This paper aims to provide a research framework to explore the change in corporate environmental strategy based on the resource‐based view of the firm and institutionalization…
Abstract
Purpose
This paper aims to provide a research framework to explore the change in corporate environmental strategy based on the resource‐based view of the firm and institutionalization theory and to present empirical evidence that illustrates how environmental strategy has changed.
Design/methodology/approach
The framework and propositions are examined by using a longitudinal empirical analysis using mail surveys conducted in South Korea in 2001 and 2004.
Findings
This paper shows that there is a trend in the change of environmental strategies, with companies shifting their environmental stance along the nonlinear and evolutive paths. In addition, top management attitude towards the environment and a firm's slack resources are found to be significantly related to environmental strategic change.
Research limitations/implications
The research well reflects the changing social concern for environmental issues in Korea. This model can be applied to explain the change of corporate environmental strategy in other Asian countries, such as China and India. This paper has limitations, including a survey based on recall of the respondents and a relatively low response rate, which should be taken into consideration for further studies.
Practical implications
This paper enables corporate managers and practitioners to better understand the trend in environmental strategic change and suggests that managers should first consider top management's commitment and slack resources when the change of environmental strategy is planned.
Originality/value
This paper contributes to the knowledge in the research area where research efforts, both theoretical and empirical, dealing with environmental strategic change are beginning to emerge, and also provides the empirical evidences from a longitudinal analysis.
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Joongsan Oh and Seung‐Kyu Rhee
This study aims to investigate relationships among supplier capabilities, collaboration in new car development, and the competitive advantage of carmakers based on the…
Abstract
Purpose
This study aims to investigate relationships among supplier capabilities, collaboration in new car development, and the competitive advantage of carmakers based on the resource‐based view (RBV).
Design/methodology/approach
A survey of first‐tier suppliers in the Korean automotive parts industry was conducted, and pertinent hypotheses were tested by using the ordinary least squares (OLS) method and hierarchical multiple regression analysis (HMRA).
Findings
It was found that suppliers' flexibility, engineering and modularization capabilities positively influence collaboration in new car development, which in turn positively affects the competitive advantage of carmakers. This result empirically verifies the RBV proposition that one motive for interfirm collaboration can be the opportunity to gain access to other firms' resources/capabilities. The theory of the RBV was further extended by demonstrating that suppliers' quality improvement and modularization capabilities directly contribute to the competitive advantage of carmakers and that the influence of quality improvement and modularization capabilities on this competitive advantage are robust against technological uncertainty. However, the positive effect of collaboration in new car development on the competitive advantage of carmakers is decreased by the moderating effect of technological uncertainty.
Research limitations/implications
The findings of this study were obtained from a limited population of the Korean automotive industry. This study not only empirically verified the proposition of the RBV but also extended the RBV theory by empirically demonstrating direct relationships between suppliers' capabilities and carmakers' competitive advantages.
Practical implications
Suppliers must enhance flexibility, modularization and engineering capabilities in order to vitalize collaboration with carmakers in new car development. As technological uncertainty increases, carmakers should address in‐house the problems caused by technological uncertainty or delegate related jobs only to suppliers with significant capabilities for quality improvement and modularization.
Originality/value
This is one of the few studies to identify the moderating effect of technological uncertainty on interfirm collaboration.
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Hyeon‐Soo Ahn, Hee‐Don Jung, Byong‐Hun Ahn and Seung‐Kyu Rhee
Addresses the issue of supply chain competitiveness from the manufacturing capability perspective. Six supply chains are analysed, based on three manufacturers in the Korean home…
Abstract
Addresses the issue of supply chain competitiveness from the manufacturing capability perspective. Six supply chains are analysed, based on three manufacturers in the Korean home appliance industry. The case study findings demonstrate the strong connection between capability requirements of suppliers of critical parts and competitive priorities of manufacturing customers. For suppliers of non‐critical items, delivery and cost are the most important capability dimensions. The factors influencing congruence between customer requirements and the capabilities of constituent firms are also examined. Mutual co‐operative behaviour, specificity of transaction‐related assets, and “criticalness” of traded parts are identified as the key factors influencing congruence.
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Kyung‐Tae Kim, Seung‐Kyu Rhee and Joongsan Oh
The purpose of this paper is to investigate the strategic role evolution of client‐following local subsidiaries of foreign automotive parts suppliers in China.
