Building Network Capabilities in Turbulent ...

Building Network Capabilities in Turbulent Competitive Environments: Business Success Stories from the BRICs Paul Hong, University of Toledo, Ohio, USA YoungWon Park, University of Tokyo, Japan

Brazil, Russia, India, and China (BRIC) are among the largest and fastest-growing economies in the world. The enormous size of the customer base in these emerging markets is the strategic concern of global business firms. Successful market performance in these markets requires sound understanding of dynamic environmental factors and timely investment of appropriate resources. This book presents strategies for recognizing the challenges and optimizing the opportunities for building network capabilities and competitive advantage within the context of these emerging markets. Building Network Capabilities in Turbulent Competitive Environments provides a thorough review of the literature and an unparalleled abundance of fascinating case studies featuring Japanese, Korean, and indigenous business examples. To gather real-world information, research teams made numerous field visits to many firms in the BRIC markets to meet and interview executives and observe their manufacturing and supply chain practices. The information in this book is presented within a fully formulated theoretical framework of three core competencies: technology competence (capability to offer innovative products that fit these markets), customer competence (capability to understand and satisfy different customer needs), and linkage competence (ability to integrate technology and customer competence). The book also covers the concepts of product architecture and supply chain management to provide a more in-depth analysis of global firms operating in BRIC markets. Features  Presents strategies for gaining competitive advantage in emerging BRIC markets  Highlights Korean, Japanese, and indigenous companies in these markets  Focuses on three core competencies, product architecture, and supply chain management  Integrates relevant literature reviews with extensive field studies of many companies in these markets Brazil, Russia, India, and China (BRIC) are among the largest and fastest-growing economies in the world. The enormous size of the customer base in these emerging markets is the strategic concern of global business firms. Successful market performance in these markets requires sound understanding of dynamic environmental factors and timely investment of appropriate resources. This book presents strategies for recognizing the challenges and optimizing the opportunities for building network capabilities and competitive advantage within the context of these emerging markets.

Building Network Capabilities in Turbulent Competitive Environments provides a thorough review of the literature and an unparalleled abundance of fascinating case studies featuring Japanese, Korean, and indigenous business examples. To gather real-world information, research teams made numerous field visits to many firms in the BRIC markets to meet and interview executives and observe their manufacturing and supply chain practices. The information in this book is presented within a fully formulated theoretical framework of three core competencies: technology competence (capability to offer innovative products that fit these markets), customer competence (capability to understand and satisfy different customer needs), and linkage competence (ability to integrate technology and customer competence). The book also covers the concepts of product architecture and supply chain management to provide a more in-depth analysis of global firms operating in BRIC markets. Features    

Presents strategies for gaining competitive advantage in emerging BRIC markets Highlights Korean, Japanese, and indigenous companies in these markets Focuses on three core competencies, product architecture, and supply chain management Integrates relevant literature reviews with extensive field studies of many companies in these markets

Short Contents Research Framework and Summary of Core Competencies for Global Market Strategy. Comparisons of Strategies of Established Global Firms and Indigenous Firms from BRICS. Strategies of Chinese Indigenous Firms. Strategies of Indian Indigenous Firms. Strategies of Brazilian Indigenous Firms. Strategies of Russian Indigenous Firms. Strategies of Japanese Firms in Chinese Market. Strategies of Japanese Firms in Indian Market. Strategies of Japanese Firms in the Brazilian Market. Strategies of Korean Firms in the Chinese Market. Strategies of Korean Firms in the Indian Market. Strategies of Korean Firms in the Brazilian Market. Concluding Remarks and Future Research Issues. Full Contents Preface The Authors Research Framework: Core Competence and Global Strategy Importance of Network Capability in the BRICs Market Environment Network Capability and Global Competitive Strategy Three Types of Core Competence and Global Expansion Strategy Core Competence and Product Architecture Product Architecture and Supply Chain Integration Network Capability Dynamics and Portfolio Strategy Network Capability and Intellectual Property Strategy Structure of This Book

Comparisons of Strategies of Established Global Firms and Indigenous Firms from BRICs Introduction Global Supply Chain Management (SCM) Strategy and Specialization Supply Chain Management in Emerging Markets Supply Chain Management and Product Architecture Cases of Collaboration between Global Firms and Indigenous Firms Global Supply Chain Collaboration between Apple and Foxconn

