For the sustainable growth of venture companies, this explorative study aimed to comprehensively analyze the factors affecting their performance. In addition, this study attempted to verify whether different or similar performance management should be performed according to the difference in characteristics of venture companies. In this study, corporate performance was classified into non-financial and financial performance and analyzed by dividing it into quantitative and qualitative growth. As factors influencing performance, this study analyzed corporate competitiveness compared to competitors and the number of CSR types in which companies participate. In addition, it intended to provide realistic implications and academic contributions to the performance management of venture companies by verifying whether differences in characteristics such as a company’s start-up business year, growth stage, and industry should be reflected in corporate performance management as control variables.
Due to the recent trend of sustainability and socio-economic changes and to expand the research on resilient supply chains in Korea, this study targets Korean venture companies to ensure their success and growth. This study aims to analyze the reliance factors affecting the business performance of Korean manufacturing venture enterprises by considering two types of business performance: technology and financial performance. Regarding the factors influencing business performance, this study analyzes five resilience factors: product structure intensity, brand intensity, research and development intensity, cooperation, and corporate social responsibility. Business years were used as control variables and the causal relationship between the factors was analyzed using SPSS 22. The results show that all resilience factors positively influenced technology performance. The results for the financial performance show research and development intensity and corporate social responsibility. However, cooperation only shows different results between technology performance and financial performance. Based on these results, this study provides implications and contributions for manufacturing venture enterprises.
Purpose
The purpose of this paper is to empirically analyze what effects the headquarters’ (HQ) business strategy and corporate culture, the local network embeddedness of the foreign subsidiary, and HQ-subsidiary communication have on the staff localization of foreign subsidiaries. The authors carry out empirical analysis on how localization of foreign subsidiaries ultimately affects the performance of foreign subsidiaries.
Design/methodology/approach
This study is an empirical analysis on the determinants of staff localization and the relationship between staff localization and corporate performance. In this study, the five hypotheses were proposed and tested using survey data. The authors randomly selected a total of 800 companies as subjects and conducted a survey. The final 222 survey data including HQs and subsidiaries were used for empirical analysis. The statistical analyses such as reliability test, factor analysis and regression were used.
Findings
This study shows that there was a higher level of staff localization by the foreign subsidiary when the investment goal was market-oriented investment, the Korean foreign subsidiary had stronger local network embeddedness and there was better HQ-subsidiary communication. In addition, the relationship between localization and subsidiary performance shows an inverted U-shape. Such results will give various implications to companies.
Originality/value
The research that takes a multilayered consideration on factors of the HQ, subsidiaries, and the HQ-subsidiary relationship is rare. To overcome such limitations, this study carried out a survey in order to find more in-depth decision factors. Specifically, this study analyzed the effects of three large aspects of investment goals and corporate culture from the aspect of the HQ, local network embeddedness from the aspect of foreign subsidiaries, and the level of HQ-subsidiary communication from the aspect of HQ-subsidiary relations, and how they affect staff localization.
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