• Korea Trade Review
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• v.41 no.5
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• pp.325-351
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• 2016

This study empirically investigated the relationship among knowledge transfer, network(firm network and government network) and performance Korean MNCs' subsidiaries in terms of absorptive capacity and entry mode roles in China. For this, absorptive capacity was established as an independent variable, mediating variable, and moderating variable. And the entry mode was divided into single investment and joint venture and set to the moderating variable. Data for the analysis of actual proof was randomly selected from the companies which was established more than 3 years before KOTRA 'The overseas expansion Korean company directory (2014)'. Questionnaires to 138 Chinese subsidiaries of Korean MNCs were collected by FAX and E-mail. AMOS was utilized and collected data investigated the role of the absorption capacity and entry mode as the covariance structure analysis. The empirical analysis showed that absorption capacity has a direct influence on management performance as an independent variable with the network (firm network and government network). It only has a partial mediating role between enterprise networks and management performance, and no meaningful result was gained as its moderationg role bewteen the exogenous variable and management performance. And in terms of Korean companies' moderating role in entering China, they have a moderating role between government network, absorption capacity and management performance, but did not show a statistically significant result between knowledge transfer, enterprise network and management performance. Absorption capacity, as the variable affecting overseas subsidiary's management performance, should not be considered a mediating or moderating variable, but an independent variable. Since the joint venture is showing higher performance than single investment when going into the Chinese market, implication is provided for options in overseas expansion. But this research has the limitation in generalization because it is aiming at the subsidiaries of the Korean company investing in China. Therefore, it is more desirable in the future to conduct a study of the subsidiary of the Korean company entering several countries. It also has limitations in generalization, because the research was conducted using a limited number of variables, despite there are various factors affecting the management performance of Chinese subsidiaries.

• Korean Journal of Labor Studies
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• v.24 no.1
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• pp.65-105
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• 2018

This study examines the employment relations of TNC subsidiaries in Central and Eastern Europe(CEE). Specifically, this study analyzes the employment relations of Volkswagen subsidiaries, which has led the restructuring the CEE's automobile industry since the collapse of socialist regimes, and Hyundai subsidiaries, which has sought to cast employment relations through Greenfield Investment as a latecomer. After the collapse of socialism, with the massive inflow of foreign direct investment and the social legacy of weak labor unions, CEE has been included in the global production network as low-wage production base. Both VW and Hyundai have entered the CEE with their own characteristics and global strategies that have been developed in their home countries and have developed the local production. In the process, both have formed local employment relations, combining low-wage, unstable employment, and weak labor unions of CEE under their own strategy. In recent years, however, it has been doubtful of the sustainability of employment relations based on the advantages of low-wage production bases, as the pools of low-wage workforce decline and new union movements occur in CEE. These changes in CEE are an indication of the inherent contradiction of low-wage production base strategies.

• Journal of Korea Technology Innovation Society
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• v.12 no.2
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• pp.335-359
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• 2009

This study explores the IT governance structures of the Korean conglomerates. It investigates IT organization structures, decision making frameworks and processes, communication channels, implementation mechanisms, and performance evaluation methods around IT activities of the Korean conglomerates by analyzing four different cases. The results show that all of the conglomerates have an IT service firms as one of their subsidiaries, and all the subsidiaries in the conglomerates outsource their IT divisions to the IT service firms, The client firms in the conglomerates operate IT strategy and planning teams to coordinate their IT activities with their outsourcing partners. The IT governance archetype of the Korean conglomerates is found to be "business monarchy" because the client firms mostly make IT decisions. However, the IT service firms provide the information of IT trends and solutions to their clients, so the IT governance archetype of input framework for IT decisions can be "IT monarchy". In addition, the conglomerate which has the more centralized IT governance architecture appears to prefer the more integrated implementation mechanisms for IT decisions. The results of this study are expected to be used as a benchmarking model for the organizations which try to develop an effective IT governance structure.

• Asia Marketing Journal
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• v.20 no.4
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• pp.21-47
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• 2019

This study empirically examines the synergy effect of a corporate-level loyalty program on customer equity (CE) known as the lifetime value of current and future customers (Blattberg et al. 2009). A corporate-level loyalty program refers to a company-wide integration loyalty program at the corporate-level in which subsidiaries (multi-divisions) participate as program members. It does not merely examine whether there is an integration effect of a corporate-level loyalty program from the CE perspective, but it provides practical implications for a firm's strategic focus by identifying which value creation channels (i.e., acquisition, retention, and cross-selling), brand characteristics (i.e., size of the customer base before integration, diversity of products, and sales channel type), and consumer characteristics (i.e., customer relationship stage, transaction amount before integration, transaction period, and number of purchased brands) are affected the most by the synergy effect.

• Korean Business Review
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• v.15
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• pp.47-58
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• 2002

Samsung Electronics has 25 production bases, 36 marketing subsidiaries and 23 overseas offices in 46 countries around the world. Samsung Electronics global strategy involves seven main regions: North America, Europe, Southeast Asia, Central Asia, China, the CIS and Latin America. Samsung Electronics is dedicated to helping the local communities where it does business, helping to advance local economies and develop products that best suit local needs. This case attempts to introduce the localization strategies of Samsung Austin Semiconductors especially with respect to the community service programs. Samsung Austin Semiconductors develops a framework for a firm to adapt in a foreign environment creating corporate citizenship. This model surely helps the firm to adapt, survive and grow even in a hostile foreign environment.

