Chris Changwha Chung - Academia.edu (original) (raw)
Papers by Chris Changwha Chung
This paper compares two real options – within-country growth and across-country operational flexi... more This paper compares two real options – within-country growth and across-country operational flexibility – to examine subsidiary expansion/contraction during times of economic crisis. Specifically, we examine how the real options orientations of individual subsidiaries interact with the general characteristics of multinational enterprise networks. Our main findings are that: (a) economic crises can be detrimental for subsidiaries with stronger within-country orienta-tions, and advantageous for those with stronger across-country orientations; and (b) network characteristics are not the sole determinants of subsidiary expansion/contraction – what really matters is how the real options orienta-tions of individual subsidiaries mesh with the overall characteristics of the network they belong to.
Actes de Congrès annuel de la
This study looks at the network model of the MNE from the dynamic capability perspective. This st... more This study looks at the network model of the MNE from the dynamic capability perspective. This study compares the performance of subsidiaries between economic crisis and stable periods to examine in which environment the multi-country linkages matter the most. We argue and find that, during times of economic crisis, the enhanced flexibility associated with the greater multi-country linkages increases the survival likelihood of subsidiaries. In contrast, such flexibility does not have as much value to foreign subsidiaries operating in economically stable environments.
This study examines the dual implications of dual-option subsidiaries on exit decisions during ti... more This study examines the dual implications of dual-option subsidiaries on exit decisions during times of economic crisis. Retaining dual-option subsidiaries in crisis-stricken countries means leaving a shadow option open for future growth once a crisis ends. However, MNCs may encounter problems pursuing either option due to challenges in managing dual-option subsidiaries with clashing strategic mandates. The equivocal nature of dual-option subsidiaries points to the possibility of another factor playing an important moderating role in exit decisions—subsidiary performance—which has been rarely considered in the MNC real options literature. Our primary argument is that lower subsidiary performance increases the influence of shadow option value embedded in dual-option subsidiaries. Analyzing a sample of Korean MNCs’ subsidiaries in Asian economies, we find that when profitability falls, subsidiaries with dual options are less likely to be exited than those with single options.
This study responds to the recent concern about the complex and costly nature of real options str... more This study responds to the recent concern about the complex and costly nature of real options strategies. Our primary argument is that the economic potential of real options can be realized only when certain option strategies are aligned with consistent implementation structures, such as global staffing through parent country nationals (PCNs) and host country nationals (HCNs). The study further investigates experience effects to observe how the utilities of PCNs/HCNs on subsidiary performance change over time. Specifically, we investigate both the mediating role of global staffing and the moderating role of experience. Based on a sample of 6,143 foreign subsidiary observations of 452 Korean MNEs, our findings confirm the importance of a good fit between options strategies and global staffing to materialize the rent-enhancing potential, and indicate that the positive utility of PCNs/HCNs on subsidiary performance is gradually diminished as international and host country experiences a...
This study proposes a strategic human capital alignment framework in multinational enterprises (M... more This study proposes a strategic human capital alignment framework in multinational enterprises (MNEs). By differentiating parent firm and local-specific human capital, we emphasize that what makes human capital valuable for the firm is its alignment with organizational strategy. We further examine exogenous and endogenous boundary conditions since they may adjust the positive effect of strategic human capital alignment on performance. Based on a sample of 5,604 subsidiary observations of 423 MNEs from 1990 to 2012, the findings confirm the importance of strategic human capital alignment and show the moderating effects of foreign exchange rate change and MNE international experience.
Journal of World Business
Journal of World Business
Abstract This study examines how the composition of subsidiaries’ mandates affects their survival... more Abstract This study examines how the composition of subsidiaries’ mandates affects their survival, by investigating the configurational characteristics of mandate portfolios. Examining data from 1991 to 2017 on 14,952 foreign subsidiaries of 4,877 multinational enterprises reveals that while having a mandate portfolio with greater scope in relation to same-parent subsidiaries enhances the survivability of foreign subsidiaries, the effect is weakened when the portfolio has a higher degree of overlap with those of other same-parent subsidiaries. Conversely, when a subsidiary’s mandate portfolio puts a greater emphasis on the multinational enterprise’s (MNE) global value-chain activities, its effect on subsidiary survival is strengthened.
