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...
Format: | Article |
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Language: | English |
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University of Sistan and Baluchestan
2012-10-01
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Series: | International Journal of Business and Development Studies |
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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. |
first_indexed | 2024-03-13T05:19:45Z |
format | Article |
id | doaj.art-f584ad97c64749ceab60c3a834a403d3 |
institution | Directory Open Access Journal |
issn | 2538-3302 2538-3310 |
language | English |
last_indexed | 2024-03-13T05:19:45Z |
publishDate | 2012-10-01 |
publisher | University of Sistan and Baluchestan |
record_format | Article |
series | International Journal of Business and Development Studies |
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 |