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No abstract

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Purpose -The study of the market orientation of MNC subsidiaries in foreign markets has been generally limited. This paper, therefore, aims to assess the effects of market orientation on performance and the factors affecting the utilization of market orientation by foreign subsidiaries. Design/methodology/approach -Market orientation is operationalized within the context of the foreign market. Research hypotheses are tested using a sample of 168 Korean MNC subsidiaries operating in China and India, the two most giant emerging countries in the world. Findings -The results show that market orientation performs an important function in foreign subsidiary performance. In addition, foreign subsidiaries, which possess superior technology advantages and maintain active network relationships with local key entities such as suppliers, distributors, customers, and governmental authorities, are shown to actively devote themselves to market orientation. Originality/value -As this study is to address the influence of MNC subsidiaries' market orientation on their business performance in the emerging markets, the results are expected to make a contribution to the literature in the field of market orientation.

Relationship-specific investments are addressed as crucial factors for the successful management of the exporter-foreign buyer relationships. It is hypothesized that relationship-specific investments have a positive impact on social capital components such as trust and commitment, which in turn contribute to the relationship and business performance satisfaction between partners. On the basis of our analysis of the relationships between Korean exporters and their foreign buyers, the validity of the roles of relationship-specific investments and social capital are clearly demonstrated. The results provide us with a meaningful implication to the successful management of inter-firm relationships.