The Institutional Development of the European Union in the 1990s and Its Industry Specific Effects: A Case of the Automobile Industry

현재훈 한국외국어대학교 국제지역연구센터 2011 International Area Studies Review Vol.14 No.2

This study attempted to identify the measures and policies related to the institutional development of the EU in the 1990s and the mechanisms that resulted in specific consequences on the automobile industry. The removal of visible and invisible barriers to internal trade has promoted the competitiveness of the industry by enhancing the accessibility to expanded markets which has increased the capacity of firms to reduce unit cost by realizing scale economies. The measures of Single Market Programme promoting standards such as technical harmonization and emission control, fair competition, and liberalization of distribution channels by further abolition of block exemptions together with strong challenges from overseas increased overall competition. Also, figures showed that the introduction of the single currency provided the automobile industry with a more stable business environment stemming from reduced transaction costs and elimination of the risks of exchange-rate fluctuations.

An Analysis of Exogenous Patterns and Endogenous Determinants of the Post-Crisis Performance of South Korean Firms

현재훈,김문현 한국기업경영학회 2009 기업경영연구 Vol.16 No.4

This study examined the endogenous and exogenous dimensions of the post-crisis performance of South Korean firms and attempts to identify patterns and determinants significantly helped the rapid recovery. This study was motivated by the fact that firm level recoveries external and internal aspects were comparatively faster than other Asian countries similarly affected by the 1997~1998 economic crisis. In particular South Korean outward direct investment (ODI) remained at approximately the same level as it had been at before the crisis. In addition, overall internal performance of South Korean firms recovered sooner than expectations. This study therefore asks the research questions related to the rapid recovery and performance of South Korean firms. Firstly, questions related to exogenous aspects includes; what were the reasons behind the continued outward flows of Korean FDI after the crisis? What were the motivations of outward FDI at the period of time? Are these motivations differentiated by the size of firms? Secondly, questions related to endogenous aspects include particular issues if marketing expenditure or R&D investment changed during the crisis, and if marketing expenditure or R&D investment is responsible for the growing firm value after the crisis. Theses questions are based on the following arguments. One may suggest that a firm might be benefited by increasing financial stability as it avoids investments at the time of crisis in order to reduce further risks. Controversy, the other may claim that aggressive investment might result in differentiation when other firms or competitors hesitate the expansion of their capacity and this will create unique competitiveness. This study employs two different methodologies for the examination of both ODI strategies and firm level performance. Firstly, in order to test the hypothesis regarding differential ODI strategies by South Korean firms in the wake of the crisis, we undertook the difficult task of examining FDI flows at the firm level. UNCTAD’s data on FDI is obtained through the manipulation of IMF balance-of-payments statistics. The OECD uses data taken from national central banks. These measures, however, provide only national-level data and are difficult to use for inference about national economic sectors or specific firms. Instead of looking at export figures, we compare actual business dealings in the period before the crisis and the period following the crisis. This firm-level data provides the type of information necessary for discerning the differing reactions of various types of firms in the face of crisis. Using the SDC Platinum databases of joint ventures and mergers and acquisitions, we look at foreign investment behavior in the period 1991~1996 and in the period 1998-2003. The year 1997 is excluded, since it is the year of the outbreak of the crisis and therefore is likely to be a period of transition for South Korean firms from one ODI strategy to another. To get a sense of the differences in behavior, we compare the ODI strategies of the 5 largest chaebols; Daewoo, Hyundai, LG, Samsung and SK, with other firm behavior recorded in the database. Secondly, firm level performance is examined to assess endogenous dimension by utilizing data including KOSDAQ listed firms with 3 years time span between 1998 and 2000. At this time of the crisis, firms were unable to fully recover from the impact of the crisis. A part of variables are derived from the financial statements and samples are limited to 99 manufacturing firms listed during the period of the crisis. As the exogenous aspect of corporate performance, this article, firstly, posits a specific explanation, which is contingent on the size of the firm involved in ODI. The findings of this study implies that outward foreign direct investment was found out to be a way of opening markets to compensate for declining sales at home, whereas small and medium-sized firms used foreign investment to take a... This study examined the endogenous and exogenous dimensions of the post-crisis performance of South Korean firms and attempts to identify patterns and determinants significantly helped the rapid recovery. This study was motivated by the fact that firm level recoveries external and internal aspects were comparatively faster than other Asian countries similarly affected by the 1997~1998 economic crisis. In particular South Korean outward direct investment (ODI) remained at approximately the same level as it had been at before the crisis. In addition, overall internal performance of South Korean firms recovered sooner than expectations. This study therefore asks the research questions related to the rapid recovery and performance of South Korean firms. Firstly, questions related to exogenous aspects includes; what were the reasons behind the continued outward flows of Korean FDI after the crisis? What were the motivations of outward FDI at the period of time? Are these motivations differentiated by the size of firms? Secondly, questions related to endogenous aspects include particular issues if marketing expenditure or R&D investment changed during the crisis, and if marketing expenditure or R&D investment is responsible for the growing firm value after the crisis. Theses questions are based on the following arguments. One may suggest that a firm might be benefited by increasing financial stability as it avoids investments at the time of crisis in order to reduce further risks. Controversy, the other may claim that aggressive investment might result in differentiation when other firms or competitors hesitate the expansion of their capacity and this will create unique competitiveness. This study employs two different methodologies for the examination of both ODI strategies and firm level performance. Firstly, in order to test the hypothesis regarding differential ODI strategies by South Korean firms in the wake of the crisis, we undertook the difficult task of examining FDI flows at the firm level. UNCTAD’s data on FDI is obtained through the manipulation of IMF balance-of-payments statistics. The OECD uses data taken from national central banks. These measures, however, provide only national-level data and are difficult to use for inference about national economic sectors or specific firms. Instead of looking at export figures, we compare actual business dealings in the period before the crisis and the period following the crisis. This firm-level data provides the type of information necessary for discerning the differing reactions of various types of firms in the face of crisis. Using the SDC Platinum databases of joint ventures and mergers and acquisitions, we look at foreign investment behavior in the period 1991~1996 and in the period 1998-2003. The year 1997 is excluded, since it is the year of the outbreak of the crisis and therefore is likely to be a period of transition for South Korean firms from one ODI strategy to another. To get a sense of the differences in behavior, we compare the ODI strategies of the 5 largest chaebols; Daewoo, Hyundai, LG, Samsung and SK, with other firm behavior recorded in the database. Secondly, firm level performance is examined to assess endogenous dimension by utilizing data including KOSDAQ listed firms with 3 years time span between 1998 and 2000. At this time of the crisis, firms were unable to fully recover from the impact of the crisis. A part of variables are derived from the financial statements and samples are limited to 99 manufacturing firms listed during the period of the crisis. As the exogenous aspect of corporate performance, this article, firstly, posits a specific explanation, which is contingent on the size of the firm involved in ODI. The findings of this study implies that outward foreign direct investment was found out to be a way of opening markets to compensate for declining sales at home, whereas small and medium-sized firms used foreign investment to take adva...

