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Tapping a Foreign Subsidiarys Competence: An Empirical Test of Subsidiaries of Multinational Corporations in South Korea
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- Authors
- Issue Date
- 2008-12
- Citation
- Seoul Journal of Business, Vol.14 No.2, pp. 109-134
- Abstract
- This study examined the conditions under which a foreign subsidiary
becomes the competence center within the multinational corporation
(MNC)s network. We developed an integrated framework by investigating
effects of both subsidiary-level factors and headquarter (HQ)-level
factors on subsidiarys competence development. Survey data from 76
foreign subsidiaries of MNCs in South Korea largely supported our
hypotheses. We found that subsidiaries with high management
autonomy and high network embeddedness in the local market (South
Korea) tend to build superior capabilities that would be useful
throughout the entire MNC network. Concerning an MNCs management system, our results suggested that technological and managerial
knowledge transfer from HQ to subsidiaries plays important roles in
helping a subsidiary evolve into a competence center in the MNCs global
network.
- ISSN
- 1226-9816
- Language
- English
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