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Purpose This study aims to examine how different modes of knowledge flows affect the changes of asset specificity and how ownership control moderates the relationship between knowledge flows and asset specificity in the open innovation paradigm. Design/methodology/approach This paper selects information technology outsourcing as the research base. It uses the feasible weighted least squares modeling method for its analysis and has collected the data from 2,369 research and development contracts of multinational vendor firms in China. Findings The coupled and outbound knowledge flows have a direct and positive effect on asset specificity. Moreover, the results show that weak corporate control has significant moderating effects on the relationship between both coupled and outbound knowledge flows and asset specificity; the strong control positively moderates the relationship between outbound knowledge flows and asset specificity. Practical implications In open innovation, firms build a higher degree of asset specificity to maximize the efficiency of knowledge flows, which then helps them to enhance innovation capacity and market performance. Originality/value Preceding studies have tended to examine the influences of asset specificity as an independent variable in a closed innovation paradigm. Asset specificity is hence often left as the antecedent “black box.” This paper, however, opens the “black box” of asset specificity, which is set as a dependent variable, by investigating the influences of knowledge flows on the asset specificity in the context of open innovation. It also reinterprets the role of asset specificity by adopting the lens of open innovation theory.

This paper presents a comprehensive framework for understanding how different national governance systems influence multinational corporationsʼ (MNCs) location choices for foreign direct investment (FDI). The framework moves beyond the binary classification of political regimes (democracy vs. autocracy) by integrating both political and economic governance into a two‐dimensional analysis. The study proposes that autocratic capitalist regime is more effective in attracting FDI for developing countries, while democratic capitalist regime is more attractive for developed countries. Using comparative analysis of China and India (developing) and the US and the European Union (developed), the paper illustrates how the interaction between political and economic governance shapes FDI attractiveness of host countries. The findings contribute to international business and political economy literature by offering a more comprehensive understanding of how national governance systems impact FDI attractiveness, and provide valuable insights for policymakers aiming to enhance the host countryʼs FDI attractiveness.

PurposeThe main purpose of this research is to construct a generalized set of innovation processes that occur at the ecosystem level based on the academic research. The study analyzes the cultural and creativity-driven over-the-top (OTT) platform that encompasses diverse network of ecosystem members by utilizing the four cooperation practices.Design/methodology/approachThis study begins with the literature review that discusses various topics related to ecosystem (e.g. service innovation, innovative ecosystem). Then, this study introduces a new conceptual framework that describes how cooperations occur in the ecosystem. Finally, a qualitative and explorative case study of the OTT platforms in the global context is conducted.FindingsThe application of the framework reveals how co-innovative business ecosystems demonstrate co-evolution through different structures and directions. An ecosystem can evolve by incorporating other industries (i.e. horizontal growth or broadening strategy) to deepen and broaden the industry integration.Originality/valueAs an explorative approach that opens the discussion on how co-innovation and co-evolution occur at the ecosystem level, particularly in the culture and creativity-driven industry, the value of this research extends to other similar industries where diverse actors such as technology firms, Internet firms, direct consumers, government and even the society impact the type of product and service and shape the evolution of the entire ecosystem.

Purpose This conceptual paper aims to explore under what conditions multinational companies (MNCs) are more likely to internationalize through externalization modes. Design/methodology/approach This paper complements previous studies by proposing three industry-specific factors that affect MNCs’ decision for externalization. It then applies this framework to the case of Korean MNCs’ strategic choice when entering the Chinese film market which is highly regulated by the government, to illustrate how such a framework works in practice. Findings This paper suggests that MNCs are more likely to choose externalization entry modes under the three industry conditions: when the business grows fast, when there are best practices of industry standard and when the business requires multi-competence. It also shows that the three conditions explain well the growing Korea–China co-productions in the Chinese film market. Practical implications This paper provides useful implications for the government’s regulatory effectiveness. The protectionist policies of the host government are valid only in an industry where the three conditions are met, as they increase the possibility of domestic firms’ participation by encouraging foreign MNCs to shift their entry mode from sole venture toward alliances with domestic firms. Originality/value This paper enriches the entry-mode research by indicating that MNCs’ externalization decisions need to consider these industry-specific factors. In addition, it also contributes to the understanding on why some countries maintain their high attractiveness for foreign MNCs, whereas other countries do not, given the similar level of restrictive government regulations.

India has a longstanding reputation in the film industry, whereas South Korean films have only recently achieved notable success globally. Despite their significant positions in the global film market, there are very few studies that compare and analyze the competitive advantage of the two countries in the film industry. This paper adopts the ABCD model as a complementary framework to the two mainstream theories of strategic management (i.e., industry-based view and resource-based view) to analyze and compare the competitiveness of the industrial success of emerging countries. For the empirical test, this paper uses natural language processing methods to operationalize the theoretical model. After collecting text data from news articles in English related to the Korean and Indian film industries, this study analyzes how many keywords with regards to the 8 sub-factors of the ABCD model are mentioned in the articles using the document similarity measurement. The results reveal the different but complementary areas of strengths. India has higher competitiveness in the factor of Agility while Korea has higher competitiveness in Convergence. This study also highlights the areas for further development and potential partnership between the two countries by leveraging each other’s strengths.

