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We explore how the different innovation strategies influence the propensity of emerging market firms with state ownership (FSOs) to form international joint ventures (IJVs). We argue that the different types of innovation strategies employed by emerging market FSOs affect the likelihood that they form IJVs differently. We propose that FSOs pursuing an explorative innovation strategy are more likely to engage in IJVs, whereas those that employ an exploitative innovation strategy are less likely to form IJVs. Additionally, using the institution-based lens, we further propose that the contributions of the different innovation strategies of FSOs to form IJVs are shaped positively by the different levels of home- and host-country institutional pressures. Using 364 Chinese FSOs, we test our hypotheses and find strong support for our arguments. Our study contributes to the literature by offering an important theoretical bridge between the exploration–exploitation framework and the institution-based perspective in the context of emerging market FSOs.
Jeoung Yul Lee; Shufeng(Simon) Xiao; Byungchul Choi. Unpacking the drivers of emerging market firms’ international joint venture formation: The interplay between technological innovation strategies and home- and host-institutional pressures. Journal of Business Research 2021, 134, 378 -392.
AMA StyleJeoung Yul Lee, Shufeng(Simon) Xiao, Byungchul Choi. Unpacking the drivers of emerging market firms’ international joint venture formation: The interplay between technological innovation strategies and home- and host-institutional pressures. Journal of Business Research. 2021; 134 ():378-392.
Chicago/Turabian StyleJeoung Yul Lee; Shufeng(Simon) Xiao; Byungchul Choi. 2021. "Unpacking the drivers of emerging market firms’ international joint venture formation: The interplay between technological innovation strategies and home- and host-institutional pressures." Journal of Business Research 134, no. : 378-392.
The influence of institutional quality on the economic environment has been long acknowledged by researchers, notably as a main driver of Foreign Direct Investment (FDI)
Alfredo Jimenez; Jeoung Lee; Xavier Ordeñana. Introduction: FDI and Institutional Quality: New Insights and Future Perspectives from Emerging and Advanced Economies. Sustainability 2021, 13, 4413 .
AMA StyleAlfredo Jimenez, Jeoung Lee, Xavier Ordeñana. Introduction: FDI and Institutional Quality: New Insights and Future Perspectives from Emerging and Advanced Economies. Sustainability. 2021; 13 (8):4413.
Chicago/Turabian StyleAlfredo Jimenez; Jeoung Lee; Xavier Ordeñana. 2021. "Introduction: FDI and Institutional Quality: New Insights and Future Perspectives from Emerging and Advanced Economies." Sustainability 13, no. 8: 4413.
PurposeThe purpose of this perspective paper is to answer the question of why some multinational corporations (MNCs) do not evolve and fail to avoid retrogression by natural selection in international business (IB) and to introduce eight papers selected for this special issue.Design/methodology/approachThe authors conceptually discuss the reasons for MNC failure by illustrating key motivations behind foreign direct investment (FDI) undertaken by MNCs based on internalization theory, the OLI paradigm and the OILL (i.e. OLI plus the learning motivation) paradigm. Then, the authors develop an evolutionary perspective to explore the survival of the fittest in the global markets and the natural selection of MNCs.FindingsThe eight papers selected for this special issue expand the authors’ understanding of globalized organizations' challenges, evolution and decline as well as offering a distinct opportunity to reconsider diverse extant theories about MNCs by suggesting an extension that accounts for the rise of various globalized organizations particularly in and from emerging markets.Originality/valueDespite increased numbers of MNCs, which struggle to survive and are faced with great risk of failure, the authors’ understanding of them still remains in infancy. While scholars have investigated diverse topics related to MNCs, existing studies have developed theories predominantly emphasizing MNC success. Thus, conventional theories in IB such as internalization theory and the OLI paradigm may not be sufficiently applicable to explain the phenomenon of MNC failure (i.e. MNC decline). Based on authors’ discussions, the authors believe this is an appropriate time to refine mainstream IB theories by concurrently considering both evolution and retrogression.
Byung Il Park; Jeoung Yul Lee. The survival of the fittest in the global markets: multinational corporation challenge, evolution and decline. Management Decision 2021, 59, 1 -17.
AMA StyleByung Il Park, Jeoung Yul Lee. The survival of the fittest in the global markets: multinational corporation challenge, evolution and decline. Management Decision. 2021; 59 (1):1-17.
Chicago/Turabian StyleByung Il Park; Jeoung Yul Lee. 2021. "The survival of the fittest in the global markets: multinational corporation challenge, evolution and decline." Management Decision 59, no. 1: 1-17.
