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The Characteristics and Performance of Affiliates of Small and Medium-Size Multinational Enterprises in an Emerging Market

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Abstract

Little has been reported on the characteristics and performance of affiliates of small and medium-sized multinational enterprises (MNEs) operating in emerging markets. The paper has two research objectives: to assess characteristics of Korean affiliates of small and medium-sized MNEs, and identify the determinants of performance. Seven hypotheses were formulated and tested on a sample of Korean subsidiaries of small and medium-sized MNEs by using a bootstrap method of regression analysis. We found that: affiliates of small and medium-sized MNEs in Korea favored joint ventures with local firms rather than wholly-owned subsidiaries; ownership rate was directly related to the degree of control from the parent firm; and performance was determined significantly by the degree of control exercised by parent firms and their exporting levels. Age, size, and R&D expenditures had no relationship with the performance of affiliates of small and medium-size MNEs in Korea.

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Authors and Affiliations

  1. Asian Management Institute, Ivey Business School, University of Western Ontario, London, Ontario, Canada

    Paul W. Beamish (Director)

  2. College of Business Administration, Sogang University, Seoul, Korea

    Chol Lee (Professor)

Authors
  1. Paul W. Beamish
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  2. Chol Lee
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Beamish, P.W., Lee, C. The Characteristics and Performance of Affiliates of Small and Medium-Size Multinational Enterprises in an Emerging Market. Journal of International Entrepreneurship 1, 121–134 (2003). https://doi.org/10.1023/A:1023223424789

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