Integration model of technology internalization modes and learning strategy: Globally late starter Samsung's successful practices in South Korea

Abstract

This paper examines the mechanism of technology internalization of a technologically late starter or a globally late starter as unit of analysis for the purpose of the paper, by investigating the process in which such a company successfully internalizes advanced technologies globally despite of its inherent drawbacks as a late starter. It exemplifies how such a company could eventually catch up with technology leaders globally at least in a certain number of technologies. At first, we suggest two propositions with literature review of this research area and thoughtful insight induced by experience of authors as practitioners in the field. Then, a comparative analysis is used along its constituents - technological characteristics, technological strategies and learning activities of Samsung's 16 technology development projects in Korea for testing two propositions. Samsung was chosen on its merit of its relatively wide renown as the most technologically advanced company in Korea. We also differentiate the performance of technology internalization into two levels - the level of peripheral technology internalization and the level of core technology internalization - taking into consideration the learning level at which the technology is being internalized. As a result, the analysis categorizes the internalization mechanism as used by a globally late starter into four general types, starting from analyzing the complexity and the external availability of the target technology. For each of four types, this paper describes different internalization modes, learning strategy, and ways of how success is achieved at various levels. Also, this paper tries to suggest the managerial guidelines on successful internalization for a globally late starter. (C) 2002 Elsevier Science Ltd. All rights reserved.