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Market orientation of Korean MNC subsidiaries and their performance in the Chinese and Indian markets

Yung‐Chul Kwon (Department of International Business, Yeungnam University, Kyungsan, South Korea)

International Marketing Review

ISSN: 0265-1335

Article publication date: 27 April 2010

2301

Abstract

Purpose

The study of the market orientation of MNC subsidiaries in foreign markets has been generally limited. This paper, therefore, aims to assess the effects of market orientation on performance and the factors affecting the utilization of market orientation by foreign subsidiaries.

Design/methodology/approach

Market orientation is operationalized within the context of the foreign market. Research hypotheses are tested using a sample of 168 Korean MNC subsidiaries operating in China and India, the two most giant emerging countries in the world.

Findings

The results show that market orientation performs an important function in foreign subsidiary performance. In addition, foreign subsidiaries, which possess superior technology advantages and maintain active network relationships with local key entities such as suppliers, distributors, customers, and governmental authorities, are shown to actively devote themselves to market orientation.

Originality/value

As this study is to address the influence of MNC subsidiaries' market orientation on their business performance in the emerging markets, the results are expected to make a contribution to the literature in the field of market orientation.

Keywords

Citation

Kwon, Y. (2010), "Market orientation of Korean MNC subsidiaries and their performance in the Chinese and Indian markets", International Marketing Review, Vol. 27 No. 2, pp. 179-199. https://doi.org/10.1108/02651331011037511

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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