IBS Lunchtime Research Seminar - How localizing management affects subsidiary performance: Evidence from South Korean MNEs

You are cordially invited to attend an IBS lunchtime research seminar by Joonghak Lee, PhD Student, Henley Business School. Please join us in Room 108 for a cinematic experience. If you have not received the email invite please email Angie Clark.

Please note: Lunch and refreshments will be provided in Room 108, however the presentation is to be presented online.

Please make sure you let me know in advance if you intend to attend in person so that the correct amount of catering is booked.

Title: How localizing management affects subsidiary performance: Evidence from South Korean MNEs

Presenter: Joonghak Lee, PhD Student Henley Business School

Date: Wednesday 10th May

Time: 13.00 – 14.15 pm

Teams - A Teams link to the seminar is included for those who cannot attend in person, however attendance in person is preferred.

Abstract

The thesis investigates the role of localizing management in the performance of multinational enterprises (MNEs) by employing a mixed-methods approach, including literature reviews, conceptualizations, and empirical analyses, supplemented by qualitative methods. The study focuses on South Korean MNEs, collecting data from 117 headquarters and subsidiaries across 25 countries. The research is divided into three papers, with the first paper reconceptualizing localizing management as a combination of local staffing and autonomy delegation. The second paper explores the interplay between short-term expatriates, digitalization, and the relationship between localizing management and subsidiary performance, grounded in transaction cost theory. The third paper delves into subsidiary CEO experience and its relationship with localizing management, examining nationality, functional background, and international experience. The findings reveal that subsidiaries with high autonomy and a large proportion of local managers exhibit the highest performance levels. The study also highlights the buffering role of short-term expatriate deployment and the facilitative effect of digitalization on local staffing. Additionally, the third paper emphasizes the crucial role of subsidiary CEOs' experience in localizing management and subsidiary performance within MNEs. This thesis makes valuable contributions to international management literature by introducing a localizing management model, shedding light on the effects of short-term expatriate deployment and the enabling role of digitalization, and presenting an original 2x2x2 cube concept to analyze subsidiary CEOs' experience.