• Journal of Korea Trade
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• v.25 no.2
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• pp.134-151
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• 2021

Purpose - This study empirically analyzes the impact of the internal and external network embeddedness of foreign subsidiaries and local market characteristics of the host country on the CEO selection whether or not to appoint an expatriate as the CEO of a foreign subsidiary. Design/methodology - To conduct an empirical analysis, we obtained a list of the headquarters of Korean MNCs from the Korea Chamber of Commerce and Industry. Based on the list of HQs, we identified a final list of overseas subsidiaries of Korean MNCs that have entered the world from KOTRA (Trade-Investment Promotion Agency for Korea). Then we conducted an empirical analysis based on the results of 391 questionnaires by employing logistic regression analysis. Findings - The results of empirical analysis are as follows. First, the higher the subsidiary's internal network embeddedness, the higher the tendency appoint an expatriate as the CEO. Second, the higher the volatility of the local market, the higher the tendency to appoint an expatriate as the CEO. Third, the stronger the competition in the local market, the lower the tendency to appoint a PCN. Originality/value - This study has significant theoretical implications in that it examines the link between the internal and external embeddedness of overseas subsidiaries and the appointment of parent country nationals (PCNs) as the CEO that prior research has not examined.

• Korea Trade Review
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• v.45 no.6
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• pp.55-75
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• 2020

This study examines factors that influence organizational identification of employees who work for foreign multinational corporations in Korea. First, we test whether employee perceptions on leader-member exchange, trust in CEO, and career growth opportunity can influence their organizational identification. second, we also investigate moderation effects of employee perception on subsidiary level factors such as co-operation between the subsidiary and its HQ, firm reputation of the subsidiary, and opportunity to work overseas. 391 survey results from 350 subsidiaries of multinational corporations in Korea has been collected for this study. We found that leader-member exchange, trust in CEO and career growth opportunity had a positive effect on organizational identification of employees who work for foreign subsidiaries of multinational corporations in Korea. We also found partial support for the moderation effects of HQ-subsidiary interrelationship and opportunity to work overseas in the relationship between predictors and organizational identification. With this in mind, I hope this help to reconsider competitiveness of global companies in Korea by increasing organizational identification.

• Journal of Korea Trade
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• v.25 no.1
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• pp.184-202
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• 2021

Purpose - This study empirically investigates the relationship between expatriate CEOs of multinational corporation (MNC) foreign subsidiaries and local philanthropy. Since corporate social responsibility (CSR) enables MNCs to achieve local legitimacy, this research argues that local philanthropy is a valuable strategic means for expatriate CEOs of foreign subsidiaries to secure local legitimacy. Design/methodology - To investigate our argument, we use a sample of 5,459 observations from 576 foreign subsidiaries of MNCs in Korea between 2002 and 2016. We conduct a random-effects panel Tobit regression with subsidiary CEO having foreign nationality as the independent variable and local philanthropy as the dependent variable. Findings - Our main findings are that expatriate CEOs of foreign subsidiaries are more actively engaged in local philanthropy. In addition, the positive relationship between expatriate CEOs and local philanthropy is weaker as their tenure increases. Originality/value - How expatriate CEOs overcome their weak local legitimacy as foreigners in a host country has remained unclear because existing studies mainly focused on the control and coordination aspects of staffing expatriates in CEO positions of foreign subsidiaries. This study broadens the literature on subsidiary CEO staffing and CSR activities of MNCs by identifying complementary relationships between expatriate CEOs and corporate philanthropy in the host country.

• International Area Studies Review
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• v.15 no.2
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• pp.275-301
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• 2011

This study examines antecedent factors that influence subsidiaries' MNC (multinational corporation) knowledge adoption. I argue that subsidiary local environmental factors(local embeddedness, level of local competition), subsidiary organizational factors(parent investment, subsidiary CEO expatriation, scope of subsidiary value chain), and subsidiary relational factors(subsidiary autonomy, the strength of subsidiary in MNC, social capital) are the important enablers for subsidiaries to adopt knowledge from other MNC units. Especially, I use two data set (knowledge from (1) peer subsidiaries, (2) parent company) to estimate the effect of the factors. The results indicate that subsidiary local embeddedness and scope of subsidiary value chain negatively influence on subsidiary knowledge adoption from peer subsidiaries. Conversely, the strength of subsidiary in MNC and social capital positively influence on that. Subsidiary knowledge adoption from parent company is positively influenced by parent investment and social capital.