미중 무역마찰로 인한 파운드리 산업의 정치적 위험과 TSMC의 대응전략

현재훈 한국무역통상학회 2023 무역통상학회지 Vol.23 No.6

This study analyzes the case of TSMC placed the dominant position in the foundry in the semiconductor industry but exposed to the political risks stemming from the US-China trade disputes. Based on the findings of the study, TSMC has strategically reacted to the political risks due to semiconductor nationalism and sanctions against trade and investment by the dispersion of production facilities, structural integration, and organizational capabilities to minimize the transaction costs. In particular, TSMC attempts to implement both compliance and challenge against the sanctions imposed by the US government and the effectiveness of this strategy is based on technological capacity, customer relations, and the prevailing position in the semiconductor supply chain. The case of TSMC shed a light on companies exposed to a political risk by indicating potential strategies to avoid possible risks as well as the importance of dynamic strategy to grasp opportunities. In addition, it also implied that structural integration and organizational capabilities were critical factors to immune from the potential political risks and to disperse the negative consequences.

The Determinants of the Mode of Foreign Market Entry by the Korean Food Processing Companies in China and the US

현재훈 국제지역학회 2022 국제지역연구 Vol.26 No.4

This paper attempts to review actual cases of Korean food processing companies, namely Nong-shim and CJ Cheil-Jedang, in China and the US to identify the determinants of modes of entry to each country. Based on the theories explaining the modes of entry to foreign markets, this study highlights the reasons why these firms enter with different levels of resource commitment and reflects the theoretical and practical implications to shed the light on the critical factors affecting firms' international expansion strategy under the specific context. The findings of this study showed that the FDI as an entry method was appropriate for domestic food companies with capital and competitiveness in the case of Nong-shim and CJ considering the operational scope and the degree of immersion in the overseas market. This study also identified differences in resource deployment and the degree of commitment in each local market under dissimilar conditions in the regulatory, and socio-cultural in the host countries together with previous overseas experiences with firms aiming to target markets.

