• Journal of Korea Trade
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• v.24 no.3
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• pp.37-54
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• 2020

Purpose - This study is to investigate the determinants of suppliers' dependence on buyers in the home country by developing a theoretical model of innovative activities. The high dependence of auto parts suppliers on a single local buyer in South Korea due to firm ownership issues and incremental innovation is examined using data from a set of organizations that supply intermediate goods to this automotive manufacturer. Furthermore, we tested the moderating effect of FDI and global knowledge sourcing on the relationship between firm ownership and suppliers' dependence on the local buyer. Design/methodology - To test the hypotheses, we examined a sample of 101 suppliers over 10 years in the Korean automobile parts industry. In this empirical analysis, we utilized a fixed-effects generalized least squares model using panel data. Findings - In this study, domestic firms (automobile parts suppliers) were more dependent on a single local buyer (automobile assembler) than foreign-owned suppliers operating in Korea. In addition, incremental innovation was the mediating mechanism between domestic firms and dependence on the local buyer. To reduce this dependence on the buyer, we suggest two different international strategies: geographical diversification through FDI and global knowledge sourcing. Originality/value - Previous studies showed that asymmetric dependence between firms has many adverse effects. This study proved that domestic and foreign-owned suppliers have different levels of dependence on local buyers due to their heterogeneous characteristics and business strategies. We distinguish two different types of innovation - radical innovation and incremental innovation - that previous studies have often treated as equal when it comes to firm autonomy. Finally, we propose that both FDI and international knowledge sourcing as global strategies to weaken suppliers' asymmetric dependence on a single buyer.

• Journal of Technology Innovation
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• v.12 no.2
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• pp.151-183
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• 2004

This paper investigates the evolution of 'inter-firm' technology transfer in the Thai automobile industry, which has gradually been integrated into global production network of some specific automotive models(one-ton pickups). This paper discusses the linkage between the role of automobile assemblers in transferring technology and the way their strategic changes bring about heightened demands on the technological capacity of suppliers and the contents of technology transfer. With higher competition at the global level, local suppliers are required to improve their technical and managerial skills, especially in the area of 'product engineering' capability. The authors examine the ways local firms have adapted to these changes in their environments, as well as the ways they utilize inter-firm relationship with automobile assemblers as a means to improve their own technological capabilities. The dynamic process of capability formation in local parts firms, through intensive efforts and learning inducements brought about by inter-firm relationships, are also discussed.

• Knowledge Management Research
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• v.13 no.2
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• pp.19-35
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• 2012

This study empirically investigates the differences of dominant management problems (hereafter, DMPs) among transplants in different degree of localization, based on the exploratory case study on the nine transplants of Hyundai/Kia suppliers in US using AHP(Analytic Hierarchy Process) technique. On the results of the literature review, this study divides the DMPs of transplants into three main categories such as building human infrastructure, stabilizing manufacturing processes, and building learning network. Each categories is also divided into four subcategories. The degree of localization includes two variables such as the localization stage and the employee size of transplant. Main findings are as follows. First, 'Communication among Korean and local employees' is important DMP in all transplants examined. Second, 'Local adaptation of Korean manufacturing technology' and 'Education on the Korean culture and management practices' are more important DMPs for less-localized transplants than more-localized ones. On the contrary, 'Motivating local employees' is more important DMP for more-localized transplants than less-localized ones. Third, 'Education on the technology and quality' is more important DMP for transplants in post-production stage than in stabilization stage. On the contrary, 'Staffing local employees' is more important DMP for transplants in stabilization stage than in post-production stage. Fourth, 'Acquiring test and measurement equipments' is more important DMP for small-sized transplants than large-sized ones. On the contrary, 'adopting new technology' and 'Building local suppliers network' are more important DMPs for large-sized transplants than small-sized ones.

• Journal of the Korea Safety Management & Science
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• v.11 no.3
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• pp.131-138
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• 2009

This paper considers a coordinated scheduling problem between multi-suppliers and an manufacture. When the supplier has insufficient inventory to meet the manufacture's order, the supplier may use the expedited production and the expedited transportation. In this case, we consider a scheduling problem to minimize the total cost of suppliers and manufacture. We suggest an population management genetic algorithm with local search and crossover (GALPC). By the computational experiments comparing with general genetic algorithm, the objective value of GALPC is reduced by 8% and the calculation time of GALPC is reduced by 70%.