International Business Review
Abstract We examine how subsidiaries can implement business expansion successfully to capitalize ... more Abstract We examine how subsidiaries can implement business expansion successfully to capitalize on growth potentials. Building on our baseline hypothesis, which examines the effect of the extent of business expansion on subsidiary divestment, we identify the boundary condition of the tendency of subsidiary’s learning behavior in foreign expansion. Specifically, we argue that subsidiaries that expand multiple businesses through competence-creating learning behaviors are more likely to be divested due to increasing complexity. We further suggest a remedial condition to offer a viable approach to implement business expansion through competence-creating learning successfully. Based on a sample of 6040 foreign subsidiaries operating over 14 years, we show that affiliates are more likely to expand into unfamiliar business domains successfully if they have a higher level of absorptive capacity.
Academy of Management Proceedings
The author investigates the developmental structure of international joint ventures. She uses inf... more The author investigates the developmental structure of international joint ventures. She uses information drawn about Japanese joint international business ventures from the annually published "Japanese Overseas Investments by Country," and additional sources. Corporate organizational structures are less likely to change in joint ventures when partners hold relatively equal shares in the ventures. Should corporations begin changing structure or renegotiating their ownership contracts, such tensions become felt throughout the organization and hinder operations.
Academy of Management Proceedings
We explore how firms approach the joint decision on location choice and operating mode choice whe... more We explore how firms approach the joint decision on location choice and operating mode choice when they are making an FDI, and evaluate its performance implication, using a panel data on industrial firms in China. In order to address the endogeneity issue inherent in comparing post-entry performances, we employ the propensity score matching in conjunction with difference-in- differences approach. Our findings suggest that firms perceive locating in a high-agglomerated location and operating with a local partner firm as substitutes in gaining local knowledge. When we investigate the post-entry financial performance, however, our findings suggest the complementary nature in these two sources of local knowledge.
Academy of Management Proceedings
Foreign direct investment (FDI) research on investment purpose has mostly focused on the implicat... more Foreign direct investment (FDI) research on investment purpose has mostly focused on the implication of each purpose rather than the portfolio of multiple purposes within a firm. We suggest a new p...
Management International Review, 2015
This study examines the role of institutions in explaining the FDI entry mode choices of transiti... more This study examines the role of institutions in explaining the FDI entry mode choices of transition economy firms. Advancing an institution-based view of international business strategy, the paper proposes a model of interactive institutional processes that incorporates both top-down institutional pressures and the bottom-up heterogeneous responses of individual firms to such pressures. The findings are based on a sample of 594 outward FDI entries made by Chinese firms. The results indicate that institutional pressures exerted by the home country government have a significant effect on outward FDI ownership decisions, such that firms facing greater institutional pressures are more inclined to choose outward international joint ventures (OIJVs) over wholly owned foreign subsidiaries. However, the effect of institutional government pressures on FDI entry mode choices is weaker for firms which are less dependent on the Chinese government for resources and thus enjoy more institutional freedom. Specifically, the ownership structures of Chinese firms moderate the positive effect of home country government pressures on the choice of OIJVs, such that the positive effect is weaker for modernized firms (i.e., newly created private and reformed incorporated firms) than conventional firms (i.e., state-owned enterprises (SOEs) and collectives). The positive effect is weaker for collectives than SOEs, while the positive effect is weaker for private firms than reformed firms (i.e., private firms < reformed firms < collectives < SOEs).