Abstract
Purpose
The purpose of this paper is to investigate the strategic role evolution of client‐following local subsidiaries of foreign automotive parts suppliers in China.
Design/methodology/approach
The units of analysis are five local subsidiaries of foreign automotive parts suppliers dealing with Beijing Hyundai Motor Corporation in China; a case study methodology based on interviews with managers of the subsidiaries was employed.
Findings
First, a modified version of Ferdows's model can be utilized to aptly analyze the strategic role changes of subsidiaries of foreign automotive parts suppliers which have followed their major client into the emerging market. Second, the development of a subsidiary's functional capabilities varies from subsidiary to subsidiary, depending on the headquarters' (HQ) global strategy and the nature of its interactions with external players. Third, the strategic role evolution of a subsidiary is critically influenced by the levels of its functional capabilities. Finally, the mechanism for a subsidiary's strategic role evolution can be explained by the interactions of three critical factors: the task assigned by HQ, the subsidiary's choice, and the local environment.
Research limitations/implications
The external validity of this case study is yet to be verified and the possible gaps in perceptions between the subsidiary and the HQ have not yet been addressed. This is the first case study to address the strategic role evolution of client‐following subsidiaries of automotive parts suppliers.
Practical implications
This study presents the HQ with a framework for role assignments and a checklist for planning the development of a subsidiary's capabilities.
Originality/value
This is the first paper to investigate the strategic role evolution of local subsidiaries of foreign automotive parts suppliers in the emerging market, and it finds critical factors affecting capability development, which in turn shape the subsidiary's process of role evolution.
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Joongsan Oh and Seung‐Kyu Rhee
The purpose of this paper is to identify the manufacturer‐supplier collaboration (MSC) types in the automotive industry and factors that affect such collaboration.
Abstract
Purpose
The purpose of this paper is to identify the manufacturer‐supplier collaboration (MSC) types in the automotive industry and factors that affect such collaboration.
Design/methodology/approach
The unit of analysis is 1st tier suppliers registered with Hyundai‐KIA Motors Corporation (HKMC); a survey was conducted targeting these 1st tier suppliers. Then, hypotheses were tested using a hierarchical multiple regression analysis.
Findings
First, five distinct MSC types were identified as follows: collaborative communication, collaboration in new car development, collaborative problem solving, strategic purchasing, and supplier development. Second, contrary to previous studies, suppliers' customer proliferation capability is found to affect MSC positively. Of suppliers' capabilities, flexibility, dependability improvement, module, design, and 2nd tier supplier development/coordination capabilities affect MSC positively. Third, while technology uncertainty is found to have a significant moderating effect on the influence supplier capabilities exercise over collaborative problem solving and strategic purchasing, it has no direct impact on any MSC type.
Research limitations/implications
Sampling is limited to a relatively small number of HKMC's 1st tier suppliers. Of note is that this study examined factors affecting MSC, focusing on supplier capabilities. In terms of methodology, surveys, and interviews were conducted concurrently to ensure reliability of results.
Practical implications
First tier suppliers can review their MSC activities and identify which capabilities they need to develop in order to strengthen their MSC with due consideration of technology uncertainty. Auto manufacturers can also benefit from the empirically tested MSC typologies.
Originality/value
This study not only considered technology uncertainty as a moderator of the impact that supplier capabilities have on MSC, but also improved the understanding of MSC through empirical examination.
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Jae-Woan Jeon, Hyoung-Gi Kim and Hun-Koo Ha
The purpose of this paper is to present a new strategic framework of Supply Chain Management (SCM) in the automobile industry. For our purpose, we first had studied about the…
Abstract
The purpose of this paper is to present a new strategic framework of Supply Chain Management (SCM) in the automobile industry. For our purpose, we first had studied about the structure of relationship between supplier and buyer in Korean automobile industry. With this study, we searched for factors which compose a strategy of SCM, and whether or not the companies’ performance that are influenced by specific SCM strategy factors. Of course, our study based on existing researches, especially Cox et al.(1995) and Venkatraman et al.(1992), but the existing researches is differentiated in this paper that is treated several power factors as resource, value, environment and relation. So, results of our paper are what a good strategy of SCM composed by these factors and how to adopt this strategy on global logistics. And our methodology has some using of statistics method by SPSS 14(v) such as factor analysis, reliability analysis, and SEM(Structural Equation Model) with AMOS.