The purpose of this article is to empirically explore (1) the impact of political ties on international joint ventures’ (IJVs) R&D strategy and (2) the moderating effects of market turbulence and governmental policy turbulence on the relationship between IJV political ties and R&D investment in China. Our sample consists of 1,344 observations taken from 224 IJVs over a period of 6 years (2012–2017), and we applied hierarchical moderated regression analysis (HMRA) with panel data to analyze our three hypotheses. Our findings show that IJVs with political ties tend to invest more in R&D than their counterparts without political ties. Interestingly, this positive relationship grows stronger with high market turbulence, but wanes under high governmental policy turbulence. While the issues regarding the importance of political ties to IJVs competing in China have been discussed, the issues related to why political ties influence IJV’s decisions on R&D investment have been largely overlooked. Hence, this study applies the environmental contingency view to fill this gap and shows how asymmetric contingencies for market turbulence and governmental policy turbulence occur in this context. JEL CLASSIFICATION: M1
Jie Yang; Jieqiong Ma; D Harold Doty; Jeoung Yul Lee. IJV’s political ties and R&D strategy: Asymmetric contingencies of market versus governmental policy turbulence. BRQ Business Research Quarterly 2020, 1 .
AMA StyleJie Yang, Jieqiong Ma, D Harold Doty, Jeoung Yul Lee. IJV’s political ties and R&D strategy: Asymmetric contingencies of market versus governmental policy turbulence. BRQ Business Research Quarterly. 2020; ():1.
Chicago/Turabian StyleJie Yang; Jieqiong Ma; D Harold Doty; Jeoung Yul Lee. 2020. "IJV’s political ties and R&D strategy: Asymmetric contingencies of market versus governmental policy turbulence." BRQ Business Research Quarterly , no. : 1.
Resolving the problem of excess production capacity through sustainable technological innovation is an important issue facing the Chinese economy in achieving high-quality development. The Guiding Opinions of the State Council on Resolving the Contradiction of Severe Overcapacity promulgated by the government in 2013 undoubtedly had a huge external impact on the traditionally competitive manufacturing market. This paper uses 6680 company-year sample observations of 1609 A-share manufacturing listed companies in China from 2010 to 2017 to examine the impact of capacity reduction pressure on ‘corporate sustainable innovation’ (the strategic response made by the enterprise administrator to cope with the impacts of the external environment including economic, social and environmental aspects) investment and the moderating role of financing constraints on this relationship. The research shows that after the promulgation of the Guiding Opinions, the degree of overcapacity had a significant positive effect on the R&D investment of enterprises, indicating that the policy to resolve overcapacity promoted their sustainable innovation investment. Such a phenomenon indicates that, to a certain extent, in the context of capacity reduction, companies have strong pressure and motivation to seek a way out through sustainable innovation. However, financing constraints have a significant inhibitory influence on the anti-forcing effect of the capacity reduction policy, indicating that the ability of enterprises to respond to external capacity reduction policies is subject to their own limited financing. Further investigation shows that capacity reduction pressure mainly promotes the sustainable innovation investment of private enterprises and has no significant impact on that of state-owned enterprises. This may be because private enterprises struggled more for survival during the transition period. The results of this paper provide a theoretical basis and reference value for the formulation of government policies and the development of enterprises.
Huan Chen; Tingyong Zhong; Jeoung Lee. Capacity Reduction Pressure, Financing Constraints, and Enterprise Sustainable Innovation Investment: Evidence from Chinese Manufacturing Companies. Sustainability 2020, 12, 10472 .
AMA StyleHuan Chen, Tingyong Zhong, Jeoung Lee. Capacity Reduction Pressure, Financing Constraints, and Enterprise Sustainable Innovation Investment: Evidence from Chinese Manufacturing Companies. Sustainability. 2020; 12 (24):10472.
Chicago/Turabian StyleHuan Chen; Tingyong Zhong; Jeoung Lee. 2020. "Capacity Reduction Pressure, Financing Constraints, and Enterprise Sustainable Innovation Investment: Evidence from Chinese Manufacturing Companies." Sustainability 12, no. 24: 10472.
