Case Study 2.: Trade and Innovation in the Korean Information and Communication Technology Sector<sup>1 </sup>. Onodera, Osamu
Kim, Hanna Earl
OECD Journal: General Papers; 2008, Vol. 8 Issue 4, p109-155, 47p, 34 Charts, 20 Graphs
This includes the strategy of the organisation, the innovation strategy, the culture in the organisation towards risk-taking and change, the motivation of employees, cross functional learning, knowledge management and the use of internal and external networks.
“Employees’ willingness to take risks very much depends on the existence of a ”noblame” culture. A strong culture fosters innovation only if it is built on norms such as accepting failure…” (Goffin & Mitchell, 2005, s. 265).
”Multifunctional learning fosters innovative and learning by doing on the part of the employees and help them keep up to date with the latest developments. It also serves as a basis for creating a climate that can bring about organizational transition” (Takeuchi & Nonaka, 1986).
“Organizations need to increase their innovative capacity and one powerful mechanism for doing so is to extend participation in the process to a much wider population. Mobilizing high levels of participation in the innovation process is unfamiliar and, for many organizations, relatively untested and apparently risky” (Bessant, 2003, s. 767).
”Mobilizing and managing knowledge becomes a primary task and many recipes offered for achieving this depend on mobilizing a much higher level of participation in innovative problem-solving” (Bessant, 2003, s. 767)
”Companies increasingly cannot expect to warehouse their technologies, waiting until their businesses make use of them” (Chesbrough, 2003, p. 132)
Thirdly, the 7-S framework contains the very process of innovation. The process is divided into a series of relatively well-known steps in the “funnel” approach that seems to be standard in theory and praxis these days. However, it has been chosen to illustrate this differently than conventionally, because:”… The assumption of a sequential progression without feedback loops and recurring tasks is unrealistic …” (Saren, 1994, s. 633). Hence, the illustration of the process circling the innovation fundamentals. So what is contained within the process element of the 7-S framework? Again this can be illustrated by using a quotation from some of the state-of-the-art literature:” … There is no doubt that for managers to increase the success rate of their new product efforts, they should master techniques for the planning, development, deployment, evaluation and control of necessary competencies throughout the new product (NPD) process, i.e., from the generation of the new idea to the launch of the product to the marketplace …” (Tzokas et al., 2004, s. 619). In other words, the innovation process is measured by looking at project management, project planning, top management involvement, project managers, and the application of innovation fundamentals across the seven stages of the process.
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A company that epitomises the transformation of the Korean ICT sector is Samsung Electronics. Samsung Electronics is one of the world leaders in semiconductors, in particular DRAMs and fiash memories. Liquid Crystal Displays (LCDs), mobile phones, and digital appliances such as fiat panel TVs. While Samsung had quickly grown from an assembler of black and white TVs in the 196()s to one of the market leaders in DRAMs in the late 1980s, making use of foreign technology and based on foreign markets, it was generally a market follower rather than an innovator even in the late 1980s. Changes in the business environment in the early 1990s, i.e. greater competition at the lower end of the market due to...
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