Understanding Korean Workplace: Imitation to Innovation
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Transcript of Understanding Korean Workplace: Imitation to Innovation
Understanding Korean Workplace:
Imitation to Innovation
SCHOOL OF BUSINESS ADMINKNU RIEBA INNOVATION CENTER
[email protected], GYEWAN
1960
1965
1970
1975
1980
1985
1990
1995
1997
1998
2000
2005
2006
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Korean Economy
GNP per Capita ($)Population
Year
1960 1965 1970 1975 1980 1985
GNP per Capita ($) 79 3 253 594 1,597 2,242
Population 26,513
28,705
32,241
35,281
38,124
40,806
1990 1995 1997 1998 2000 2005 2006
5,883 11,472
11,237 7,477 10,88
816,43
818,37
442,86
945,09
345,95
446,28
747,00
848,13
848,29
7
Korean Economy
Critical Variables for Successful Enter-prises
1) Reliability2) Economies of Scale3) Quality & Design
Number 1 items in the world
• SAMSUNG ELECTRONICS (SEMI-CONDUCTOR – D-ram)-21%
• LG-DiSPLAY, SAMSUNG ELEC-TRONICS TFT-LCD)-46.5%
• HUMAX(SETOP -BOX)-11%• SAMSUNG SDI, LG
ELECTRONICS(PDP)-54%• HYUNDAI HEAVY
INDUSTRY,SAMSUNG HEAVY IN-DUSTRY(CARGO SHIP)-63%
• SAMSUNG ELECTRONICS,LG ELECTRONICS(AIR CONDITIONER)-22.3%
Emergent Action Rational Action Constrained Action
1
Winnin
g Stra
tegy
8Creative network
7Choice
6Entrepreneurial action
5
Visionary leadership
4Confusion
3Crisis
2Conservation
CURRENT STATUS OF KOREAN CORPORATION
(Data : Hurst (1995), Crisis & Renewal revised
IMF
RestructuringCore Comp.
CoP(Innovative Culture)
BusinessGrowth
Govt. & Industrial Policy
HardworkingKorean/ KoreanCulture
TechnologicalLearning
DirectionSetting
Key agents
Tools
Korean Company Growth MODEL
(Chaebol)
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 Clus-
ter • Financing : German Loans – Divided countries, Compensation money from Japanese Occupa-
tion (600 million $), Vietnam War• Provision of Human Resources : Scholars
studied in the States, Japan, & Europe
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
Protestant work ethic
Confucian Culture
Hard-workingKorean(90’s)Entrepreneurship
Personal drive for achievement
SmartKorean(00’s)
Knowledge-basedEconomy
GlobalCompetition
TRANSFORMING KOREAN
Technological LearningIntegration Of Two Technological Trajectories
Time
Fluid(emergency)
ProcessInnovation
ProductInnovation
GenerationImprovement
Assimilation
AcquisitionAssimilation
Improvement
Acquisition
Technology Transfer
Catching
Catching- upCountries
Technological Capability
IndustriallyAdvanced Countries
Rate Of Innovation
Time
Technology Transfer
Transition(Consolidation)
TechnologyTransfer
Specific(maturity)
Technological Learning
Existing Knowledge Base
Intensity of Efforts
Low
High
Reverse engineering
Low High
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.