Purpose This study examines the impact of situational and stable animosities on quality evaluation and purchase intention while also testing the moderating effects of within- and cross-country cultural distance. It focuses on the case of the US THAAD missile defense system deployment in South Korea (hereafter, Korea) and investigates how the resulting Chinese consumers' animosity affects their quality evaluation of, and purchase intention toward, Korean cosmetics. Design/methodology/approach This study utilizes a quantitative approach based on a survey and structural equation modeling. The sample comprises 376 Chinese consumers from 19 Chinese regions. Findings The results indicate that both stable and situational animosities are negatively associated with purchase intention toward Korean cosmetics. However, their effects on quality evaluation are different. While stable animosity is negatively related to product quality evaluation, situational animosity has no such negative association. Finally, the cultural distance between Chinese regions and Korea strengthens the negative relationship between stable and situational animosities and purchase intention. Research limitations/implications The study contributes by better unraveling the effects of stable and situational animosities on perceived product quality. The empirical context is unique because it allows the authors to investigate the relationship between Chinese antagonism toward the THAAD deployment in Korea and Chinese consumers' stable and situational animosities in terms of their quality evaluation of, and purchase intention toward, imported Korean cosmetics. Hence, this study contributes to the literature on consumer animosity by empirically testing the moderating effect of within- and cross-country cultural distance on the relationship between stable and situational animosities and purchase intention. Practical implications The study has relevant practical implications, notably for Korean exporters' marketing management and within- and cross-cultural management. The results suggest that countermeasures are needed because Chinese consumers' stable and situational animosities are negatively related to their purchase intention toward Korean cosmetics. Moreover, the findings provide the insight that when foreign firms export culture-sensitive products to a large, multicultural country, their managers should pay attention to within- and cross-cultural differences simultaneously. Originality/value Previous studies have shown that the effects of animosity on product evaluation and purchase intention differ depending on the animosity dimension, product type, country and the situation causing animosity, among others. However, the existing literature on animosity has neglected the reality that within-cultural differences in a single large emerging market are relevant to explaining the concept of animosity and its effect on the purchase intention toward culture-sensitive products. Furthermore, none of the animosity studies have touched on the important moderating role of within- and cross-cultural differences between a large and multicultural importing country and a brand's home country in this manner. Therefore, the study fills this gap by empirically examining whether different moderating effects of stable and situational animosities exist for a specific conflict situation caused by a military issue and investigates the causes of these different effects.
Jeoung Yul Lee; Joong In Kim; Alfredo Jiménez; Alessandro Biraglia. The role of subnational cultural value on animosity: the China-South Korea THAAD crisis. Cross Cultural & Strategic Management 2020, 28, 452 -478.
AMA StyleJeoung Yul Lee, Joong In Kim, Alfredo Jiménez, Alessandro Biraglia. The role of subnational cultural value on animosity: the China-South Korea THAAD crisis. Cross Cultural & Strategic Management. 2020; 28 (2):452-478.
Chicago/Turabian StyleJeoung Yul Lee; Joong In Kim; Alfredo Jiménez; Alessandro Biraglia. 2020. "The role of subnational cultural value on animosity: the China-South Korea THAAD crisis." Cross Cultural & Strategic Management 28, no. 2: 452-478.
This paper investigates how firms' political capabilities and countries' political structures affect firms' lobbying decision. We use a cross-country, firm-level dataset that covers more than 22,013 firms in 46 countries to discover that a firm's individual- and collective-level political capabilities are positively associated with lobbying. In contrast, the degree of checks and balances among bureaucrats in a country's political market is negatively associated with the firm's possibility of lobbying. Finally, we also find that the positive role of a firm's political capabilities in lobbying is mitigated by the degree of checks and balances among bureaucrats. This study contributes to the literature of corporate political activities by filling the research gaps (1) as considering both horizontal and vertical checks and balances among bureaucrats in political markets, and (2) as simultaneously considering firms' individual and collective political capabilities, by taking one more conceptual step on the literature of contingent dynamic capabilities and lobbying.
Seong-Jin Choi; Alfredo Jiménez; Jeoung Yul Lee. The impact of political capabilities and political markets on firms' decision to lobby. Journal of International Management 2020, 26, 100796 .
AMA StyleSeong-Jin Choi, Alfredo Jiménez, Jeoung Yul Lee. The impact of political capabilities and political markets on firms' decision to lobby. Journal of International Management. 2020; 26 (4):100796.
Chicago/Turabian StyleSeong-Jin Choi; Alfredo Jiménez; Jeoung Yul Lee. 2020. "The impact of political capabilities and political markets on firms' decision to lobby." Journal of International Management 26, no. 4: 100796.
Entrepreneurial small- and medium-sized enterprises (SMEs) play a significant role in nearly all economies and are responsible for a significant proportion of cross-border transactions. In order to create and capture opportunities across borders, entrepreneurs in SMEs rely heavily on both self- and vicarious- and experience-based organizational learning. Although a significant percentage of the academic literature has concerned itself with learning from successful experience (or general experience), learning from failed experience (or learning from success versus failure) has receive much less attention. This is despite the fact that failure is generally more pervasive, particular with respect to SMEs, than success. In this paper, we review the extant knowledge on SME success- and failure-based learning from internationalization, with particular emphasis on how the two bases of learning interact. In addition, we relate the five focused issue articles that build on and extend this literature into a set of insightful theoretical and managerial contributions.
