한국진출 해외자회사의 현지화 정도 및 그 결정요인에 관한 연구

Abstract

This study is an analysis about determinants and level of localization in the overseas subsidiary in Korea. MNCs have competed with global market and have been battling each other for greater global market share. when MNC's overseas subsidiary enters the domestic market, they consider standardization strategy or localization strategy. Many enterprises insist that customer's demands identify all around the world and prefer standardization strategy. but there is distinct difference between nation and culture until now and Localization strategy which support these environment is associated with company performance. First, we want to emphasize localization strategy's importance and divide localization level into production localization, marketing localization and administration localization which include human resource and company management in gross. Second, determinants of localization level is classified by the head office characteristic's decision-making authority delegation and local market characteristic's government control and growth possibility and industry characteristic's technology intensity. Third, we analyze the effects of the localization level and company performance and verify localization level's intermediation effect.

The results of the determinants of production, marketing localization level shows that government control and growth possibility have significant effects on the level of localization level. especially, determinant of administration localization which include local people ratio and organization management show that decision-making authority delegation and technology intensity have significant effects on the level of administration localization level. The second results how localization level have an influence on company performance show that production level have not effect on the company performance. but marketing and management localization level have effect on the company performance. Futhermore, only there is an intermediation effect of marketing localization level.

As mentioned above, the implications of this research were summarized as follows. Although a lot of overseas subsidiaries which enter into Korea recognize importance of localization strategy, they have not applied localization strategy and have not recognized importance of localization. Research of determinants and level of localization in the overseas subsidiary in Korea was insufficient. Also this research proves that localization strategy will be essential in improving and supporting the company performance and this research lays the groundwork for analyzing determinants and level of localization in the overseas subsidiary in Korea. Promoting the localization level will create a significant effect in terms of positive company performance.