In spite of the high potential of economic cooperation between the two Koreas, political tensions and international sanctions have discouraged the sustainability of economic outcomes. To overcome these political challenges, this article introduces two frameworks of international cluster and global value chains (GVCs) for developing effective and sustainable economic exchanges. These frameworks are applied to the case of the Kaesong Industrial Complex (KIC) and analysis of the reasons for its failure is provided. This article then suggests two strategic solutions for the KIC: minimizing the role of North Korea to a few GVC activities, and encouraging more foreign companies’ investment. Unlike preceding studies that overemphasize the political challenges in inter-Korean economic relationships, we emphasize that an effective approach through internationalization can not only contribute to sustainable economic development but also ease political tensions

The Korean textiles and apparel-related industry has played a major role in the country's development; however, this sector's competitiveness is decreasing due mainly to labor costs. As with the country's economic development, the new sources of competitive factors need to be strategically developed and cultivated. The purpose of this study is to explore what constitutes a country's competitiveness in the global apparel market after losing its labor competitiveness and how a country effectively achieves it. This study employs two competitiveness models, Porter's diamond model and a generalized double diamond model, as a theoretical framework. Along with two theoretical models, this study employs extensive literature reviews, examples of successful firms, and four interviews with field practitioners in the Korean apparel industry. Beginning with Porter four determinants (factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry), new sources of competitive advantage factors are suggested for the evolving industry. The generalized double diamond model incorporates international activities, which may occur either within a country or outside a country. Utilizing generalized double diamond model, the future directions and solutions for the industry with the identified new competitive factors were suggested. Based on the models and the identification of new competitive factors, the Korean apparel industry is reviewed, and recommendations are made for its continued growth in the global marketplace. Implications pertaining to the creation of a dynamic self-reinforcing diamond system were also suggested.

Abstract The Korean wave, which is the popularity of Korean entertainment outside Korea, is a fairly new phenomenon. Encompassing Korean dramas, films, and songs, it has been highlighted by international media outlets and scholars. Several prestigious newspapers and scholars attempted to explain the competitiveness of the Korean wave, but they have remained biased by missing, overemphasizing, or overlapping important success factors. To provide a more comprehensive and accurate analysis, this paper conducts a rigorous study on the competitiveness of Korean entertainment industry focused on Korean dramas and films with a comprehensive analytical tool, the generalized double diamond model. The results of this study provide evidences that the Korean wave is not a temporary phenomenon but a sustainable industry segment. For further enhancement of this important industry, this paper suggests useful implications, including international cooperation with other countries.

Purpose - While many studies have investigated the impact of foreign direct investment (FDI) on a host country's economic development, little research has been done on the role of FDI as related to economic decline and recovery. This paper aims to fill this gap by investigating the economic effects of inward and outward FDI during turbulent times.Design methodology approach - This paper develops a theoretical argument postulating that FDI will have a stabilizing effect on a nation's economic growth during crisis and also at times of recovery. Hypotheses were advanced and tested with data collected from affected economies during the Asian financial crisis using a fixed-effect panel regression analysis.Findings - Results confirm that both inward and outward FDI stabilizes a country's economic growth during times of a financial crisis. Countries that had higher levels of FDI prior to the crisis experienced a milder recession and a more gradual recovery. This stabilizing effect, however, is found to be more robust for FDI-stock than for FDI-flow.Social implications - This paper reveals that FDI has a stabilizing rather than an accelerating effect on a country's economy growth during both periods of crisis and recovery. It contradicts the common belief that FDI would help speed up, not stabilize or dampen the uptake of economic activities during the recovery period. This finding will help policy makers educate the public and set realistic expectations about the economic impact of FDI.Originality value - This paper makes original contributions by uncovering the complex and unexpected role of FDI as related to a nation's economic decline and recovery during a financial crisis. The findings have important implications for both international business scholars and public-policy decision makers.

The main purpose of this paper is to introduce a comprehensive model explaining the global expansion of firms and to find out viable strategies for firms to survive global competition. Through the critical review over existing literature, this study first introduces a new framework explaining the global expansion of firms at the level of functional activities in the value chain, and then empirically tests the predictions of the new framework with data in the motor industry. Empirical findings confirm the new model's predictions. First, each function in the value chain has a unique way of global expansion: the global strategy is suitable for the production function, while the multidomestic strategy is applicable to the marketing function. Second, each function follows a dynamic path of global expansion from domestic to transnational via either global or multidomestic, according to the innate characteristics of corresponding function. Finally, the degree of global expansion of a firm is positively correlated with its financial performance. Focusing on developing a new framework on global expansion, this study utilizes a rather small number of data and, therefore, requires readers' discretion when interpreting the results of statistical analyses. With the dynamic diversification-coordination model, managers can recognize the level and characteristics of their firms' global expansion, not only at the firm level but also at the functional level. This allows managers to establish a global strategy tailored to each function, thus reconciling possible conflicts generated from different interests among different functions in the firm. First, this article introduces a new perspective of analyzing the global expansion of firms by shifting the level of analysis from the firm level to the functional level where the new framework can reconcile the constant debates on globalization. Second, this article suggests an intuitive and theory-based index measuring the degree of global expansion of firms.