Byung Il Park

Acquisition of marketing knowledge in small and medium‐sized IJVs: The role of compatibility between parents

Purpose – This paper aims to examine the effects of compatible characteristics between parent firms on the extent to which international joint ventures (IJVs) acquire marketing knowledge. Compatible organisational characteristics are a particularly important component for absorptive capacity in that it may play a pivotal role in extending the prior relevant knowledge base and promoting a favourable learning environment. A series of hypotheses based on the literature is tested, which suggests that: there is a close association between IJV size and the level of knowledge acquisition, and compatible characteristics between parents positively influence marketing knowledge acquisition in IJVs.Design/methodology/approach – The data were obtained by a survey. Questionnaires were posted to the CEOs of IJVs in Korea. A total of 688 questionnaires were sent out and 128 were returned, giving a response rate of 18.6 per cent.Findings – The paper finds that the marginal differences in mean values indicate that firm si...

Acquisition of managerial knowledge from foreign parents: evidence from Korean joint ventures

This paper contributes to the literature on intra- and inter-firm knowledge transfer by examining knowledge acquisition by Korean international joint ventures from their foreign parents. A conceptual model is presented which identifies the factors that have been found to influence knowledge transfer, organised into variables related to the local recipient firm, the foreign sender firm and the relationship between the two. The model is examined by means of a series of multiple regressions using a sample of 128 Korean international joint ventures. We find that: (1) the international joint ventures intent to learn and international experience; (2) the level of trust between parents and their business relatedness; and (3) the active managerial engagement of the foreign parent are the most important factors explaining the level of knowledge acquisition within the international joint ventures.

Institutional legitimacy and norms-based CSR marketing practices: Insights from MNCs operating in a developing economy

Purpose – The purpose of this corporate social responsibility (CSR) paper is to investigate specific social roles of multinational corporations (MNCs) in a developing economy, and how these MNCs’ CSR marketing activities are legitimized, from the institutional perspective. Design/methodology/approach – Anchoring this study in institutional theory, the authors explore how formal and informal institutions affect the legitimacy of MNCs’ CSR marketing practices in the host country of Pakistan. The authors conducted interviews with top managers from 15 local MNCs undertaking CSR programs in various sectors, such as automotive, banking, consumer products, oil and gas, pharmaceuticals, and telecommunications. Findings – The authors find that MNCs show commitment to CSR programs despite underdeveloped and very weak formal institutions, and that lots of these initiatives such as education, health, environmental protection, and civil society/religious organizations are oriented toward norms-based social CSR marketi...

Differences in knowledge acquisition mechanisms between IJVs with Western vs Japanese parents: Focus on factors comprising absorptive capacity

Purpose – The main objective of this study is as follows: while “knowledge acquisition in international joint ventures (IJVs)” has been widely in the limelight, the question of whether learning mechanisms in IJVs with Western vs Japanese parents are different has not yet been answered. In order to fill the current gap in the literature, this research seeks to answer the question by focusing on the absorptive capacity perspective.Design/methodology/approach – The data were obtained by survey. A total of 1,207 questionnaires were posted to the CEOs of IJVs in Korea and 288 were returned, 42 of which were unusable, thus giving a response rate of 20.38 percent.Findings – By using OLS regressions, two key findings are reported. First, the importance of absorptive capacity of IJVs in order to acquire foreign technology from parent firms is confirmed. Second, the results indicate that IJVs with Japanese multinational firms do not show different patterns of technology acquisition compared with IJVs with Western f...

Technology Acquisition and Performance in International Acquisitions: The Role of Compatibility Between Acquiring and Acquired Firms

This article examines the determinants of technology acquisition and performance in a sample of South Korean international acquisitions (IAs). Derived from the concept of absorptive capacity, determinants are identified as compatibility between acquiring and acquired firms, specifically organizational cultural compatibility, goal similarity, and business relatedness. The findings support the studys hypothesis that goal similarity and business relatedness positively influence technology acquisition. However, contrary to expectations, there is no support for the view that organizational cultural compatibility is positively related to technology acquisition. We also do not find support for anticipated positive relationships between organizational cultural compatibility, goal similarity, business relatedness, and IA performance. As anticipated, we do find support for the positive influence of technology acquisition on IA performance. The article suggests practical implications for managers and potential future research avenues.

