International Commerce and Information Review (통상정보연구)

Korea Association for International Commerce and Information (한국통상정보학회)
권호 표지

A Study on Moderating Effects of Autonomy on Performance of MNC Subsidiaries in Korea

다국적기업 한국자회사의 성과에 대한 자율성 조절효과 연구

  • Yu, Jae-Har (Gumi Univ., Global Tourism and Banking) ;
  • Lee, Chun-Su (Pukyong National Univ., College of Business Administration)
  • Received : 2016.05.06
  • Accepted : 2016.06.24
  • Published : 2016.06.30
Download PDF
⟨ Previous Next ⟩

Abstract

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.

다국적기업 한국자회사의 자율성은 자회사에게 주어진 역할과 권한부여에 따라 자율성의 정도가 결정되어지기도 하나 다른 요인들에 의해 정해지기도 한다. 본 연구에서는 자회사 성과의 결정요인을 규명하고 또한 자회사 역량, 자회사관계 및 자회사구성형태와 자회사 성과와에 관계에 있어서의 자율성의 조절효과를 규명하고자 한다. 다국적기업은 본사국과는 이질적인 환경에 투자를 통해 자회사를 설립하고 이들 자회사가 본사가 기대하고 있는 성과를 창출하기를 기대할 것이다. 자율성의 조절효과의 실증분석 결과는 한국에서 경쟁하고 있는 다국적기업 자회사에게 보다 경쟁우위를 확보할 수 있는 방안을 제시할 것이다. 실증분석 결과를 살펴보면 다국적기업 네트워크 내에 있는 본사 또는 다른 자회사와의 상호교류관계의 정도가 높은 자회사 일수록 한국시장에서 더 높은 성과를 창출하고 있다. 또한 자회사 역량의 정도가 높을수록 더 높은 성과를 창출하고 있다. 자회사의 자율성은 자회사구성형태와 자회사성과 관계에 조절효과를 보이고 있다. 그러므로 최적의 자회사구성형태와 자율성의 확보는 한국시장에서 성공할 수 있는 필요조건이라 할 수 있다. 다국적기업 한국자회사가 경쟁이 치열한 한국시장에서 성과를 제고하려면 자회사 특유의 역량을 확보해야 할 뿐만 아니라 본사 및 다른 자회사로부터의 지식과 정보 획득을 통한 자회사의 역량강화를 위해 다국적기업 네트워크 관계에도 적극적으로 참여하여야 한다. 본 연구의 결과를 통해 다국적기업 한국자회사의 성과 극대화를 위한 유용한 의사결정 방향을 제시하고자 한다. 자회사의 역량제고, 다국적기업 네트워크에서의 긴밀한 관계유지 및 자율성 확보를 통해 다국적기업 한국자회사는 한국시장에서 성과를 제고 할 수 있을 것이다.

