Determinants Influencing Korean Agri- Food Companies’ Modes of Overseas Market Entry

• 영문명: Determinants Influencing Korean Agri- Food Companies’ Modes of Overseas Market Entry
• 발행기관: 한국무역학회
• 저자명: 김진규(Jin-Kyu Kim) 윤준모(Jon-Mo Yoon)
• 간행물 정보: 『Journal of Korea Trade (JKT)』Vol.28 No.2, 159~180쪽, 전체 22쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2024.04.27

국문 초록

Purpose - Faced with the constraints of a limited domestic market, the Korean agri-food industry necessitates regional diversification through the establishment of offshoring production subsidiaries. This study tests the validity of Root’s model of the determinants of offshoring and sequential entry to overseas markets on Korean agri-food companies’ offshoring of production subsidiaries. Design/Methodology – This study employs the convergent mixed-methods research design, wherein qualitative and quantitative data collection and analysis are conducted, then compared, before interpreting the data affecting Korean agri-food outward direct investment (ODI). Methodologically, based on Korean agri-food manufacturing company ODI data from the KOTRA, a survey was conducted to quantitatively analyze the factors influencing their selection of production subsidiaries for ODI. Findings – Though Korean agri-food companies also consider Root’s external factors when selecting overseas entry methods, the sequential entry route and selection model, factors theorized to influence Root’s overseas market entry method, were not found to be statistically significant. Instead, they tailor their market entry approach based on the type of investment and the operating objectives of the local subsidiary. This is attributed to Korean agri-food companies’ deviation from sequential entry routes when entering markets through ODI, as well as the determination of the form and type of investment of these overseas subsidiaries according to the purpose of their operations. Originality/value - This study distinguishes itself by employing a convergent mixed-methods design, which combines quantitative and qualitative analyses to identify the determinants of ODI market entry by Korean agri-food companies. Furthermore, it evaluates Root’s market entry model from the perspective of Korean agri-food companies.

영문 초록

Purpose - Faced with the constraints of a limited domestic market, the Korean agri-food industry necessitates regional diversification through the establishment of offshoring production subsidiaries. This study tests the validity of Root’s model of the determinants of offshoring and sequential entry to overseas markets on Korean agri-food companies’ offshoring of production subsidiaries. Design/Methodology – This study employs the convergent mixed-methods research design, wherein qualitative and quantitative data collection and analysis are conducted, then compared, before interpreting the data affecting Korean agri-food outward direct investment (ODI). Methodologically, based on Korean agri-food manufacturing company ODI data from the KOTRA, a survey was conducted to quantitatively analyze the factors influencing their selection of production subsidiaries for ODI. Findings – Though Korean agri-food companies also consider Root’s external factors when selecting overseas entry methods, the sequential entry route and selection model, factors theorized to influence Root’s overseas market entry method, were not found to be statistically significant. Instead, they tailor their market entry approach based on the type of investment and the operating objectives of the local subsidiary. This is attributed to Korean agri-food companies’ deviation from sequential entry routes when entering markets through ODI, as well as the determination of the form and type of investment of these overseas subsidiaries according to the purpose of their operations. Originality/value - This study distinguishes itself by employing a convergent mixed-methods design, which combines quantitative and qualitative analyses to identify the determinants of ODI market entry by Korean agri-food companies. Furthermore, it evaluates Root’s market entry model from the perspective of Korean agri-food companies.

키워드

Agri-Food Industry Convergence Mixed-Methods Research Determinants Outward Direct Investment ODI Root’s Model of Foreign Market Entry