Realised absorptive capacity, technology acquisition and performance in international collaborative formations: an empirical examination in the Korean context

The research objectives of this paper are twofold. First, it attempts to identify the critical factors facilitating the acquisition of technology from foreign partner firms and performance enhancement in international collaborative formations. Second, it compares these factors across Western and Japanese sub-samples. A new concept, realised absorptive capacity, is employed to achieve these objectives. Using a sample collected through a questionnaire-based survey, our results show that trust and communication are critical components in transforming new knowledge, while active managerial involvement of the foreign firm and the participation of foreign expatriates are the keys to applying it for business operations. In particular, components consisting of the ability to exploit new knowledge (i.e. active managerial involvement of foreign firm, participation of foreign expatriates and provision of training) are closely associated with performance enhancement. In addition, our results confirm that there clearly exist different patterns of learning mechanisms and incompatible behaviours in improving performance between the two sub-samples. Based on the results, the authors suggest implications and future research avenues.

Acquisition of local market information in international joint ventures: service sectors

This research attempts to identify key factors affecting the acquisition of local market information in foreign majority-owned international joint ventures (IJVs). By using Spearman rank correlation coefficient and ordinary least squares regression, we reveal that most of the factors included in our model play a pivotal role in enhancing learning for foreign parents of IJVs. These results contribute to current knowledge by filling several research gaps and provide useful and practical implications for multinational enterprises.

Symposium: Emerging Markets, International Business, and Corporate Social Responsibility

An introduction is presented in which the editors discuss various reports within the issue on topics including the comparison on the dividend policies of local firms and multinational enterprise (MNE), corporate social responsibility (CSR), and stakeholder theory

Knowledge spillovers from inward foreign direct investment in the banking industry: An empirical examination in Korea

Purpose The purpose of this study is to pinpoint key conduits promoting knowledge spillovers through inward foreign direct investment (FDI) in the banking sector. Design/methodology/approach The data were obtained by a survey. The survey data were collected from managers of five major local banks in Korea. The survey was conducted during May 10th – June 30th, 2015 with a total of 581 self-administered responses finally collected at the end (response rate: 60.5%). Findings Based on the survey data collected from the survey, our results indicate that knowledge spillovers from foreign to local banks occur in the Korean context. Demonstration effect, worker mobility and absorptive capacity of local banks are found to be effective conduits for knowledge spillovers. In addition, we have also found that competitive pressure negatively influences worker mobility leading to knowledge spillovers while two other elements (i.e., demonstration effect and absorptive capacity) positively mediate the relationship between...

The impact of country of origin on context effects in choice

Purpose The purpose of this paper is to examine the effect of country of origin (COO) information as an important/salient categorical attribute on choice context effects. Specifically, this research examines whether the introduction of a unique COO in the choice set will have a differential influence on context effects depending on the relative position of the third option (the asymmetrically dominated option vs the extreme option). Design/methodology/approach Five experiments were conducted in this research. Study 1 had a 2 (set size: two-option core set vs three-option asymmetric dominance set)×2 (competitor’s COO: common vs unique) between-subjects design. Study 2 had a 2 (set size: two-option core set vs three-option extreme option set)×2 (competitor’s COO: common vs unique) between-subjects design. To address the robustness of the effects, Studies 3-5 replicated the results of Studies 1 and 2. The data were analyzed by χ2 tests and logistic regression analyses. Findings The current research demonstrates that the attraction effect is attenuated by the introduction of a unique COO information in the competing option, whereas the tendency to prefer a middle option is not significantly affected. Originality/value The present research adds to the current understanding and the practical relevance of COO effects and context effects in marketing by examining the impact of COO as an important/salient categorical attribute on context effects.