• East Asian Economic Review
• /
• 제16권4호
• /
• pp.315-331
• /
• 2012

Previous studies of location choice have focused on country-level data more than firm-level data and been more concerned with host countries' distinctive features than with firm heterogeneity. Therefore, they do not answer the question of who will go where in terms of location choice. To analyze the role of firm heterogeneity in determining location choice, we develop a theoretical model and analyze data on 3,644 Korean manufacturing multinationals operating in 87 countries between 1982 and 2006. The results of our conditional logit analysis indicate that not only host country characteristics but also firm heterogeneous factors such as productivity, labor intensity, and size have considerable influence on the decision of where to locate FDI.

• 아태비즈니스연구
• /
• 제14권3호
• /
• pp.1-16
• /
• 2023

Purpose Despite the ongoing digital transformation, it is not clear whether emerging market firms follow their manufacturing FDI path in the emerging digital industries. This paper examines how digital orientation affects the location strategies in internationalization and how the existing innovation capacities moderate the link between digital orientation and the location strategies. Design/methodology/approach This study chooses the Chinese setting for research design because digital transformation is already prevalent in the society and the cases of outward expansion are salient among the emerging markets. It uses the panel dataset of 976 Chinese listed firms that consists of 6,648 observations spanning from 2007 to 2017. Ordinary least square regression is used for the statistical approach with a one-year lag in the model. Findings Digital orientation increases a likelihood of emerging multinationals' entries in developed countries, and a high level of innovative capacities strengthens the link. Two groups seem to prefer entries in developed countries: firms with a high level of digital orientation with a high level of innovative capacities and firms with a low level of digital orientation, if with a low level of innovative capacities. The former reflects the context of digital transformation and the latter hints at the tax avoidance or interests in real estate. Research implications or originality While emerging multinationals are known to prefer entries in developing countries for capacity arbitrage, our results forecast that their FDI strategies may have a drastic change as digital transformation deepens.

• Asian Journal of Business Environment
• /
• 제13권4호
• /
• pp.19-28
• /
• 2023

Purpose: Emerging markets under industrialization have become increasingly influential over the global natural-resource transactions. However, their average deal completion rates have been relatively low. The international business (IB) literature regards the low rate as evidence of 'double hurdle', the extra disadvantages in doing overseas business for firms from developing countries. Because legitimacy building mitigates liability of foreignness, we argue that an acquirer's environmental responsibility effectively builds legitimacy. Research design, data and methodology: Stakeholders in the host country spread the acquirer's environmental responsibility so that, by raising legitimacy, they may strengthen the link between environmental responsibility and deal completion. Our dataset consists of the 608 cross-border acquisition deals announced by the 196 firms in Brazil, Russia, India, and China over 2008-2019 period. Results: A logit regression result confirms that environmental responsibility increases the likelihood of acquisition deal completion. Also, host-market stakeholders positively moderate the relationship between environmental responsibility and the likelihood of deal completion. Conclusions: Overall, this study contributes to the IB literature by identifying environmental responsibility as a key approach to lowering the double hurdle in internationalization of firms in emerging markets. Any emerging multinationals interested in the foreign, brownfield entries to the natural-resource industries must enhance the environmental responsibility, which turns out extremely important.

• 동아시아경상학회지
• /
• 제9권1호
• /
• pp.53-61
• /
• 2021

Purpose - This study aims to understand the phenomenon called "regional multinational" in the geographical expansion of multinational enterprises and to find some evidence whether globalization of multinational enterprises tends to have a strong home region bias. Research design, data, and methodology - Through an in-depth case analysis, we analyze the series of strategic behaviors Wal-Mart made in South Korea from its entry in 1998 to its withdrawal in 2006. Then, we discuss the plausible causes of this exit, seeking to provide some evidence on the "regional multinational" phenomenon. Result - This study finds some evidence on the regional-based expansion of multinational enterprises. Our case study shows that Wal-Mart in South Korea focused on global standardization strategy and made an exit from the market as they were faced with increasing localization demands. From the perspective of multinational enterprises' globalization strategy, Wal-Mart's exit from the South Korean market can be considered as a strategic exit. Conclusion - The findings of this study suggest that while national responsiveness and localized adaptation are considered as a panacea for penetrating international markets, in reality most multinational enterprises attempt to add value primarily by capitalizing on similarities across markets and remain as regional multinationals.

• 국제지역연구
• /
• 제20권3호
• /
• pp.81-100
• /
• 2016

본 논문은 한국 다국적 기업의 자료를 이용하여 해외직접투자에서 현지화가 자회사의 경영성과에 미치는 영향을 분석하고자 한다. 이를 위해 한국수출입은행에서 제공하는 61개 국가에 진출해있는 2,116개 한국 다국적기업의 현지자회사에 대한 2008년에서 2011년까지의 자료를 사용하고 있다. 고정효과 패널선형모형을 사용해 분석한 결과 현지화가 자회사의 경영성과에 미치는 영향은 산업별, 국가그룹별로 매우 상이하게 나타났다. 제조업의 경우 현지매출비중의 증가는 중국에 진출해 있는 현지자회사의 경영성과에만 긍정적인 영향을 미치는 반면, 현지매입비중의 증가는 중국을 제외한 기타 개도국에서만 유의하게 정(+)의 영향을 나타내는 것으로 분석되었다. 반면, 서비스업의 경우 해당 투자대상국이 선진국일 경우 현지매출비중, 현지매입비중, 현지관리자비중 모두 긍정적인 영향을 미치며, 중국의 자회사에 대해서는 현지매출비중만이 긍정적인 영향을 미치는 것으로 나타났다.

