Showing papers in "Asia Pacific Business Review in 2014"

Antecedents and characteristics of informal relation-based networks in Korea: Yongo, Yonjul and Inmaek

Abstract: Although there has been a large amount written about Chinese Guanxi networks, a detailed debate concerning Korean informal relation-based networks is by comparison under-represented in the international business literature. This paper introduces and distinguishes between three forms of informal relation-based networks in Korea: (1) Yongo, (2) Yonjul and (3) Inmaek. Inmaek describes a social network in general, while Yongo networks draw primarily on existing kinship-, university/school- and regional origin-based ties. Contrary to Yongo ties, Yonjul ties exist for a purpose, often to secure personal gains and benefits. In all three forms, kinship-, university/school- and regional origin-based ties play primary, but not exclusive, roles. A better understanding of Korean informal relation-based networks helps contribute to the advancement of knowledge about the anatomy of informal institution, as well as to the growing field of indigenous management research, by identifying and analysing an influential contex...

Ethical leadership, organizational identification and employee voice: examining moderated mediation process in the Chinese insurance industry

Abstract: This study examines the link between ethical leadership and employee voice behaviour by focusing on the mediating role of organizational identification and the moderating role of organizational trust. The results of distinctive data from 293 supervisors–follower pairs in an insurance group from the People's Republic of China reveal that ethical leadership positively relates to employee voice behaviour, and that organization identification fully mediates the positive influence of ethical leadership on employee voice behaviour. We also found that organization trust moderates the relationship between the organization identification and employee voice. Furthermore, the mediating effect between ethical leadership and employee voice is moderated by organizational trust, that is to say moderated mediation. We discuss implications of these findings for research and practice.

The role and characteristics of social entrepreneurs in contemporary rural cooperative development in China: case studies of rural social entrepreneurship

Abstract: Rural communities in China have experienced rapid changes in recent years under the government's policy of ‘new countryside development’. Remarkably, there has been an increase in social entrepreneurship led by village leaders and capable individuals with an entrepreneurial spirit. This research is based on in-depth interviews with several of these social entrepreneurs in multiple villages in Yunnan and Zhejiang provinces in China. It aims to explore the key issues related to the role of social entrepreneurship and leadership in developing rural cooperatives. The findings suggest that there are multiple key characteristics of social entrepreneurship in the process of rural cooperative development. The research findings have implications for rural community development in transitional economies in terms of developing social entrepreneurship capabilities.

Distance and divestment of Korean MNC affiliates: the moderating role of entry mode and experience

Abstract: In this study, we examine the impact of cross-national distance on the divestment of foreign affiliates. On the basis of the nine dimensions of cross-national distance (Berry et al. 2010. “An Institutional Approach to Cross-National Distance.” Journal of International Business Studies 41 (9): 1460-1480), we empirically examine the impact of each measure of distance on the divestment of affiliates. Using a data set of 1697 multinational corporations (MNCs) headquartered in Korea and their 2435 affiliates in 67 host countries from 2000 to 2010, we find that distance created by economic, financial, political, administrative, cultural, demographic, knowledge and global connectedness leads to the divestment of foreign affiliates. We also find that the positive relationship between cross-national distance and affiliate divestment is likely to become stronger when an MNC enters the host country through a joint venture and weaker for affiliates with greater experience in the host country.

Brand personality and its outcomes in the Chinese automobile industry

Abstract: The purpose of this study is to understand the relationship between ‘brand personality’ and key outcomes in the Chinese automobile industry. A secondary aim of the study is to look at whether or not these relationships hold across purchasers and non-purchasers. The major conclusion is that while brand personality dimensions are somewhat consistent across both purchasers and non-purchasers, the brand personality outcomes differ somewhat between the groups. First, brand personality plays a critical role in improving perceived quality and creating brand trust, a key finding given the intensely competitive nature of the Chinese automobile industry. Second, perceived quality plays an important role in mediating the relationship between brand personality and brand commitment for both groups. Third, perceived quality does not affect brand trust for the purchaser group. In the context of Chinese automobile industry, increasing the level of perceived quality of a particular brand requires convincing non-purchasers...

Assessing the performance of co-operatives in Malaysia: an analysis of co-operative groups using a data envelopment analysis approach

Abstract: This study assesses the performance of co-operatives in Malaysia by evaluating 56 out of the 70 co-operative groups. The productivity and efficiency of the groups were evaluated in the first- and second-stage analysis by employing the data envelopment analysis and Tobit regression model. Despite the financial and non-financial support by the federal government and perceived significant role played by the co-operatives in the country's development, the findings indicate that the performance of co-operatives have not been satisfactory. Only 19.6% of the groups under study were found to be efficient and the ‘big co-operatives’ that comprise less than 2% of total co-operatives in the country dominated among the successful ones. The results endorse the general perception that co-operatives in Malaysia are facing challenges necessitating immediate attention.

