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Understanding Korean Workplace: Imitation to Innovation. SCHOOL OF BUSINESS ADMIN KNU RIEBA INNOVATION CENTER [email protected] MOON, GYEWAN. Critical Variables for Successful Enterprises Reliability Economies of Scale Quality & Design. Number 1 items in the world

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Understanding Korean Workplace: Imitation to Innovation

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Understanding korean workplace imitation to innovation

Understanding Korean Workplace:

Imitation to Innovation

SCHOOL OF BUSINESS ADMIN

KNU RIEBA INNOVATION CENTER

[email protected]

MOON, GYEWAN


Korean economy

Critical Variables for Successful Enterprises

Reliability

Economies of Scale

Quality & Design

Number 1 items in the world

SAMSUNG ELECTRONICS (SEMICONDUCTOR – D-ram)-21%

LG-DiSPLAY, SAMSUNG ELECTRONICS TFT-LCD)-46.5%

HUMAX(SETOP -BOX)-11%

SAMSUNG SDI, LG ELECTRONICS(PDP)-54%

HYUNDAI HEAVY INDUSTRY,SAMSUNG HEAVY INDUSTRY(CARGO SHIP)-63%

SAMSUNG ELECTRONICS,LG ELECTRONICS(AIR CONDITIONER)-22.3%

Korean Economy


Understanding korean workplace imitation to innovation

CURRENT STATUS OF KOREAN CORPORATION

Emergent Action

Rational Action

Constrained Action

2

Conservation

6

Entrepreneurial action

5

Visionary leadership

IMF

CoP

3

Crisis

(Innovative

Culture)

7

Choice

1

Winning Strategy

Core Comp.

8

Creative network

4

Confusion

Restructuring

(Data : Hurst (1995), Crisis & Renewal revised


Understanding korean workplace imitation to innovation

Korean Company Growth MODEL

Govt. &

Industrial Policy

Direction

Setting

Hardworking

Korean/ Korean

Culture

Business

Growth

Key agents

(Chaebol)

Technological

Learning

Tools


Industrial policy

Industrial Policy

  • Direction Setting : Centralized Planning & Effective Govt. Intervention

  • Selection of Strategic Industries :

    Heavy & Chemical Industry (1970’s),

    Electronic Industry (1980’s)

  • Special Industry Promotion Act :1969

  • Establishing Industrial Complex :

    Gumi Industrial Complex – Gumi Innovation Cluster

  • Financing : German Loans – Divided countries,

    Compensation money from Japanese Occupation

    (600 million $), Vietnam War

  • Provision of Human Resources : Scholars studied in the States, Japan, & Europe


Hardworking korean korean culture

Hardworking Korean & Korean Culture

  • Neo-Confucianism

    1) Education emphasized,

    2) The clan in social & economic relations

    3) Harmonious interpersonal relations

    4) The pursuit of the highest good

    5) Discipline

  • Hardworking Koreans

    1) the national trait of tenacity

    2) “han” psyche = resentment

    3) conditioning during school days

    4) physical environment

    5) “beat Japan” spirit

    6) experience of deprivation


Understanding korean workplace imitation to innovation

TRANSFORMING KOREAN

Knowledge-based

Economy

Confucian Culture

Protestant work ethic

Smart

Korean

(00’s)

Hard-working

Korean

(90’s)

Entrepreneurship

Global

Competition

Personal drive

for achievement


Technological learning

Technological Learning


Technological learning1

Technological Learning

High

Reverse engineering

Intensity

of Efforts

Low

Low

High

Existing Knowledge Base

A chaebol is a business group consisting of varied corporate enterprises

engaged in diversified business areas and typically owned and managed by

one or two interrelated family groups.


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