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Article

Eun Woo Kim, Soonkyoo Choe and Jooyoung Kwak

The purpose of this paper is to integrate stakeholder and international business (IB) theories to explore the relationship between the international diversification of…

Abstract

Purpose

The purpose of this paper is to integrate stakeholder and international business (IB) theories to explore the relationship between the international diversification of emerging-market multinational corporations (EMNCs) and corporate social performance (CSP) in their home markets. While the IB literature generally assumes a positive effect from international diversification on CSP as a result of global learning, the study aims at investigating the complicated effects in the link to the stakeholder theory.

Design/methodology/approach

This paper used combined sources of public survey data (corporate social responsibility (CSR) of the Korean firms) and archival data (foreign direct investment and corporate data). A truncated regression is used for statistical model.

Findings

International diversification helps MNCs to enhance CSP in their home countries. Thus, EMNCs can develop CSR capabilities at the global level, thereby benefiting domestic stakeholders. Also, significant investment in domestic research and development (R&D) and advertising negatively moderates the relationship between international diversification and domestic CSP. In this regard, expanding R&D and advertising facilitates global competitiveness. Moreover, as international diversification increases, EMNCs may redirect resources and re-orient CSR policies toward foreign stakeholders. Consequently, the relationship between international diversification and domestic CSP weaken.

Practical implications

Acceleration in international diversification may weaken domestic CSP, which arises from transformation into the global enterprises.

Originality/value

The study highlights the difficulties of EMNCs in serving domestic stakeholders effectively when their businesses are increasingly internationalized.

Details

Management Decision, vol. 57 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

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Article

Young Hoon An, Soonkyoo Choe and Jihoon Kang

The purpose of this study is to analyse the effects of market-based and nonmarket-based strategies on firm performance in African countries. This study also investigates…

Abstract

Purpose

The purpose of this study is to analyse the effects of market-based and nonmarket-based strategies on firm performance in African countries. This study also investigates host country institutions' effect on the relationship between firm strategies and performance in these countries.

Design/methodology/approach

Data of 1,276 firms in five African countries were obtained from two different sources: The World Bank Enterprise Database and The Global Competitiveness Report. Two-stage least squares regression was applied.

Findings

Both market-based strategies and corporate political activity (CPA)improve firm performance in the African countries included in the analysis. Institutional development also has a direct positive impact on firm performance. However, the effect of CPA weakens as the host country shifts towards more efficient, market-oriented institutions. Furthermore, the results show that local African firms benefit more from institutional development than foreign firms.

Originality/value

The paper confirms and extends our understanding of the dynamic fit between institutions and strategy by highlighting the moderating role of institutional development on CPA and market-based strategies in enhancing firm performance.

Details

Multinational Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1525-383X

Keywords

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Article

Yuzhe Miao, Soonkyoo Choe and Jaeyong Song

The purpose of this paper is to explore organizational factors that affect the transfer of subsidiary knowledge to both parent companies and peer subsidiaries.

Abstract

Purpose

The purpose of this paper is to explore organizational factors that affect the transfer of subsidiary knowledge to both parent companies and peer subsidiaries.

Design/methodology/approach

The hypotheses are tested using multivariate regression, based on a survey of 81 foreign subsidiaries in South Korea.

Findings

The findings show that organizational factors that affect the transfer of subsidiary knowledge differ according to whether the recipient is the parent or the peer subsidiary. Subsidiary‐to‐parent knowledge flow is facilitated by establishing efficient formal mechanisms such as an expatriation policy, a subsidiary performance evaluation system, etc., whereas knowledge transfer to peer subsidiaries is enhanced by the length of a subsidiary's operation period and the frequency of its managers' communications with other managers in peer subsidiaries.

Practical implications

This analysis suggests that managers of multinational companies should apply different approaches in managing these two distinct knowledge flow patterns in the MNC network.

Originality/value

This study offers new insights into the challenges of global learning by highlighting the difficulty of transferring subsidiary knowledge to peer subsidiaries through formal organizational apparatuses.

Details

Journal of Knowledge Management, vol. 15 no. 3
Type: Research Article
ISSN: 1367-3270

Keywords

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Article

Chinmay Pattnaik, SoonKyoo Choe and Deeksha Singh

The purpose of this paper is to examine the impact of quality of market supporting institutions (institutional quality) in host country and the similarities and…

Abstract

Purpose

The purpose of this paper is to examine the impact of quality of market supporting institutions (institutional quality) in host country and the similarities and differences of institutional quality between the home and host country (institutional distance) on subsidiary performance.

Design/methodology/approach

Based on the conceptualization of new institutional economics, the authors divide quality of host country institutions into factor markets; product, capital, labor market and sociopolitical dimensions. The authors examine the impact of the quality these institutional dimensions in host countries and their difference between home and host country on the performance of 318 subsidiaries of 146 Korean listed manufacturing firms operating in 28 host countries from 2001 to 2006.

Findings

The empirical results based on 1,129 observations show that institutional distance explains a significant variance in the subsidiary performance. In particular, the difference in quality of institutions in product, capital and labor market has negative impact on subsidiary performance. However, except for quality of regulation in labor market, host country institutional qualities do not significantly explain the variation in subsidiary performance.

Originality/value

The evidence suggests that host country institutions matter substantially when considered with their relative similarity and difference with home country institutions. The impact of individual dimensions of institutions varies on subsidiary performance.

Details

Management Decision, vol. 53 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

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