ABSTRACT
In anticipation of the upcoming changes and turbulence caused by Industry 4.0, in which digital integration connects all value chain members, managers at leading multinational enterprises (MNEs) are scrambling to predict the associated changes in the market. This pioneering study advances our understanding by investigating the impact of an MNE's Industry 4.0 orientation on the globalization of its value chain network. Identifying two types of value-generation activities as potential moderators, namely value creation and value capturing, we compare the moderation effects when these activities are conducted by headquarters versus foreign subsidiaries. We test the proposed model using a panel dataset comprising 5572 subsidiary-year observations from 358 Korean MNEs from 2011 to 2019. The results show that an MNE's Industry 4.0 orientation leads to a more rapid expansion of its distribution network than of its supplier network. Furthermore, value creation by headquarters has a stronger positive impact on the globalization of its distribution network than that of its supplier network, whereas value creation by subsidiaries has a stronger positive impact on the globalization of its supplier network than that of its distribution network. However, value capturing has a stronger impact on the globalization of the MNE's distribution network than that of its supplier network when performed by both locations. This study concludes by discussing the theoretical and managerial implications.
En prévision des turbulences et des changements à venir causés par l'Industrie 4.0 dans laquelle l'intégration numérique relie tous les membres de la chaîne de valeur, les managers des grandes entreprises multinationales (Multinational Enterprises - MNEs) s'efforcent de prévoir les changements associés sur le marché. Cette recherche pionnière fait progresser notre connaissance en étudiant l'impact de l'orientation vers l'Industrie 4.0 des MNEs sur la globalisation de leurs réseaux de chaîne de valeur. En identifiant deux types d'activités génératrices de valeur comme modérateurs potentiels, à savoir la création de valeur et la capture de valeur, nous comparons les effets modérateurs lorsque ces activités sont menées par le siège social versus les filiales étrangères. Nous testons le modèle proposé à l'aide d'un ensemble de données de panel comprenant 5 572 observations d'année-filiale de 358 MNEs coréennes durant la période 2011 - 2019. Les résultats montrent que l'orientation vers l'Industrie 4.0 d'une MNE conduit à une expansion de son réseau de distribution plus rapide que celle de son réseau de fournisseurs. En outre, la création de valeur par le siège social a un impact positif plus fort sur la globalisation de son réseau de distribution que sur celle de son réseau de fournisseurs, tandis que la création de valeur par les filiales exerce un impact positif plus fort sur la globalisation de son réseau de fournisseurs que sur celle de son réseau de distribution. Néanmoins, la capture de valeur a un impact plus fort sur la globalisation du réseau de distribution d'une MNE que sur celle de son réseau de fournisseurs lorsqu'elle est réalisée par les deux sites. Cette recherche se termine par une discussion des implications théoriques et managériales.
Anticipándose a los próximos cambios y turbulencias causadas por la Industria 4.0, en la cual la integración digital conecta a todos los miembros de la cadena de valor, los gerentes de las principales empresas multinacionales (EMN) se esfuerzan por predecir los cambios asociados en el mercado. Este estudio pionero avanza en nuestra comprensión investigando el impacto de la orientación de la Industria 4.0 de una EMN en la globalización de su red de cadena de valor. Al identificar dos tipos de actividades de generación de valor como moderadores potenciales, es decir, la creación de valor y la captura de valor, comparamos los efectos moderadores cuando estas actividades son llevadas a cabo por la casa matriz frente a las filiales extranjeras. Pusimos a prueba el modelo propuesto utilizando un conjunto de datos de panel que comprende 5.572 observaciones de años subsidiarios de 358 empresas multinacionales coreanas de 2011 a 2019. Los resultados muestran que la orientación a la Industria 4.0 de una empresa multinacional lleva a una expansión más rápida de su red de distribución que de su red de proveedores. Adicionalmente, la creación de valor por parte de la casa matriz tiene un impacto positivo más fuerte en la globalización de su red de distribución que en la de su red de proveedores, mientras que la creación de valor por parte de las filiales tiene un impacto positivo más fuerte en la globalización de su red de proveedores que en la de su red de distribución. Sin embargo, la captura de valor tiene un impacto más fuerte en la globalización de la red de distribución de la empresa multinacional que en la de su red de proveedores cuando es realizada en ambos lugares. El estudio concluye con un análisis de las implicaciones teóricas y gerenciales.
