• Title/Summary/Keyword: Multinational Company

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What explains the failure of Google in the Korean market? The Impact of Multicultural PR Strategy

  • Kim, Hyejung;Woo, Wonseok;Kang, Hyoung-goo
    • Asia Marketing Journal
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    • v.14 no.4
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    • pp.35-56
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    • 2013
  • The era of globalization provides us with both opportunities and threats. The success of a multinational corporation depends largely on its ability to adapt itself to new market environment. We believe that understanding and implementing multicultural PR strategy can be a key to the multinational corporations' success in foreign markets. We argue in this paper that even a global iconic company such as Google needs to focus on how to understand local consumers' needs and preferences before formulating and implementing PR strategy. Having a global hit product or service is not sufficient enough to be successful in some foreign markets. It is especially more evident in the industries where companies deal with individual consumers, and perceptions and sentiments play a large role in their purchase decisions. The objective of this research is to find out the relationship between multicultural PR strategy and business performance. Therefore, our main hypothesis is; better implementation of multicultural PR strategy by a multinational corporation will result in higher performance in the foreign markets. To prove the relationship between multicultural PR strategy and performance, we designed a framework that uses Rudan's (2004) five rules for multicultural PR strategy. It is a contribution to the business academics as there are very few studies that directly focus on and analyze the multicultural aspects of a multinational company's PR strategy. Through our research, we found strong evidence that there is a positive relationship between the level and effectiveness of a company's multicultural PR strategy and its performance in the foreign markets. This offers some meaningful implications to the managers of the multinational corporations and those who are considering going into a foreign market for the first time. We also suggested a way of measuring the implementation of multicultural PR strategy. By applying five rules for multicultural PR strategy to Google's PR activities, it allowed us to convert qualitative information into quantitative data. This kind of tool can be helpful for multinational corporations that want to evaluate their own PR activities.

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A Study on Competing with Giant Multinational Company : Survival Strategies for Local Companies in Emerging Markets (거대 다국적기업에 맞선 신흥시장의 자국기업 생존에 관한 전략적 연구)

  • Moon-Sook Kim;Eun-Jung Choi
    • The Research Journal of the Costume Culture
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    • v.8 no.1
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    • pp.77-86
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    • 2000
  • The purpose of this study is to identify the nature and trend of multinational corporations and to examine strategies for survival of local companies in newly-rising markets which stand against huge multinational corporations, through case study. This research has been done by the literature review of the articles, books and the case study. The results were as follow : First, if the pressure for the globalization of a industry is low and the possibility of overseas transfer of the competitive property of corporations are bare, the intensive strategy for the protection of a national market can be used against the invasion of a multinational corporations. Second, if the pressure for the globalization is still low and the retaining property can be transferred to abroad, a company can be expended to several foreign markets in the limited scope, using the success in a national market as a stepping-stone. Third, In case the pressure for the globalization is high and the competitive property of corporations are effective only in a national market, corporations can survive individually and continuously through the reorganization of corporation's property, which is the survival strategy against multinational corporations. Forth, if the pressure for the globalization is high and the property of corporations can be transferred to abroad, it is possible for corporations to compete with the multinational corporations confidently.

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Application Status and Its Affecting Factors of Double Standard for Multinational Corporations in Korea (산업안전보건 영역에서 다국적 기업의 이중 기준 적용실태와 영향요인)

  • Ki, Myung;Lee, June-Young;Park, Hee-Chan;Yoon, Seok-Joon;Kim, Nam-Hoon;Heo, Jung-Yeon;Choi, Jae-Wook
    • Journal of Preventive Medicine and Public Health
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    • v.37 no.1
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    • pp.17-25
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    • 2004
  • Objectives : We intended to evaluate the double standard status and to identify factors of determining double standard criteria in multinational corporations of Korea, and specifically those in the occupational health and safety area. Methods : A postal questionnaire had been sent, between August 2002 and September 2002, to multinational corporations in Korea. A double standard company was defined as those who answered in more than one item as adopting a different standard among the five items regarding double standard identification. By comparing double standard companies with equivalent standard companies, determinants for double standards were then identified using logistic regression analysis. Results : Of multinational corporations, 45.1% had adopted a double standard. Based on the question naire's scale level, the factor of 'characteristic and size of multinational corporation' was found to have the most potent impact on increasing double standard risk. On the variable level, factors of 'number of affiliated companies' and 'existence of an auditing system with the parent company' showed a strong negative impact on double standard risk. Conclusion : Our study suggests that a distinctive approach is needed to manage the occupational safety and health for multinational corporations. This approach should be focused on the specific level of a corporation, not on a country level.