• 한국디지털정책학회:학술대회논문집
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• 2007.06a
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• pp.117-126
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• 2007

The current participative government has started to carry out Residents Service Reform that transforms the transmission system of suppliers' oriented convenience to one-stop tai for made civil and governmental integral ion service for the purpose of realizing universal Social Benefits in responding to increasing desires of people according to the changes of social and economic conditions by overcoming the existing limit of transmission system. This study has analyzed the status and problems of local autonomous organizations according to the innovation of support for the life of residents and in order to solve these problems, I present the implementation strategy of transmission system of civil and government cooperation tailor-made integral ion service through the project of "30 experiencing hall for Social Benefits, " which is a joint project of civil and government dove loped by Jungrang-gu. In addition, it aims for the completed accomplishments of this project to settle as eight largest services market ing brand in 30 method and also as the best strategic brand for the "establishment of network of civil and governmental cooperation" with suppliers of public services, suppliers of civil service, and residents, who are suppliers as well as potential customers, for solving problems of local communities.

• Asian Journal of Innovation and Policy
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• v.6 no.3
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• pp.332-353
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• 2017

This paper highlights how Thailand upgrades its positions in global value chains in high-tech, mid-tech and low-tech industries represented by electronics, automotive and frozen seafood, respectively. In the electronics industry, there are not many capable firms in the upstream segment like semiconductors. Nevertheless, transnational corporations in segment like hard disk drive began to invest in process R&D and collaborate more with local suppliers, universities and public research institutes in human resource and technological development. In the automotive industry, several Japanese car manufacturers such as Toyota, Honda, Nissan, and Isuzu set up R&D/Technical centres in Thailand since 2000s. This prompted Japanese and local part suppliers to also invest more in engineering, design and development activities. Some local universities offer as well engineering programmes specifically targeting the automotive industry. In the frozen seafood industry, several Thai firms have developed new ready-to-eat products, own brands and international distribution networks. They started to become transnational corporations investing in both developing and developed countries.

• Journal of Korea Technology Innovation Society
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• v.20 no.1
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• pp.205-238
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• 2017

Display industry in Korea has been rapidly developing over 20 years, now taking the top-class leading position in the world. Nevertheless, many previous studies have mainly focused on major panel set makers. To overcome the drawbacks, this study focuses on supplier companies in the upstream of display industry such as materials, components, and equipments sectors. The research method used in this study is an industry value chain perspective combined with architectural innovation approach. Display panel is produced through fabrication process and modular process, each having a different characteristics of process architecture. This research figured out that there are quite a different development characteristics between materials and components suppliers and equipment suppliers. The number and revenue of materials and components suppliers were quite larger than equipments suppliers. However, the former has been growing mainly in the field of modular process, having a very weak position in the field of fabrication process. On the contrary, equipments suppliers have been showing a continuously growing pattern in the field of fabrication process. The R&D expenditures between these two kinds of suppliers showed a similar pattern. The fabrication process of display panel production is characterized as a highly integral architecture characteristics, so as to be a strong barriers to local suppliers, resulting less development of materials and components suppliers in Korea.

• Journal of the Economic Geographical Society of Korea
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• v.8 no.1
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• pp.131-152
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• 2005

The purpose of this paper is to find out the spatial characteristics of the relationships between urban large retailer and agro-food suppliers. For this purpose, Dong-A department store which is one of the most famous local distribution company was selected as a case study firm. The case study company has its own systematic food supply chain in the process of food procurement, selection, delivery, and marketing. It mainly does businesses in Daegu and Gyeongbuk province, but also procures and delivers products all around the country. Customers' recent concerns over the freshness and the period of circulation made the company use the local physical distribution system that it purchases products in nearby areas and perform procurement and delivery in nationwide areas. It is identified that trading types are significantly different by locations of suppliers in that more thin 40$\%$ of suppliers in Daegu are food manufacturers, whereas suppliers in Gyeongbuk mainly belong to the ones in fresh food production areas. In terms of durability of the retailer-supplier relation, the case study firm has relatively long-term relationship with suppliers, maintaining the relationship fer over 5 years in more than 70$\%$ of suppliers.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.19
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• pp.7-31
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• 2003

