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Article
Publication date: 13 March 2007

Su Yol Lee and Seung‐Kyu Rhee

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…

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.

Details

Management Decision, vol. 45 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 1 June 2010

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.

Details

Management Decision, vol. 48 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 1 December 1999

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…

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.

Details

Supply Chain Management: An International Journal, vol. 4 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

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Article
Publication date: 11 January 2011

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.

Details

International Journal of Operations & Production Management, vol. 31 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

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Article
Publication date: 23 May 2008

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.

Details

International Journal of Operations & Production Management, vol. 28 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

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