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Managerial knowledge-sharing in chaebols and its impact on the performance of their foreign subsidiaries

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  • Lee, Jeoung Yul
  • MacMillan, Ian C.

Abstract

In a sample of 172 of the largest chaebol firms, included in 51 chaebols, and 1057 foreign subsidiaries, we tested the association between foreign subsidiary performance and the procedural and coordinative knowledge-sharing across peer group-affiliated companies (GACs) within the chaebol, as well as the knowledge transfer between the chaebol headquarter unit and its foreign subsidiary. We found three interesting results. First, coordinative knowledge-sharing has a stronger impact on subsidiary performance than procedural knowledge-sharing does. Second, in the case of headquarters-subsidiary knowledge transfer, coordinative knowledge-sharing is positively and significantly associated with subsidiary performance, but procedural knowledge-sharing is negatively and significantly associated with subsidiary performance. Finally, organizational ambidexterity in deploying both procedural and coordinative knowledge-sharing is positively and significantly related to subsidiary performance.

Suggested Citation

  • Lee, Jeoung Yul & MacMillan, Ian C., 2008. "Managerial knowledge-sharing in chaebols and its impact on the performance of their foreign subsidiaries," International Business Review, Elsevier, vol. 17(5), pages 533-545, October.
    • Handle: RePEc:eee:iburev:v:17:y:2008:i:5:p:533-545
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