What Determines the Performance of Multinational Corporation's Global R&D Activities?: Parent Company vs. Host Country vs. Home Country (다국적 기업의 글로벌 R&D 활동 성과 결정 요인에 관한 연구)

  • Cho, Jung-Eun;Kim, Dong-Hee;Kim, Soo-Wook
    • Korean Management Science Review
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    • v.27 no.2
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    • pp.1-20
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    • 2010
  • Many firms are trying to acquire innovative technologies and relative knowledge by offshoring R&D work. Although research to date has focused on the multinational corporations' motivations of R&D offshoring, such as cost reduction and market expansion, little is known about external or environmental factors influencing the performance of global R&D activities. We investigated the relationship between the offshore R&D performance and the technical capabilities of the parent company, the host country and the home country as enhancers from outside R&D facilities. The analysis uses European patent data and EU R&D scoreboard of 134 overseas R&D labs from 46 multinational corporations in 2005. Also, we calculated total patent number of each country for this. Results from path analysis supported our main hypothesis that the technological capabilities of the parent company and the host country positively affect the overseas R&D performances. By multi-group analysis, we also found that the relationships among the variables are different for each industry.

The Effects of Corporate Social Responsibility on Corporate Activity: Comparing Domestic and Multinational Corporations in Korea

  • Jung, Young-Su;Kang, Shin-Ae
    • Journal of Distribution Science
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    • v.14 no.12
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    • pp.31-41
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    • 2016
  • Purpose - This study investigates whether corporate social responsibility(hereafter CSR) management activities affect companies' performance. Depending on the CSR management activities and companies' type (national and multinational), we examined whether there is any difference in their CSR activities on Corporate Performance. Research design, data, and methodology - Data were collected from 230 surveys with a sample group consisting of employees in multinational corporations located in Seoul and Gyeonggi and 224 copies were used from 3 May 2016 to 17 May 2016. The data was analyzed by SPSS 21.0. Results - The empirical results show that CSR management activities positively influence on financial and non-financial corporate achievement and CSR may be interpreted as a strategic method to improve corporate value. But the impacts of CSR activities on performance were different between domestic and multinational corporations. The reason that the legal responsibility was overruled as a factor for financial and non-financial achievement in domestic company may be that CSR management activity is perceived as an indulgence to hide or beautify negative behavior regarding corporate illegal behavior, thus it does not deliver value. Conclusions - CSR activities can be delivered differently between domestic and multinational corporations, and further study should be done why there are differences between corporations.

Protection of Intellectual Property Rights and Subsidy Policy for Foreign Direct Investment

  • Kang, Moonsung
    • East Asian Economic Review
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    • v.16 no.2
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    • pp.139-154
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    • 2012
  • This paper provides a theoretical setup for an analysis of strategic relationships inherent to activities of an innovative multinational enterprise (MNE) and a local company in a host country. Additionally, we explore the incentives of the host country's government to provide subsidies to attract foreign direct investment (FDI) and to protect outcomes of R&D activities conducted by the MNE. We show that the MNE's commercial interests may collide with local companies' over protection of IPRs. Therefore, the extent of knowledge spillovers from the MNE to the local company and the magnitude of incentives to the MNE perform a crucial function in determining the optimal policy mix of IPR protection and FDI subsidies of the host country's government.

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Research on economic analysis on Competitive R&D investments of Multinational Enterprises (다국적기업의 경쟁적 R&D 투자에 관한 경제성 분석)

  • PARK, SEOK-GANG;KIM, GIL-SUNG
    • International Area Studies Review
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    • v.13 no.3
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    • pp.439-458
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    • 2009
  • In this paper, Two countries have invested directly using the two models Multinational Enterprises, foreign companies doing R&D subsidy policy analysis in their activities to attract. Multinational Enterprises to get the spillover effect from competitors, the introduction of subsidiary R&D resources with an incentive to R&D activities. The government has established a subsidiary to bring the country to foreign Multinational Enterprises for the purpose of improving the technological capabilities of Multinational Enterprises with their parent company R&D to increase the resources by foreign companies in their R&D investment to subsidize R&D activities that have an incentive to attract. In addition, foreign companies and government cooperative R&D by two things also increase the rate of funding for activities to bring the two subsidiaries of multinational R&D has increased the amount of additional resources, the economic interests of both countries get more will increase.

