International Journal of Multinational Corporation Strategy (4 papers in press)
Comprehensive Competitiveness for Auto Companies from the USA, Germany, Japan, and Korea: Empirical Analysis through a Diamond Model Perspective
by Min Jae Lee, Paik Seo Yun, Adam H. Cave, Jin Sup Jung
Abstract: This study analysed the comprehensive competitiveness for multinational automobile companies (GM, Volkswagen, Toyota, and Hyundai). Based on Porter (1990)s diamond model, we selected the leading papers in the field of management and strategy, then extracted the key factors of comprehensive competitiveness for the automobile companies. According to the results, among factor conditions - CEO characteristics, human resource management (HRM) system, and technological innovation capability - technological innovation capability positively influenced the comprehensive competitiveness for all four companies. Hyundai (Korea) showed that CEO characteristics also positively affected comprehensive competitiveness. With a moderating effect of government support, HRM system had a significant interaction for both GM (USA) and Toyota (Japan). Technological innovation capability also significantly interacted with government support for Toyota (Japan). In the case of open innovation, technological innovation capability significantly interacted with it for GM (USA), Volkswagen (Germany) and Toyota (Japan). Finally, CEO characteristics and HRM system significantly interacted with open innovation for GM (USA).
Keywords: multinational automobile companies; comprehensive competitiveness; comparative research; diamond model.
Examination of cognitive and relational factors in the benchmark selection of MNCs
by Kwang-Ho Kim
Abstract: MNCs acquire information and knowledge through benchmarking; thus, determining whom to benchmark is a critical concern. Although members in the same strategic group commonly serve as benchmarks, MNCs occasionally select their benchmark outside of their strategic group. Since benchmark selection is a cognitive and relational phenomenon, we explored when MNCs select their benchmark outside of their strategic group by focusing on cognitive and relational factors. Results confirm that a focal firm identifies a firm outside of its strategic group as its benchmark when the performance of the focal firm is better than that of the strategic group members and when the partnership density of the strategic group is high. The results further verify that structural equivalence between a focal firm and a target firm also influences benchmark selection. This study contributes to the literature on benchmarking and strategic groups by showing situations where strategic group members cannot serve as benchmarks.
Keywords: benchmark; organizational learning; strategic group; aspiration; social networkrnrn.
Making sense of global integration and local responsiveness in international HRM research
by Chul Chung
Abstract: While the notions of global integration (GI) and local responsiveness (LR) have been widely used to analyse an MNEs international human resource management (IHRM) strategy, the specific ways of conceptualising these constructs in the literature remain unquestioned. This paper reviews how the two important constructs have been conceptualised in the international HRM research and evaluates whether such conceptualisations are adequate to examine MNEs IHRM strategies to address the fundamental strategic problem - managing the duality of GI and LR in HRM of MNEs. The extensive review of the literature reveals that the widely used constructs have been rather narrowly conceptualised on a single dimension HRM practice orientation - in the international HRM literature based on the dualistic assumption on the relationship between the two constructs, which prevents the exploration of emerging broader IHRM strategies. Based on the insights from the emerging literature, it is argued that GI and LR should be conceptualised as meta-level constructs which encompass multiple dimensions so that IHRM strategies could be considered as various configurations of the ways of pursuing GI and LR across the dimensions to address the duality problem in MNEs.
Keywords: global integration; local responsiveness; international HRM; multinational enterprise.
Internationalization Knowledge and Market Expansion: How Korean Firms Grow in Foreign Markets
by Han-Mo Oh, Young-Woong Hwang
Abstract: It is widely accepted that a key driver of a firms international growth is its knowledge about how to compete in foreign markets. Many firms, however, have attained substantial growth in foreign markets although they have had little prior direct experience in those markets. Depending crucially on the knowledge-based view and the organizational learning theory, we develop a model that may explain the effects of direct learning of culture and economy in other countries and indirect learning from the experience of other firms on the success of international market expansion. Using a uniquely complied archival dataset regarding the international growth in foreign markets of a sample of Korean firms direct investment entries into foreign countries, we empirically test the model. We indicated that experiential knowledge with respect to culture and economy positively moderates the effects of those drivers on the success of firms international market expansion. In addition, the importance of indirect learning is highlighted in explaining the international growth of firms. Finally, This manuscript is concluded with a discussion of important implications for theory and practice by emphasizing the roles of experiential knowledge and indirect learning from competitors and interfirm relationships and with the limitations of the present study and the directions of future research.
Keywords: Experiential Knowledge; Indirect Learning; Internationalization; Growth; Market Expansion,.