Hwy-Chang Moon

Unconventional foreign direct investment and the imbalance theory

We have observed an increasing number of foreign direct investments (FDI) from less developed countries, and by firms that are not the strongest competitors in their markets. This increase in the variety of investments is a challenge for existing theories of FDI based on ownership-specific advantages that give a firm an advantage in foreign markets. By introducing the idea of imbalance, as opposed to advantage, as the source of FDI, we allow for a theoretical basis for analyzing FDI. This concept effectively deals with the variety of FDI while remaining consistent with the traditional explanations for more conventional FDI cases.

The diamond approach to the competitiveness of Korea's apparel industry

Purpose – The Korean textiles and apparel‐related industry has played a major role in the countrys development; however, this sectors competitiveness is decreasing due mainly to labor costs. As with the countrys economic development, the new sources of competitive factors need to be strategically developed and cultivated. The purpose of this study is to explore what constitutes a countrys competitiveness in the global apparel market after losing its labor competitiveness and how a country effectively achieves it.Design/methodology/approach – This study employs two competitiveness models, Porters diamond model and a generalized double diamond model, as a theoretical framework. Along with two theoretical models, this study employs extensive literature reviews, examples of successful firms, and four interviews with field practitioners in the Korean apparel industry.Findings – Beginning with Porter four determinants (factor conditions, demand conditions, related and supporting industries, and firm strate...

A new framework for global expansion

Purpose – The main purpose of this paper is to introduce a comprehensive model explaining the global expansion of firms and to find out viable strategies for firms to survive global competition.Design/methodology/approach – Through the critical review over existing literature, this study first introduces a new framework explaining the global expansion of firms at the level of functional activities in the value chain, and then empirically tests the predictions of the new framework with data in the motor industry.Findings – Empirical findings confirm the new models predictions. First, each function in the value chain has a unique way of global expansion: the global strategy is suitable for the production function, while the multidomestic strategy is applicable to the marketing function. Second, each function follows a dynamic path of global expansion from domestic to transnational via either global or multidomestic, according to the innate characteristics of corresponding function. Finally, the degree of g...

Enhancing national competitiveness through national cooperation: The case of South Korea and Dubai

Purpose The purpose of this paper is to explore how countries can make a more efficient and effective cooperation strategy, considering their competitive strengths and weaknesses. Design/methodology/approach This paper is an exploratory study in examining the efficient way of national cooperation from the competitiveness perspective. By applying the double diamond-based nine-factor model and the framework for the life cycle of national competitiveness, this study proposes the importance of cooperation strategy, considering the current competitiveness status. A case study of two economies of South Korea (hereafter referred to as Korea) and Dubai reveals a potentially substantial cooperative relationship. Findings Although Korea and Dubai are geographically and culturally distant, they share complementary resources to enhance their overall competitiveness. In addition, their past experiences of growth can effectively deal with their current challenges and help their economies move to more advanced stage. Practical implications The methodology used in this paper can provide a useful guideline for policy makers to examine the current development status of their economies, find an appropriate cooperation partner and decide the priority of cooperating areas. Originality/value Although most existing studies explain national competitiveness from a narrow perspective, this paper provides a more comprehensive analysis using the extended model of Porter’s single diamond model. In addition, this paper conducts an intensive case study of Dubai and Korea for possible cooperation.

International Review of National Competitiveness

This book provides rankings of national competitiveness alongside a series of sophisticated and specific guidelines for enhancing national competitiveness.

The K-Strategy: strategic social capital for urban competitiveness

Social capital is a key factor of knowledge-based processes, contributing in particular to urban competitiveness, which globalization has put in focus. In spite of this, such fundamental aspects of social capital as norms and values have largely escaped the focus of strategic management. This paper aims to show that the K-Strategy framework encapsulates social norms and personal values strategically engineered by South Korea in order to industrialize successfully. We draw on the existing literature on the engineering of norms and values in South Korea and their contribution to that countrys economic success. We find that the Speed, Diligence, and Goal-orientation sub-dimensions of K-Strategy capture important components of South Korean social capital. Particularly, Diligence was the object of strategic implementation by the South Korean government and directly contributed to South Koreas economic success. Our findings do not cover all the dimensions of the K-Strategy, are limited to a single country, and do not provide specifically urban linkages. However, they support the K-Strategy framework as a valid strategic approach to social capital, generally viewed in the business literature as the outcome of exogenous processes.

Engineering Versus Marketing: An Appraisal in a Global Economic Environment

The global manager should consider engineering first before marketing because optimal engineering efficiency creates more values than customized marketing efficiency. Although the debate over the global standardization continues in the area of global strategic management, global firms need to conduct this new type of global strategy. Foreign consumers actually prefer global products to locally customized products in many industries such as automobiles, electronics, food, and others in which engineering applications are important. Therefore, the most important task of the global firm is to change local products to global products through enhanced engineering.

The Effects of Outward Foreign Direct Investment on Korean Firms and Economy: A Comprehensive Approach of Integrating Diverse Motivations of Investment

세계화가 빨리 진행되면서 기업 및 국가의 경쟁력 향상을 위한 해외직접투자(Foreign Direct Investment)의 중요성이 더욱 강조되고 있다. 본 연구에서는 Dunning의 전통적 이론과 새로운 형태의 자산 추구형 해외직접투자를 설명하는 불균형 이론을 Porter의 다이아몬드 모델에 적용하여 해외직접투자의 다양한 동기를 설명하는 새로운 모델을 소개한다. 해외직접투자 이론은 주로 다국적기업 입장에서 본 것이고 다이아몬드 이론은 투자 대상국의 입지적 요건을 분석하는 데 유용한 도구이기 때문에 이 두 가지 접근법을 결합하면 기업특유(firm-specific)적인 면과 입지특유(location-specific)적인 면을 동시에 분석할 수 있다. 이를 바탕으로 본 논문에서는 해외직접투자는 외화를 유출시키고, 산업공동화를 초래한다는 잘못된 인식을 바로잡아 주고 있다. 구체적으로 해외직접투자는 해외 선진기술 습득과 새로운 시장개척 등을 통해 기업 가치사슬의 효율성을 증대시키고 국내 산업을 고도화 하여 기업 및 국가의 경쟁력에 긍정적인 영향을 준다는 사실을 다양한 사례를 통해 보여준다.

Education and Competitiveness of Japanese Firms in a Changing Global Economy

Several theories have been put forth to describe competitive advantage and its components. One important aspect of competitiveness is derived from people. People are often a reflection of education and culture. Therefore, these two areas must be taken into consideration as primary factors of international competitiveness. This paper discusses the unique characteristics of Japanese education and culture that shape the workforce. It concludes that Japan needs educational and cultural reform to be competitive in a changing global environment.