Coronavirus Disease (COVID-19) Pandemic: The Psychological Well-Being in a Cohort of Workers of a Multinational Company

  • Lovreglio, Piero;Leso, Veruscka;Riccardi, Elisabetta;Stufano, Angela;Pacella, Daniela;Cagnazzo, Francesco;Ercolano, Maria Luigia;Iavicoli, Ivo
    • Safety and Health at Work
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    • v.13 no.1
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    • pp.66-72
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    • 2022
  • Background: The aim of the present study was to evaluate the psychological well-being (PWB) during the coronavirus disease (COVID-19) pandemic in workers of a multinational company. Methods: Employees (aged ≥18 years) were recruited from Latin American, North American, New Zealand, and European sites of a multinational company operative during all the pandemic period. The self-reported Psychological General Well-Being Index was used to assess the global PWB and the effects on six subdomains: anxiety, depressed mood, positive well-being, self-control, general health, and vitality. The influencing role of age, gender, geographical location, COVID-19 epidemiology, and restrictive measures adopted to control the pandemic was explored. Results: A total of 1335 workers completed the survey. The aggregate median PWB global score was in a positive range, with significantly better outcomes detected in the Mexican and Colombian Latin American sites compared with the other worldwide countries (p < 0.001). Among the European locations, a significantly higher PWB score was determined in Spain compared with the German and French sites (p < 0.05). Comparable geographical trends were demonstrated for all the PWB subdomains. Male workers had a significantly better PWB compared with females (p < 0.05), whereas a negative correlation emerged with aging (p = 0.01). COVID-19 epidemiology and pandemic control measures had no clear effects on PWB. Conclusion: Monitoring PWB and the impact of individual and pandemic-related variables may be helpful to clarify the mental health effects of pandemic, define targeted psychological-supporting measures, also in the workplace, to face such a complex situation in a more constructive way.

The Influence of External Environmental Factors on Technology Transfer between Foreign MNCs and Local Subsidiaries: Based on SCP Paradigm (해외자회사 환경요인이 국제기술이전 및 혁신성과에 미치는 영향 : S-C-P 패러다임 관점에서)

  • Jeong, Jaehwi
    • Knowledge Management Research
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    • v.20 no.1
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    • pp.231-249
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    • 2019
  • Technology transfer from a multinational company to a local subsidiary is essential for successful local market operations. This study aims to analyze the impact of market, cultural and institutional environmental factors on international technology transfer and innovation performance based on the S-C-P paradigm. We collected data from one hundred ninety-five subsidiaries of Korean parent firms located in seventeen countries and used structural equation modeling to test hypotheses. The analysis findings are as follow; First, both market and cultural environment directly affect international technology transfer. However, institutional environment such as protection of intellectual property does not affect international technology transfer. Due to the less risk of technology disclosure involved in technology transfer within the MNE organization can be not relationship between protection of intellectual property in the host country and the foreign subsidiary's transfer of technology. The risk of infringement of intellectual property is relatively low in intra-firm transfer of technology. Second, the technology introduced from the parent company has a positive effect on the innovation performance of local subsidiaries. This implies that multinational companies that have entered unfamiliar overseas markets should be able to effectively transfer the inherent advantages of the parent company to their overseas subsidiaries, and that their ability to adapt to the local environment is important.

Data Empowered Insights for Sustainability of Korean MNEs

  • PARK, Young-Eun
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.3
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    • pp.173-183
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    • 2019
  • This study aims to utilize big data contents of news and social media for developing a corporate strategy of multinational enterprises and their global decision-making through the data mining technique, especially text mining. In this paper, the data of 2 news media (BBC and CNN) and 2 social media (Facebook and Twitter) were collected for the three global leading Korean companies (Samsung, Hyundai Motor Company, and LG) from April, 2018 to April, 2019. The findings of this paper have shown that traditional news media and also modern social media have become devastating tools to extract global trends or phenomena for businesses. Moreover, this presents that a company can adopt a two-track strategy through two different types of media by deriving the key issues or trends from news media channels and also grasping consumers' sentiments, preference or issues of interest such as battery or design from social media. In addition, analyzing the texts of those media and understanding the association rules greatly contribute to the comparison between two different types of media channels to see the difference. Lastly, this provides meaningful and valuable data empowered insights to find a future direction comprehensively and develop a global strategy for sustainability of business.