• Title/Summary/Keyword: Corporate Internationalization

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Moderating Effect of Board Independency on the Relations between TMT's Characteristics and Firm's Internationalization (중국 기업 최고경영자 팀의 배경특성과 국제화 간의 관계와 이사회 독립성의 조절효과에 대한 연구)

  • ZHUHUILI, ZHUHUILI;Yoo, Jae-Wook
    • Management & Information Systems Review
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    • v.33 no.1
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    • pp.157-172
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    • 2014
  • This study examines the relationships between TMT's characteristics - international education background ratio, international job experience ratio, international related professionals ratio- and the degree of firm's internationalization. It also examines the moderating effect of independent board on those relationships. The results of multiple regression analysis show that the ratio of TMT's foreign job experience is positively related to firm's internationalization. On the other hand, both international education background ratio and international related professionals ratio do not significantly related to firm's internationalization. Regarding the moderating effects. independent boards weaken the positive relationship between TMT's foreign education background ratio and firm's internationalization. Whereas they strengthen the positive relationship between TMT's international education background ratio and firm's internationalization. The findings of this study imply that Chinese firms should consider the interaction effects between the TMT and board on their decisions of internationalization.

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A Study on the Born Global Venture Corporation's Characteristics and Performance ('본글로벌(born global)전략'을 추구하는 벤처기업의 특성과 성과에 관한 연구)

  • Kim, Hyung-Jun;Jung, Duk-Hwa
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.3
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    • pp.39-59
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    • 2007
  • The international involvement of a firm has been described as a gradual development process "a process in which the enterprise gradually increases its international involvement in many studies. This process evolves in the interplay between the development of knowledge about foreign markets and operations on one hand and increasing commitment of resources to foreign markets on the other." On the basis of Uppsala internationalization model, many studies strengthen strong theoretical and empirical support. According to the predictions of the classic stages theory, the internationalization process of firms have been recognized and characterized gradual evolution to foreign markets, so called stage theory: indirect & direct export, strategic alliance and foreign direct investment. However, termed "international new ventures" (McDougall, Shane, and Oviatt 1994), "born globals" (Knight 1997; Knight and Cavusgil 1996; Madsen and Servais 1997), "instant internationals" (Preece, Miles, and Baetz 1999), or "global startups" (Oviatt and McDougall 1994) have been used and come into spotlight in internationalization study of technology intensity venture companies. Recent researches focused on venture company have suggested the phenomenons of 'born global' firms as a contradiction to the stages theory. Especially the article by Oviatt and McDougall threw the spotlight on international entrepreneurs, on international new ventures, and on their importance in the globalising world economy. Since venture companies have, by definition. lack of economies of scale, lack of resources (financial and knowledge), and aversion to risk taking, they have a difficulty in expanding their market to abroad and pursue internalization gradually and step by step. However many venture companies have pursued 'Born Global Strategy', which is different from process strategy, because corporate's environment has been rapidly changing to globalization. The existing studies investigate that (1) why the ventures enter into overseas market in those early stage, even in infancy, (2) what make the different international strategy among ventures and the born global strategy is better to the infant ventures. However, as for venture's performance(growth and profitability), the existing results do not correspond each other. They also, don't include marketing strategy (differentiation, low price, market breadth and market pioneer) that is important factors in studying of BGV's performance. In this paper I aim to delineate the appearance of international new ventures and the phenomenons of venture companies' internationalization strategy. In order to verify research problems, I develop a resource-based model and marketing strategies for analyzing the effects of the born global venture firms. In this paper, I suggested 3 research problems. First, do the korean venture companies take some advantages in the aspects of corporate's performances (growth, profitability and overall market performances) when they pursue internationalization from inception? Second, do the korean BGV have firm specific assets (foreign experiences, foreign orientation, organizational absorptive capacity)? Third, What are the marketing strategies of korean BGV and is it different from others? Under these problems, I test then (1) whether the BGV that a firm started its internationalization activity almost from inception, has more intangible resources(foreign experience of corporate members, foreign orientation, technological competences and absorptive capacity) than any other venture firms(Non_BGV) and (2) also whether the BGV's marketing strategies-differentiation, low price, market diversification and preemption strategy are different from Non_BGV. Above all, the main purpose of this research is that results achieved by BGV are indeed better than those obtained by Non_BGV firms with respect to firm's growth rate and efficiency. To do this research, I surveyed venture companies located in Seoul and Deajeon in Korea during November to December, 2005. I gather the data from 200 venture companies and then selected 84 samples, which have been founded during 1999${\sim}$2000. To compare BGV's characteristics with those of Non_BGV, I also had to classify BGV by export intensity over 50% among five or six aged venture firms. Many other researches tried to classify BGV and Non_BGV, but there were various criterion as many as researchers studied on this topic. Some of them use time gap, which is time difference of establishment and it's first internationalization experience and others use export intensity, ration of export sales amount divided by total sales amount. Although using a mixed criterion of prior research in my case, I do think this kinds of criterion is subjective and arbitrary rather than objective, so I do mention my research has some critical limitation in the classification of BGV and Non_BGV. The first purpose of research is the test of difference of performance between BGV and Non_BGV. As a result of t-test, the research show that there are statistically efficient difference not only in the growth rate (sales growth rate compared to competitors and 3 years averaged sales growth rate) but also in general market performance of BGV. But in case of profitability performance, the hypothesis that is BGV is more profit (return on investment(ROI) compared to competitors and 3 years averaged ROI) than Non-BGV was not supported. From these results, this paper concludes that BGV grows rapidly and gets a high market performance (in aspect of market share and customer loyalty) but there is no profitability difference between BGV and Non_BGV. The second result is that BGV have more absorptive capacity especially, knowledge competence, and entrepreneur's international experience than Non_BGV. And this paper also found BGV search for product differentiation, exemption strategy and market diversification strategy while Non_BGV search for low price strategy. These results have never been dealt with other existing studies. This research has some limitations. First limitation is concerned about the definition of BGV, as I mentioned above. Conceptually speaking, BGV is defined as company pursue internationalization from inception, but in empirical study, it's very difficult to classify between BGV and Non_BGV. I tried to classify on the basis of time difference and export intensity, this criterions are so subjective and arbitrary that the results are not robust if the criterion were changed. Second limitation is concerned about sample used in this research. I surveyed venture companies just located in Seoul and Daejeon and also use only 84 samples which more or less provoke sample bias problem and generalization of results. I think the more following studies that focus on ventures located in other region, the better to verify the results of this paper.