Jeoung Yul Lee; Alfredo Jiménez; Timothy Devinney. Learning in SME Internationalization: A New Perspective on Learning From Success versus Failure. Management International Review 2020, 60, 485 -513.
AMA StyleJeoung Yul Lee, Alfredo Jiménez, Timothy Devinney. Learning in SME Internationalization: A New Perspective on Learning From Success versus Failure. Management International Review. 2020; 60 (4):485-513.
Chicago/Turabian StyleJeoung Yul Lee; Alfredo Jiménez; Timothy Devinney. 2020. "Learning in SME Internationalization: A New Perspective on Learning From Success versus Failure." Management International Review 60, no. 4: 485-513.
This study examines the impact of a centralized knowledge structure on the performance of international R&D teams in multinational corporations (MNCs) and moderating effects of team-specific characteristics. Building upon the social network perspective, we argue that while international R&D teams with a centralized knowledge structure will experience decreasing team performance due to inefficient knowledge sharing and evaluation, this negative effect will be mitigated through diversity in knowledge sources and team members’ personal backgrounds. We test our hypotheses using data collected from 384 international knowledge-intensive teams in two South Korean MNCs and find that the degree of knowledge centralization in a team negatively impacts the team’s performance. A team’s diverse knowledge in business domains, diversity in knowledge channels, and cultural and geographic distance among team members are found to mitigate this negative impact. Our study contributes to team research literature and innovation study in the context of international R&D teams.
Jeoung Yul Lee; Byung Chul Choi; Pervez N. Ghauri; Byung Il Park. Knowledge centralization and international R&D team performance: Unpacking the moderating roles of team-specific characteristics. Journal of Business Research 2020, 128, 627 -640.
AMA StyleJeoung Yul Lee, Byung Chul Choi, Pervez N. Ghauri, Byung Il Park. Knowledge centralization and international R&D team performance: Unpacking the moderating roles of team-specific characteristics. Journal of Business Research. 2020; 128 ():627-640.
Chicago/Turabian StyleJeoung Yul Lee; Byung Chul Choi; Pervez N. Ghauri; Byung Il Park. 2020. "Knowledge centralization and international R&D team performance: Unpacking the moderating roles of team-specific characteristics." Journal of Business Research 128, no. : 627-640.
Research summary This study combines transaction cost economics and network learning literature to examine the moderating effect of knowledge from internal versus external local supplier on subsidiary‐level intrafirm trade within multinational enterprises' (MNEs') global value chain networks. We conceptualize knowledge in a multidimensional way, disentangling it into institutional knowledge in high‐risk countries and internationalization knowledge in all countries. Empirical results from 5,660 observations of 487 Korean MNEs (1995–2013) show that MNEs' institutional knowledge with external local suppliers in high‐risk countries has a stronger negative effect on the relationship between political risk and subsidiaries' intrafirm trade integration than with internal suppliers. Internationalization knowledge from external local suppliers in all countries also has a stronger negative effect on the relationship between political risk and subsidiaries' intrafirm trade integration than with internal suppliers. Managerial summary A host country's political risk is a critical consideration for MNEs when entering institutionally hazardous countries. This study shows how MNEs' strategies for operational integration of subsidiaries within global value chain networks respond to challenges of political risk in host countries. We studied 5,660 observations of 487 Korean MNEs (1995–2013) and found that MNE capabilities to manage under institutionally hazardous conditions can be developed through various types of knowledge from internal versus external local suppliers, and, consequently, operational integration in the MNE global value chain in high‐risk countries is less needed. MNEs need to acquire and expand new business opportunities in host countries by accepting heterogeneity through varying institutional and internationalization knowledge and active partnership development based on their global value chain networks. This article is protected by copyright. All rights reserved.
Jeoung Yul Lee; Alfredo Jiménez; Young Soo Yang; Yunah Song. Political risk, internal versus global value chain knowledge, and subsidiary operational integration. Global Strategy Journal 2020, 10, 444 -472.
AMA StyleJeoung Yul Lee, Alfredo Jiménez, Young Soo Yang, Yunah Song. Political risk, internal versus global value chain knowledge, and subsidiary operational integration. Global Strategy Journal. 2020; 10 (3):444-472.
Chicago/Turabian StyleJeoung Yul Lee; Alfredo Jiménez; Young Soo Yang; Yunah Song. 2020. "Political risk, internal versus global value chain knowledge, and subsidiary operational integration." Global Strategy Journal 10, no. 3: 444-472.
