Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
권호 표지

A Study on Moderating Effects of Competitive Strategy between Determinants of FDI and Management Performance

해외직접투자 결정요인과 경영성과 간 경쟁전략의 조절효과연구

  • Lim, Yong-Taek (Department of International Trade, Kunsan National University) ;
  • Goh, Byeong-Su (Department of International Trade, Kunsan National University)
  • Received : 2016.05.31
  • Accepted : 2016.06.20
  • Published : 2016.06.30
Download PDF
⟨ Previous Next ⟩

Abstract

This study examined the relationship between determinant factors of FDI and management performance, and tested moderating effects by competitive strategy. Questionnaires were gathered from 113 respondents, but only 92 valid copies were analyzed through SPSS WIN 18.0. The major empirical results are as follows: In hypothesis 1, Firm-Special Advantage impacted on Management Performance strongly, Internal Advantage impacted on Management Performance strongly, and Locational Advantage impacted on Management Performance strongly. In Hypothesis 2, the moderating effects by competitive strategy on the relationship between determinant factors of FDI and management performance were tested through multiple regression. The result of the moderating effects by competitive strategy were found to be insignificant. Implications of the finding as well as the limitations of this study are also discussed.

Keywords

References

  1. Ahn, Jong-Seok(1996), "Korean Firms' Market and Ownership Strategy in China as Determinant of Business Performances", International Business Journal, Vol. 7, pp. 1-24.
  2. Barney, J. B.(1991), "Firm Resource and Sustained Competitive Advantage," Journal of Management, Vol. 17, pp. 99-120
  3. Buckley, P. J. & Casson, M.(1976), The Future of the Multinational Enterprise, Macmilian Press.
  4. Chaganti, R. C., Cook, R. G. & W. J. Smeltz(2002), "Small Business Strategies in Different Industry Growth Environments, " Journal of Small Business Management, July; Vol. 25, No. 3, pp. 61-68
  5. Cho, Dong-Sung(2009), "Strategic Management for 21 Century", Seoul, Seoul Economic Management.
  6. Choo, Seung-Youp, Jeong-Min, Yu, and Seong-Joo, Limb(2009), "A Study on the Effects of the Fit among Environment, Strategy and Competence on Firm Perfor- mance", Journal of Strategic Management, Vol. 12 No, 1, pp. 89-116
  7. Dollinger & Golden(1992), "Inter-organizational and Collective Strategies in Small Firms: Environmental Effects and Performance," Journal of Management, Dec;, Vol. 18, No. 4, pp. 695-715 https://doi.org/10.1177/014920639201800406
  8. Ghoshal, S. & C. A. Barlett(1988), "Creation, Adoption and Diffusion of Innovations by Subsidiaries of Multinational Corp.," Journal of International Business Studies. Vol. 19. No. 3
  9. Jeong, Dong-Won(2005), "A Study on the Determinants of Foreign Direct Investment in Korean Companies", (Doctoral Dissertation), Hoseo University. 67.
  10. Jeong, Soo-Youl, Sueng-Youp Choo and Seung-Bum Suh, Seong-Joon Limb (2008), "A Study on the Effects of the Fit Among Environment, Strategy and Organizational Structure on Firm Performance", Journal of Strategic Management, Vol. 11, No. 3, pp. 43-67
  11. Joo, Kyu-Hee(2010), "An Exploratory Study on the Determinants of Sequential Foreign Direct Investment", Ph.d. Dissertation, Department of Business Administration, Sookmyung Women's University
  12. Kaplan, R. S. & D. P. Norton(1992), "The Balanced Scorecard-Measures That Drive Performance", Harvard Business Review, January-February, pp. 71-79.
  13. Kim, Gab and Sang-Seol Han(2003), "The Performance and Implications of Venture Strategic Typology," Advancing Small Enterprise Innovation Research, Vol.6, No. 1, pp. 3-24.
  14. Kim, Je-Hoon (2015), "Three Essays on Foreign Direct Investment", (Doctoral Dissertation), University of Seoul. 79.
  15. Kim, Ki-Hyun(2000), " The Determinants of Foreign Subsidiary Performance of Korea Small-Medium Firms ",International Business Journal, Vol. 11, No .1, pp. 113-136
  16. Kim,, Sun-Hwa and Jung-Dae Suh(2009), "An Empirical Study on the Determinants of SMEs' Growth ," The Korea Small Business Review, Vol. 31 No. 2, pp. 237-254
  17. Kim, Young-Jin(2008), "A Study on the Managerial Performance and Developmental Strategies in Korean Enterprises of Automobile Parts Based on the Determinants of Foreign Direct Investment", (Doctoral Dissertation), Korea Maritime University, 98.
