Subsidiary goals, learning orientations, and ownership strategies of multinational enterprises: evidence from foreign direct investments in Korea
Jeoung Yul Lee,
Jooyoung Kwak and
Kyoung Ae Kim
Asia Pacific Business Review, 2014, vol. 20, issue 4, 558-577
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.
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apbizr:v:20:y:2014:i:4:p:558-577
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DOI: 10.1080/13602381.2013.859427
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