Subsidiary goals, learning orientations, and ownership strategies of multinational enterprises: evidence from foreign direct investments in Korea

Jeoung Yul Lee, Jooyoung Kwak, Kyoung Ae Kim

Research output: Contribution to journalArticle

2 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)558-577
Number of pages20
JournalAsia Pacific Business Review
Volume20
Issue number4
DOIs
Publication statusPublished - 2014 Oct 27

All Science Journal Classification (ASJC) codes

  • Business and International Management

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