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Managing Diversified Firms through Socio-Cultural Mechanisms: A Focus on Korean Chaebols

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  • Ji-Hwan Lee

    ()
    (Korea Advanced Institute of Science and Technology)

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    Abstract

    Based on theoretical considerations, this article investigates the socio-cultural mechanisms through which diversified firms are effectively managed without loss of control. Empirical results from extensive questionnaire surveys in Korea and the U.S. show that socio-cultural mechanisms such as shared values and corporate-level training were significantly and positively associated with divisional performance. In addition, socio-cultural mechanisms appear to have unequal effects on the corporate performance in societies with different cultural contexts. Statistical results show that socio-cultural mechanisms worked better in chaebols than in large U.S. firms, possibly because such mechanisms positively interact with high-context culture.

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    Bibliographic Info

    Article provided by Rainer Hampp Verlag in its journal management revue - The international Review of Management Studies.

    Volume (Year): 18 (2007)
    Issue (Month): 1 ()
    Pages: 23-41

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    Handle: RePEc:rai:mamere:doi_10.1688/1861-9908_mrev_2007_01_lee

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    Related research

    Keywords: Diversified Firm; Chaebol; Socio-cultural Mechanism; Shared Value; Inter-divisional Interaction;

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    Cited by:
    1. Lee, Ji-Hwan & Gaur, Ajai S., 2013. "Managing multi-business firms: A comparison between Korean chaebols and diversified U.S. firms," Journal of World Business, Elsevier, Elsevier, vol. 48(4), pages 443-454.

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