Market orientation of Korean MNC subsidiaries and their performance in the Chinese and Indian markets

Abstract

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.

Regulatory Role of TQM between the Marketing Orientation, Entrepreneurial Orientation and the Organizational Performance and Competitiveness

“…Kwon [28] conducted a study on 168 Korean multinational companies (MNC) subsidiaries operating in China and India found that the role market orientation is significant in foreign subsidiary performance. The author, noted that foreign subsidiaries, which hold greater technology advantages capabilities and keep active network associations with native key entities such as governmental authorities, suppliers, and distributors, customers, are found to actively dedicate themselves to MO.…”

Complementary effect of entrepreneurial and market orientations on export new product success under differing levels of competitive intensity and financial capital

“…Thus, by resolving these deficiencies, we seek to contribute to the literature in three ways. First, we contribute to the international business literature by drawing on organizational ambidexterity logic, the resource-based view and the dynamic capability perspective to theorize that export entrepreneurial-oriented behavior (henceforth export EOB) and export market-oriented behavior (henceforth export MOB) are complementary market-based resources that offer firms a capability to leverage existing competences to explore new possibilities in export markets (Kwon, 2010). To the best of our knowledge, no study has examined the complementarity between the two market-based resources in export markets.…”

Malaysian Multinational Firms and the Management of their Subsidiaries

“…Network relationships need to be considered in strategic decisions. Kwon (2010) reported positive relationships between market orientation, technology advantage, and the performance of the foreign subsidiary in his study of Korean international firms in the Chinese and Indian markets. Subsidiaries with superior technology advantage and active network relationships had greater market orientation in the host countries.…”