• Journal of Korea Technology Innovation Society
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• v.8 no.spc1
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• pp.476-498
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• 2005

The purpose of this study is to development of venture business curriculum by FGI interview to venture CEO and related field employer and suggest to venture related structure of liberal art, major part of undergraduate and graduate school. Research methods are 2 step interview with 325 venture business CEO and related employer. They selected practical course to motivate venture entrepreneurship among 3 subsidiary (entrepreneurial condition, psychology of entrepreneur, competency of entrepreneurial technology, competency of entrepreneurial knowledge, competency of managing growing business). Major findings are as follows; the selected course category of entrepreneurial condition of liberal art are venture mind and entrepreneurship, venture biz and spearhed industry. The selected course category of psychology of entrepreneur are leadership, personal relationship, and creativity, negotiation skill, etc. The selected course category of competency of entrepreneurial technology are venture technology, introduction to technology trends. The selected course category of competency of entrepreneurial knowledge are biz validity, entrepreneurship, the discovery of business opportunity, utilization of monetary resource etc. The selected course category of competency of managing growing business are operating strategy of venture business, service marketing and technical innovation and technology management.

• International Area Studies Review
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• v.16 no.1
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• pp.197-220
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• 2012

This study is to understand those determinants of performance differences of Korean small and medium firm's subsidiaries in Vietnam based on the resource based view. We have visited 21 Korean SME's subsidiaries in Hochiminh city area in Vietnam and interviewed CEO of those subsidiaries for 1-2 hours to make each case. Based on case content analysis, we can get those results that eight management capabilities such as securing competent local managers, clear and smooth communication with local employees, establishing good labor-management relations, raising the rate of factory operation and subcontracting, firm specific quality control system, timely financing, establishing good relationships with local communities, and fostering friendly relations with local public officers are major determinants of performance differences. Also we can know that various factors including local experiences in Vietnam have influenced those management capabilities. To be a high performer in Vietnam, foreign subsidiaries of Korean SMEs have to build and develop major management capabilities continuously.

• Journal of Distribution Science
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• v.13 no.4
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• pp.35-43
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• 2015

Purpose - This study aims to seek various plans to maintain the advancement of the overseas and domestic employment scenario through a case analysis of the Japanese industry, which maintains domestic employment while promoting the overseas advancement of companies despite having a similar industrial structure as Korea. The study further intends to derive insightful implications for Japanese manufacturing companies and government policies. Research design, data, and methodology - We selected four companies from the Japanese manufacturing industry. Being companies that were successful in increasing the domestic employment scenario while advancing in overseas markets. We utilized several secondary data sources including Japanese newspapers and report literature. Results - Previous studies have shown a negative relationship between Foreign Direct Investment (FDI) or offshoring and domestic employment. However, our results showed this relationship with respect to the Japanese manufacturing industry as follows: 1. FDI for developing overseas markets does not decrease domestic production. If Japanese companies change their strategy from exports to overseas production, there will be a consequent decrease in domestic employment of Multinational Enterprises (MNEs). However, the local production that plans the sales expansion of a foreign market does not substitute domestic production. 2. Several case studies illustrate that, as the production of final goods is expanded in foreign countries, there is a corresponding increase in the export of intermediary goods from Japan. In this case, if the production process of Japanese companies is promoted in foreign markets, the amount of exported material and parts from Japan will consequently increase. 3. It is difficult to consider that the establishment of subsidiary companies in foreign countries by manufacturing companies for wholesale, retail, and services decreases domestic employment. This is because the international development of these industries needs expatriates, expatriate training organizations, and research and development (R&D) activities. 4. When there is overseas demand, the growth of local management activities is expected to increase the work of the overseas business department in the head office in Japan, if competitiveness can be secured for better localization and management speed. 5. The conversion of the domestic manufacturing industry into high value-added production is necessary. The relocation of domestic production to foreign markets decreases domestic employment. To prevent this, the upgradation of domestic production bases, including high value-added production, and R&D capability need to be strengthened. Technology-based companies must develop new technology, patents, processes, and so forth, which require extensive human resources for R&D. Conclusions - Domestic medium-sized companies that are capable of consistently supplying high value-added products should be actively encouraged to deploy into and develop overseas markets. Further, this paper considers the necessity of a guidance policy that provides suggestions for overseas deployment, by the initiation of the government, to companies that cannot do so due to the lack of foreign experience or decisions by the CEO, despite having the relevant capability and technologies to supply high value-added products.