Emerging Multinational Entering Emerging Market: The Transnational Strategy of Xiaomi in the Indian Smart Phone Market

현재훈 한국경영학회 2018 Korea Business Review Vol.22 No.4

This study explores the strategic dimensions of emerging multinational in the emerging markets by shedding light on the case of China’s Xiaomi entering Indian smart phone market. The main research question is how emerging multinationals are different in overseas expansion to emerging markets and if their limited resources and capabilities cultivate any particular strategic differences when they horizontally expand to other emerging markets. The findings of this study reveal that the case of Xiaomi in India is confirming previous theories by proving propositions related to alliance, local optimization, institutional entrepreneurial ability, and glocalization theses. This study implies strategic direction for the future of emerging MNEs in emerging markets as Xiaomi achieved local responsiveness without compensating efficiency by utilizing knowledge acquired in the course of transnational strategy.

Dynamics of Internal Market, Industry Specific Measures, and Subsequent Transition of Industrial Structure in the EU: Implications for Outsiders

현재훈 한국EU학회 2006 EU학연구 Vol.11 No.1

지속가능경영을 위한 인터페이스의 전략적 CSV사례 연구

현재훈 한국국제경영관리학회 2015 국제경영리뷰 Vol.19 No.1

기업의 사회적 책임활동의 근본적 문제에 대한 대안과 지속가능경영을 달성하기 위한 전략 적시도의 주요한 모델로서 CSV가 부각되고 있으나 국내 외 연구는 아직 개념을 정의하는 초보적 수준에 머무르고 있다. 특히 이를 실무에 구현해야 할 기업들도 개념의 이해 뿐 아니라 적용에 어려움을 격고 있는 형편이다. 그러므로 본 연구는 석유자원을 원료로 사용함에도 지속가능경영을 목표로 한 전략적 CSV를 성공적으로 달성하고 있는 인터페이스사의 사례를 통하여 CSV의 개념을 소개하는 교육적 목적을 달성하고 CSV개념의 실무적 적용성을 높이고자 하였다. 사례 분석 결과 CEO인 레이 앤더슨의 리더십, 디자인 단계의 창의적 접근과 바이오 소재를 통한 제품의 혁신, 그리고 제조공정, 포장, 운송단계를 포괄하는 가치사슬에 대한 혁신을 통해 환경과 경제적 성장에 있어 지속가능경영을 실현하고 있음을 확인할 수 있었다. 본 연구의 사례를 통해 전략적 CSV를 실천하고 지속가능경영을 달성하기 위해서는 본질적 경영 활동과 직접적으로 연관된 분야에서 부가가치 프로세스를 장기적인 시각으로 혁신하고 수익성에 긍정적인 영향을 가져오는 방향으로 추진하여야 함을 알 수 있었다. CSV has emerged as critical strategic tool for the sustainable management in ther search of solution for the problems of CSR. However, academic studies articulating the CSV have remained at the conceptual stage and practical application and overall understanding of CSV to the real business context have also found to be limited to a significantly narrow extent. This study therefore introduced the case of Interface that is considered as successful instant applying CSV practices to achieve corporate sustainability management despite the nature of the compnay using petrochemial resources. This study aims to extend the scope of academic bases and to enhance applicablity of CSV to the practical situations through the case study. The findings of this study showed that the leadership of Ray Anderson, the CEO of Interface, product innovation through the creative approch from the design stage, biomimicry approch for the resouce used, and long-term innovation in the overall value chain in the process, package, and transportation facilitated the corporate sustainablity management with environmental protection and economic growth. This study provides critical implications by finding the importance of long-term innovation in the value chain directly related to the functions of a firm and deploy CSV to enhance the profitability eventually for the successful corporate sustainability management via CSV applications.

