This paper aims to identify the efficiency and problems of management practices in large Korean corporations through quantitative analysis, and to examine the applicability of foreign theories to Korean firms. To this end, this study applied the four hypotheses of Gupta and Govindarajan (1986) to 200 subsidiaries of Korea's top 30 business groups, analyzing the effects of the interactions among competitive strategy, inter-subsidiary resource sharing, and incentive systems on subsidiary performance and managerial job satisfaction. The analysis revealed that Gupta and Govindarajan's proposition—that competitive strategy and the level of resource sharing would have an interactive effect on subsidiary performance—was also applicable to the subsidiaries of large Korean corporations. Furthermore, the hypothesis that the interaction between the level of inter-subsidiary resource sharing and the method of determining the bonus pool would affect subsidiary performance was also supported. However, the hypothesis that the interaction between bonus subjectivity and resource sharing would affect performance, and the hypothesis that a negative relationship would exist between resource sharing and managerial satisfaction, were not supported. As potential reasons why the analytical results in this paper differ from those of foreign firms, we suggested: (i) the possibility that large Korean corporations lack internal efficiency, (ii) the possibility that existing theories possess complementary explanatory power, and (iii) the possibility that there are problems with Gupta and Govindarajan's theory itself. However, due to the inability to obtain sufficient information on samples and variables, it was not possible to draw conclusions through direct comparative analysis. Finally, the limitations of this paper and directions for future research to facilitate direct comparative studies were presented.