Journal of International Business Studies, 2015
This research proposes a strategic human capital alignment framework to examine whether the align... more This research proposes a strategic human capital alignment framework to examine whether the alignment between subsidiary strategy (i.e., export-oriented vs local market-oriented strategy) and human capital (i.e., parent firm vs local-specific human capital) is positively related to subsidiary performance in multinational enterprises (MNEs). We further explore two important exogenous (i.e., foreign exchange rate change) and endogenous (i.e., MNE international experience) boundary conditions, since they may adjust the positive effect of strategic human capital alignment on performance. The analysis, based on 5604 subsidiary observations of 423 MNEs from 1990 to 2012, confirms the positive synergic effect of aligning subsidiary strategy and human capital and shows the moderating effects of foreign exchange rate change and MNE international experience. By presenting the importance of subsidiary strategy – global staffing alignment and the roles of external economic environments and internal organizational capabilities as boundary conditions, the strategic human capital alignment framework suggests that what makes human capital valuable for the firm is its alignment with strategic orientation. Thus managers should carefully deploy the appropriate type of human capital to fulfill the requisite organizational strategy and take into account changing external and internal contextual conditions in applying the framework.AbstractCette recherche propose un cadre d'alignement stratégique du capital humain afin d'examiner si l'alignement entre la stratégie de la filiale (à savoir, la stratégie fondée sur l'exportation vs. la stratégie orientée vers le marché local) et le capital humain (à savoir, le capital humain du siège vs. le capital humain de la filiale locale) est positivement lié à la performance de la filiale dans les entreprises multinationales (EMN). Nous explorons notamment deux conditions limites exogènes (c’est à dire, l’évolution des taux de change) et endogènes (c'est-à-dire, l’expérience internationale de l’EMN), car elles peuvent ajuster l'effet positif de l'alignement stratégique du capital humain sur la performance. L'analyse, fondée sur l’observation de 5604 filiales de 423 entreprises multinationales entre 1990 et 2012, confirme l'effet synergique positif de l'alignement de la stratégie de la filiale et du capital humain, et montre les effets modérateurs de l’évolution des taux de change et de l’expérience internationale des EMN. En présentant l'importance de l’alignement « stratégie de la filiale - dotation globale en personnel » et des rôles des environnements économiques externes et des capacités organisationnelles internes comme conditions limites, le cadre d’alignement stratégique du capital humain suggère que ce qui confère de la valeur au capital humain pour l'entreprise est son alignement avec les orientations stratégiques. Ainsi, les dirigeants d’entreprises devraient soigneusement déployer la forme appropriée de capital humain pour exécuter la stratégie organisationnelle nécessaire et prendre en compte l'évolution des conditions contextuelles externes et internes pour appliquer ce cadre d’analyse.AbstractEsta investigación propone un marco estratégico de alineación de capital humano para examinar si la alineación entre la estrategia de filiales (ej.: estrategia de orientación exportadora versus orientación al mercado local) y capital humano (ej.: capital humano de la casa matriz versus capital humano local-especifico) está positivamente relacionada con el rendimiento de filiales en las EMN. Además, exploramos dos importantes condiciones de entorno exógenas (ej.: tasas de cambio) y endógenas (ej.: experiencia internacional de la EMN), dado que ellas pueden ajustar el efecto positivo de la alineación estratégica del capital humano en el rendimiento. El análisis, basado en observaciones a 5.604 filiales de 423 multinacionales entre los años 1990 y 2012 confirma el efecto sinérgico positivo de alinear la estrategia de la subsidiaria y el capital humano y muestra efectos moderadores de la tasa de cambio y la experiencia internacional de la MNE. Al presentar a importancia de la estrategia de la filial –alineamiento global de personal y las funciones de ambientes económicos externos y capacidades organizacionales internas como condiciones de entorno-, el marco de alineación del capital humano sugiere que lo que hace que el capital humano sea valioso para la empresa es su orientación estratégica. Por lo tanto, los gerentes deben implementar cuidadosamente el tipo adecuado de capital humano para cumplir con la estrategia organizacional requerida y tener en consideración las cambiantes condiciones externas e internas al aplicar el esquema de trabajo.AbstractEsta pesquisa propõe uma estrutura de alinhamento estratégico do capital humano para examinar se o alinhamento entre a estratégia da subsidiária (ie, estratégia voltada para exportação versus mercado interno) e capital humano (ou seja, capital…
Journal of World Business, 2015
ABSTRACT This study examines international corporate entrepreneurship associated with new product... more ABSTRACT This study examines international corporate entrepreneurship associated with new product lines and new geographic markets. Drawing upon agency theory and the corporate entrepreneurship literature, we posit that aligning CEO incentives with shareholder interests and adopting CEO monitoring mechanisms will promote international corporate entrepreneurship. We test the hypotheses using 277 U.S.-based manufacturing firms during the period from 2003 to 2009. Our findings highlight how various governance mechanisms such as a CEO's compensation linked to the long-term performance of the firm, the values of the CEO's shareholding, independent board leadership, and the representation of outside directors influence international corporate entrepreneurship of existing firms.
A New Generation in International Strategic Management, 2007
The dominant characteristic of the global economy is uncertainty. Macroeconomic changes cause unp... more The dominant characteristic of the global economy is uncertainty. Macroeconomic changes cause unpredictable and fundamental shifts in market demand, causing multinational corporations (MNCs) to rush to adjust or even to radically reconfigure their international ...
