RNDINTRound to Integer
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Again on the basis of the extant literature (Caves 1974, Swedenborg 1979, Lall/Siddharthan 1982, Yu/Ito 1988, Kogut/Chang 1991, Drake/Caves 1992, Hennart/ Park 1994), a Korean firm's technological know-how (RNDINT) was measured in terms of its 1996 (Sample A) or 2001 (Sample B) R&D expenses divided by its total sales.
Contrary to expectation, the effect of RNDINT, a Korean firm's R&D intensity, was insignificant for both samples: thus Hypothesis 5 was rejected.
Summary of Independent Variables and Expected Signs for Full Ownership Variables Description Expected Name Sign for Full Ownership Internalization Variables RNDINT R&D intensity: R&D/sales + EXPORT Int'l experience: Export ratio + EXSUB Int'l experience: Number of foreign subsidiaries + CULDIST Cultural distance: Index of Kogut & Singh (1988) - POLRISK Political risk: World competitiveness report (WCR) - Control Variables SIZE Size of the firm: Number of employees + KIRETSU Keiretsu membership: 1 = Yes; 0 = No + DIVERS Int'1 product diversification: 1 = Yes; 0 = No - OWNRST Constraint of foreign ownership: WCR - Table 2.