Antecipando as próximas mudanças e turbulências causadas pela Indústria 4.0, na qual integração digital conecta todos os membros da cadeia de valor, gerentes de principais empresas multinacionais (MNEs) estão se esforçando para prever as mudanças associadas no mercado. Este estudo pioneiro avança nosso entendimento ao investigar o impacto da orientação de uma MNE na Indústria 4.0 na globalização de sua rede de cadeia de valor. Ao identificar dois tipos de atividades de geração de valor como potenciais moderadores, a saber, criação de valor e captura de valor, comparamos os efeitos moderadores quando essas atividades são conduzidas pela matriz versus subsidiárias estrangeiras. Testamos o modelo proposto usando um conjunto de dados em painel compreendendo 5.572 observações subsidiária-ano de 358 MNEs coreanas de 2011 a 2019. Os resultados mostram que uma orientação para a Indústria 4.0 por uma MNE leva a uma expansão mais rápida de sua rede de distribuição do que de sua rede de fornecedores. Além disso, a criação de valor pela matriz tem um impacto positivo mais forte na globalização de sua rede de distribuição do que na rede de fornecedores, enquanto a criação de valor pelas subsidiárias tem um impacto positivo mais forte na globalização de sua rede de fornecedores do que na rede de distribuição. No entanto, a captura de valor tem um impacto mais forte na globalização da rede de distribuição da MNE do que na rede de fornecedores quando realizada por ambas as localidades. Este estudo conclui discutindo as implicações teóricas e gerenciais.
ABSTRACT
Drawing on institutional theory, this study investigates how institutional pressure can affect digital platform risk. Specifically, it examines whether two types of institutional pressure - domestic market e-commerce policy uncertainty and foreign market e-commerce policy uncertainty - affect the perceived digital platform risk for international new ventures (INVs) and its relationship with their scope of internationalization. The recent crisis caused by the Covid-19 pandemic has further impacted this new phenomenon, thus we examine its effects on the relationships between/among domestic and foreign market e-commerce policy uncertainties, digital platform risk, and the internationalization scope of INVs. We conduct four waves of a survey to test the Covid-19 effects as well as to minimize common method bias, analyzing the final sample of 394 responses from 260 Chinese INVs using structural equation modeling. The results show that domestic and foreign market e-commerce policy uncertainties positively affect the digital platform risk for INVs, with foreign market e-commerce policy uncertainty having a stronger positive impact. Moreover, we find that the Covid-19 pandemic interacts asymmetrically with the relationship between domestic vs. foreign market e-commerce policy uncertainty and the digital platform risk for INVs. In addition, the pandemic strengthens the negative relationship between digital platform risk and the internationalization scope of INVs. This research broadens and strengthens our understanding of e-commerce policy and international business in the context of INVs' internationalization.
ABSTRACT
Resilience is central to developing organizational capability to respond to global crises such as the Covid-19 pandemic. To date, few studies have examined the relationship between global talent management (GTM) and the organizational resilience of multinational enterprise (MNE) subsidiaries during crises. This study contributes to the GTM and crisis management literature by examining the role of GTM in MNE subsidiaries' resilience during the Covid-19 crisis. Based on the sample of 166 Korean MNEs and their 1227 foreign subsidiaries, including 293 regional headquarters, operating in 49 host countries, this study shows a positive and significant impact of GTM on the resilience of Korean MNEs subsidiaries. Drawing on agency problems at the subsidiary level and bounded rationality at the headquarters level as factors that may bring about failure in TM in MNEs, as well as a core competence perspective, we shed light on the importance of the three-layered governance structure of MNEs in the analysis of GTM and MNE subsidiaries' resilience. The study has practical implications for Korean MNEs and the organizational resilience of MNEs' subsidiaries during crises more generally.
