무역학회지 (Korea Trade Review)

한국무역학회 (Korea Trade Research Association)
권호 표지
DOI QR코드

DOI QR Code

피투자국의 부패에 따른 신흥국 다국적기업의 파트너 선택

The Effect of Corruption in Host Country on Joint Venture Partner Selection of Emerging Multinational Enterprises

  • 노태우 (순천향대학교 국제통상학과) ;
  • 최지훈 (순천향대학교 국제통상학과) ;
  • 김정근 (순천향대학교 국제통상학과) ;
  • 박수빈 (순천향대학교 국제통상학과)
  • Tae-Woo Roh (Department of International Trade and Commerce, Soonchunhyang University) ;
  • Ji-Hun Choi (Department of International Trade and Commerce, Soonchunhyang University) ;
  • Jung-Geun Kim (Department of International Trade and Commerce, Soonchunhyang University) ;
  • Su-Bin Park (Department of International Trade and Commerce, Soonchunhyang University)
  • 투고 : 2021.03.31
  • 심사 : 2021.04.20
  • 발행 : 2021.04.30
PDF 다운로드
⟨ 이전 논문 다음 논문 ⟩

초록

Based on the existing OFDI (outward foreign direct investment) literature, this study endeavored to verify how the corruption of host countries affects the partner strategy of EMNEs (emerging multinational enterprises) when EMNEs enter global markets through joint ventures. Following the existing literature, this study classified corruption and partner strategies into two categories, respectively. First, the corruption of host country was divided into grand corruption and petty corruption. Second, EMNEs' joint venture partner strategy was divided into home country partner joint venture and host country (i.e., local) partner joint venture. Our hypothesis suggested that the greater the host country's grand corruption, the more EMNEs would choose the host country partner, while the strong petty corruption leads to the preference of home country partner in host country. The hypotheses were verified with a sample of 890 foreign direct investment cases of Chinese multinational companies from 2005 to 2015. As a result of the study, regardless of the degree of corruption, it was found that they prefer joint ventures with home country partners when EMNEs enter the global market through joint ventures.

키워드

과제정보

This work was supported by the Soonchunhyang University Research Fund.

