For the past several years, as the win-win effect became verified through management experiments, companies today have urgently started to feel the need for win-win among companies. Thus companies started to expand overseas as a part of the win-win pl...
For the past several years, as the win-win effect became verified through management experiments, companies today have urgently started to feel the need for win-win among companies. Thus companies started to expand overseas as a part of the win-win plan and global expansion is starting to become a factor of success in the global market for companies. Despite this situation, there are not as many studies related to global expansion that go into multilateral directions, so I decided to begin this study. The goal of this study is to identify the deciding factors in global expansion and analyze the possibility of global expansion by the type of business relationships among firms.
This study determines that a deciding factor in expanding overseas is the reliance that emerges among companies, and the type of global expansion is the buyer and supplier relationship (BSR) type by Bensaou and Venkatraman(1996). The methodology of the study drew conclusions by analyzing the case of each company that corresponds to the relationship ? BSR-type market exchange relationship, buyer captive relationship, supplier captive relationship, and strategic partner relationship.
The results were that among these 4 types, the strategic partner relationship had the highest chances of global expansion and success, followed by the buyer captive relationship. The supplier captive relationship showed similar possibilities of success in global expansion as the buyer captive relationship, however it showed that the possibilities of global expansion were relatively low. The market exchange relationship showed to have the lowest possibilities of both global expansion and success.