세미나 3 : 역내 시장 요새화에 관한 인식과 선제 전략적 유럽 해외직접투자의 결정요인에 관한 연구

현재훈 ( Jae Hoon Hyun ),박기안 ( Ki An Park ) 국제지역학회 2007 국제지역학회 춘계학술대회 Vol.2007 No.-

할랄 시장의 부상과 다국적기업의 대응 전략

현재훈(Jae Hoon Hyun) 한국경영학회 2016 Korea Business Review Vol.20 No.3

할랄 시장은 무슬림 인구의 증가와 비무슬림 소비자의 할랄 제품에 대한 선호도가 높아지는 추세와 함께 지속적으로 성장하고 있고 이에 따라 많은 국내외 다국적기업들 할랄 시장에 전략적으로 대응하고 있으나 관련된 연구는 미흡한 편이다. 본 연구는 할랄 시장의 성장에 체계적으로 대응해 온 대표적 다국적기업으로서 네슬레 말레이시아의 사례를, 통합과 적응을 동시에 추구하는 초국적전략 관점에서 심층 분석하여 연구 공백을 보완하고 향후 할랄 시장에 접근하고자 하는 국내기업에 정책적 시사점 제시하였다. 네슬레는 글로벌 표준제품을 할랄 인증 요건과 현지 시장의 상황에 맞도록 현지화 하였으며 이 과정을 통해 축적된 할랄 지식을 전사차원에서 공유하여 규모의 경제를 달성하였다. 또한 경제통합과 역내 자유무역지대의 창설과 같은 경제적 여건의 변화에 대응하여 지사 간 전문성 및 보완성이 강화되도록 생산네트워크를 정비하는 초국적 전략을 추진하였다. 이것은 역내 표준화된 마케팅과 운영시스템의 단일화로 대표되는 운영효율성 제고 전략과 맞물리며 범위와 규모의 경제를 실현하는데 결정적 통로를 제공하였다. 이러한 네슬레의 전략은 할랄에 대한 대응이 현지화 요건으로만 머물지 않았고 효율성 달성을 위한 핵심 요인으로 활용되었다는 점에서 차별화된 전략으로 평가될 수 있다. 본 연구는 향후 성장하고 있는 할랄 시장에 진출하고자 하는 기업들이 전략적 도구로서 할랄을 이해하고 보다 창의적이고 혁신적인 관점에서 구체적 전략을 적용할 수 있어야 함을 제시하고 있다. Global halal market is ever expanding due to the rapidly increasing mulsim population and favorable aptitude of non-muslimconsumers toward halal products. Multinationals are strategically responding to halal market but few studies have responded to this increasingly important subject. This study attempted to fill the research gaps by analyzing the case of Nestle Malaysia as a multinational properly reacted to the growth of halal market, based on the framework of transnational strategy and to provide implications for Korean firms pursuing global halal markets. The findings showed that Nestle accomplished both localization and integration by attaining halal compliance as well as sharing halal related knowledge acquired in due course. In addition, Nestle reacted to the formation of the free trade area in ASEAN and carried out transnational strategy by spatial specialization of production network for the complementarity among subsidiaries. This provided critical path to accomplishing economies of scale and scope together with harmonized regional marketing efforts and standardized operating systems. This strategy would be considered as differentiated attempt as the reaction to halal compliance was not stayed at localization effort but utilized as a mean to achieve efficiency. This study implies that firms should be able to understand halal as strategic tool and to apply to practical instances with creative and innovative approach.

잠재 위협 완화를 위한 선제전략: 한국자동차 산업의 대 유럽 해외직접투자를 중심으로

현재훈 ( Jae Hoon Hyun ),박기안 ( Ki An Park ) 국제지역학회 2007 국제지역연구 Vol.11 No.2

본 연구는 유럽 경제 통합이 역외국가에 대하여 부정적 영향을 끼치는 데 대한 전략적 대응수단으로서 한국자동차 산업의 국제생산 전략을 고찰하였다. 국제생산전략을 수행하는 한국자동차 제조기업 관리자들의 인식을 실증적으로 연구 검토함으로써 국제생산전략이 유럽경제통합의 부정적인 측면에 대응하는 전략수단임을 증명하고 있다. 이론적 배경인 ``quid pro quo`` FDI 관점에서, 설문조사 및 인터뷰를 통한 실증연구의 결과를 분석해 보면, 무역 전환효과와 보호 무역 주의적 정책 수단에 연관된 변수들이 한국자동차 산업이 예방적 차원에서 해외직접투자에 관여하는 동기가 되었다는 것을 보여 주고 있다. 또한 이 연구에서는 유럽이 보호주의적 전략수단을 시행하기 이전에 한국자동차 산업이 예방적 차원에서 이에 대응하고 이를 완화하려는 선제 전략적 대응수단으로서 간접적인 시장 접근전략을 수행하려 한다고 분석하고 있다. 이러한 비자발적인 동기에 의해 촉발되어진 직접투자의 경우, 한국자동차 산업의 내재적 특성과 연관한 부품구매를 위한 하청 시스템과 스크루드라이버 조업에 관한 규제 및 원산지 규정 등으로 인해 한국자동차 산업이 현지생산을 실현하는 과정에서 중대한 어려움을 초래할 여지가 있을 것으로 예측된다. This study aims to identify relevant variables affecting the strategic reaction of Korean automotive industry by examining relations between FDI defensively motivated and negative aspects of European economic integration on trade flows. Based on the theoretical framework of ``quid pro quo`` FDI, the analysis of a survey and a series of interviews show that variables related to trade diversion and protectionist measures have motivated Korean automotive manufacturers to engage in defensive FDI. Beyond the limited definition of defensive FDI, this study identifies the indirect market access of Korean automotive manufacturers as a pre-emptive strategic reaction to prevent or defuse future protectionist measures prior to actual imposition. FDI triggered by involuntary motivations may cause significant difficulties in the actualization of local production due to sub-contractor system for component procurements, the screwdriver regulations and the rules of origin relating to the particularity of Korean automotive manufacturers.