Organization Science, 2010
T his article examines how multiple ownership changes unfold in international equity joint ventur... more T his article examines how multiple ownership changes unfold in international equity joint venture (IEJV) evolution and how such repeated changes impact short-term performance and long-term survival. By theorizing a new concept-the trap of continual change-in the IEJV context, we challenge the adaptive viewpoint assumed in alliance dynamics research. We propose that partners sometimes respond to an initial dissatisfaction with the venture result with a dysfunctional repetition of rearranging the ownership control structure. This continual change locks the organization into bad choices and sends it into a downward spiral. Acknowledging the mixed motive nature of inter-partner relationships, we incorporate cooperative versus competitive dynamics manifested in shared control arrangements. We propose that shared ownership control lends stability to the IEJV until the initial IEJV agreement is renegotiated; this stability is a result of the cooperative forces of mutual interdependence and mutual forbearance between the partners. However, when the power balance breaks down, the potential for inter-partner conflict increases. When the ownership control structure of the IEJV is restructured, especially multiple times, shared control arrangements become increasingly unstable as behavioral, cultural, and managerial differences are amplified.
Management International Review, 2013
ABSTRACT This study examines the dual implications of dual-option subsidiaries on exit decisions ... more ABSTRACT This study examines the dual implications of dual-option subsidiaries on exit decisions during times of economic crisis. Retaining dual-option subsidiaries in crisis-stricken countries means leaving a shadow option open for future growth once a crisis ends. However, MNCs may encounter problems pursuing either option due to challenges in managing dual-option subsidiaries with clashing strategic mandates. The equivocal nature of dual-option subsidiaries points to the possibility of another factor playing an important moderating role in exit decisions—subsidiary performance—which has been rarely considered in the MNC real options literature. Our primary argument is that lower subsidiary performance increases the influence of shadow option value embedded in dual-option subsidiaries. Analyzing a sample of 703 Korean overseas manufacturing subsidiaries in Asian countries, we find that when profitability falls, subsidiaries with dual options are less likely to be exited than those with single options.
Management International Review, 2008
Chris Changwha Chung (✉) Assistant Professor, Department of Management and International Business... more Chris Changwha Chung (✉) Assistant Professor, Department of Management and International Business, College of Business Administration, Florida International University, Miami, USA. Jane W. Lu (✉) Associate Professor, NUS Business School, National University of Singapore, ...
This paper compares two real options – within-country growth and across-country operational flexi... more This paper compares two real options – within-country growth and across-country operational flexibility – to examine subsidiary expansion/contraction during times of economic crisis. Specifically, we examine how the real options orientations of individual subsidiaries interact with the general characteristics of multinational enterprise networks. Our main findings are that: (a) economic crises can be detrimental for subsidiaries with stronger within-country orienta-tions, and advantageous for those with stronger across-country orientations; and (b) network characteristics are not the sole determinants of subsidiary expansion/contraction – what really matters is how the real options orienta-tions of individual subsidiaries mesh with the overall characteristics of the network they belong to.
Actes de Congrès annuel de la
This study looks at the network model of the MNE from the dynamic capability perspective. This st... more This study looks at the network model of the MNE from the dynamic capability perspective. This study compares the performance of subsidiaries between economic crisis and stable periods to examine in which environment the multi-country linkages matter the most. We argue and find that, during times of economic crisis, the enhanced flexibility associated with the greater multi-country linkages increases the survival likelihood of subsidiaries. In contrast, such flexibility does not have as much value to foreign subsidiaries operating in economically stable environments.
This study examines the dual implications of dual-option subsidiaries on exit decisions during ti... more This study examines the dual implications of dual-option subsidiaries on exit decisions during times of economic crisis. Retaining dual-option subsidiaries in crisis-stricken countries means leaving a shadow option open for future growth once a crisis ends. However, MNCs may encounter problems pursuing either option due to challenges in managing dual-option subsidiaries with clashing strategic mandates. The equivocal nature of dual-option subsidiaries points to the possibility of another factor playing an important moderating role in exit decisions—subsidiary performance—which has been rarely considered in the MNC real options literature. Our primary argument is that lower subsidiary performance increases the influence of shadow option value embedded in dual-option subsidiaries. Analyzing a sample of Korean MNCs’ subsidiaries in Asian economies, we find that when profitability falls, subsidiaries with dual options are less likely to be exited than those with single options.