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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.

Changes in the Multinational Corporate Networks and International Quaternary Places (多國籍企業의 네트웍과 4次産業活動 空間의 變化)

  • Nahm, Kee-Bom
    • Journal of the Korean Geographical Society
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    • v.31 no.1
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    • pp.68-87
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    • 1996
  • This paper investigates spatio-temporal changes in the international system of linkages among multinational corporate domestic decision-making centers and their overseas subsidiary centers for the period 1974-1991. During this period advances in information technologies and an ever increasing interdependent world economy have permitted the globalization of resource transfers, production techniques, service provision and financial transactions. Based on a network theory of internationalization, the study idenifies the dispersion of multinational control centers and the diversification of their linkage patterns. These tendencies are led by small and medium sized quaternary places as well as the rapid growth of service industries. Corporate headquarters cease to be tied together to big corporate and governmental centers but will disperse over time at global, national and regional level. Using information statistics, this paper confirms the dispersion patterns of capital flows and diversification of multinational control linkages. With an increasing trend toward a multicentric world system and the associated diecline of the global hegemony of a small number of largest cities, multinational control linkages should continue to disperse.

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A Study on the Influences to the Capabilities and Management Performances of Technologically Innovative SEMs caused by the Environmental Perception Capabilities - Comparisons of the Rapidly Internationalizing Enterprises and Gradually Ones - (한국 기술혁신형 중소기업의 환경변화 감지능력이 기업역량과 경영성과에 미치는 영향에 관한 연구 - 급진적 국제화기업과 점진적 국제화기업을 비교하여 -)

  • Kim, Moon-Hong;Yoon, Ki-Chang
    • International Area Studies Review
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    • v.13 no.3
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    • pp.501-525
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    • 2009
  • Recent increase of academic interest in Born Globals has brought abundant researches, which accounts their causes and states, both in and out of the country. However, postulating that types of companies see the different perception of environment of global markets, and this difference will also bring different effects on enterprise capabilities and performance, this study implemented theoretical inquiry and evidential analysis. Technologically innovative SMEs, main subjects of this study, were categorized into Rapid Globals and Gradual Globals according to their internationalization speed, then followed by a CSA. This analysis has shown, regardless of corporate types, early perception of changes in global market environments, affects, in great amount, on marketing and R&D capabilities as well as performance. However, corporate types also showed difference in early perception of changes, marketing and R&D capabilities as well as performance. This evidential analysis provides enterprises pursuing internationalization in early stage with enforcement in their early perception of changes in global market environments.