This paper investigates the relationship between business strategy and cost stickiness under different ownership. Using the data from listed firms in China from 2002 to 2015, we find that first, firms with different strategies exhibit different cost behavior. The cost stickiness of choosing a differentiation strategy is higher than that of choosing a low-cost strategy. Second, management expectations will affect cost stickiness. Optimistic expectations will increase cost stickiness, while pessimistic expectations will reduce cost stickiness. Third, management expectations can adjust the relationship between business strategy and cost stickiness in terms of government-created advantages (GCAs). If management expectations tend to be optimistic, the cost stickiness is higher with a differentiation strategy than with a low-cost strategy. If management expectations tend to be pessimistic, then cost stickiness is higher with a low-cost strategy than with a differentiation strategy. Finally, the state-owned equity affects the extent of the effect of a differentiation strategy on cost stickiness. State-owned firms, which receive more GCAs than non-state-owned firms, have stronger cost stickiness than non-state-owned firms, even if both categories of firms use more differentiation strategy.
Tingyong Zhong; Fangcheng Sun; Haiyan Zhou; Jeoung Yul Lee. Business Strategy, State-Owned Equity and Cost Stickiness: Evidence from Chinese Firms. Sustainability 2020, 12, 1850 .
AMA StyleTingyong Zhong, Fangcheng Sun, Haiyan Zhou, Jeoung Yul Lee. Business Strategy, State-Owned Equity and Cost Stickiness: Evidence from Chinese Firms. Sustainability. 2020; 12 (5):1850.
Chicago/Turabian StyleTingyong Zhong; Fangcheng Sun; Haiyan Zhou; Jeoung Yul Lee. 2020. "Business Strategy, State-Owned Equity and Cost Stickiness: Evidence from Chinese Firms." Sustainability 12, no. 5: 1850.
Few studies have addressed how customer concentration affects the decision of a firm’s research and development (R&D) strategies and then innovation outcome. Using a sample of China’s listed companies for the period from 2009 to 2017, this study investigates the relationship between customer concentration and enterprise sustainable innovations, as well as how such the relationship changes with economic policy uncertainty. The findings imply that there is a significant inverted-U-shaped relationship between customer concentration and enterprise sustainable innovations. Under a high level of economic policy uncertainty, the advantage of the customer relationship is maximized. In this context, raising customer concentration significantly promotes enterprise sustainable innovations. Customer concentration affects innovations differently as the equity properties, and locations of enterprises vary under different levels of economic policy uncertainty. Thus, the interval of customer concentration conducive to enterprise innovations differs. The results are robust to econometric techniques that control for endogeneity. Overall, our findings suggest that enterprises build and adjust the customer relationship and improve the driving mechanism for sustainable innovations.
Tingyong Zhong; Yimeng Zuo; Fangcheng Sun; Jeoung Yul Lee. Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation. Sustainability 2020, 12, 1392 .
AMA StyleTingyong Zhong, Yimeng Zuo, Fangcheng Sun, Jeoung Yul Lee. Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation. Sustainability. 2020; 12 (4):1392.
Chicago/Turabian StyleTingyong Zhong; Yimeng Zuo; Fangcheng Sun; Jeoung Yul Lee. 2020. "Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation." Sustainability 12, no. 4: 1392.
In this paper, we investigate how various types of subsidiary roles affect dual knowledge flows between a focal subsidiary and the multinational enterprise’s headquarters, a thus far overlooked topic in the knowledge management literature. We propose that subsidiaries with a world mandate have a stronger positive impact on dual knowledge flows than subsidiaries with a specialized contributor role. In contrast, we argue that subsidiaries with a local implementer role have a negative impact on dual knowledge flows. Further, we investigate the moderating effect of two different organizational governance types, namely, belonging to a South Korean business group (i.e., Chaebol), and being a small and medium-sized enterprise. Overall, our results from a sample of 1213 foreign manufacturing subsidiaries from 191 South Korean MNEs provide empirical evidence that validates our hypotheses.
Jeoung Yul Lee; Alfredo Jiménez; Krishna Raj Bhandari. Subsidiary roles and dual knowledge flows between MNE subsidiaries and headquarters: The moderating effects of organizational governance types. Journal of Business Research 2019, 108, 188 -200.
AMA StyleJeoung Yul Lee, Alfredo Jiménez, Krishna Raj Bhandari. Subsidiary roles and dual knowledge flows between MNE subsidiaries and headquarters: The moderating effects of organizational governance types. Journal of Business Research. 2019; 108 ():188-200.