This study responds to the recent concern about the complex and costly nature of real options str... more This study responds to the recent concern about the complex and costly nature of real options strategies. Our primary argument is that the economic potential of real options can be realized only when certain option strategies are aligned with consistent implementation structures, such as global staffing through parent country nationals (PCNs) and host country nationals (HCNs). The study further investigates experience effects to observe how the utilities of PCNs/HCNs on subsidiary performance change over time. Specifically, we investigate both the mediating role of global staffing and the moderating role of experience. Based on a sample of 6,143 foreign subsidiary observations of 452 Korean MNEs, our findings confirm the importance of a good fit between options strategies and global staffing to materialize the rent-enhancing potential, and indicate that the positive utility of PCNs/HCNs on subsidiary performance is gradually diminished as international and host country experiences a...
This study proposes a strategic human capital alignment framework in multinational enterprises (M... more This study proposes a strategic human capital alignment framework in multinational enterprises (MNEs). By differentiating parent firm and local-specific human capital, we emphasize that what makes human capital valuable for the firm is its alignment with organizational strategy. We further examine exogenous and endogenous boundary conditions since they may adjust the positive effect of strategic human capital alignment on performance. Based on a sample of 5,604 subsidiary observations of 423 MNEs from 1990 to 2012, the findings confirm the importance of strategic human capital alignment and show the moderating effects of foreign exchange rate change and MNE international experience.
Journal of World Business
Journal of World Business
Abstract This study examines how the composition of subsidiaries’ mandates affects their survival... more Abstract This study examines how the composition of subsidiaries’ mandates affects their survival, by investigating the configurational characteristics of mandate portfolios. Examining data from 1991 to 2017 on 14,952 foreign subsidiaries of 4,877 multinational enterprises reveals that while having a mandate portfolio with greater scope in relation to same-parent subsidiaries enhances the survivability of foreign subsidiaries, the effect is weakened when the portfolio has a higher degree of overlap with those of other same-parent subsidiaries. Conversely, when a subsidiary’s mandate portfolio puts a greater emphasis on the multinational enterprise’s (MNE) global value-chain activities, its effect on subsidiary survival is strengthened.
International Business Review
Abstract We examine how subsidiaries can implement business expansion successfully to capitalize ... more Abstract We examine how subsidiaries can implement business expansion successfully to capitalize on growth potentials. Building on our baseline hypothesis, which examines the effect of the extent of business expansion on subsidiary divestment, we identify the boundary condition of the tendency of subsidiary’s learning behavior in foreign expansion. Specifically, we argue that subsidiaries that expand multiple businesses through competence-creating learning behaviors are more likely to be divested due to increasing complexity. We further suggest a remedial condition to offer a viable approach to implement business expansion through competence-creating learning successfully. Based on a sample of 6040 foreign subsidiaries operating over 14 years, we show that affiliates are more likely to expand into unfamiliar business domains successfully if they have a higher level of absorptive capacity.
Academy of Management Proceedings
The author investigates the developmental structure of international joint ventures. She uses inf... more The author investigates the developmental structure of international joint ventures. She uses information drawn about Japanese joint international business ventures from the annually published "Japanese Overseas Investments by Country," and additional sources. Corporate organizational structures are less likely to change in joint ventures when partners hold relatively equal shares in the ventures. Should corporations begin changing structure or renegotiating their ownership contracts, such tensions become felt throughout the organization and hinder operations.
Academy of Management Proceedings
We explore how firms approach the joint decision on location choice and operating mode choice whe... more We explore how firms approach the joint decision on location choice and operating mode choice when they are making an FDI, and evaluate its performance implication, using a panel data on industrial firms in China. In order to address the endogeneity issue inherent in comparing post-entry performances, we employ the propensity score matching in conjunction with difference-in- differences approach. Our findings suggest that firms perceive locating in a high-agglomerated location and operating with a local partner firm as substitutes in gaining local knowledge. When we investigate the post-entry financial performance, however, our findings suggest the complementary nature in these two sources of local knowledge.
Academy of Management Proceedings
Foreign direct investment (FDI) research on investment purpose has mostly focused on the implicat... more Foreign direct investment (FDI) research on investment purpose has mostly focused on the implication of each purpose rather than the portfolio of multiple purposes within a firm. We suggest a new p...
