The Strategy of Korean Multinational Enterprises – Multiple versus Single plant

Using firm-level panel data for Korean MNEs, we make a distinction between being the only affiliate of a parent firm and being the one of the multiple affiliates of a parent firm. Comparisons of correlations between purchases and sales of each group of the foreign affiliates show distinctive differe...

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Format: Article
Language:English
Published: University of Sistan and Baluchestan 2012-10-01
Series:International Journal of Business and Development Studies
Subjects:
Online Access:https://ijbds.usb.ac.ir/article_1271_c932e2eec1f692c8b7c08ecc6b32e665.pdf
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collection DOAJ
description Using firm-level panel data for Korean MNEs, we make a distinction between being the only affiliate of a parent firm and being the one of the multiple affiliates of a parent firm. Comparisons of correlations between purchases and sales of each group of the foreign affiliates show distinctive difference in the motivations of FDI and the multinational activities, due to the difference in the number of affiliates they possess. Our main empirical results in this paper suggest that productive Korean MNEs not only enlarge their host countries of FDI but also enlarge the number of affiliates in a same host country. We interpret these FDIs are motivated by enjoying information and network advantages by gathering in one location.
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spelling doaj.art-f584ad97c64749ceab60c3a834a403d32023-06-15T16:54:03ZengUniversity of Sistan and BaluchestanInternational Journal of Business and Development Studies2538-33022538-33102012-10-014152610.22111/ijbds.2012.12711271The Strategy of Korean Multinational Enterprises – Multiple versus Single plantUsing firm-level panel data for Korean MNEs, we make a distinction between being the only affiliate of a parent firm and being the one of the multiple affiliates of a parent firm. Comparisons of correlations between purchases and sales of each group of the foreign affiliates show distinctive difference in the motivations of FDI and the multinational activities, due to the difference in the number of affiliates they possess. Our main empirical results in this paper suggest that productive Korean MNEs not only enlarge their host countries of FDI but also enlarge the number of affiliates in a same host country. We interpret these FDIs are motivated by enjoying information and network advantages by gathering in one location.https://ijbds.usb.ac.ir/article_1271_c932e2eec1f692c8b7c08ecc6b32e665.pdfforeign direct investmentmultinationalsfirm eterogeneitylocation decision
spellingShingle The Strategy of Korean Multinational Enterprises – Multiple versus Single plant
International Journal of Business and Development Studies
foreign direct investment
multinationals
firm eterogeneity
location decision
title The Strategy of Korean Multinational Enterprises – Multiple versus Single plant
title_full The Strategy of Korean Multinational Enterprises – Multiple versus Single plant
title_fullStr The Strategy of Korean Multinational Enterprises – Multiple versus Single plant
title_full_unstemmed The Strategy of Korean Multinational Enterprises – Multiple versus Single plant
title_short The Strategy of Korean Multinational Enterprises – Multiple versus Single plant
title_sort strategy of korean multinational enterprises multiple versus single plant
topic foreign direct investment
multinationals
firm eterogeneity
location decision
url https://ijbds.usb.ac.ir/article_1271_c932e2eec1f692c8b7c08ecc6b32e665.pdf