참고문헌

  1. Anderson, J. C. and J. A. Narus (1990), "A Model of Distributor Firm and Manufacturer Firm Working Partnerships", Journal of Marketing, 54(1), 42-58. https://doi.org/10.1177/002224299005400103
  2. Azman-Saini, W., A. Z. Baharumshah and S. H. Law (2010), "Foreign Direct Investment, Economic Freedom and Economic Growth: International Evidence", Economic Modelling, 27(5), 1079-1089. https://doi.org/10.1016/j.econmod.2010.04.001
  3. Bardhan, P. (2006), "The Economist's Approach to the Problem of Corruption", World Development, 34(2), 341-348. https://doi.org/10.1016/j.worlddev.2005.03.011
  4. Bierly III, P. E. and S. Gallagher (2007), "Explaining Alliance Partner Selection: Fit, Trust and Strategic Expediency", Long Range Planning, 40(2), 134-153. https://doi.org/10.1016/j.lrp.2007.03.001
  5. Boies, K., J. Fiset and H. Gill (2015), "Communication and Trust are Key: Unlocking the Relationship between Leadership and Team Performance and Creativity", The Leadership Quarterly, 26(6), 1080-1094. https://doi.org/10.1016/j.leaqua.2015.07.007
  6. Bouckaert, J. and G. Dhaene (2004), "Inter-ethnic Trust and Reciprocity: Results of an Experiment with Small Businessmen", European Journal of Political Economy, 20(4), 869-886. https://doi.org/10.1016/j.ejpoleco.2003.08.006
  7. Buthe, T. and H. V. Milner (2008), "The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements?", American Journal of Political Science, 52(4), 741-762. https://doi.org/10.1111/j.1540-5907.2008.00340.x
  8. Buckley, P. J., L. Chen, L. J. Clegg and H. Voss (2018), "Risk Propensity in the Foreign Direct Investment Location Decision of Emerging Multinationals", Journal of International Business Studies, 49(2), 153-171. https://doi.org/10.1057/s41267-017-0126-4
  9. Buckley, P. J., L. J. Clegg, A. R. Cross, X. Liu, H. Voss and P. Zheng (2007), "The Determinants of Chinese Outward Foreign Direct Investment", Journal of International Business Studies, 38(4), 499-518. https://doi.org/10.1057/palgrave.jibs.8400277
  10. Child, J. and S. B. Rodrigues (2005), "The Internationalization of Chinese Firms: A Case for Theoretical Extension?", Management and Organization Review, 1(3), 381-410. https://doi.org/10.1111/j.1740-8784.2005.0020a.x
  11. Cuervo-Cazurra, A. (2006), "Who Cares about Corruption?", Journal of International Business Studies, 37(6), 807-822. https://doi.org/10.1057/palgrave.jibs.8400223
  12. Cuervo-Cazurra, A. (2008), "Better the Devil You Don't Know: Types of Corruption and FDI in Transition Economies", Journal of International Management, 14(1), 12-27. https://doi.org/10.1016/j.intman.2007.02.003
  13. Cuervo-Cazurra, A. (2016), "Corruption in International Business", Journal of World Business, 51(1), 35-49. https://doi.org/10.1016/j.jwb.2015.08.015
  14. Cuervo-Cazurra, A., L. Ciravegna, M. Melgarejo and L. Lopez (2018), "Home Country Uncertainty and the Internationalization-Performance Relationship: Building an Uncertainty Management Capability", Journal of World Business, 53(2), 209-221. https://doi.org/10.1016/j.jwb.2017.11.002
  15. Cuervo-Cazurra, A. and M. Genc (2008), "Transforming Disadvantages into Advantages: Developing-Country MNEs in the Least Developed Countries", Journal of International Business Studies, 39(6), 957-979. https://doi.org/10.1057/palgrave.jibs.8400390
  16. Cui, L. and F. Jiang. (2009), "FDI Entry Mode Choice of Chinese Firms: A Strategic Behavior Perspective", Journal of World Business, 44(4), 434-444. https://doi.org/10.1016/j.jwb.2008.11.004
  17. Demirbag, M., M. McGuinness and H. Altay (2010), "Perceptions of Institutional Environment and Entry Mode", Management International Review, 50(2), 207-240. https://doi.org/10.1007/s11575-010-0028-1
  18. Di Guardo, M. C., E. Marrocu and R. Paci (2016), "The Effect of Local Corruption on Ownership Strategy in Cross-Border Mergers and Acquisitions", Journal of Business Research, 69(10), 4225-4241. https://doi.org/10.1016/j.jbusres.2016.03.002
  19. Doh, J. P., P. Rodriguez, K. Uhlenbruck, J. Collins and L. Eden (2003), "Coping with Corruption in Foreign Markets", Academy of Management Perspectives, 17(3), 114-127.
  20. Dow, D. and A. Karunaratna (2006), "Developing a Multidimensional Instrument to Measure Psychic Distance Stimuli", Journal of International Business Studies, 37(5), 578-602. https://doi.org/10.1057/palgrave.jibs.8400221
  21. Freckleton, M., A. Wright and R. Craigwell (2012), "Economic Growth, Foreign Direct Investment and Corruption in Developed and Developing Countries", Journal of Economic Studies, 39(6), 639-652. https://doi.org/10.1108/01443581211274593
  22. Godinez, J. R. and L. Liu (2015), "Corruption Distance and FDI Flows into Latin America", International Business Review, 24(1), 33-42.
  23. Greene, W. H. (2003), Econometric Analysis (5nd ed.), Upper Saddle River, NJ: Prentice Hall.