A Study on Performance of Korean Corporations Market Entry to Africa (한국기업의 아프리카 진출 성과에 관한 연구)

  • Ahn, Kyu-Hwan;Park, Chong-Don
    • International Commerce and Information Review
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    • v.15 no.2
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    • pp.49-69
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    • 2013
  • It is important for Korean corporations enter the market of Africa, a repository of varied mineral resources including petroleum gas, in terms of resource securement, preoccupancy of emerging market, and expansion of diplomatic influence. Taking account of strategic value of Africa, the African market has an infinite potential for Korea who has insufficient resources, so it is very important to set proper market penetration strategies and to accurately evaluate their performances. This study is to analyze the performance of Korean corporations' market entry to Africa through casual relationship analysis between characteristics of Korean corporations' export environments, market entry strategies to Africa, and their performances. According to the result of analysis, market entry period, corporate management, and marketing strategy among strategic factors for foreign market entry positively influence on corporations' performances. Therefore, Korean corporations need strategies of centralization, segmentation, and marketing to improve their business performances.

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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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Cultural Distance and Corporate Internationalization: Evidence from Emerging Economies

  • ELMOEZ, Zaabi;ZORGATI, Imen;ALESSA, Adlah A.
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.3
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    • pp.267-275
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    • 2021
  • This study investigates the relationship between cultural distance and entry mode choice, where the foreign investor firm and the host country are both from emergent economies. Within this framework, research is limited and the issue is whether companies, regardless of their specific situations, have the same strategy when they meet a high degree of uncertainty in the host environment. In this study, we focused on the influence of informal institutional factors: cultural distance, that has been extensively analyzed in international business, measured by Kogut and Singh index and defined according to Hofstede, Globe Project and Schwartz approaches. The general trend derived from prior research proves that when a company from a developed country is involved; overall more enthusiasm is shown for wholly-owned subsidiaries rather than joint venture. This result still stands validated for corporations from this emergent economy area. Our analysis of a sample of 163 FDI in the Kingdom of Saudi Arabia (KSA) using logistic binary regression model reveals that the foreign firms prefer to establish wholly-owned subsidiaries in the host country over entering into a joint venture with a local firm, taking into consideration the large cultural distance.

Born Global Strategies and the Corporate Performance of Korean Firms

  • Che-Yung Kang;Min-Ho Kim
    • Journal of Korea Trade
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    • v.27 no.1
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    • pp.159-175
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    • 2023
  • Purpose - This paper empirically investigates the relationship between born global strategy and the accounting- and market- based financial performance of Korean firms. Further, this study identifies the characteristics of born global firms (BGs) in comparison with non-BG counterparts in terms of size, R&D, and liability. Design/methodology - Using a database of listed Korean SMEs in the manufacturing sector from 2010 to 2020, this study applies panel generalized least squares (GLS) estimation and logistic regression techniques. Findings - This study finds that BG strategy is negatively related to the firm's accounting-based financial performance, while it is positively related to the market-based financial performance. This study also finds that BGs have higher sales volume and more total assets compared to their non-BG counterparts. In addition, Korean BGs spend more on R&D, and at the same time have higher liability. Originality/value - BGs, by definition, are firms that are actively penetrating foreign markets from the early stages of their establishment. Previous studies of Korean BGs have tried to identify the determinants of BGs' rapid internationalization and their superior performance. However, most of these studies have utilized either qualitative case- or survey-based analyses with relatively limited numbers of observations. From a different perspective, this study provides more objective evidence by investigating how the BG strategy affects the financial and market performance of firms, and by characterizing BGs in terms of financial data.

An Analysis on the Factors Affecting the Level of Globalization of Korean Venture Business (한국의 벤처기업은 태생적 글로벌기업인가: 벤처기업의 국제화에 미치는 영향 요인 분석)

  • Kim, Jong Woon
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.11 no.3
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    • pp.37-48
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    • 2016
  • The purpose of this study is to investigate the factors that affect the degree of export intensity of Korean venture businesses, and to analyze the effect of export intensity on corporate performance. We use 1,970 firm data (from Venture Business Survey by Small & Medium Business Administration) and analyze the possible factors of the CEO characteristics, the corporate characteristics, and the environmental factors. Our analysis shows that Korean venture business' CEO characteristics, such as his/her doctoral degree and marketing work experiences, increase their export intensity statistically significantly, while their age does not. In addition, the companies who outsource their products have a higher export intensity, and, as the firm age increases, the export intensity decreases significantly. It is also analyzed that, as the number of export regions or FDI regions increases, their export intensity goes higher. However, firms' higher level of internationalization does not bring higher performance of the venture firms, while it does significantly for the venture firms that are older than 10 years. The result implies that CEO's education or work experiences and strategic approaches are important for corporate globalization, and that it takes time for globalizing venture firms to be able to garner profits from their global investments.

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