payment system worldwide, SWIFT (Society for Worldwide Interbank Financial Telecommunication), which is a secure messaging system that makes cross-border payments possible, vital for the international trade. However, it is not the first time that Russian banks are threatened with disconnection from Swift by the US government. In response, the Central Bank of Russia developed in 2014 the SPFS (System for Transfer of Financial Messages, our translation). In addition, the Chinese government created in 2015 an equivalent system named Cross-Border Interbank Payment System (CIPS). In this article, we examined SWIFT and alternatives, such as the Russian SPFS, the Chinese CIPS, and the Indian SFMS. Key findings pointed out crucial differences between the financial messaging systems, their objectives, and the expansion of operations overseas. Finally, discussion and implications to the global economy compile this work.

Caribbean plantation economies as colonial models: The case of the English East India Company and St. Helena in the late seventeenth century

ABSTRACT In the 1680s the English East India Company (EIC) sought to develop a plantation economy in its South Atlantic colony of St. Helena, using the Caribbean island of Barbados as a colonial model. The EIC’s attempt to develop Barbadian-style plantations on St. Helena demonstrates the global reach of the Caribbean sugar colonies and their importance as an exemplar for English imperial projects in the early modern period. Colonial theorists working outside the remit of the EIC even sought to expand the Caribbean plantation system beyond the Cape of Good Hope in this period, highlighting how English overseas expansion was an interconnected phenomenon which defies rigid categorization along regional lines. Yet the failure of the EIC’s top-down plan for St. Helena also underscores how both historical contingencies and local factors were central to the success of colonial plantation, and that misunderstanding these conditions could undermine the best-laid plans and models.

Buying Sovereignty: German “Weltpolitik” and Private Enterprise, 1884–1914

AbstractWilhelmine Germany's Weltpolitik is widely regarded as a precursor to World War I, as a reckless break from the Bismarckian past, and as a counterproductive form of German deviation from European norms. Yet, when one reexamines certain German overseas expansion schemes between 1897 and the early 1900s, a strong intellectual continuity emerges between the methods of Weltpolitik and wider views about colonial sovereignty. Like Bismarck and other European imperial powers in the late nineteenth century, the actors producing Weltpolitik sought to enlist private businessmen in colonial governance, as well as to parcel and transfer sovereignty as a commodity in places like the Caribbean island of St. John. Counterintuitively, this way of treating sovereignty was highly imitative and compliant with norms, both at home and abroad. It also represented an alternative, at least at times, to a more aggressive course in foreign policy.

The First ‘British’ Colony in the Americas: Inter-kingdom Cooperation and Stuart-British Ideology in the Colonisation of Newfoundland, 1616–1640

The accession of James VI, the Stewart (or Stuart) King of Scots, to the thrones of England and Ireland in 1603 renewed debates about ‘Britishness’. Many of the king’s attempts to popularise and codify his version of the concept were unsuccessful. His vision for closer political union between England and Scotland did not come to pass until 1707 and most historians attribute the formation of British identity to the eighteenth century. Most influentially, Linda Colley has argued that British identity was forged in the crucible of eighteenth-century empire-building as English, Scottish, and Welsh people lived, worked, and fought together across the globe in defence of shared values. English, Scottish, Welsh, and Irish people and interests likewise coalesced in the pursuit of empire in the early seventeenth century. They cooperated in attempts to colonise Newfoundland and explicitly promoted the project as British. The Newfoundland example shows that James’ British vision had some success. This article examines the project’s ‘Britishness’ and argues that the 1603 union of the crowns’ role in the formation of British identity and its impact on overseas expansion requires additional attention.

Analysis of the Relationship between Securing Smart Factory Manufacturing Competitiveness on Reshoring of Korean Manufacturing Companies Entering Overseas Markets

Purpose: As the corporate issues rapidly emerging in the manufacturing industry in recent years, how to understand the changing environment, establish well-timed corporate strategies and seek development directions. Thus, this study would demonstrate the analysis of the relationship of securing competitiveness in manufacturing at the smart factories of Manufacturing companies affecting overseas manufacturers’ reshoring. Research design, data, and methodology: To conduct this study, a clustering sampling method was utilized with executives and staff members at steel companies with overseas expansion experience from July 13 through July 21, 2020, and samples were extracted in the form of the self-recording type after the distribution of the questionnaires. The distributed questionnaires were 186 copies, and all 186 copies were collected. Then, excluding five copies of the questionnaire judged to have a systematic or unsystematic error, 181 copies were applied as the empirical analysis data. Results: As a result of testing the causality hypothesis for this study model, it was confirmed that all of them had a statistically significant influence relationship. Also, as a result of analyzing the mediating effect, it was finally confirmed that there was a partial mediating effect. Implications: Securing smart factory manufacturing competitiveness had a statistically significant effect on manufacturing competitiveness. In addition, it was confirmed that manufacturing competitiveness of manufacturing companies had a statistically significant effect on reshoring of manufacturing companies, and securing smart factory manufacturing competitiveness had a statistically significant influence on reshoring of manufacturing companies. In addition, as a result of examining whether there is a mediating effect between manufacturing competitiveness, it was finally confirmed that there was a partial mediating effect.

