Research Article
A Study on Factors Affecting Global Learning of Multinational Enterprise Subsidiaries
Published: January 2002 · Vol. 31, No. 3 · pp. 833-855
Full Text
Abstract
The results of this study suggest that cultural similarity between multinational corporations and host countries, the ownership ratio of multinational corporations' subsidiaries, the similarity of products manufactured and processes used across the multinational corporate network, and competitive advantages are positively related to global learning. The regression coefficient of the variable representing cultural similarity is positive and statistically significant across all seven regression analyses. The regression coefficient of the variable representing ownership ratio is positive and statistically significant in four of the seven regression analyses. The regression coefficients of the variables representing product and process similarity and competitive advantage have statistically significant positive values in two regression equations. The regression coefficient of the variable representing the size of the multinational corporation does not achieve a statistically significant positive value in any of the regression equations. This suggests that the cost of establishing the infrastructure necessary for global learning may not be as substantial as expected. It implies that with the rapid advancement of information and transportation technologies and the consequent reduction in communication and transportation costs, multinational corporations can pursue global learning regardless of their size. Meanwhile, no generally accepted and agreed-upon measure of global learning has been developed among researchers to date. This study contributed to the advancement of the knowledge-based theory of the firm by developing seven measures of global learning: the scope of global learning, the diversity of global learning, the diversity of manufacturing-related global learning, the diversity of non-manufacturing-related global learning, the concentration of global learning, the concentration of manufacturing-related global learning, and the concentration of non-manufacturing-related global learning.
