신흥국 가전시장의 이질성과 한국계 전자기업의 현지화에 관한 소고(小考)

The relationship between Korean MNE localization and product market heterogeneity in emerging countries: A case study

This paper intends to shed light on Korean MNE localization among emerging countries. Put it simply, it tries to compare localization strategy between Samsung Electronics(hereafter SEC) and LG Electronics(hereafter LGE) in accordance with product market heterogeneity. There has been a little research on the topic in which localization is to be studied by product market and subsidiary. Micro institution perspective is shown to elicit the relationship between product market characteristics and subsidiary's localization in China and India. In the real world, micro environment as an informal institution seems to be the infrastructure of a product market in terms of consumption, consumer needs, competitive forces and dominant local player. Under such circumstances, this study analyzed the localization case of SEC and LGE which have made inroads in the Chinese and Indian white goods market. According to the results of the case analysis, we elaborated that the level of localization as a strategy can be dependent on the situation in the local product market. Moreover, findings implied that more locally responsive strategies are required to be suitable in a more heterogeneous product market. In conclusion, befitted localization process is indispensable in adapting to the nature of white goods market characteristics in emerging markets. Furthermore, localization is essential to tailor to the market in the early stage of market entry.