• The Journal of Asian Finance, Economics and Business
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• v.7 no.1
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• pp.205-215
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• 2020

The purpose of this paper is to empirically analyze the determinants of foreign subsidiary's local embeddedness because it is critically important for the subsidiary to build a variegated local network. This paper suggests that a MNC's global capability, the degree of autonomy granted by the headquarters of the multinational corporation to its foreign subsidiary, the foreign subsidiary's absorptive capacity based on local environment, and its level of localization will affect the subsidiary's local network embeddedness. The empirical analysis confirmed that when the headquarters gives the foreign subsidiary more autonomy, this has a positive effect on the local embeddedness of the foreign subsidiary and when the foreign subsidiary has a strong absorptive capacity, this has a positive correlation with the local embeddedness of the foreign subsidiary. And this paper found that when the foreign subsidiary has achieved a high level of staff localization, this foreign subsidiary will have a higher level of local embeddedness. This study identified the preceding conditions necessary for a foreign subsidiary of a multinational corporation to effectively embed itself in the local network by analyzing factors related to the multinational corporation's headquarters and subsidiaries, and thus contributes significantly to continued research on the local embeddedness of subsidiaries.

• Korea Journal of Hospital Management
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• v.21 no.1
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• pp.32-42
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• 2016

This study is conducted to estimate economic ripple effects of subsidiary services of hospitals. Using the Input/Output Analysis, this study analyzes production inducement effect, added value inducement effect, and labor inducement effect. Also, it assesses potential economic effects of the subsidiary services of which the scope is expanded as the government's proposed in 2014. Data regarding hospital subsidiary services and economic effects are obtained from the hospitals' financial statements on the National Tax Services and the Bank of Korea. The major results of this study are summarized as follows; subsidiary service profits of hospitals are 466 billion won and rent profits of hospitals are 152 billion won. Of these, the rate of subsidiary service profits in tertiary hospitals is about 66% of total subsidiary service profits. Producement inducement effect of subsidiary services of hospitals is higher than that of total industry, service industry and medical service industry. Added value inducement effect of subsidiary services of hospitals is higher than that of total industry, manufacturing industry, service industry and medical service industry. Job position inducement effect of subsidiary service in hospitals is higher than that of total industry, service industry and medical service industry. Also, employment inducement effect of subsidiary service in hospitals is higher than that of total industry and medical service industry. The results may suggest that subsidiary services revenue in medical institutions contribute to improving operating profits. Facing with intense market competition and pressures to control health care costs, hospitals may need to determine whether subsidiary services help boost their profitability and improve customer satisfaction.

• East Asian Journal of Business Economics (EAJBE)
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• v.6 no.4
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• pp.1-12
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• 2018

Purpose - This paper tests the effect of the structure of manufacturing and marketing subsidiary network on FX exposure of Korean MNEs. Furthermore, the moderating effect of pass-through ability on the relationship between the subsidiary network and FX exposure is explored. Research design and methodology - This study utilizes a sample of 309 Korean MNEs constructed from database offered by KOTRA and KIS-VALUE. Results - As operational flexibility arising from having operations in multiple locations provides an option for firms to tackle FX exposure, greater breadth of manufacturing subsidiary network reduces FX exposure, and greater depth increases FX exposure. However, both the breadth and depth of marketing subsidiary network decrease FX exposure due to the firm's higher level of market presence and knowledge to devise an appropriate marketing strategy that can buffer adverse exchange rate movement. Such an effect is intensified when MNE's have FX exposure pass-through ability stemming from differentiated good. Conclusions - Empirical findings suggest that types and structure of Korean MNEs' foreign subsidiary network are closely related to the level of FX exposure they are experiencing. Also, they can utilize marketing subsidiary network more efficiently when having a higher R&D intensity.

• Proceedings of the Korea Institute of Fire Science and Engineering Conference
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• 2007.04a
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• pp.289-293
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• 2007

• International Commerce and Information Review
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• v.15 no.1
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• pp.227-256
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• 2013

Existing multinational subsidiary typologies seem to have limitations in two respects. First, the prevalence of subsidiary classification along two-dimensions fails to capture many distinct subsidiary types. Failure to reflect a sufficient richness in dimensionality can give rise to a partial picture of subsidiary typologies in the international business literature. A new typology developed from multi-dimensional approach will be required for reflecting various subsidiary roles in the multinational enterprise. Second, multinational subsidiary performing a number of activities is hard to be defined functionally across the value chain activities. In addition, multinational subsidiary roles can vary dramatically. In conclusion, despite a growing amount of work on subsidiary typologies, there seems to be limited convergence of results. the study regarding subsidiary roles still remain a challenge. In this respect, the purpose of this study is to develop a new typology based on multi-dimensional approach in order to overcome the limitations of traditional typologies. To classify subsidiary types, we propose 8 types of multinational subsidiary according to three dimensions that are adopted: (1) number of required value chain activities (2) subsidiary's sourcing capability and autonomy (3) global orientation (3) The case study analyzing Korean foreign subsidiaries appropriate for 8 types is performed to establish the validity of this study.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.38
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• pp.377-408
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• 2008

