publication . Preprint . 2007

Regional Multinationals and the Korean Comestics Industry

Chang Hoon Oh; Alan M. Rugman;

Open Access

Published: 01 Jan 2007

Summary
references
44

Abstract

This paper analyzes the market penetration and expansion strategy of cosmetics and toiletries multinational enterprises (MNEs) in South Korea from the perspective of regional strategy as developed recently by Rugman. We find that MNEs have different market entry and expansion strategies in the home region and in the foreign region. Home region MNEs (Japanese MNEs in this case), in general, utilize their firm-specific advantages (FSAs) better than foreign region MNEs (European and MNEs from the Americas in this case). Due to differences in transaction costs, home region MNEs exploit downstream FSAs while foreign region MNEs develop upstream FSAs. Market similarit...

Subjects

free text keywords: regional strategy, market penetration, cosmetics industry, double diamond, South Korea

Download from

Research Papers in Economics

Preprint . 2007

Provider: Research Papers in Economics

44 references, page 1 of 3

Agarwal, S. & Ramaswami, S. 1992. Choice of foreign market entry mode: impact of ownership, location and internalization factors. Journal of International Business Studies, 23: 1-27. [OpenAIRE]

Aharoni, Y. 1966. The foreign investment decision process. Division of Research, Boston: Harvard Business School.

Anderson, E. & Gatignon, H.A. 1986. Modes of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies, 17(3): 1-26.

Bartlett, C. & Ghoshal, S. 1998. Managing across borders: The transnational solution. 2nd ed. Boston, MA: Harvard Business School Press.

Buckley, P. & Casson, M. 1976. The future of the multinational enterprise. London: Macmillan and Co. [OpenAIRE]

Buckley, P. J. & Casson, M. C. 1998. Analyzing foreign market entry strategies: Extending the internalization approach. Journal of International Business Studies, 29(3):539-562. [OpenAIRE]

Caves, R. E. & Mehra, S. K. 1986. Entry of foreign multinationals into U.S. manufacturing industries. In M. E. Porter (ed.). Competition in Global Industries: 449-481, Boston: Harvard University Press.

Chen, S. S., & Hennart, J. 2002. Japanese investors choice of joint venture versus wholly-owned subsidiaries in the US: the role of market barriers and firm capabilities. Journal of International Business Studies, 33(1): 1-18.

Coughlan, A.T., Anderson, E., Stern, L.W., & El-Ansary, A.I. 2001. Marketing channels. 6th ed. Upper Saddle River, NJ: PrenticeHall.

Davidson, W. H. 1983. Market similarity and market selection: implications for international marketing strategy. Journal of Business Research, 11: 439-456.

Dunning, J. H. 1988. The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1): 9-31 [OpenAIRE]

Euromonitor, 2003. Cosmetics and Toiletries: World Market Overview. Presentation material at In-cosmetics Trends Presentations May 2003.

Gatignon, H. A. & Anderson, E. 1988. The multinational corporation's degree of control over foreign subsidiaries: An empirical test of a transaction cost explanation. Journal of Law, Economics and Organization, 4(2): 305-336. [OpenAIRE]

Johansson, J. & Vahlne, J. 1977. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1): 23-32.

Johansson, J. & Wiedersheim-Paul, F. 1975. The internationalization of the firm-four Swedish cases. Journal of Management Studies, 12(3): 305-322.

44 references, page 1 of 3

Any information missing or wrong?Report an Issue