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A Study on Dual Organizational Identification of Local Employees in Multinational Enterprise Subsidiaries in Korea

Heo, Ajeong, Yoo, Chiyeon, Lee, Gangpyo

Sogang University
Gyeongsang National University
Sogang University

Published: January 2025 · Vol. 54, No. 1 · pp. 55-80

DOI: https://doi.org/10.17287/kmr.2025.54.1.55

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Abstract

Based on social identity theory, this study examines dual organizational identification (DOI) of host country nationals(HCNs) working at multinational corporation(MNC) subsidiaries in Korea to address the absence of existing research on organizational identification with MNC(OIM), which is evident in the MNC context, and to distinguish it from organizational identification with the subsidiary(OIS). This study structured variables of MNC characteristics into two categories (home-host country differences and headquarters-subsidiary relationship) to empirically analyze their impact on the organizational identification of HCNs with MNC and the organizational identification of HCNs with subsidiary. A structural equation model analysis was conducted using survey data from 501 HCNs of 77 MNC subsidiaries from 24 countries operating in Korea. The findings indicated that economic distance and cultural distance, which represent characteristics of home and host country differences, have a positive effect on OIS. Additionally, the results showed that subsidiary autonomy, subsidiary CEO staffing, and contact with foreign managers, which represent characteristics of headquarters-subsidiary relationships, have a positive effect on OIM and OIS.The implication of this study is as follows. From an academic perspective, this study identified the impact of MNC characteristics on the dual organizational identification of HCNs. From a practical perspective, this study provides valuable insights for improving dual organizational identification.
Keywords: 이중 조직일체감다국적기업에 대한 조직일체감자회사에 대한 조직일체감자회사 현지 직원