Explanations for continued gender discrimination in South Korean workplaces

Abstract: This paper investigates potential explanations for the continued gender discrimination in South Korean workplaces despite decades of gender policy reforms and improved education for women. Making use of both primary and secondary data sources, the institutional theory, the voluntary compliance regulatory enforcement strategy and the typology of regulatory noncompliance provide a framework from which four explanations regarding the origin and nature of Korean firm equal opportunity (EO) compliance issues are derived. Identified through data analysis, explanations include a lack of legal enforcement, a weak punishment system, a tacit acceptance of the status quo by women, organizational cultural issues stemming from the traditional Korean mind-set that allow gender discrimination and a general lack of knowledge about EO regulations by many companies. Reforms and paradigm changes addressing these gender policy compliance issues could yield considerable social benefits in reducing the scope and quantity of ge...

From corporate social responsibility to creating shared value with suppliers through mutual firm foundation in the Korean bakery industry: a case study of the SPC Group

Abstract: This study introduces the transformation process of a company's non-market strategy from corporate social responsibility to creating shared value (CSV) The proposed framework depicts supplier relationship management (SRM) activity, through the case of a Korean bakery franchise, using non-market strategies as a tool for SRM The analysis explains the backgrounds of the transformation and the ramifications of the changes on SRM actions, such as mutual firm foundations, long-term contracts, and temporal relations A mutual firm is suggested as the representative form of CSV activity within a triple helix innovation that would create business and social value, ultimately achieving regional resilience

Global mobility orientation and the success of self-initiated expatriates in Greater China

Abstract: We investigated 640 self-initiated expatriate academics residing in Greater China. We examined whether their inherent demographic characteristics (age/gender) and acquired demographic characteristics (marital status/seniority) differentiated their work outcomes regarding job adjustment, time to proficiency, performance and satisfaction. We also explored the associations between global mobility orientation and these four work outcomes and examined to what extent the demographic characteristics differentiated the relationships. Results support most hypothesized differences. We found that a global mobility orientation was associated with all the work outcomes, except satisfaction. For inherent demographic characteristics, we found support for our hypotheses that for individuals with less successful demographics (younger, male), there was a stronger relationship between global mobility orientation and the work outcomes.

Turnover intentions and organizational citizenship behaviours in Korean firms: the interactional effects of organizational and occupational commitment

Abstract: This study investigated the effects of the organizational commitment and occupational commitment of employees in Korean firms on their turnover intentions and organizational citizenship behaviours. In addition, using the interactional effect analysis, this study examined the interactional effects of the two types of commitment on turnover intentions and organizational citizenship behaviours. A total of 209 employees in nine different firms participated in this study. The results revealed that organizational commitment had a negative effect on turnover intentions, while occupational commitment had a positive effect. In addition, organizational commitment had a positive effect on organizational citizenship behaviours, whereas occupational commitment did not have any noticeable effect thereupon. Both organizational commitment and occupational commitment showed certain overall interactional effects regarding organizational citizenship behaviours as well as turnover intentions.

Changing corporate culture over time in South Korea

Abstract: Corporate culture change is an interesting topic, not least since cultures are often seen as deeply ingrained and slow moving. Here we look at the example of the large, diversified conglomerates in South Korea – the chaebol. This is partly because of their strong corporate cultures, importance in the country's economic development and growth and growing public and political backlash against what are seen as overly powerful institutions. We find that over the decade from one crisis, the 1997 Asian financial crisis, to the next, the 2008 global financial crisis, there has indeed been change between and within chaebol corporate cultures. However, this is not as straightforward as it seems and the situation in and after 2011 has become even more complex, mainly due to changes in the global environment.

The long march of Chinese co-operatives: towards market economy, participation and sustainable development

Abstract: This work presents a history of the co-operative firm in China from its origins in the early twenth century. The aim is to describe how in its evolution, the Chinese Co-operative Movement has diverged from the western notion of a co-operative. To understand the similarities and the divergence, we will consider a number of economic and cultural factors, including the etymology of the Chinese and English words for ‘co-operative’, the Confucian culture and the influence of the political contingencies. We argue that contemporary Chinese economic transition would benefit from the presence of a strong, western style, co-operative sector but that the contribution of the co-operative sector towards sustainability cannot take place unless a civil society develops as well.

Managing employee performance in an emerging economy: perceptions of Vietnamese managers

Abstract: This qualitative study explores employee performance management (PM) in Vietnam from the perspectives of Vietnamese managers in three case study organizations: a state-owned enterprise, a joint venture and a private Vietnamese company. Findings suggest that western PM practices and techniques are being utilized in all three organizations and that PM is seen as an essential and strategic component of human resource management policy. These findings suggest an increasing awareness of PM in Vietnamese enterprises and a desire to improve competitiveness by developing a highly skilled and high-performing workforce.