Management International Review, 2015
This study examines the role of institutions in explaining the FDI entry mode choices of transiti... more This study examines the role of institutions in explaining the FDI entry mode choices of transition economy firms. Advancing an institution-based view of international business strategy, the paper proposes a model of interactive institutional processes that incorporates both top-down institutional pressures and the bottom-up heterogeneous responses of individual firms to such pressures. The findings are based on a sample of 594 outward FDI entries made by Chinese firms. The results indicate that institutional pressures exerted by the home country government have a significant effect on outward FDI ownership decisions, such that firms facing greater institutional pressures are more inclined to choose outward international joint ventures (OIJVs) over wholly owned foreign subsidiaries. However, the effect of institutional government pressures on FDI entry mode choices is weaker for firms which are less dependent on the Chinese government for resources and thus enjoy more institutional freedom. Specifically, the ownership structures of Chinese firms moderate the positive effect of home country government pressures on the choice of OIJVs, such that the positive effect is weaker for modernized firms (i.e., newly created private and reformed incorporated firms) than conventional firms (i.e., state-owned enterprises (SOEs) and collectives). The positive effect is weaker for collectives than SOEs, while the positive effect is weaker for private firms than reformed firms (i.e., private firms < reformed firms < collectives < SOEs).
Journal of International Business Studies, 2015
This research proposes a strategic human capital alignment framework to examine whether the align... more This research proposes a strategic human capital alignment framework to examine whether the alignment between subsidiary strategy (i.e., export-oriented vs local market-oriented strategy) and human capital (i.e., parent firm vs local-specific human capital) is positively related to subsidiary performance in multinational enterprises (MNEs). We further explore two important exogenous (i.e., foreign exchange rate change) and endogenous (i.e., MNE international experience) boundary conditions, since they may adjust the positive effect of strategic human capital alignment on performance. The analysis, based on 5604 subsidiary observations of 423 MNEs from 1990 to 2012, confirms the positive synergic effect of aligning subsidiary strategy and human capital and shows the moderating effects of foreign exchange rate change and MNE international experience. By presenting the importance of subsidiary strategy – global staffing alignment and the roles of external economic environments and internal organizational capabilities as boundary conditions, the strategic human capital alignment framework suggests that what makes human capital valuable for the firm is its alignment with strategic orientation. Thus managers should carefully deploy the appropriate type of human capital to fulfill the requisite organizational strategy and take into account changing external and internal contextual conditions in applying the framework.AbstractCette recherche propose un cadre d'alignement stratégique du capital humain afin d'examiner si l'alignement entre la stratégie de la filiale (à savoir, la stratégie fondée sur l'exportation vs. la stratégie orientée vers le marché local) et le capital humain (à savoir, le capital humain du siège vs. le capital humain de la filiale locale) est positivement lié à la performance de la filiale dans les entreprises multinationales (EMN). Nous explorons notamment deux conditions limites exogènes (c’est à dire, l’évolution des taux de change) et endogènes (c'est-à-dire, l’expérience internationale de l’EMN), car elles peuvent ajuster l'effet positif de l'alignement stratégique du capital humain sur la performance. L'analyse, fondée sur l’observation de 5604 filiales de 423 entreprises multinationales entre 1990 et 2012, confirme l'effet synergique positif de l'alignement de la stratégie de la filiale et du capital humain, et montre les effets modérateurs de l’évolution des taux de change et de l’expérience internationale des EMN. En présentant l'importance de l’alignement « stratégie de la filiale - dotation globale en personnel » et des rôles des environnements économiques externes et des capacités organisationnelles internes comme conditions limites, le cadre d’alignement stratégique du capital humain suggère que ce qui confère de la valeur au capital humain pour l'entreprise est son alignement avec les orientations stratégiques. Ainsi, les dirigeants d’entreprises devraient soigneusement déployer la forme appropriée de capital humain pour exécuter la stratégie organisationnelle nécessaire et prendre en compte l'évolution des conditions contextuelles externes et internes pour appliquer ce cadre d’analyse.AbstractEsta investigación propone un marco estratégico de alineación de capital humano para examinar si la alineación entre la estrategia de filiales (ej.: estrategia de orientación exportadora versus orientación al mercado local) y capital humano (ej.: capital humano de la casa matriz versus capital humano local-especifico) está positivamente relacionada con el rendimiento de filiales en las EMN. Además, exploramos dos importantes condiciones de entorno exógenas (ej.: tasas de cambio) y endógenas (ej.: experiencia internacional de la EMN), dado que ellas pueden ajustar el efecto positivo de la alineación