  18. Ko, Bong-Sang(2004), "An Empirical Study on the Determinants of Venture Business", (Doctoral Dissertation), Ajou University, 56.
  19. Ko, Se-Hoon(2011), "The Structure Relationship between Competitive Strategy and Performance in SMEs and Venture Business," (Doctoral Dissertation), Konkuk University, 122.
  20. Lee, Deog-Ro and Ji-Man Lee(2007), "Management Practices as its Determinants: Antecedents of the Corporate Competitiveness of Bio-Firms in Korea" The Korean Small Business Review, Vol. 29, No. 2, pp. 99-121
  21. Lee, Jang-Ho(2002), "Multi-nationality, Intangible Asserts, Global Learning and Firm Value", International Business Journal, Vol. 13, No. 1, June, pp. 95-117.
  22. Lee, Jang-Woo and Soo-Deog Jang(2001), "Characteristics of Successful High-Tech Ventures: An Empirical Study", The Korean Small Business Review, Vol. 21, No. 1, pp. 3-31
  23. Lee, Yoon-Seok and Bo-Won Kim(2000), "A Study on the Influencing Factors of Foreign Manufacture Subsidiary Performance", Korean Management Review, Vol. 29, No. 2, pp. 37-64
  24. Lee, J. W. & D. Miller(1999), "People Matter; Commitment to Employees, Strategy and Performance," Strategic Management Review, Vol. 20, No. 6, pp. 579-593 https://doi.org/10.1002/(SICI)1097-0266(199906)20:6<579::AID-SMJ37>3.0.CO;2-C
  25. Lumpkin, G. T. & G. G. Dess(1996), "Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance", Academy of Management Review, Vol. 21, No. 1, pp. 135-172. https://doi.org/10.5465/amr.1996.9602161568
  26. McDougall, P. P., Covin J. G., Robinson, Jr. R. B. & L. Herron(1994), "The Effects of Industry Growth and Strategic Breadth on New Venture Performance and Strategy Content", Strategic Management Journal, Vol. 15, pp. 537-554. https://doi.org/10.1002/smj.4250150704
  27. Nam, Ki-Jun(2015), "A Study on the Effects of Foreign Direct Investment of Korean S/M Enterprises on the Business Performance ", (Doctoral Dissertation), Hoseo University, 65.
  28. Oh, Soo-Kyun(2014), "Study on the Korean Companies Strategy on China's Investment Environment Changes", The Journal of International Trade & Commerce, Vol. 10, No 4, Aug.,, pp. 743-766
  29. Park, Young-Bae(2006), "The Impact of Competitive Strategy and Industrial Environment on Management Performance of Venture," Advancing Small Enterprise Innovation Research, Vol. 9, No.1, pp. 63-86
  30. Porter, M. E.(1980), Competitive Strategy, Free Press, New York, McGraw-Hill
  31. Porter, M. E.(1996), "What is Strategy?," Harvard Business Review, November-December, pp. 61-78.
  32. Roure, J. B. & R. H. Keeley(1990), "Prediction of Success in New Technology Based Ventures", Journal of Business Venturing, Vol. 5, No. 4, pp. 201-220. https://doi.org/10.1016/0883-9026(90)90017-N
  33. Son, Jung-Min(2010), "An Exploratory Study of Firm Specific Advantage Exploitation Foreign Market ", Journal of Korea Trade., Vol. 35, No. 1, pp. 155-176
  34. Stopford, J. M. & L. T. Wells(1972), Management the Multinational Enterprise, New York : Basic Books
  35. Stuart, R. W. & P. A. Abetti(1987), "Start-Up Venture: Towards the Prediction of Initial Success", Journal of Business Venturing, Vol. 2, No. 3, pp. 215-230. https://doi.org/10.1016/0883-9026(87)90010-3
  36. Teece, D. J., Pisano G. & Shuen, A.(1997), "Dynamic Capabilities of and Strategic Management," Strategic Management Journal, Vol. 18, No.7, pp. 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
  37. Thompson, Jr. A., Strickland, A. J. & Gamble, J. E .(2010), Crafting and Executing Strategy, McGraw Hill, 17th ed.
  38. Venkatraman, N. & V. Ramanujam(1986), "Measurement of Business Performance in Strategy Research: A Comparison of Approaches", Academy of Management Review, Vol. 11, No. 4, pp. 801-814. https://doi.org/10.5465/amr.1986.4283976
  39. Yang, Hee-Soon(2002), "An Empirical Study on the Success Factors of Korean Venture Business", (Doctoral Dissertation), University of Incheon, 92.
  40. Yusuf, A. & K. Saffu(2009), "Planning Practices, Strategy Types and Firm Performance in the Arabian Gulf Region," Education, Business and Society(Contemporary Middle Eastern Issues), Vol.2, No. 3, pp. 203-217 https://doi.org/10.1108/17537980910981778