International human resource management policies and practices of South Korean MNEs: A review of the literature

Abstract: This paper systematically reviews the literature on international human resource management (IHRM) policies and practices of South Korean multinational enterprises (MNEs). It reveals that South Korean MNEs adopt an ethnocentric staffing approach, but are increasingly using more host-country nationals (HCNs). Korean MNEs pay great attention to language training for expatriates, and there is an emphasis on international experience when selecting expatriates. South Korean MNEs tend to adopt home-oriented selection procedures and criteria, performance appraisal and reward-and-compensation schemes for HCNs. A range of training and development programmes are provided to HCNs in order to develop more local managers. However, studies concerning IHRM of South Korean MNEs are scarce and only a few expatriate-related IHRM issues have been empirically examined. As a result, how South Korean MNEs manage IHRM and what is the rationale of their IHRM policies and practices remain largely unknown. This review paper calls ...

Why might females say no to corporate board positions? The Asia Pacific in comparison

Abstract: Females have obtained more senior management positions and corporate board seats in many countries. However, this is less the case in much of Asia. In short, the road to boardrooms for females can ...

Governmental influences on the evolution of agricultural cooperatives in Vietnam: an institutional perspective with case studies

Abstract: Using an institutionalist approach as the main framework, this research examines the evolution of Vietnamese agricultural cooperatives over the last six decades through four distinct phases – the v

Go big or stay home? Korean machinery firms, trade fair dynamics and export performance

Abstract: With heightened global competition, many manufacturers export as a process by which to increase sales and expand into new markets. South Korean manufacturers export in order to expand outside of a small domestic market, but confront the constraints of many exporters (especially smaller firms), including access to market intelligence and geographically distant prospective customers. This article examines efforts by machine tool manufacturers to minimize the friction of distance involved with exporting through the use of international trade fairs. Analytical emphases are placed on the influence of individual export destinations and on the role of firm size vis-a-vis firm export intensities and overall export strategies and motivations.

Development and challenges of cocoa cooperatives in Papua New Guinea: case of Manus province

Abstract: In Papua New Guinea (PNG), cooperatives have a long and dynamic history, and since 2000 they have been promoted by the government as a vehicle for economic and social development. There have been few studies on cooperatives in PNG and no prior research into cocoa cooperatives. This study explores the development and challenges of cocoa cooperatives in PNG. Cooperatives were mainly formed as a response to governmental initiatives as well as to provide access to processing facilities, overcome market difficulties, reduce unemployment and improve living conditions. Cooperatives and collectives among farmers and growers are important mechanisms in fostering social and economic development in PNG. Problems associated with land tenure insecurity, small land holdings, lack of access to capital, poor rural infrastructure, among others, have been reduced with farmer collectives and cooperatives across the Pacific countries. This paper outlines the role that cooperatives, and cocoa cooperatives in particular, have ...

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

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.

Old and new Rural Co-operative Medical Scheme in China: the usefulness of a historical comparative perspective

Abstract: This work compares the health cooperatives feted in Maoist China in the 1960s to the New Rural Medical Co-operative Scheme (NRCMS) that has been operating in China since 2002. Organizational and ideological similarities between the old and new co-operative medical schemes are described. By mapping continuities and discontinuities in the way the co-operative organizational model has been deployed under different contexts, we argue for the usefulness of blending historical method and organizational analysis as a means of understanding some of the challenges of contemporary Chinese social policies. Using this technique of historical comparison, this work concludes that the NRCMS, despite being different in orientation, is still affected by political influences, and organizational traits, evident within its former incarnation. This acknowledgement, we argue, has important implications for policy and practice today.

Culture as grand theory in East Asian employment relations

Abstract: Considerable emphasis has often been placed on cultural factors in explaining the peculiarities of East Asian employment relations. By comparison with workplace relations in the West, East Asian employment relations are characterized by low rates of unionization and collective bargaining, and a relative absence of industrial disputation. A critique of notions of culture found in employment-relations scholarship is presented which draws on long-established conceptualizations developed in historical, post-colonial, anthropological and cultural studies. Most of the peculiarities of East Asian workplace relations can be adequately accounted for through manners other than invoking a grand theory of culture.

Growth, integration and trends in equity markets in Asia

Abstract: The objective of this paper is to examine the growth and development in the Asian financial markets and then focus on equity-market developments in the Asian economies. Asian equity markets have grown exponentially over the last two decades. The trauma of the Asian crisis crystallized transformations in Asia's financial architecture. Equity markets were, in turn, no exceptions. Despite these problems, these markets slowly began expanding again. Attracted by rapid and sustained regional growth in Asia, international institutional investors and fund managers began investing in Asian equities. This inexorably led to an increase in market capitalization. However, growth in the equity markets was far from steady and uniform. This paper has dwelt on the performance of important equity markets in Asia and highlighted the diversity in them.

