Latecomer firms' combination of strategies in a specialized suppliers sector: A comparative case study of the Korean plastic injection molding machine industry

Abstract

How do latecomer firms combine strategies to successfully grow in a specialized suppliers sector? We examine how latecomer firms combine technology and market development strategies to grow in the sector. Through an in-depth comparative case study, we found that, depending on the modularity of the technology that latecomer firms select, firms show distinctive combinations of technology and market development strategies that led to the successful growth in the sector. More specifically, the combinations spring from the selection of product architecture, followed by product development procedure, and knowledge acquisition that constitute technology development strategy and customer base management as a key activity of market development strategy. Based on the results, we introduce an analytical framework to explain two optimal combinations of technology and market development strategies corresponding to the selection of product architecture. This article provides new empirical evidence and an analytical framework for explaining an importance of optimal combinations of strategies in a latecomer firm's success.