• 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.

• International Commerce and Information Review
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• v.15 no.4
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• pp.481-508
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• 2013

The purpose of this study is to research the specific ways of successful localization by analyzing the success and failures case for localization through the theoretical background and the strategic models of localization. The strategic models of localization are divided by management aspects such as the localization of production and sourcing, the localization of human resources, the localization of marketing, the localization of R&D, harmonious relationship with the local community and authority transfer between headquarters and local subsidiaries. And the specific measures of the successful localization are proposed within the framework of the strategic models by comparing and analyzing the success and failures case for localization of individual companies operating in Indonesia. The results indicate that there are successful companies which develop a suitable products for the local climate and failed automobile company which is weak for assembly of complete vehicle in terms of localization of production and sourcing. In case of localization of human resources, most companies recognize the importance of this part and endeavor to secure superior human resource through a related education. It is found that most of the companies perform R & D in their native country. In part of a harmonious relationship with the local community, Korean companies should contribute to the community and be friendly with local residents and make a good image of the company focusing on the cultural environment. In aspect of authority transfer between headquarters and local subsidiaries, there is a tendency to be determined by the head office rather than the joint participation. In the future, in order for Korean enterprise to be successful one in Indonesia market, a highly interdependent and complex forms between headquarters and local subsidiaries shall be performed and an active exchange of information and the selection of best talent regardless of nationality shall be promoted.

• Korea Trade Review
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• v.47 no.1
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• pp.145-161
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• 2022

For multinational manufacturers, China is an attractive consumer market, but the unique attributes and tastes of Chinese customers present challenges in achieving desired investment performance. In this paper, the influence (mediating function) of consumer-centered market orientation adopted as a strategic means by multinational companies entering China on investment performance was examined utilizing samples collected through questionnaires and statical analysis through structural equation models. This paper, based on value chain and product attributes, divided market orientation into two types: production impacted market orientation and service impacted market orientation. The empirical analysis results of 233 samples showed that, service impacted market orientation with downstream activities and support service (as a variable) has a greater impact on investment performance than production impacted market orientation with upstream activities and product attributes. This indicates to managers that focusing on service impacted market orientation when implementing consumer-centered marketing strategies in the Chinese local market is an efficient/effective localization strategy to increase expected investment performance.