Subsidiary goals,learning orientations,and ownership strategies of multinational enterprises: evidence from foreign direct investments in Korea |
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Authors: | Jeoung Yul Lee Kyoung Ae Kim |
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Affiliation: | 1. College of Business Management, Hongik University, Sejong-ro, Jochiwon-eup, Yeongi-gun, Chungcheongnam-do, Sejong City 339-701, Republic of Korea;2. Department of Business Administration, Kookmin University, 77 Jeongneung-ro, Seongbuk-gu, Seoul 136-702, Republic of Korea |
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Abstract: | This paper investigates the links among subsidiary goals, learning orientations, and ownership strategies of multinational enterprises (MNEs). The authors hypothesize that an MNE's ownership strategy is determined by subsidiary goals and learning orientations. Furthermore, interactions between learning orientations and subsidiary goals are predicted to influence the ownership strategy. Based on 723 foreign subsidiaries of MNEs operating in Korea, our findings suggest that when MNE foreign subsidiaries influence ownership choice, market-seeking goals and resource-seeking goals have a stronger fit with the exploitation orientation than with the exploration orientation. In contrast, the category of knowledge-seeking goals has a stronger fit with exploration than with exploitation. |
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Keywords: | foreign subsidiary Korea learning orientation multinational enterprise (MNE) ownership strategy subsidiary goal |
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