  24. Habib, M. and L. Zurawicki (2002), "Corruption and Foreign Direct Investment", Journal of International Business Studies, 33(2), 291-307.
  25. Hair, J. F., W. C. Black, W. C. Babin and R. E. Anderson (2009), Multivariate Data Analysis (7nd ed.), Upper Saddle River, NJ: Prentice Hall.
  26. Karhunen, P. and S. Ledyaeva (2012), "Corruption Distance, Anti-corruption Laws and International Ownership Strategies in Russia", Journal of International Management, 18(2), 196-208. https://doi.org/10.1016/j.intman.2011.10.002
  27. Khalid, S. and T. Ali (2017), "An Integrated Perspective of Social Exchange Theory and Transaction Cost Approach on the Antecedents of Trust in International Joint Ventures", International Business Review, 26(3), 491-501. https://doi.org/10.1016/j.ibusrev.2016.10.008
  28. Kimya, F. (2019), "Political Economy of Corruption in Turkey: Declining Petty Corruption, Rise of Cronyism?", Turkish Studies, 20(3), 351-376. https://doi.org/10.1080/14683849.2018.1531352
  29. Kwon, Yung-Chul (2008), "Antecedents and Consequences of International Joint Venture Partnerships: A Social Exchange Perspective", International Business Review, 17(5), 559-573. https://doi.org/10.1016/j.ibusrev.2008.07.002
  30. Li, H., Z. Jin, V. Li, G. Liu and R. Skitmore (2013), "An Entry Mode Decision-Making Model for the International Expansion of Construction Enterprises", Engineering, Construction and Architectural Management, 20(2), 160-180. https://doi.org/10.1108/09699981311303026
  31. Liu, M., C. Su, F. Wang and L. Huang (2020), "Chinese Cross-Border M&As in the "One Belt One Road" Countries: The Impact of Confucius Institutes", China Economic Review, 61, 101432.
  32. Lopez-Duarte, C. and E. Garcia-Canal (2002), "The Effect of Firm and Host Country Characteristics on the Choice of Entry Mode: Empirical Evidence from Spanish Firms", Journal of Management and Governance, 6(2), 153-168.
  33. Low, L. A., T. K. Sprange and M. Barutciski (2010), "Global Anti-corruption Standard and Enforcement: Implications for Energy Companies", Journal of World Energy Law & Business, 3(2), 166-213. https://doi.org/10.1093/jwelb/jwq004
  34. Luiz, J. M. and C. Stewart (2014), "Corruption, South African Multinational Enterprises and Institutions in Africa", Journal of Business Ethics, 124(3), 383-398. https://doi.org/10.1007/s10551-013-1878-9
  35. Luo, Y. (2006), "Political Behavior, Social Responsibility, and Perceived Corruption: A Structuration Perspective", Journal of International Business Studies, 37(6), 747-766. https://doi.org/10.1057/palgrave.jibs.8400224
  36. Luo, Y. (2007), "Are Joint Centure Partners More Opportunistic in a More Volatile Environment?", Strategic Management Journal, 28(1), 39-60.
  37. Luo, Y., H. Zhang and J. Bu (2019), "Developed Country MNEs Investing in Developing Economies: Progress and Prospect", Journal of International Business Studies, 50(4), 633-667. https://doi.org/10.1057/s41267-019-00230-y
  38. Madhavan, S. and D. Gupta (2017), "The Influence of Liabilities of Origin on EMNE Cross-Border Acquisition Completion". In S. Raghunath and E. Rose (Ed.), International Business Strategy, London, UK: Palgrave Macmillan, 143-174.
  39. Makino, S. and P. W. Beamish (1998), "Performance and Survival of Joint Ventures with Non-conventional Ownership Structures", Journal of International Business Studies, 29(4), 797-818. https://doi.org/10.1057/palgrave.jibs.8490054
  40. Marquis, C. and M. Raynard (2015), "Institutional Strategies in Emerging Markets", Academy of Management Annals, 9(1), 291-335.
  41. Martin, G., R. Gozubuyuk and M. Becerra (2015), "Interlocks and Firm Performance: The Role of Uncertainty in the Directorate Interlock-performance Relationship", Strategic Management Journal, 36(2), 235-253. https://doi.org/10.1002/smj.2216
  42. McEvily, B., V. Perrone and A. Zaheer (2003), "Trust as an Organizing Principle", Organization Science, 14(1), 91-103. https://doi.org/10.1287/orsc.14.1.91.12814
  43. Meschi, P. X. (2009), "Government Corruption and Foreign Stakes in International Joint Ventures in Emerging Economies", Asia Pacific Journal of Management, 26(2), 241-261. https://doi.org/10.1007/s10490-007-9067-y
  44. Meyer, K. E., S. Estrin, S. K. Bhaumik and M. W. Peng (2009), "Institutions, Resources, and Entry Strategies in Emerging Economies", Strategic Management Journal, 30(1), 61-80.
  45. Miozzo, M. and L. DiVito (2020), "Productive Opportunities, Uncertainty, and Science-based Firm Emergence", Small Business Economics, 54(2), 539-560. https://doi.org/10.1007/s11187-018-0033-5
  46. Nunnally, J. and I. Bernstein (1994), Psychometric Theory (3nd ed.), New York, NY: McGraw-Hill Companies.
  47. Nystrand, M. J. (2014), "Petty and Grand Corruption and the Conflict Dynamics in Northern Uganda", Third World Quarterly, 35(5), 821-835. https://doi.org/10.1080/01436597.2014.921432
