• Journal of the Economic Geographical Society of Korea
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• v.4 no.1
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• pp.19-35
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• 2001

This paper is concerned with the relationships between large firms with global reaches in their markets and subcontracting firms, mostly small and medium-sized firms. It then attempts to focus in more detail on the dynamic relational dimensions between the two. In doing so, we draw upon the secondary data and the results of interviewing survey with some senior managers. The empirical study shows that the localisation of subcontracting networks have been increasingly reinforced thanks to the increasing tendency of vertical disintegration by LC. However, it is identified that there is a tendency that local subcontractors are specialised in producing relatively low value-added and low technology-intensive electronic parts/components. Based on these results, the author suggests the implications of regional economic development in the context of innovation and learning.

• Journal of Technology Innovation
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• v.14 no.2
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• pp.143-165
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• 2006

By analyzing five in-depth case studies of suppliers in newly emerging Vietnam's motorcycle industry, this paper explores the differences in patterns and processes of capability improvement of suppliers who participate in different kinds of supplier-assembler network with different structures. The paper finds the correlation between the kinds of suppliers' capabilities improved and the structure of networks they participate in. While suppliers in arm-length networks can improve more upstream capabilities (structure design, process desist), suppliers in embedded networks can improve more downstream capabilities (process design, process setup, process maintenance and delivery control). Two capability improvement patterns of firms in newly emerging economy are indicated. The first pattern is asymmetrical improvement, either upstream or downstream capabilities, by participating in either arm-length or embedded networks. This pattern obstructs the suppliers to meet the requirements of new buyers rho come from different kinds of network. The second pattern is symmetrical improvement by joining both arm-length and embedded networks.

• Journal of the Economic Geographical Society of Korea
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• v.6 no.1
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• pp.99-117
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• 2003

Major proposes of this study are to analyze Korean Shipbuilding's production network and cooperation between related firms and to understand their spatial features. The Geographical study about networks has focused on automobiles, electronics or communications industries. That's because those industries have distinctive spatial features thanks to the full growth of subcontract structures. The labor-centered, capital-centered shipbuilding industry, differently from other manufacturing industries, has production networks where outside trades are common. Today internet based communication is being reinforced and the flexibility of purchase circumstances is being positively proceeded. The central axes of the production network of Sumsung shipbuilding are internationally Europe and Asian area, nationally Busan and Gyeongnam province and Seoul Metropolitan areas, locally inside subcontracting firms. And In order to construct mutual trust with cooperation firms, Sumsung shipbuilding is trying to reinforce two-way cooperation relation through 'SungJoHoi' organized with outside subcontracting firms and 'inside cooperation firms conference'. In conclusion, Sumsung shipbuilding is trying to strengthen the competitiveness of shipbuilding industry, spatially by setting up the network through globalization-localization and functionally by constructing the partnership production network for mutual communication.

• Journal of the Korean Regional Science Association
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• v.9 no.1
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• pp.79-99
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• 1993

This paper identifies the mechanisms governing the industrial location changes in Korea by focusing upon the emergence of the country's large conglomerate business organizations (chaebols). As the country has distinctive industrial organization, production systems, and government-business relations, this study tries to develop an ideal conceptual framework for the analysis of industrial location changes in Korea. It perceives the Korean economy as a system within which 'space-organizing', lage business organizations interact over time with government, smaller firms and multinational corporations at different geographical scales. The usefulness of the model is assessed using a case study of Korea's most representative chaebol, the Samsung Group. This study identifies chaebols as the dominant institutions in Korean society. Their growth and business strategies have been influenced by the Korean Government through its power to allocate capital resources. Regional dynamics of industry and labor, therfore, have been strongly influenced by changes in the location, industrial structure, and production system of chaebols. With econmic power concentrated within a few giant business groups and their major areas of operation restricted, unbalanced regional development has resulted. Dissatisfaction from residents in less-developed areas has pressured the Government to advise chaebols to disperse their production facilities. Most small and medium-sized firms are closely linked to large corporations through subcontracting. By forming hierarchical subcontracting. By forming hierarchical subcontracting systems, chaebols have indirectly exploited scattered, part-time, home-based, female and lower-paid laborers organized by subcontractors. Further, chaebols have expanded their business arena to encompass overseas locations in a bid to overcome the problem of a small domestic market, trade regulations and increased market, trade regulations and increased labor costs. Through their international business networks Korea's local and regional economies are integrated into the world economy. Indeed, the identification of the changing relationships of chaebols with both the Korean Government and smaller firms is the key to explaining the nations's spatial dyanmics of industry and labor.

• Journal of the Korean Geographical Society
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• v.37 no.2
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• pp.111-130
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• 2002

Major purposes of this stud? are to analyze Korean firms'innovation networks and sources of knowledge for innovation and to understand their spatial dimensions. In the innovation networks, parent firms are most important for subcontracting firms, while suppliers, customers and competitors are relatively important for independent firms. However, in the future innovation networks, it is expected that government-sponsored research institutions and university wilt become more important on the one hand, networks with foreign firms will become more important on the other hand. Regarding the process of innovation, distance does not matter for the acquisition of codified knowledge. Spatial proximity is, however, critical for the acquisition of tacit knowledge because discussions and researches in a research division within a firm, personal networks of CEO and workers who are responsible for innovation activity, and inter-firm relations with suppliers and customer in a region are regarded important as sources of tacit knowledge. Overall, the innovation networks are different between the Capital Region and non-Capital Region as well as between the industrial complex and non-industrial complex, suggesting that different regional innovation strategies and policies should be established and implemented by considering such regional specificities. Finally, based on the results of this study several policy implications are suggested.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.2
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• pp.292-303
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• 2012

