중국진출 한국기업의 투자환경 및 현지화가 후속투자에 미치는 영향에 관한 연구

The Effect of their Investment Environment and Localization on the Sequential Foreign Direct Investment of Korean Firms in China

This paper analyzes elements affecting Korean companies' subsequent investment in China after their initial investment. The elements are categorized into three groups: environmental factors (i.e., investment motivation, corporate characteristics of local subsidiaries, subsidiaries' autonomy from parent companies, and local costs), international marketing strategy-related factors (i.e., standardization and adaptation, and methods to finance local costs), and performance-related factors (i.e., business performance). The analysis is based on a survey conducted against Korean firms doing business in China. The findings are as follows. First, firms who have advanced to China seeking a new market and low competition were more likely to make subsequent investment. Second, the longer a company stayed and the larger the revenues, the more likely it was to make additional investment. Third, the higher autonomy a subsidiary had in marketing, the more likely it was to investment again Fourth, the higher the local costs, the less likely to make invest further. Fifth, the more focus a business put on product localization, the more likely it was to make further investment. Sixth, the better a company performed and the higher the current yield, the more likely it was to make subsequent investment.