An integrative institutional approach to MNC performance in China

Abstract: This study adopts an integrative approach that incorporates the resource-based view and institutional theory in its analyses of the performances of multinational corporations in China. Firm-specific resources have been assumed as a unique source of competitive advantages when firms go overseas. However, differences in institutional environments between the host country and the home country can negatively affect the competitiveness generated by resource exploitation. Empirical analysis using the data consisting of 209 Japanese firms operating in China finds that while the exploitation of firm-specific resources improves their performance, institutions in China moderate the positive impact on performance.

Is there a distinct Asian management culture

Abstract: In this article, we ask ‘is there an Asian management culture?’. This question is of significant practical and methodological relevance. Our conclusion, based on a wide review of the literature at hand, is quite unequivocal: we argue that there is no one single Asian management culture that distinguishes the Asian countries from those of the rest of the world.

Growth pattern of an employee-owned business: a narrative inquiry concerning the new venture creation experience of Wowprime in Taiwan

Abstract: The current private- and shareholder-ownership pattern has found its limits. The aim of this research is to explore a growth pattern of employee-owned business adopting the narrative inquiry approach. The findings show that there are four growth stages: the ‘family-owned’, the ‘family- and manager-owned’, the ‘family-, manager-, and staff-owned’ and the ‘family-, manager-, staff- and franchisee-owned’ stages. This study explains why the pattern is becoming an important part of the business environment around the world and why mutual ownership can better grasp opportunities and turn environmental threats into new opportunities. This study contributes to advancing the understanding of the ownership pattern from private (family), to shareholder (manager) to employee.

Realised absorptive capacity, technology acquisition and performance in international collaborative formations: an empirical examination in the Korean context

Abstract: The research objectives of this paper are twofold. First, it attempts to identify the critical factors facilitating the acquisition of technology from foreign partner firms and performance enhancement in international collaborative formations. Second, it compares these factors across Western and Japanese sub-samples. A new concept, realised absorptive capacity, is employed to achieve these objectives. Using a sample collected through a questionnaire-based survey, our results show that trust and communication are critical components in transforming new knowledge, while active managerial involvement of the foreign firm and the participation of foreign expatriates are the keys to applying it for business operations. In particular, components consisting of the ability to exploit new knowledge (i.e. active managerial involvement of foreign firm, participation of foreign expatriates and provision of training) are closely associated with performance enhancement. In addition, our results confirm that there clearly exist different patterns of learning mechanisms and incompatible behaviours in improving performance between the two sub-samples. Based on the results, the authors suggest implications and future research avenues.

The changing contours of Korean management and business

Abstract: In this introduction, on the changing contours of Korean management and business, we look at recent research on this important Asian economic player and set it in its background and context. As one of the original ‘Little Dragon’ or ‘Little Tiger’ economies, which expanded at spectacular rates of growth post-1960s, the Republic of Korea, more widely known as South Korea (‘Korea’ from now on here), has expanded and prospered (see Rowley 2013). However, there has been less academic interest in its development than in its Japanese and more recently in its Chinese equivalent (see Warner 2013). Korea has made great progress in recent decades. It has, for instance, moved from military authoritarianism to democracy in the late 1980s and weathered the 1997 Asian Financial Crisis as well as 2008 Global Financial Crisis (see Rowley and Bae 1998; Rowley, Sohn, and Bae 2002; Rowley and Jun 2013; Warner 2013). It now has several major world-class multinational companies (MNCs), known generically as chaebols. Today, such diversified conglomerates as Hyundai, LG, Samsung and others are internationally known. In turn, Korea has developed a distinctive style of management (see Chen 2004), which derives from a shared Asian heritage (see Warner 2003; Woodside 2006) but remains nonetheless sui generis (Rowley 2013). It has also developed its own human resource management (HRM) policies and practices (Zhu, Rowley, and Warner 2007; Rowley and Bae 2013a).

Mutuality in the Asia Pacific region

Abstract: Co-operatives, mutuals and employee-owned businesses play an important role in the economies and societies of a number of Asia Pacific countries. They have a long history, and an evolving and interesting future. The case of China is perhaps particularly significant, as the co-operatives there are operating still within the context of state control, and it is not clear how they might develop in the future. Were China to decide that the co-operative and mutual corporate form had an important role to play alongside state, personal and shareholder-ownership models, then given the significant role of China in the global economy, this could have a major impact on the type of corporate diversity the world's economy enjoys in future years. These ‘alternative’ corporate forms include consumer co-operatives and producer co-operatives, as well as financial mutuals and employee ownership. There have been calls for this broadly defined mutual sector to become the most dynamic part of the global economy by the end of t...