estratégica del capital humano en el rendimiento. El análisis, basado en observaciones a 5.604 filiales de 423 multinacionales entre los años 1990 y 2012 confirma el efecto sinérgico positivo de alinear la estrategia de la subsidiaria y el capital humano y muestra efectos moderadores de la tasa de cambio y la experiencia internacional de la MNE. Al presentar a importancia de la estrategia de la filial –alineamiento global de personal y las funciones de ambientes económicos externos y capacidades organizacionales internas como condiciones de entorno-, el marco de alineación del capital humano sugiere que lo que hace que el capital humano sea valioso para la empresa es su orientación estratégica. Por lo tanto, los gerentes deben implementar cuidadosamente el tipo adecuado de capital humano para cumplir con la estrategia organizacional requerida y tener en consideración las cambiantes condiciones externas e internas al aplicar el esquema de trabajo.AbstractEsta pesquisa propõe uma estrutura de alinhamento estratégico do capital humano para examinar se o alinhamento entre a estratégia da subsidiária (ie, estratégia voltada para exportação versus mercado interno) e capital humano (ou seja, capital…
Journal of World Business, 2015
ABSTRACT This study examines international corporate entrepreneurship associated with new product... more ABSTRACT This study examines international corporate entrepreneurship associated with new product lines and new geographic markets. Drawing upon agency theory and the corporate entrepreneurship literature, we posit that aligning CEO incentives with shareholder interests and adopting CEO monitoring mechanisms will promote international corporate entrepreneurship. We test the hypotheses using 277 U.S.-based manufacturing firms during the period from 2003 to 2009. Our findings highlight how various governance mechanisms such as a CEO's compensation linked to the long-term performance of the firm, the values of the CEO's shareholding, independent board leadership, and the representation of outside directors influence international corporate entrepreneurship of existing firms.
A New Generation in International Strategic Management, 2007
The dominant characteristic of the global economy is uncertainty. Macroeconomic changes cause unp... more The dominant characteristic of the global economy is uncertainty. Macroeconomic changes cause unpredictable and fundamental shifts in market demand, causing multinational corporations (MNCs) to rush to adjust or even to radically reconfigure their international ...
Organization Science, 2010
T his article examines how multiple ownership changes unfold in international equity joint ventur... more T his article examines how multiple ownership changes unfold in international equity joint venture (IEJV) evolution and how such repeated changes impact short-term performance and long-term survival. By theorizing a new concept-the trap of continual change-in the IEJV context, we challenge the adaptive viewpoint assumed in alliance dynamics research. We propose that partners sometimes respond to an initial dissatisfaction with the venture result with a dysfunctional repetition of rearranging the ownership control structure. This continual change locks the organization into bad choices and sends it into a downward spiral. Acknowledging the mixed motive nature of inter-partner relationships, we incorporate cooperative versus competitive dynamics manifested in shared control arrangements. We propose that shared ownership control lends stability to the IEJV until the initial IEJV agreement is renegotiated; this stability is a result of the cooperative forces of mutual interdependence and mutual forbearance between the partners. However, when the power balance breaks down, the potential for inter-partner conflict increases. When the ownership control structure of the IEJV is restructured, especially multiple times, shared control arrangements become increasingly unstable as behavioral, cultural, and managerial differences are amplified.
Management International Review, 2013
ABSTRACT This study examines the dual implications of dual-option subsidiaries on exit decisions ... more ABSTRACT This study examines the dual implications of dual-option subsidiaries on exit decisions during times of economic crisis. Retaining dual-option subsidiaries in crisis-stricken countries means leaving a shadow option open for future growth once a crisis ends. However, MNCs may encounter problems pursuing either option due to challenges in managing dual-option subsidiaries with clashing strategic mandates. The equivocal nature of dual-option subsidiaries points to the possibility of another factor playing an important moderating role in exit decisions—subsidiary performance—which has been rarely considered in the MNC real options literature. Our primary argument is that lower subsidiary performance increases the influence of shadow option value embedded in dual-option subsidiaries. Analyzing a sample of 703 Korean overseas manufacturing subsidiaries in Asian countries, we find that when profitability falls, subsidiaries with dual options are less likely to be exited than those with single options.
Management International Review, 2008
Chris Changwha Chung (✉) Assistant Professor, Department of Management and International Business... more Chris Changwha Chung (✉) Assistant Professor, Department of Management and International Business, College of Business Administration, Florida International University, Miami, USA. Jane W. Lu (✉) Associate Professor, NUS Business School, National University of Singapore, ...