Chicago/Turabian StyleJeoung Yul Lee; Alfredo Jiménez; Krishna Raj Bhandari. 2019. "Subsidiary roles and dual knowledge flows between MNE subsidiaries and headquarters: The moderating effects of organizational governance types." Journal of Business Research 108, no. : 188-200.
Existing literature exploring ambidexterity based on the organizational and network learning perspectives is sparse. In particular, there are few studies dealing with the characteristics of ambidexterity construct in the context of inter-organizational relationships, and existing studies are limited. To date, studies have suggested only vague and inconclusive conceptualizations and empirical findings. Our research tackles this overlooked area of thought by dismantling the mechanisms of ambidextrous knowledge sharing among group-affiliated companies within the large complex Korean business group known as a chaebol and the impact of those mechanisms on the companies’ global performances. An internationalized chaebol is a cradle of transnational knowledge and resource sharing that functions as a business group–level knowledge reservoir. Conceptually, our research employs two dimensions of ambidextrous knowledge sharing, “balance dimension (BD) of ambidextrous knowledge sharing” and “synergistic dimension (SD) of ambidextrous knowledge sharing,” among group-affiliated companies within a chaebol. In this way, we clarify the conceptual issues regarding the degree to which ambidextrous knowledge sharing affects the extent of explorative relative to exploitative knowledge sharing or affects the combined synergistic extent of both activities. We collect survey data from 337 manufacturing multinational group-affiliated companies that belong to 61 internationally diversified chaebols. We analyze this data using ordinary least squares (OLS) regression with the hierarchical method. Our results show that having a balance between explorative and exploitative knowledge sharing among group-affiliated companies (i.e., BD) within a chaebol increases the global performance of that chaebol’s group-affiliated companies. High synergistic levels of ambidextrous knowledge sharing among group-affiliated companies (i.e., SD) also enhance the group-affiliated companies’ global performance. In addition, our study reveals the moderating effects that organization size and environmental munificence have on the interactions of BD and SD.
Jeoung Yul Lee; Young Soo Yang; Byung Il Park. Interplay between dual dimensions of knowledge sharing within globalized chaebols: The moderating effects of organization size and global environmental munificence. International Business Review 2019, 29, 101637 .
AMA StyleJeoung Yul Lee, Young Soo Yang, Byung Il Park. Interplay between dual dimensions of knowledge sharing within globalized chaebols: The moderating effects of organization size and global environmental munificence. International Business Review. 2019; 29 (6):101637.
Chicago/Turabian StyleJeoung Yul Lee; Young Soo Yang; Byung Il Park. 2019. "Interplay between dual dimensions of knowledge sharing within globalized chaebols: The moderating effects of organization size and global environmental munificence." International Business Review 29, no. 6: 101637.
As a large country with great development potential, China has been one of the most popular foreign direct investment destinations. However, foreign companies increasingly face a variety of challenges especially during the “soft-landing” of the Chinese economy and amidst anti-globalization tendency. Based on a comprehensive review of the extant literature, we provide a critical overview of some of the key challenges for foreign companies in China, focusing on two challenges related to the business environment, namely regulatory and cultural challenges, and two management challenges, namely innovation and human resource management. We provide managerial implications and outline directions for future research.
Fabian Jintae Froese; Dylan Sutherland; Jeoung Yul Lee; Yipeng Liu; Yuan Pan. Challenges for foreign companies in China: implications for research and practice. Asian Business & Management 2019, 18, 249 -262.
AMA StyleFabian Jintae Froese, Dylan Sutherland, Jeoung Yul Lee, Yipeng Liu, Yuan Pan. Challenges for foreign companies in China: implications for research and practice. Asian Business & Management. 2019; 18 (4):249-262.
Chicago/Turabian StyleFabian Jintae Froese; Dylan Sutherland; Jeoung Yul Lee; Yipeng Liu; Yuan Pan. 2019. "Challenges for foreign companies in China: implications for research and practice." Asian Business & Management 18, no. 4: 249-262.