Gdynia 1920–1939: Poland’s Gateway to the World

In 1923, construction of a new Polish seaport began in the small fishermen’s village of Gdynia. By 1926, the village transformed into a port town, and by 1939 it was the biggest and one of the most modern ports on the Baltic Sea, responsible for half of Poland’s foreign exchange. The construction, which was a great investment and considerable strain on the country’s modest resources, was accompanied by intensive enthusiastic propaganda. It was carried out by research institutions (e.g. Baltic Institute) organisations such as Maritime and Colonial League, journalists, writers etc., and it was expressed in exhibitions, public events such as “Holidays of the Sea,”literature, poetry, film and other media. Gdynia became a symbol of Poland’s transformation from nation of farmers to one of seafarers; of modernisation, civilizational development, and even overseas expansion and acquiring colonies. This was summarised with a metaphor of the port being Poland’s “window”or “gateway to the world,”thanks to which it could escape its historically problematic position between Germany and Russia/USSR, and –through a network of trade connections, seafaring, and colonies in Africa and South America –acquire a global presence. This article discusses the rhetoric and realities of Gdynia as the symbol of this ambition in interwar Poland, the contrast and similarities between the image of Gdynia created in contemporary propaganda and publications, and the reality of the actual city.

Does the geographical complexity of the Colombian financial conglomerates increase banks’ risk? The role of diversification, regulatory arbitrage, and funding costs

During the last decade Colombian international financial conglomerates (IFCs) expanded abroad, significantly increasing their geographical complexity. This paper analyzes the effect of changes in geographical complexity on the level of bank risk. We used the z-score as a measure of bank risk and as a measure of geographical complexity, the number of countries where a Colombian IFC has bank subsidiaries. Our results suggest that complexity is associated with higher levels of banks' risk, due to the Colombian expansion overseas to countries with large GDP co-movements and lower regulatory qualities. In addition, we found some evidence that complex banks increase their demand for external funds when the internal cost of capital increases. Moreover, local monetary policy affects the relationship between banking complexity and bank risk.

제국 안의 인도차이나, 식민지 안의 프랑스 제국주의 –인도차이나 식민지 경제의 구성 혹은 재구성-

Based on existing studies, this article aims at (re)interpreting the colonial economy of French Indochina. Under the French colonial rule, this territory was integrated into the French imperial economy, providing France with important outlets for its industrial products, but hardly with the resources it needed. On the other hand, Indochina became a privileged field for the overseas expansion of French capital. However, the transformation of the colony into a profit-making space required some preparations, a task assumed by the colonial state. The enterprises formed with metropolitan capital dominated the Indochinese economy, but not all of them were successful. Future researches should reveal cracks in the colonial capitalism as well as investigate the complicated interactions between colonizers and the colonized.

Overcoming institutional voids in the home country for internationalization: an exploratory examination of institutional strategies of Indian MNEs

This study draws upon the institution-based view to examine the role of market and non-market institutional strategies of multinational enterprises from emerging markets (EMNEs) in shaping their decisions on outward foreign direct investment (OFDI) (decision to engage in OFDI and volume of investment). The proposed conceptual framework is tested on the OFDI decisions of listed Indian firms during the period 2008–2018. The results of random effects logistic regression and tobit regression provide robust evidence for the positive impact of institutional substitution and institutional signaling strategy on the decision to engage in OFDI as well as the volume of investment. An institutional borrowing strategy affects only the decision to engage in OFDI, whereas an internalization strategy does not help EMNEs while internationalizing. The study contributes to the literature on institutional voids and institutional escapism by identifying the strategies that facilitate overseas expansion. It adds to the EMNE literature, which has focused lately on explaining the role of non-market strategies in internationalization. The results of the study indicate the need for policy initiatives geared towards filling information voids, strengthening legal systems and development of credit markets.