Keywords

References

  1. Aaker, D.A., "Managing Assets and Skills: The key to a sustainable competitive advantage," California Management Review, 32, 91-106, 1989.
  2. Andersson, U. and Forsgren, M., "In search of centre of excellence: Network embeddedness and subsidiary roles in multinational corporations," Management International Review, 40, 329-350, 2000.
  3. Andersson, U. and Pahlberg, C., "Subsidiary influence on strategic behaviour in MNCs: An empirical Study," International Business Review, 6(3), 319-334, 1997. https://doi.org/10.1016/S0969-5931(97)00006-1
  4. Birkinshaw, J. "How Multinational subsidiary mandates are gained and lost," Journal of International Business Studies, 27(3), 467-496, 1996. https://doi.org/10.1057/palgrave.jibs.8490845
  5. Birkinshaw, J. and Hood, N. "Multinational subsidiary evolution: capability and charter change in foreign owned subsidiary companies," Academy of Management Review, 23(4), 773-795, 1998. https://doi.org/10.5465/amr.1998.1255638
  6. Brass, D. and Burkhardt, M. Centrality and power in organizations, in N. Nohria and R. Eccles (Eds.), Networks and organizations: Structure, form, and action, Boston, Harvard Business School Press, 1992.
  7. Chandler, G. N. & Hanks, S. H, "Measuring the performance of emerging businesses: A validation study," Journal of Business Venturing, 8, 391-408, 1993. https://doi.org/10.1016/0883-9026(93)90021-V
  8. Chatterjee, S. and Wernerfelt, B, "The link between resources and type of diversification: Theory and evidence", Strategic Management Journal, 12(1), 33-48, 1991. https://doi.org/10.1002/smj.4250120104
  9. Edwards, M., Ahmad, A. and Moss, S, "Subsidiary autonomy: the case of multinational subsidiaries in Malaysia," Journal of International Business Studies, 33(1), 183-191, 2002. https://doi.org/10.1057/palgrave.jibs.8491011
  10. Gammelgaard, J., McDonald, F., Stephan, A., Tuselmann, H. and Dorrenbacher, C, "The impact of increases in subsidiary autonomy and network relationship on performance," International Business Review, 21(6), 1158-1172, 2012. https://doi.org/10.1016/j.ibusrev.2012.01.001
  11. Garnier, G.H., Osborn, T.N., Galicia, F. and Lecon, R, "Autonomy for the Mexican affiliates of U.S. multinational corporations," Columbia Journal of World Business, 14(1), 78-90, 1979.
  12. Gates, S.R. and Egelhoff, W.G, "Centralization in headquarter-subsidiary relationships," Journal of International Business Studies, 17(2), 71-92, 1986. https://doi.org/10.1057/palgrave.jibs.8490425
  13. Geringer, M. and Hebert, L, "Control and performance of international joint venture," Journal of International Business Studies, 20, 235-254, 1989. https://doi.org/10.1057/palgrave.jibs.8490359
  14. Grant, R.M, "The resource-based theory of competitive advantage : Implication for strategy formation," California Management Review, 33(3), 114-135, 1991. https://doi.org/10.2307/41166664
  15. Hedlund, G, "The role of foreign subsidiaries in strategic decision-making in Swedish multinational corporations," Strategic Management Journal, 1(1), 23-36, 1981. https://doi.org/10.1002/smj.4250010104
  16. Kim, M.S. and Bang, H.Y, "A Typology of MNC's Foreign Subsidiaries: A Conceptual Model and Korean Cases," International Commerce and Information Review, 15(1), 227-256, 2013. https://doi.org/10.15798/kaici.15.1.201303.227
  17. Kogut, B. and Zander, U, "Knowledge of the firm, combinative capabilities, and the replication of technology," Organization Science, 3, 383-397, 1992. https://doi.org/10.1287/orsc.3.3.383
  18. Lane, P. J., Salk, L. E., and Lyles, M. A, "Absorptive capacity, learning, and performance in international joint ventures," Strategic Management Journal, 22, 1139-1161, 2001. https://doi.org/10.1002/smj.206
  19. Lee, K.B., "The Impacts of Competition and Technology Change on the HQ-subsidiary Cooperation," International Commerce and Information Review, 16(5), 203-221, 2014.
  20. Leonard-Barton D, "Core capabilities and core rigidities: A paradox in managing new product development," Strategic Management Journal, 13, 111-126, 1992. https://doi.org/10.1002/smj.4250131009
  21. Lenz, R. T, "Strategic capability: A concept and framework for analysis," Academy of Management Review, 5(2), 225-234, 1980. https://doi.org/10.5465/amr.1980.4288736
  22. Lyles, M. A. and Salk, J. E, "Knowledge acquisition from foreign parents in international joint ventures," Journal of International Business Studies, 27(5), 877-904, 1996. https://doi.org/10.1057/palgrave.jibs.8490155
  23. Morrison, A.J., Ricks, D.A. and Roth, K, "Globalization versus regionalization: Which way for the multinational?," Organizational Dynamics, 19(3), 17-29, 1991. https://doi.org/10.1016/0090-2616(91)90091-M
  24. Porter, M. E, Competitive strategy, New York, The Free Press, 1980.
  25. Roth, K. "international configuration and coordination archetypes for medium-sized firms in global industry," Journal of International Business Studies, 23(3), 533-549, 1992. https://doi.org/10.1057/palgrave.jibs.8490278
  26. Rugman, A. & Douglas, S, The strategic management of multinationals and world product mandating, in Rugman, A. The theory of multinational enterprises: The selected scientific papers of Alan R. Rugman, Brookfield, Elgar, 1996.
  27. Rugman, A.M. and Verbeke, A, "Subsidiary specific advantage in multinational enterprises," Strategic Management Review, 22(3), 237-250, 2001. https://doi.org/10.1002/smj.153
  28. Salancik, G.R, "An index of subgroup influence in dependency networks," Administrative Science Quarterly, 31(2), 194-211, 1986. https://doi.org/10.2307/2392788
  29. Snow, C. and Hrebiniak, L, "Strategy, distinctive competence and organizational performance," Administrative Science Quarterly, 25, 317-336, 1980. https://doi.org/10.2307/2392457
  30. Taggart, J.H. and Hood, N, "Determinants of autonomy in multinational corporation's subsidiaries," European Management Journal, 17(2), 226-236, 1999. https://doi.org/10.1016/S0263-2373(98)00081-4
  31. Tran, Y., Mahnke, V. and Ambos, B, "The effect of quantity, quality and timing of headquarters-initiated knowledge flows on subsidiary performance," Management International Review, 50, 493-511, 2010. https://doi.org/10.1007/s11575-010-0046-z
  32. Varblane, U., Mannik, K. and Hannula, H, Autonomy and performance of foreign subsidiaries in transition countries, Tartu, Tartu University Press, 2005.
  33. Young, S., Hood, N., and Hamill, J, "Decision-making in foreign-owned multinational subsidiaries in the United Kingdom", ILO Working Papers, 35, 1-66, 1985.
  34. Young, S. and Tavares, A.T, "Centralization and autonomy: Back to the future," International Business Review, 13(2), 215-237, 2004. https://doi.org/10.1016/j.ibusrev.2003.06.002
  35. Winter, S.G, "The satisfying principle in capability learning," Strategic Management Journal, 21, 981-96, 2000. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<981::AID-SMJ125>3.0.CO;2-4