• International Commerce and Information Review
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• v.16 no.4
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• pp.409-437
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• 2014

The purpose of this study is to present the specific ways of successful localization by analyzing the success and failures case for localization within the framework of the strategic models through a theoretical background and strategic models of localization. The strategic models of localization are divided by management aspects such as the localization of product and sourcing, the localization of human resources, the localization of marketing, the localization of R&D, harmony with a local community and delegation of authority between headquarters and local subsidiaries. The results, by comparing and analyzing the success and failures case for localization of individual companies operating in India, indicate that in terms of localization of product and sourcing, there are successful companies which procure a components locally and produce a suitable model which local consumers prefer and the failed companies which can not meet local consumers' needs. In case of localization of human resources, most companies recognize the importance of this portion and make use of superior human resource aggressively through a related education. In case of localization of marketing, It is found that the successful companies perform pre-market research & management and build a effective marketing skills & after service network and select local business partner which has a technical skills and carry out a business activities, customer support, complaint handling with their own organization. In terms of localization of R&D, the successful major companies establish and operate R&D center to promote a suitable model for local customers. In part of harmony with a local community, it shows that companies which made a successful localization understand the cultural environment and contribute to the community through CSR. In aspect of delegation of authority between headquarters and local subsidiaries, it is found that most of Korean companies are very weak for this part. there is a tendency to be determined by the head office rather than local subsidiaries. Implication of this thesis is that Korean enterprises in India should carry forward localization of products and components, foster of local human resource who recognize management and system of company and take part in voluntary market strategy decision, wholly owned subsidiary, establishment and operation of R & D center, understanding of local culture and system, corporate social responsibility, autonomy in management.

• East Asian Journal of Business Economics (EAJBE)
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• v.8 no.4
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• pp.29-43
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• 2020

Purpose - Although it has been 10 years since the university technology holding company was launched, it is currently facing operational limitations. The purpose of this study is to study the growth strategy of university technology holding companies by investigating the status and problems of university technology holding companies. Research design, data, and methodology - In this study, the status of university technology holding companies was analyzed based on the survey data issued by the University Technology Holding Companies Association. Due to the lack of research on university technology holding companies, policy alternatives were suggested by examining problems based on literature research. Result - In this study, an alternative to strengthening the competitiveness of technology holding companies and supporting policies was suggested. As a result of the research, it was discovered as a policy alternative to enhance the independence of technology-owned subsidiaries, develop outstanding talents, and expand the marketing of support programs to create results based on technology holding companies. Conclusion - In previous studies, alternatives to technology commercialization policies have been suggested, but studies on the role and status of detailed technology holding companies are insufficient, and the operation system of technology holding companies and discovery of future growth models are insufficient compared to overseas cases. Therefore, in this study, various policy innovation measures are presented as examples.

• Korea Trade Review
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• v.46 no.2
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• pp.355-368
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• 2021

The purpose of this study is to analyze the factors affecting innovation activities related to the introduction of the 4th Industrial Revolution technology for Korean firms faced to the severe global trade and competition environments. This paper conducted an empirical analysis using the 'The Survey of Business Activities' distributed by the Statistics Korea in 2019. According to the results of the analysis, it was found that the firm size, labor cost, R&D, and intellectual property rights had a significant influence on the firms' adoption of the 4th industrial revolution technology. It was also found that the dummy variables such as strategic alliance between companies, review of entry into a new business, transfer of main business operations, and holding of subsidiaries had statistically significant effects on innovation activities. In addition, this paper showed that the firm characteristics had impacts on innovation activities of firms by the 4th industrial revolution technology type. In order for Korean firms to adapt to the challenges by the 4th Industrial Revolution, it is important to provide policy support and an environment in line with the characteristics of the firms.

• The Journal of Information Systems
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• v.23 no.2
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• pp.49-66
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• 2014

In today's competitive business environment it is a necessary condition for a company to produce high-quality product for its survival and growth. That is the case in the auto-part industry as well where the international standards, ISO/TS 16949 certification, are required by customers to adopt mandatory. This study presents a successful implementation of quality management system(QMS) in a major auto-part manufacturer in Korea, utilizing SAP's QM(qualaity management) module and a mobile office system. The QMS brought the company "A" a variety of benefits such as real-time availability of product-inspection data, speedy decision-making, reduction in time required for defect-handling, ease of vertical integration of business partners in supply chain, and ease of business process standardization between headquarters and overseas subsidiaries. It is expected that the findings of this study can be used as a useful guideline for companies to consider implementing ERP-based quality management systems successfully.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.8 no.2
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• pp.21-33
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• 2013

This study analyzes the effects of diversification on business results and enterprise values of KOSDAQ-listed venture companies to inquire into the effective diversification strategies of venture companies after an initial public offering (IPO). In particular, this study used the Berry-Herfindahl index as a proxy variable regarding the level of diversification of venture companies, and categorized the diversification methods into M&As, strategic partnerships and establishment of subsidiaries to analyze the effects of the mutual interaction among such methods. The following is a summary of the results of the analysis. First, diversification did not have any statistically significant effects on business growth. However, it was found that there was an inverted U-shaped relationship between diversification and the profitability of the company. Second, although no statistical significance was found between enterprise values measured based on diversification and market value, a U-shaped relationship or positive relationship was found. Third, M&As were found to moderate the relationship between diversification and business results and enterprise values. Fourth, strategic relationship and establishment of subsidiaries was found to moderate the relationship between diversification and the profit results of the company. Based on the above findings, this study discovered the practical implications regarding the diversification of venture companies after listing on the KOSDAQ.