Managing Diversified Firms through Socio-Cultural Mechanisms: A Focus on Korean Chaebols

Ji-Hwan Lee ()
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Ji-Hwan Lee: Korea Advanced Institute of Science and Technology

management revue. Socio-economic Studies, 2007, vol. 18, issue 1, 23-41

Abstract: Based on theoretical considerations, this article investigates the socio-cultural mechanisms through which diversified firms are effectively managed without loss of control. Empirical results from extensive questionnaire surveys in Korea and the U.S. show that socio-cultural mechanisms such as shared values and corporate-level training were significantly and positively associated with divisional performance. In addition, socio-cultural mechanisms appear to have unequal effects on the corporate performance in societies with different cultural contexts. Statistical results show that socio-cultural mechanisms worked better in chaebols than in large U.S. firms, possibly because such mechanisms positively interact with high-context culture.

Keywords: Diversified Firm; Chaebol; Socio-cultural Mechanism; Shared Value; Inter-divisional Interaction (search for similar items in EconPapers)
JEL-codes: F23 J53 M10 (search for similar items in EconPapers)
Date: 2007
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