1st Edition

Building Network Capabilities in Turbulent Competitive Environments Practices of Global Firms from Korea and Japan

By Young Won Park, Paul Hong Copyright 2011
    358 Pages 90 B/W Illustrations
    by CRC Press

    Since the start of the recent financial crisis, as most global firms struggle to remain competitive, an increasing number of Korean and Japanese firms have experienced an amazing rate of growth and expansion. Although academic researchers and business leaders in the United States, China, Brazil, India, and Europe seek out the secrets to these businesses’ success, little is known about their business practices.

    Supplying an insider’s perspective, Building Network Capabilities in Turbulent Competitive Environments: Practices of Global Firms from Korea and Japan unveils the strategic and operational practices that have allowed these firms to catch and surpass their competitors in North America and Europe. Based on fieldwork studies and extensive interviews with senior executives, it explains how these companies have developed and enhanced their core competencies through effective integration of product architecture, supply chain management, and IT strategy.

    The book provides practical insight into changing business patterns while avoiding extensive mathematical algorithms and drawn-out theoretical descriptions. It uses cutting-edge case studies to illustrate the innovative manufacturing strategies of these rapidly emerging companies. Accessible to anyone with a basic understanding of business, it reveals the organizational processes of strategy formulation and implementation that are required for success.

    Providing a clear understanding of both the career implications of the changing business landscape and how to deliver products and services that meet and exceed the needs of your customers, this book will help you develop the socio-technical skills needed to succeed in an increasingly competitive and turbulent business environment.

    HISTORY

    What is Network Capability?: Introduction, Framework, and Contents
    Twenty-First Century Global Business Environment
         Changing Product Architecture with the Transition from Analog to Digital
         Network Capability: A New Condition for Effective Responses in Global Business Environment
    Literature Review on Network Capability
         Core Competence and Network Capability
         Product Architecture, SCM, and Network Capability
         Innovation and Network Capability
    Organization of the Book

    Korean IT Industry and Network Leadership: A Comparative Study with Japanese Experiences
    Introduction
    An Analysis of Economic Growth Models of East Asia
         Literature Review
         Research Framework
    Case Analysis
         Korean and Japanese Second-Generation Mobile Communication Industry
              Success of Korean CDMA Industry
               Background of CDMA Industry Development
              Success Factor of CDMA Industry
              CDMA Industry Spreading Effect
    Implications of Korean IT Industry Success Factors
         Importance of Network Formation
         Standardization Issue
         Summary of Korean IT Industry’s Success Factors
    Discussion

    Growth Mechanism and Management of Korean Firms: A Comparative Study with Japanese Experiences
    Introduction
    Literature Review
         Firm Growth Model and Learning Theory
         Research Framework
    Case Studies
         Electronic Industry
              Growth Process of Samsung Electronics (SE)
              Technological Accumulation
    Stage through Organizational Learning
              Spillover Stage (Horizontal Extension)
         Automotive Industry
         Growth Processes of Hyundai-Kia Motor Company (HKMC)
         Technology Accumulation through Learning
         Spillover (Horizontal Expansion) Stages
         Spillover (Horizontal Expansion) Mechanism
    Conclusion

    Product Architecture and Technology Transfer: New Catch-Up Pattern in Digital Era
    Introduction
    Product/Process Architecture and Global Competitive Advantage
    Product Architecture and Technology Transfer
         Growth of Japanese Firms and Technology Transfer
         Product Architecture and Technology
    Case Studies
         CD-ROM/DVD Industry
         TV Industry
    Discussion

    CASE STUDIES OF KOREAN IT INDUSTRY

    Korean Semiconductor Industry: A Comparative Study with Japanese Counterpart
    Introduction
    An Analysis of Semiconductor Industry from Architecture-Based Perspective
         Structure and Characteristics of Semiconductor Industry
         A History of the Semiconductor Industry from an Architecture-Based Perspective
    Changing Korean Semiconductor Patterns (From Memory to Logic Semiconductors)
    Korean and Japanese Semiconductor Industries and Future Prospects
    Discussion

    Korean LCD Industry: Product Architecture and Global Supply Chain Management of LCD
    Introduction
    Product Architecture and SCM (Supply Chain Management) of LCD
         Product Architecture of LCD
         LCD and SCM (Supply Chain Management)
    Structure of LCD Industry and Investment of Korean LCD Firms
         Changing Structure of Value Chain System of the LCD Industry
         Korean Firms Position in the LCD TV Market and Investment Status
    SCM Strategies of Korean LCD Makers
         Building SCM System by LCD Firms
         SCM System Building Effort by Samsung
         SCM System of LG Display
         Vertical Integration Strategy of LCD architecture
    Future Challenges for the Korean Upstream Component Parts Industry