  48. Pak, Yong-Suhk, Won-chan Ra and Young-Ryeol Park (2009), "Understanding IJV Performance in a Learning and Conflict Mediated Context", International Business Review, 18(5), 470-480. https://doi.org/10.1016/j.ibusrev.2009.07.006
  49. Park, Byung-Il (2011), "Knowledge Transfer Capacity of Multinational Enterprises and Technology Acquisition in International Joint Ventures", International Business Review, 20(1), 75-87. https://doi.org/10.1016/j.ibusrev.2010.06.002
  50. Parkhe, A. (1998), "Understanding Trust in International Alliances", Journal of World Business, 33(3), 219-240. https://doi.org/10.1016/S1090-9516(99)80072-8
  51. Rabbiosi, L. and G. D. Santangelo (2019), "Host Country Corruption and the Organization of HQ-subsidiary Relationships", Journal of International Business Studies, 50(1), 111-124. https://doi.org/10.1057/s41267-018-0169-1
  52. Ramamurti, R. and P. J. Williamson (2019), "Rivalry between Emerging-market MNEs and Developed-country MNEs: Capability Holes and the Race to the Future", Business Horizons, 62(2), 157-169. https://doi.org/10.1016/j.bushor.2018.11.001
  53. Reuer, J. J. (2001), "From Hybrids to Hierarchies: Shareholder Wealth Effects of Joint Venture Partner Buyouts", Strategic Management Journal, 22(1), 27-44. https://doi.org/10.1002/1097-0266(200101)22:1<27::AID-SMJ110>3.0.CO;2-Z
  54. Rodriguez, P., K. Uhlenbruck and L. Eden (2005), "Government Corruption and the Entry Strategies of Multinationals", Academy of Management Review, 30(2), 383-396. https://doi.org/10.5465/amr.2005.16387894
  55. Romar, E. J. (2004), "Globalization, Ethics, and Opportunism: A Confucian View of Business Relationships", Business Ethics Quarterly, 14(4), 663-678. https://doi.org/10.5840/beq200414439
  56. Roy, J.-P. and C. Oliver (2009), "International Joint Venture Partner Selection: The Role of the Host-country Legal Environment", Journal of International Business Studies, 40(5), 779-801. https://doi.org/10.1057/jibs.2008.110
  57. Sartor, M. A. and P. W. Beamish (2018), "Host Market Government Corruption and the Equity-based Foreign Entry Strategies of Multinational Enterprises", Journal of International Business Studies, 49(3), 346-370. https://doi.org/10.1057/s41267-017-0115-7
  58. Sartor, M. A. and P. W. Beamish (2019), "Private Sector Corruption, Public Sector Corruption and the Organizational Structure of Foreign Subsidiaries", Journal of Business Ethics, 167(4), 725-744. https://doi.org/10.1007/s10551-019-04148-1
  59. Smarzynska Javorcik, B. (2004), "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages", American Economic Review, 94(3), 605-627. https://doi.org/10.1257/0002828041464605
  60. Sommer, J. M. (2017), "Grand and Petty Corruption: A Cross-national Analysis of Forest Loss in Low-and Middle-Income Nations", Environmental Sociology, 3(4), 414-426. https://doi.org/10.1080/23251042.2017.1348569
  61. Spencer, J. and C. Gomez. (2011), "MNEs and Corruption: The Impact of National Institutions and Subsidiary Strategy", Strategic Management Journal, 32(3), 280-300. https://doi.org/10.1002/smj.874
  62. Statistics Korea (n.d.), 2019 GDP (Webpage). Available from https://kosis.kr/vis_kor/nso/worldInKor/selectWorldInKor.do (accessed March 16, 2021)
  63. Statistics Korea (2020), Corruption Perceptions Index (Webpage). Available from http://www.index.go.kr/potal/main/EachDtlPageDetail.do?idx_cd=1035
  64. Swoboda, B., S. Elsner and E. Olejnik (2015), "How Do Past Mode Choices Influence Subsequent Entry? A Study on the Boundary Conditions of Preferred Entry Modes of Retail Firms", International Business Review, 24(3), 506-517.
  65. Um, Ki-Hyun and Sang-Man Kim (2019), "The Effects of Supply Chain Collaboration on Performance and Transaction Cost Advantage: The Moderation and Nonlinear Effects of Governance Mechanisms", International Journal of Production Economics, 217, 97-111. https://doi.org/10.1016/j.ijpe.2018.03.025
  66. UNCTAD (2014), World Investment Report 2014, Geneva, Switzerland: United Nations.
  67. Wang, C., J. Hong, M. Kafouros and A. Boateng (2012), "What Drives Outward FDI of Chinese Firms? Testing the Explanatory Power of Three Theoretical Frameworks", International Business Review, 21(3), 425-438. https://doi.org/10.1016/j.ibusrev.2011.05.004
  68. Wang, S. L. and D. Li (2019), "Responding to Public Disclosure of Corporate Social Irresponsibility in Host Countries: Information Control and Ownership Control", Journal of International Business Studies, 50(8), 1283-1309.
  69. Wilson, J. K. and R. Damania (2005), "Corruption, Political Competition and Environmental Policy", Journal of Environmental Economics, 49(3), 516-535.
  70. World Bank (2010), Corruption Hunters Rally for Action Against Fraud (Webpage). Available from https://www.worldbank.org/en/news/feature/2010/12/06/corruption-hunters-rally-for-action-against-fraud
  71. Yang, J. (2018), "Subnational Institutions and Location Choice of Emerging Market Firms", Journal of International Management, 24(4), 317-332.