This study examines the evolution of Korean business groups after the economic crisis. In particular, we investigate the post-crisis changes in their business structure and corporate governance ...system, which are argued to be major precipitating factors leading to the economic crisis. Our analysis suggests that the divestment intensity of non-core, highly indebted and low intra-group trade firms was higher for groups which survived the economic crisis, compared to the bankrupt groups. Besides, most surviving groups did not pursue diversification as actively as before the crisis, and their financial conditions remained favourable in the post-crisis period. The corporate governance of the groups has also improved in terms of corporate transparency, implementation of monitoring mechanisms and their accountability to shareholders. Therefore, it seems that Korean business groups have successfully implemented radical corporate transformation to adapt to the changed business environment after the crisis. But, the dominance of family management still remains as an important feature of Korean business groups.
Celotno besedilo
Dostopno za:
BFBNIB, CEKLJ, DOBA, IZUM, KILJ, NUK, ODKLJ, PILJ, PNG, SAZU, SIK, UILJ, UKNU, UL, UM, UPUK
Purpose
– The purpose of this paper is to study the spillover effects of marketing expertise on the market performance of domestic firms and multinational enterprises (MNEs). Specifically, this study ...examines how the adoption of frequency loyalty programs by a domestic firm following an MNE affects the competitive dynamics and the market performance of both firms in a Chinese retail gasoline market.
Design/methodology/approach
– This study is based on empirical data that were obtained from a quasi-field experiment in which the MNE entered the market with a frequency loyalty program and the domestic firm later responded with a similar loyalty program. The authors measured the impact of the adoption of a frequency loyalty program by the domestic firm on the market performance of both the domestic firm and the MNE.
Findings
– The authors find that the domestic firm’s adoption of a similar loyalty program significantly increased its market share in the regular gasoline market. The domestic firm’s adoption of a loyalty program also increased the market performance of the MNE in the premium gasoline market.
Originality/value
– This study explicitly demonstrates the spillover benefits through demonstration effects and provides empirical evidence on specific spillover benefits to domestic firms and MNEs based on their competencies in distinct market segments where they compete.
This study examines the evolution of Korean business groups after the economic crisis. In particular, we investigate the post-crisis changes in their business structure and corporate governance ...system, which are argued to be major precipitating factors leading to the economic crisis. Our analysis suggests that the divestment intensity of non-core, highly indebted and low intra-group trade firms was higher for groups which survived the economic crisis, compared to the bankrupt groups. Besides, most surviving groups did not pursue diversification as actively as before the crisis, and their financial conditions remained favourable in the post-crisis period. The corporate governance of the groups has also improved in terms of corporate transparency, implementation of monitoring mechanisms and their accountability to shareholders. Therefore, it seems that Korean business groups have successfully implemented radical corporate transformation to adapt to the changed business environment after the crisis. But, the dominance of family management still remains as an important feature of Korean business groups. Reprinted by permission of the Journal of Contemporary Asia/ Routledge, Taylor and Francis Ltd.
Celotno besedilo
Dostopno za:
BFBNIB, CEKLJ, DOBA, IZUM, KILJ, NUK, ODKLJ, PILJ, PNG, SAZU, SIK, UILJ, UKNU, UL, UM, UPUK
This study examines the evolution of Korean business groups after the economic crisis. In particular, we investigate the post-crisis changes in their business structure and corporate governance ...system, which are argued to be major precipitating factors leading to the economic crisis. Our analysis suggests that the divestment intensity of non-core, highly indebted and low intra-group trade firms was higher for groups which survived the economic crisis, compared to the bankrupt groups. Besides, most surviving groups did not pursue diversification as actively as before the crisis, and their financial conditions remained favourable in the post-crisis period. The corporate governance of the groups has also improved in terms of corporate transparency, implementation of monitoring mechanisms and their accountability to shareholders. Therefore, it seems that Korean business groups have successfully implemented radical corporate transformation to adapt to the changed business environment after the crisis. But, the dominance of family management still remains as an important feature of Korean business groups. PUBLICATION ABSTRACT
Celotno besedilo
Dostopno za:
BFBNIB, CEKLJ, DOBA, IZUM, KILJ, NUK, ODKLJ, PILJ, PNG, SAZU, SIK, UILJ, UKNU, UL, UM, UPUK
