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After-Development DynamicsSouth Korea's Contemporary Engagement with Asia$
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Anthony P. D'Costa

Print publication date: 2015

Print ISBN-13: 9780198729433

Published to Oxford Scholarship Online: November 2015

DOI: 10.1093/acprof:oso/9780198729433.001.0001

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Diffusion of a Korean labor–management partnership model across Asia

Diffusion of a Korean labor–management partnership model across Asia

The case of LG Electronics

Chapter:
(p.143) 8 Diffusion of a Korean labor–management partnership model across Asia
Source:
After-Development Dynamics
Author(s):

Byoung-Hoon Lee

Sun-wook Chung

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198729433.003.0008

This chapter looks at the transfer of another set of institutional practices, namely industrial relations (IR). The chapter describes how LG Electronics (LGE), a Korean multinational, has diffused industrial relations practices of labor-management partnership into its foreign subsidiaries in Indonesia and China, and what this Korean multinational has achieved through the diffusion of its innovative IR practices. The LGE case suggests that MNC’s IR model incorporating managerial style, skills, and human resource management practices could be transferred, even if the country of origin and the country of operation differ from each other in their contextual settings. More importantly, the case study offered here also shows that the diffusion of IR practices by MNCs to their subsidiaries need not be of the low-road kind and that the process is evolving rather than remaining static. This bodes well for Korean business engagement in Asia.

Keywords:   Korean multinational, management style, labor–management partnership, human resource management, cross-national diffusion, industrial relations, LG Electronics

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