We extend internalization theory by examining the contingencies associated with market internalization and its impact on foreign subsidiary survival. Based on a sample of 6170 subsidiary–year observations in 63 countries belonging to 292 MNCs from Korea during 1995–2013, we find that greater product and labor market internalization have weaker impacts on the survival of subsidiaries operating in countries with more developed institutional environments but stronger for subsidiaries of MNCs affiliated with business groups. The impact of business group affiliation is further dependent on host country institutional development, and the diversification and size of the business group. Nous développons la théorie de l’internalisation en examinant les contingences associées à l’internalisation du marché et son impact sur la survie des filiales étrangères. Sur la base d’un échantillon de 6 170 observations subsidiaires annuelles, appartenant à 292 multinationales coréennes, effectuées dans 63 pays entre 1995 et 2013, nous trouvons qu’une plus grande internalisation du marché des produits et du travail a un impact plus faible sur la survie des filiales opérant dans des pays plus développés sur le plan institutionnel, mais plus fort pour les filiales de multinationales affiliées à des groupes d’activités. L’impact de l’affiliation à un groupe d’entreprises dépend en outre du développement institutionnel du pays d’accueil, de la diversification et de la taille du groupe d’activités. Extendemos la teoría de internalización al examinar las contingencias asociadas con la internalización del mercado y su impacto en la supervivencia de las filiales en el extranjero. Con base en una muestra de 6170 observaciones de filiales-año en 63 países pertenecientes a 292 multinacionales de Corea durante 1995 a 2013, encontramos que una mayor internalización del producto y del mercado laboral tiene un impacto más débil en la supervivencia de las filiales operando en países con entornos institucionales más desarrollados, pero más fuerte para filiales de multinacionales afiliadas con grupos empresariales. El impacto de la afiliación a un grupo empresarial depende más del desarrollo institucional del país anfitrión, y de la diversificación y el tamaño del grupo empresarial. Estendemos a teoria da internalização por examinar as contingências associadas à internalização de mercado e seu impacto na sobrevivência de subsidiárias estrangeiras. Com base em uma amostra de 6170 observações de subsidiária-ano em 63 países pertencentes a 292 MNCs da Coréia de 1995 a 2013, descobrimos que uma maior internalização dos mercados de produto e trabalho tem impacto mais fraco na sobrevivência de subsidiárias que operam em países com ambientes institucionais mais desenvolvidos, mas mais forte para subsidiárias de MNCs afiliadas a grupos empresariais. O impacto da filiação a grupo empresarial depende ainda do desenvolvimento institucional do país anfitrião e da diversificação e tamanho do grupo empresarial. 我们通过研究与市场内部化相关的偶发事件及其对外国子公司生存的影响来拓展内部化理论。基于1995至2013年间来自韩国292个跨国公司在63个国家的6170个子公司-年的观察样本,我们发现更大的产品和劳动力市场内部化对在制度环境较发达的国家经营的子公司的生存的影响较弱,但对于隶属于商业集团的跨国公司子公司则较强。商业集团隶属关系的影响进一步取决于东道国的制度发展,以及商业集团的多样化及规模。
Ajai S Gaur; Chinmay Pattnaik; Deeksha Singh; Jeoung Yul Lee. Internalization advantage and subsidiary performance: The role of business group affiliation and host country characteristics. Journal of International Business Studies 2019, 50, 1253 -1282.
AMA StyleAjai S Gaur, Chinmay Pattnaik, Deeksha Singh, Jeoung Yul Lee. Internalization advantage and subsidiary performance: The role of business group affiliation and host country characteristics. Journal of International Business Studies. 2019; 50 (8):1253-1282.
Chicago/Turabian StyleAjai S Gaur; Chinmay Pattnaik; Deeksha Singh; Jeoung Yul Lee. 2019. "Internalization advantage and subsidiary performance: The role of business group affiliation and host country characteristics." Journal of International Business Studies 50, no. 8: 1253-1282.
Drawing from the notion of cultural friction and based on the agency theory rationalization of multinational enterprise (MNE) headquarter–subsidiary relationship, we examine the impact of cultural friction in foreign subsidiaries on subsidiary performance. We argue that cultural friction, arising due to a high presence of parent country nationals (PCNs) in culturally distant locations, has a detrimental effect on subsidiary performance. This effect is the strongest when the cultural friction is at the top management team (TMT) level and the weakest when friction is at the regular employee level. However, this relationship is contingent on factors that work as drags or lubricants for cultural friction between PCNs and host country nationals (HCNs). We identify governance mode and language differences between home and host countries as drag parameters and host country experience and subsidiary interdependence as lubricants that condition the effect of cultural friction on subsidiary performance. Empirical findings based on a longitudinal sample of 7,495 foreign subsidiary observations of 467 Korean MNEs in 63 countries during 1990–2014 provide robust support for our theoretical predictions.
Deeksha Singh; Chinmay Pattnaik; Jeoung Yul Lee; Ajai S. Gaur. Subsidiary staffing, cultural friction, and subsidiary performance: Evidence from Korean subsidiaries in 63 countries. Human Resource Management 2019, 58, 219 -234.