The main purpose of this study is to analyze R&D networks and spatial implications in Qingdao consumer electronics industry agglomeration in China. The characteristics of R&D networks in Qindao consumer electronic industry are as follows. There is a cluster central around large enterprises led by the government and their subcontracting enterprises. However, the degree of collaborative networks in intra-firm, inter-firm, firm-research institutes(including university lab.) is relatively low. Therefore, Large enterprises in Qingdao has stimulated research collaborations with firms and research institutes located in other regions rather than within region. It is likely to show that R&D networks of consumer electronics industry has not been stimulated in Qingdao. Therefore, collaborative R&D networks among firms, research institutes and governments should be stimulated to build regional innovation systems central around consumer electronics industry in Qingdao.

• Journal of the Korean Regional Science Association
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• v.13 no.2
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• pp.55-74
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• 1997

This paper investigates the spatial characteristics of networks, which arise as a firm's strategy to enhance its competitiveness to cope with the changing economic environments characterized by technological changes and increasing competitiveness. The theoretical framework in this study proposes that networks emerge as a firm's strategies to promote its competitiveness through the vertical/horizontal disintegration of the production system. Futhermore, regional industries of networks. The study examines the types of cooperation and the spatial boundary of the computer industry networks in Korea. Questionnaire survey was conducted on 1, 128 computer companies which had more than 10 employees, with 126 questionnaires being used for analysis. In addition, newpaper articles were used to supplement the foregoing work on network characteristics. The review of these articles covers the period from Jan. 1994 to June 1996. Major findings of this study are as follows: The spatial range of cooperative networks varies according to the specific characters of cooperation(R & D, production, and seles). Intralocal networks are being developed in Kangnam and Youido area, the computer industry agglomeration clusres of Seoul. There are the regional differnces in the agents and contents of cooperation. In intra-national R & D and production networks, regional differnces in agglomeratins and non-agglomerations are not detercted. Most networks of this type are found between large firms and small firms. In contrast, foregn R & D and production networks, which are operated mostly by large firms, are found in Kangnam, Youido, and CBD. Intra-national and foreign productino networks are also focused in Kangnam, Youido, and CBD. Small firms are playing an active role in making this type of cooperation possible. In the perspective of localization-globalization, Korean computer industry can be analyzed in two respects: industrial and regional. The localization of small firms and the localization-globalization of large firms' networks are being developed in industrial contexts, while the localization-globalization of agglomerations and the localization of non-agglomerations networks are being developed in regional contexts. As networks for the localization-globalization of industry are growing in agglomerations, interfirm networks could be related to trends in the formation or intensification of industrial agglomerations. industrial agglomeration areas function as a facilitator of localization through subcontracts, intraregional network and interregional network. They also facilitate globalization via foregn networks. In non-agglomeratin areas, localization networks, which are connected with agglomeration areas via subcontracting, interregional R & D. or production cooperation.

• Journal of the Korean association of regional geographers
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• v.6 no.1
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• pp.29-49
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• 2000

The purposes of this study are to identify the characteristics of inner-city industrial community and to analyse the subsistence mode of small manufacturing enterprises in the industrial community in Taegu Metropolitan area. The case study area, Nowon 1. 2-ga dong, is the typical inner city industrial community, adjacent to old industrial complex, which was recently transformed from semi -industrial to semi-residential zoning district. Now there are many old one story housing, newly constructed multi stories housing and many small factories of metal and machinery products. The conflicts of between residents and small business owners are not serious but latent. The subsistence mode of small manufacturing enterprises in this area is characterized as the network production system. The main attributes of this mode are local integration, horizontal subcontracting and strong industrial linkages in production processes and transactions. These transactions are mainly made by face-to-face contacts. The small business owners' local social networks are seen as series of units which are interconnected through various types of social and business relations. They exchange business information as using social networks. In addition, the majority of them join local social clubs with their local business counterpartners. Finally, the locational advantages of inner-city industrial community are production network, different industrial linkages and characteristic industrial milieu such as social solidarity, informal labor market and incubator effects. But these advantages are being challenged from the contradiction between capital and laned property and the urban gentrification policy. Accordingly, there should be positive redevelopment policy considering the subsistence mode of small business in these areas.

• Journal of the Economic Geographical Society of Korea
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• v.20 no.1
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• pp.16-33
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• 2017

This study analyzed the actual condition of the purchasing and selling network structures of manufacturing firms related the shipbuilding and offshore plant industry in Jeollanam-do using the social network analysis. The analysis results are as follows. The networks are often traded by subcontracting relationship with large firms because the industry is configured in most small and medium-sized firms. In particular, it was found to actual situation that selling transactions are being concentrated in the manufacturing firms of Yeongnam where large firms have located. Structural adjustment of the large firms located in the Yeongnam is expected to strike a blow to the manufacturing firms related the shipbuilding and offshore plant industry in Jeollanam-do due to the recently crisis in the shipbuilding industry. Therefore, it is necessary to secure a diversity of networks for selling transactions, and to discover and promote that selling firms related the shipbuilding and offshore plant industry in Jeollanam-do, in order to cope with such a crisis.