• East Asian Economic Review
• /
• 제17권3호
• /
• pp.261-279
• /
• 2013

Using firm-level panel data for Korean multinational enterprises (MNEs), we make a distinction between being the only affiliate of a parent firm and being one of the multiple affiliates of a parent firm. In particular, we attempt to find a correlation between the sales of foreign affiliates and the productivity of multinational firms. Our main empirical results in this paper suggest that productive Korean MNEs would enlarge the number of affiliates in the host country.

• 통상정보연구
• /
• 제11권3호
• /
• pp.391-408
• /
• 2009

This study first designates the factors affecting Foreign Direct Investment (FDI) in order to analyze the FDI in Korea, and calculates the Korean FDI index by using various designated variables and by applying Factor Analysis Technique. In addition, it attempts to understand the influence wielded by the foreign investment variables of foreign multinationals on FDI in Korea, by setting to analyze & verify Environmental Factors and the overall model based on FDI in Korea. Through an emprical analysis of USA, Japan, EU, China, as our hypothesis, we could verify that the positive effects(+) among the decisive factors of FDI in Korea include the market size, the mean earning rate of domestic manufacturing industries, and the marketing capacities of foreign corporations, while the negative effects(-) include the ratio of taxation on domestic manufacturing industries. Other FDI factors have various effects on each, so some factors show the same effects as the hypothesis while others show separate effects. In addition, the only nation for which the effects of FDI factors in Korea coincide with the hypothesis completely is the USA, while other nations (such as Japan, EU, China) have some effects that conform to the hypothesis, but other effects do not accord with it.

• Asian Journal of Business Environment
• /
• 제8권1호
• /
• pp.7-15
• /
• 2018

Purpose -This paper is to study the process of the negative effects of Sino-foreign joint ventures, hoping to find out an effective path in which local enterprises can avoid the risks in the utilization of foreign capital, and ultimately achieve independent innovation. Research design, data, and methodology -The outflow of assets, the loss of local brands and the "technology hollowing-out" problem brought by joint ventures is becoming more and more serious. Based on conflict analysis graph model, this paper takes Yuhuan joint venture as an example to identify the conflict problem in Sino-foreign joint ventures. Results -The results of the stability analysis show that establishing joint venture cannot really realize the introduction of technology because the technology is fully controlled by the foreign part. So when introducing foreign capital, local enterprises should participate in R&D and master the initiative. Conclusions - Local enterprises should pay attention to patent containment and technology blockade of multinationals. Domestic enterprises should try to protect state-owned assets and local brands in Sino-foreign joint ventures. Independent innovation is the most effective strategy for the development of enterprises in China.

• 통상정보연구
• /
• 제10권2호
• /
• pp.391-410
• /
• 2008

Emphasis on relationship management might be found out from Williamson (1975), who tried to elucidate why an organization exists. According to his transaction cost theory, an organization is established to evade opportunistic actions of the market and build up a hierarchy of value chain. However, judged from the perspective of exchange relationship in a trade, the transaction cost theory was likely to approach to buyer-seller relationship by the mechanism of competition. Therefore, an organization exists to control the competition of the market. Relationship management suggested by relationship marketing focuses on cooperation between buyers and sellers, rather than competition against each other. Relationship management aims to provide a framework for making a market relationship that might become an asset or a resource of the firm. In the process of maintaining and strengthening long-term and cooperative relationship with all stakeholders included customers, suppliers and staff, they continue to create new values. The purpose of this empirical research, by investigating how relationship management of multinational enterprises influences on their competitive advantages and performances, is to suggest that a cooperative relationship established for a long time in the market, so-called quasi-market relationship, substitutes for an organization.

• Asian Journal of Business Environment
• /
• 제3권2호
• /
• pp.31-37
• /
• 2013

Purpose - This paper objectively analyzes the effects of globalization on Zimbabwe's business and economic development using the Business in Context (BIC) model. Research design, data, and methodology - We employed a qualitative research methodology, following an exploratory secondary research design in this paper. Results - The findings reveal that businesses in Zimbabwe have benefited from globalization as it has drawn investments from international companies in the country. In addition, the business sector is benefiting from the economies of scale realized from the investments made by companies in Africa, East Asia, Europe, and America. However, we also discover that globalization has resulted in the proliferation of cheap sub-standard goods and services from East Asia, and has increased competition between indigenous companies and foreign-owned multinationals. Conclusion - Our findings suggest that globalization has both positive and negative effects on business and economic development in Africa in general, and Zimbabwe in particular. However, we note that the advantages, to a certain extent, outweigh the disadvantages. What, then, could be the way forward for Zimbabwe, in the face of globalization? As a solution, this paper recommends the development of a policy on global associations by the Zimbabwean government, to enhance business and economic development.