    Korean TV Industry: A Case Study of LG Electronics
    Introduction
    Product Architecture and Operation Management
         Integral Product Architecture and Modular Product Architecture
         Hierarchy of Product Architecture in FPD TV
         LCD and PDP
    Case Study
         Case Background
         Case Analysis
         Integration of Panels and SCM System
         Efficient Mass Production through Implementation of LGPS (LG Production System)
    Discussion

    Korean Mobile Phone Industry: Product Architecture of Mobile Phones and Network Capability
    Introduction
    Product Architecture of Mobile Phones
         Smartphone and Innovation
    New Product Development of Korean Handset Firms
         Global Competitiveness of Korean Mobile Phone Makers
         Product Development Strategy of Korean Handset Makers
    Product Development Strategy of Korean Firms and Smartphone Responsive Strategy
         Comparison of Samsung and LG Product Development
         Smartphone and Business Model of Mobile Communication Industry
    Discussion

    INFRASTRUCTURE OF IT CAPABILITY

    Suppliers Support for Supply Chain Integration: Korean Automobile Industry and the Steel Industry
    Introduction
    Literature Review
         Collaboration and Information Integration between OEM and Its Suppliers
         South Korea Government’s Policy to Support SMEs
    Case Studies
         Hyundai-Kia Automotive Group (HKAG)
              Description of the Firm
              Coexistence Cooperation with Suppliers
         POSCO
              Company History
              POCSO’s 3.0 Innovation Projects
              POSCO Innovation and Collaboration with Suppliers
    Discussion

    Product Development of Japanese Electronics Industry
    Introduction
    Product Architecture and CAD Usage
         Design Idea and Product Architecture Measure
         Product Architecture and CAD Usage
    Research Model and Framework
         Research Framework
         Research Methods
    Results
         Component Parts Statistics of Investigated Products
         Product Architecture and Measurement Results
         Electronic Product Development and CAD Usage
    Conclusion

    IT Usage Strategy of Korean Firms: Case Studies of Mobile Display Manufacturers
    Introduction
    Literature Review
         SCM and Database Integration Capability
         Research Model
    Case Studies
         Case A
         Case B
    Discussion

    IT Usage Strategy of Japanese Firms: Product Lifecycle Management for the Global Market
    Introduction
    Literature Review
         Global Issues of Product Lifecycle Management
         A Research Framework
    Case Studies
         Case A
              Conversion of Product Architecture in Response to Global Marketing
               The Results of Changing Product Architecture
         Case B
              Adoption of a Design Navigation System
              System Adoption Results
         Case C
              Design Localization for Local Product
              Results of Adoption
         Case D
              Global BOM (Bill of Materials)
    Conclusion

    Integrated Manufacturing and IT Strategy for Futuristic PLM: A Conceptual Framework from Japanese Firms
    Introduction
    Literature Review
          Past and Future of Product Lifecycle Management
         A Framework of Futuristic PLM
    Case Studies
          Case A
         Case B
         Case C
    Discussion

    Conclusion
    References

    Biography

    Dr. Young Won Park is an associate professor of Manufacturing Management Research Center at the University of Tokyo, Japan. Dr. Park holds a Ph.D. degree in the Department of Advanced Social and International Studies from the University of Tokyo, Japan. His articles have been published in journals including Management Decision, International Journal of Production Economics, International Journal of Services and Operations Management, International Journal of Logistics Systems and Management, Japan Academy of International Business Studies, Japanese Society for Science and Technology Studies, and the Japan Society of Information and Communication Research. He has received research awards including dissertation paper awards from the Japan Association for Social Informatics (JASI), best paper awards from the Japan Society of Information and Communication Research (JSICR), research awards of the Social Science Field from the Telecommunications Advancement Foundation (TAF), and research students awards of the Social Science Field from the Telecommunications Advancement Foundation (TAF). His research interests are in technology management, IT strategy, and global supply chain management.

    Dr. Paul Hong is a professor of operations management at the University of Toledo, Ohio, in the United States. Dr. Hong holds a Ph.D. degree in manufacturing management and engineering from the University of Toledo. He also holds an MBA and an MA in economics from Bowling Green State University and a BA from Yonsei University in Seoul, Korea. His articles have been published in journals including Journal of Operations Management, International Journal of Operations and Production Management, International Journal of Production Economics, International Journal of Production Research, Management Decision, Journal of Supply Chain Management, European Journal of Innovation Management, Journal of Enterprise Information Management, Journal of Knowledge and Information Management, International Journal of Quality and Reliability Management, Benchmarking: An International Journal, Strategic Outsourcing: An International Journal, Research in International Business and Finance, Korean Journal of Tourism Research, and Tourism Culture and Science. His research interests are in technology management, operational strategy, and global supply chain management. He is International Research Network Coordinator of Annual Symposium and Workshop in Global Supply Chains. He is also US coordinator of International Manufacturing Strategy Survey (IMSS).