AMA StyleDeeksha Singh, Chinmay Pattnaik, Jeoung Yul Lee, Ajai S. Gaur. Subsidiary staffing, cultural friction, and subsidiary performance: Evidence from Korean subsidiaries in 63 countries. Human Resource Management. 2019; 58 (2):219-234.
Chicago/Turabian StyleDeeksha Singh; Chinmay Pattnaik; Jeoung Yul Lee; Ajai S. Gaur. 2019. "Subsidiary staffing, cultural friction, and subsidiary performance: Evidence from Korean subsidiaries in 63 countries." Human Resource Management 58, no. 2: 219-234.
This study examines experience conditions under which firms may or may not learn effectively from prior failures. Drawing on the literature on learning from failure, we argue that the characteristics of failed investments, such as location, ownership, size, and the timing of when failed investments take place influence the effectiveness of learning from failure experience. Using a longitudinal dataset of Korean foreign direct investments, we find a negative relationship between an multinational enterprise’s prior failure experience and subsequent subsidiary mortality becomes stronger when investment size of failed investments increases and when failures take place during early stage of the firm’s internationalization; however, it becomes weaker when cultural distance between the host country of failed investments and the home country increases and the percentage of joint venture among failed investments is large. This study contributes to the literature by specifying experience characteristics that moderate the effectiveness of learning from failures.
Sangcheol Song; Yuping Zeng; Jeoung Yul Lee; Soonkyoo Choe. Learning from Failures in Foreign Direct Investments. Academy of Management Proceedings 2018, 2018, 1 .
AMA StyleSangcheol Song, Yuping Zeng, Jeoung Yul Lee, Soonkyoo Choe. Learning from Failures in Foreign Direct Investments. Academy of Management Proceedings. 2018; 2018 (1):1.
Chicago/Turabian StyleSangcheol Song; Yuping Zeng; Jeoung Yul Lee; Soonkyoo Choe. 2018. "Learning from Failures in Foreign Direct Investments." Academy of Management Proceedings 2018, no. 1: 1.
This study contrasts the means by which success- and failure-based experiential learning in corporate activities are impacted by three types of contextual dissimilarities that complicate learning: (i) the dissimilarity between the context where a firm originated and the contexts of prior events from which the firm accumulates experience in an activity; (ii) heterogeneity among prior events; and (iii) the dissimilarity between prior events and subsequent events to which a firm may apply its experience. We suggest that these three types of contextual dissimilarities affect success- and failure-based learning differently by having dissimilar effects on the facilitating mechanisms and barriers of the two types of learning. We use longitudinal data on the foreign direct investments conducted by Korean multinational enterprises and find that all three types of contextual dissimilarities negatively affect success-based learning, whereas the dissimilarities among prior events as well as between prior and subsequent events enhance failure-based learning.
Yuping Zeng; Sangcheol Song; Jeoung Yul Lee; Soonkyoo Choe. Learning from Success Versus Failure Under the Influence of Contextual Dissimilarities. Academy of Management Proceedings 2018, 2018, 1 .
AMA StyleYuping Zeng, Sangcheol Song, Jeoung Yul Lee, Soonkyoo Choe. Learning from Success Versus Failure Under the Influence of Contextual Dissimilarities. Academy of Management Proceedings. 2018; 2018 (1):1.
Chicago/Turabian StyleYuping Zeng; Sangcheol Song; Jeoung Yul Lee; Soonkyoo Choe. 2018. "Learning from Success Versus Failure Under the Influence of Contextual Dissimilarities." Academy of Management Proceedings 2018, no. 1: 1.
In this paper, we investigate how differences in policy risk levels between the home and the host country affect private participation projects. While traditionally distance has been associated with obstacles and challenges adversely affecting investments, a recent body of literature emphasizes the potential positive effects of distance. Drawing on a sample of 3971 projects from 1990 to 2013 in 21 Latin American host countries from 47 home countries, we find a strong positive effect for higher distance in absolute terms. However, our results also show that distance in nominal terms has no significant effect, pointing to a potentially confounding effect between positive and negative distance.
Alfredo Jiménez; Erica Salvaj; Jeoung Yul Lee. Policy risk, distance, and private participation projects in Latin America. Journal of Business Research 2018, 88, 123 -131.
AMA StyleAlfredo Jiménez, Erica Salvaj, Jeoung Yul Lee. Policy risk, distance, and private participation projects in Latin America. Journal of Business Research. 2018; 88 ():123-131.
Chicago/Turabian StyleAlfredo Jiménez; Erica Salvaj; Jeoung Yul Lee. 2018. "Policy risk, distance, and private participation projects in Latin America." Journal of Business Research 88, no. : 123-131.