Nature and Extent of International Diversification: Empirical Evidence from India

The paper aims to measure the extent of international diversification achieved by Indian companies in the recent time period. The study also investigates the nature of international diversification of companies during their transition beyond national boundaries. This evaluation of the firm’s nature and extent of internationalization is further extended to cover the period of COVID-19 as well. The Jacquemin and Berry Entropy Approach (1979) is applied to operationalize the firm’s international diversification. It facilitates the measurement of both inter-region and intra-region diversification. World Bank Geographical Region Classification Framework (2018) has been used to facilitate the applicability of the approach applied. Results indicate that Indian companies were inclined to grow beyond their home territories. However, the extent of international diversification is low as ‘Internationally Low Diversification (ILD)’ reveals to be the most popular strategy amongst Indian companies. Nature depicts a preference for relatedness than unrelatedness for overseas expansion as firms prefer intra-region expansion as compared to moving inter-region. Stagnation and halt are witnessed in the global expansion of companies in the period of the pandemic. The present study is novel as it comprehensively evaluates the international growth strategies preferred by Indian companies in the pre-pandemic and the pandemic period.

Overseas Expansion Strategy of Food Franchise Companies (Case Study)

Overseas Expansion Strategy of Food Franchise Companies (Case Study)

A Study on the Derivation of Priorities for Overseas Expansion Factors of Medical Institutions Using AHP Method

Purpose The purpose of this study is to identify the factors necessary for the overseas advancement of domestic medical institutions through previous studies and to determine the priority of factors using the AHP method Design/Methodology/Approach In this study, AHP was used to derive priority factors for the overseas expansion of domestic medical institutions. A structural model corresponding to a total of two stages was established in order to identify the factors that need to be dealt with in the overseas expansion of Korean medical institutions. In the first stage, 8 evaluation factors were set, and in the second stage, 26 evaluation indexes were derived. Findings In order to derive the priority of the overseas expansion of domestic medical institutions, the analysis was conducted in stages. As a result of the composite weight analysis, the priorities were confirmed in the following order: building trust in local partners and having public partners in countries where entering the market, having a department in charge of overseas expansion of medical care, planning to secure a budget for the overseas expansion, planning for external financing, and willingness to advance overseas. Research Implications This study is meaningful in that it approached from the perspective of resource-based, managerial characteristics, and industrial organization to derive factors necessary for the overseas expansion of domestic medical institutions. In previous studies related to the overseas expansion of existing domestic medical institutions, case-oriented studies were mainly conducted.

A Study on the Entrepreneurship, Innovativeness and Overseas Expansion Capacity in the 4th Industrial Revolution

Purpose This study aims to identify the relationship between competences suggested through case studies and suggest policy implications based on this. In particular, in order to understand the structure between competencies to provide a conceptual framework, it is important to understand conceptual characteristics through qualitative analysis and in-depth analysis through case studies rather than quantitative analysis. Design/Methodology/Approach It is necessary to present a new framework to respond to rapid changes such as the advent of the 4th industrial revolution and the current Corona 19 situation. A convergence research methodology to respond to changes such as the advent of a new industrial environment and non-face-to-face environment along with the advent of traditional characteristics and the latest technology of the existing industry is very necessary, but various studies on it are lacking. Findings This study is meaningful in providing a conceptual framework for future competency analysis, and it is expected that various follow-up studies will be possible through this. The conceptual framework of future competency derived from this study will provide the necessary concepts when analyzing the capabilities that entrepreneurs should have as a growth engine in Korea, and through this, policy proposals and industrial investment focused on more important capabilities will be made. Research Implications In order to see the capabilities required in the era of the 4th industrial revolution from the perspective of entrepreneurs, the innovation of future capabilities, the required capabilities of entrepreneurship, and the capabilities required for overseas expansion were analyzed in connection with each other.

A Study on the Derivation of Priorities for Overseas Expansion Factors of Medical Institutions Using AHP Method

A Study on the Derivation of Priorities for Overseas Expansion Factors of Medical Institutions Using AHP Method

A Study on the Entrepreneurship, Innovativeness and Overseas Expansion Capacity in the 4th Industrial Revolution

A Study on the Entrepreneurship, Innovativeness and Overseas Expansion Capacity in the 4th Industrial Revolution

Analyzing IKEA’s International Investment in China Based on the Theory of International Production Compromise

This study analyzes IKEA’s localized operation in China through the eclectic theory of international production. Firstly, the development history of IKEA is discussed along with its development in China. Secondly, IKEA’s direct investment in China is analyzed from the perspective of IKEA’s eclectic theory of direct investment in international production, the corporate ownership, internalization, and location advantages of the company, in addition to the challenges of IKEA’s investment and operation in China, hoping to enlighten the process of formulating overseas expansion strategies for foreign direct investment. This study aims to guide students to strengthen their skills in formulating and implementing strategies in regard to the international investment process of multinational companies. On the one hand, they can analyze the strategies used and challenges faced by IKEA in its international investment in China to stimulate their thinking on the international investment of Chinese enterprises; on the other hand, they can also strengthen their understanding of the international investment theory by analyzing IKEA’s international investment in China. This study hopes to enhance students’ understanding and application skills in regard to companies’ transnational operations.