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


  • Ji-Hwan Lee

    () (Korea Advanced Institute of Science and Technology)


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.

Suggested Citation

  • Ji-Hwan Lee, 2007. "Managing Diversified Firms through Socio-Cultural Mechanisms: A Focus on Korean Chaebols," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 18(1), pages 23-41.
  • Handle: RePEc:rai:mamere:doi_10.1688/1861-9908_mrev_2007_01_lee

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    Cited by:

    1. repec:kap:asiapa:v:34:y:2017:i:2:d:10.1007_s10490-016-9481-0 is not listed on IDEAS
    2. 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, vol. 48(4), pages 443-454.

    More about this item


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

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General


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