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Tapping a foreign subsidiary’s competence : An empirical test of subsidiaries of multinational corporations in South Korea

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  • Tapping a foreign subsidiary’s competence
  • Miao, Yuzhe; Choe, Soonkyoo; Song, Jaeyong
  • Seoul National University


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Title Tapping a foreign subsidiary’s competence
Similar Titles
Sub Title

An empirical test of subsidiaries of multinational corporations in South Korea

Material Type Articles
Author(English)

Miao, Yuzhe; Choe, Soonkyoo; Song, Jaeyong

Publisher

[Seoul, S.Korea]:Seoul National University

Date 2008
Journal Title; Vol./Issue Seoul Journal of Business:vol. 14(no. 2)
Pages 26
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic Administration
Industry and Technology < Others
Holding Seoul National University

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 subsidiary’s 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 MNC’s 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 MNC’s global network.