Globalization of R&D activities of multinational firms is becoming important in compared with the past, because of increasing globalization of world economy. So, every country tries to attract foreign investment including R&D activities. In this paper, effects of several factors, which determine the scale of foreign subsidiary's R&D activities in local market, are analyzed. Through the review of previous literature, I found that three groups of determinant factors. The first one is the factor which is related to characteristics of local market, such as competitive situation of local market, accessability to research institutions, etc. The second group is the factor which is related to relationship between foreign subsidiary and its mother company. The dominant factors of this group are operation strategy of foreign subsidiary, competitiveness of mother firm, and equity structure of foreign subsidiary. Finally the characteristics of industry affect to the scale of foreign subsidiary's R&D activities. Among these factors, 6 factors are chosen to investigate empirically. For the empirical investigation, 107 foreign subsidiaries among KOITA(Korea Industrial Technology Association)'s list are chosen. Each subsidiary has more than 50% of foreign equity and implement R&D activities in Korea. The results show that sales volume of foreign subsidiary is dominant influencing factor in determining scale of R&D activities in Korean market. And also I found that currently established firms are implementing more R&D activities than old established firms. This is quite interesting finding. However, R&D activities of foreign subsidiary are not vitalized in Korean market. It probably means that Korean government and Korean business partners have to make effort to enhance foreign firms/ R&D activities, because it could contribute technological and economic development of Korean market.

• International Commerce and Information Review
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• v.18 no.2
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• pp.195-218
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• 2016

This study seeks to find out the determinants of subsidiary performance. In addition, moderating effect of autonomy on the relationship between subsidiary competence, subsidiary relationship and subsidiary configurational focus, and subsidiary performance. In studying the moderating effect of autonomy on subsidiary performance, the results will give invaluable insights to foreign subsidiaries in Korea to better compete in competitive Korean market. The results of empirical study showed that subsidiary with higher level of interaction with its intra-MNC network has higher level of performance. Thus, active interaction with headquarter and its affiliates will lead to better performance. Subsidiary with higher level of competence has higher level of performance. Thus, subsidiary should attain higher level of competence to better compete in Korea. Subsidiary autonomy has moderating effect on the relationship between configurational focus and performance. Thus, optimal MNC subsidiary configuration and attainment of subsidiary autonomy is needed to secure competitiveness in Korean market.

• Proceedings of the KIEE Conference
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• 2009.07a
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• pp.2160_2161
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• 2009

본 논문에서는 최근 신축된 건축물의 수전실에 설치된 접지단자함 내부의 보호도체와 접지선의 접속실태, 접지방식 및 접지저항 측정용 보조전극의 매설 실태 등을 분석하였다. 또한, 측정용 보조전극의 매설 실태를 토대로 접지전극을 선정하여 보조전극의 위치 변화에 따른 접지저항의 오차를 측정 및 분석하였다.

• Transactions of the Korean Society of Mechanical Engineers A
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• v.24 no.3 s.174
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• pp.728-734
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• 2000

An asymmetric actuator can be used to reduce the distance between the reflective mirror and objective lens of a small optical disk drive for use in the notebook-sized personal computer data storage devices. However, this asymmetric actuator is very sensitive to the subsidiary resonance which is caused by its rigid body motion. In this paper, an analytical approach using a simple lumped parameter system model is presented with a physical insight to investigate why the subsidiary resonance occurs. The finite element method is used to figure out the force and torque characteristics of the asymmetric actuator which are essential to understand the subsidiary vibration characteristics. The frequency responses are presented to examine how the subsidiary resonance is altered for various situations of having different thickness of a yoke and permanent magnet and of having a different magnet circuit. Finally, the design guidelines to avoid the subsidiary resonance will be presented.

• Journal of Distribution Science
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• v.13 no.8
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• pp.15-25
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• 2015

Purpose - There is a lack of research on how much corporate control is sufficient for effective subsidiary business-related decision making. To address this research gap, this study analyzes the impact of the level of control of a Korean corporation's headquarters on its overseas subsidiary performance. Research design, data, methodology - The study's sample comes from the Overseas Korean Business Directory of KOTRA. A multiple regression analysis empirically confirmed the relationship between the headquarters level of control over the subsidiaries and their performance. Results - The results show that the greater an organization's headquarters control over strategic issues, the greater the subsidiary's non-financial performance. However, quick decision-making through decentralization promotes the rapid selection of successful new products that can provide a competitive advantage. Conclusion - This study shows that the impact of control levels on subsidiary performance depends on the type of control involved. Specifically, while low levels of control over operational issues had a positive (+) influence on subsidiary non-financial performance, high control levels led to improved non-financial performance with regard to strategic issues among the subsidiaries.