The governments of almost countries have the rules and procedures that the purchasing entities have to follow, in order to ensure that the best value for money spent is obtained in procuring goods and services. However, there are often some of important problems in their rules relating to government procurement. Namely, almost countries have a variety of discriminatory regulations for foreign suppliers in the government procurement laws with the object of national security, economic welfare, and protection of domestic market from international competition. For this reason, several advanced countries had reached the Plurilateral Agreement on Government Procurement during Tokyo Round(1973-1979) and Uruguay Round(1986-1994). However, the provisions of two agreements do not apply to all products made by the government but only to those made by purchasing entities specified by each member country in its list in the Appendix. Accordingly, the size of goods and services purchased from foreign suppliers were comparatively not large. As we know well, the United States have spent a large amount of money from federal and state government budget. But the portion of procurement from foreign suppliers is still small, compared with the portion of procurement from domestic suppliers. The main reason are that U.S. has applied for long time the so-called Buy American Act to government procurement positively and maintained many kinds of other domestic regulations which have discriminatory provisions for foreign goods and foreign suppliers. On the recognition of these points, this thesis deals with the Buy American Act and other U.S. domestic laws, regional and bilateral, and plurilateral agreements including WTO Agreement on Government Procurement. As a result, the author found that there are several concerns and problems in the U.S. regulations relating to government procurement. It include the provisions on priority procurement of U.S.-produced products, local contents requirements, set-aside procurement from small business, and exclusion of preferential procurement from the developing countries.

• Journal of the Korean Geographical Society
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• v.29 no.2
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• pp.117-136
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• 1994

Contemporary global space economy is so dynamic that any one specific structural force can not explain the whole dynamic processes or trajectories of spatial industrial development. The major purpose of this paper is extending the traditional notion of industrial districts to functioning and development of new industrial districts with relation to the development of high technology industries. Several dynamic forces, which are dominated in new industrial districts in the modern space economy, are incorporated in the formation and dynamic aspects of new industrial districts. Even though key forces governing Marshallian industrial district are localization of small firms, division of labor between firms, constructive cooperation, and industrial atmosphere, Marshall points out a possibility of growing importance of large firms and non-local networks in the districts with changes of external environments. Some of Italian industrial districts can be regarded as Marshallian industrial districts in broader context, but the role of local authorities or institutions and local embeddedness seem to be more important in the Italian industrial districts. More critical implication form the review of Marshallian industrial districts and Italian industrial districts is that the industrial districts are not a static concept but a dynamic one: small firm based industrial districts can be regarded as only a specific feature evolved over time. Dynamic aspects of new industrial districts are resulting from coexistence of contrasting forces governing the functioning and formation of the districts in contemporary global space economy. The contrasting forces governing new industrial districts are coexistence of flexible and mass production systems, local and global networks, local and non-local embeddedness, and small and large firms. Because of these coexistence of contrasting forces, there are various types of new industrial districts. Nine types of industrial districts are identified based on local/non-local networks and intensity of networks in both suppliers and customers linkages. The different types of new industrial districts are described by differences in production systems, embeddedness, governance, cooperation and competition, and institutional factors. Out of nine types of industrial districts, four types - Marshallian; suppliers hub and spoke; customers hub and spoke; and satellite - are regarded as distinctive new industrial districts and four additional types - advanced hub and spoke types (suppliers and customers) and mature satellites (suppliers and customers) - can be evolved from the distinctive types and may be regarded as hybrid types. The last one - pioneering high technology industrial district - can be developed from the advanced hub and spoke types and this type is a most advanced modern industrial district in the era of globalization and high technology. The dynamic aspects of the districts are related with the coexistence of the contrasting forces in the contemporary global space economy. However, the development trajectory is not a natural one and not all the industrial districts can develop to the other hybrid types. Traditionally, localization of industries was developed by historical chances. In the process of high technology industrial development in contemporary global space economy, however, policy and strategies are critical for the formation and evolution of new industrial districts. It needs formation of supportive tissues of institutions for evolution of dyamic pattern of high technology related new industrial districts. Some of the original distinctive types of new industrial districts can not follow the path or trajectory suggested in this paper and may be declined without advancing, if there is no formation of supportive social structure or policy. Provision of information infrastructure and diffusion of an entrepreneurship through the positive supports of local government, public institutions, universities, trade associations and industry associations are important for the evolution of the dynamic new industrial districts. Reduction of sunk costs through the supports for training and retraining of skilled labor, the formation of flexible labor markets, and the establishment of cheap and available telecommunication networks is also regarded as a significant strategies for dynamic progress of new industrial districts in the era of high technology industrial development. In addition, development of intensive international networks in production, technology and information is important policy issue for formation and evolution of the new industrial districts which are related with high technology industrial development.