Patterns of technological learning among the strategic groups in the Korean Electronic Parts Industry

Abstract

This study attempts to explore the patterns of technological learning, among different strategic groups in the Korean Electronic Parts Industry. Three different evolution paths are identified based on a dynamic strategic group analysis of 115 small and medium-sized enterprises (SMEs) in the Korean Electronic Parts Industry for the period of 1990-1995. The first path indicates the evolution from a subcontractor group into an innovator group by accumulating technological capabilities. The second path concerns those firms that move from a subcontractor group into a market focus group by simply adding product lines and customers. The third path involves SMEs that evolve from a subcontractor group into a production focus group by investing in production capabilities. Further, in-depth case analyses on technological learning processes of five firms, which have taken different strategic group evolution paths, are introduced. The analyses result in close association between firms' strategic evolution paths and their technological learning processes. This study also finds that the firms that succeeded in technological learning (i) were managed by CEOs with strong technological expertise and strategic vision, (ii) made an effort to establish management practices to support innovation, and (iii) aggressively pursued diverse external linkages with outside technology sources to learn product and process technologies. Finally, this study discusses several implications of the findings on the theoretical development and strategic management of small firms in Korea. (C) 2002 Elsevier Science B.V. All rights reserved.