Growth Process of the Chinese Mobile Phone Industry LCD Industry: An Illustration of Supply Chain Structure in East Asia Conclusion RESEARCH FRAMEWORK Strategies of Chinese Indigenous Firms Introduction Chinese Economic Context Case Studies of Chinese Firms Case Study of Haier History of Haier Strategic Management System: Four Phases of Development Strategy Haier’s Product Strategy Lenovo Case Its Early Market Experiences and Global Market Entry Establishing Lenovo’s Brand and Pursuit of Its Unique Customer Base Diversification of Its Businesses and Enhancement of Global Competitiveness Lenovo Acquired IBM PC and Expanded Its Global Target Market Conclusion Strategies of Indian Indigenous Firms Introduction India’s Economic Growth Patterns Case Studies of Indian Firms Tata Group Mahindra & Mahindra Limited (M&M) Big Bazaar Conclusion Strategies of Brazilian Indigenous Firms Introduction Brazil’s Economic Context Brazilian Firms Embraer Conclusion Strategies of Russian Indigenous Firms Introduction Russian Economic Context

Energy-Dependent Economic Structure Aggressive Public Expenditures Russia’s Automotive Industry Current Status of the Russian Automotive Industry Growth of Russian Indigenous Firms: AvtoVAZ Russian Energy Industries Growth of Russian Indigenous Firms: Gazprom Comparison of Gazprom with Other Firms Conclusion EMERGING GLOBAL FIRMS FROM CHINA, INDIA, BRAZIL, AND RUSSIA Strategies of Japanese Firms in the Chinese Market Introduction Strategy of Komatsu China An Overview of Komatsu China Structure of KOMTRAX of Komatsu China KOMTRAX’s Usage Patterns in Emerging Markets Competition with Local Chinese Firms Strategy of Daikin China Daikin’s China Market Strategy Product Development Strategy of Daikin China Brand Marketing Strategy of Daikin China Strategic Talent Development That Supports Global Monozukuri (i.e. Japanese Manufacturing) Strategy of Honda Guangzhou Honda’s Entry Strategy for the Chinese Market Product and Technology Strategy of Honda China Marketing Strategy of Honda China Implementation of Localization Strategy: Establishing Collaboration System and Talents Development Toyota’s Global Supply Chain Management (SCM) in China Strategies of Other Japanese Global Firms Strategy of Yaskawa Electrics of China Strategy of Panasonic China Strategy of Clarion China Conclusion Strategies of Japanese Firms in the Indian Market Introduction Strategy of Toyota India Toyota Kirloskar Motor (TKM) and Toyota Kirloskar Auto Parts (TKAP) Development of Etios Sedan Strategy of Honda India Nikkei Makers Lead in Indian Motorcycle Market Honda’s India Strategy Strategies of Other Japanese Global Firms in India

Strategy of Seiko Epson India Strategy of Makino India Strategy of Denso India Conclusion Strategies of Japanese Firms in the Brazilian Market Introduction Komatsu Brazil A Brief Overview Construction Equipment Usage Patterns in Brazil and Komatsu’s Response Summary Strategy of Toyota Brazil Brazilian Automotive Industry Toyota’s Entry into the Brazilian Market Toyota Brazil: Plants and Quality Management Present and Future of Toyota Brazil Brazil Honda’s Strategy Brazilian Motorcycle Market Honda’s Entry into the Brazilian Market Honda Brazil’s Motorcycle Production and Marketing Strategy Other Japanese Firms in Brazil Strategy of Bridgestone Brazil Case of Epson Brazil Conclusion JAPANESE AND KOREAN GLOBAL FIRMS IN EMERGING MARKETS Strategies of Korean Firms in the Chinese Market Introduction Samsung China’s SCM Collaboration Strategy Samsung LCD’s SCM System Samsung China LCD’s Integration of BLU Suppliers LCM (Low Cost Module) Strategic Challenges Conclusion Global SCM Strategy of Hyundai Beijing Hankook Tire Strategy Market Reality Strategic Focus/Organizational Leadership Product/Value Innovation Strategic Alliance Global Market Conclusion

Strategies of Korean Firms in the Indian Market Introduction Historical Background of Korean Firms’ Entrance to India Localization Strategy of Hyundai Motor India (HMI) Investment Goals in Indian Context Localization Strategy: Local Adaptive Product Development and Marketing Strategy Human Resource (HR) Policies: Develop Native Leaders and Education/Training at Headquarters Samsung India Electronics (SIE) Investment Context and Strategic Priority Localization Strategy: Pursuit of FPD TV–Based Premium Strategy HR Policy of Management–Employee Relationships: Continuous Improvement by Field Employees LG Electronics India (LGEI) Investment Contexts and Strategic Priority Localization Strategy: Customer-Driven Marketing and Premium Product Strategy HR Policy and Management–Employee Relationships: Native Leadership and Incentive Systems Conclusion Strategies of Korean Firms in the Brazilian Market Introduction Status of Korean Firms in Brazil Localization Strategy of Korean Firms in Brazil Samsung Brazil LG Brazil Comparisons of Samsung and LG Concluding Remarks Concluding Remarks and Future Research Issues Comparison of Japanese and Korean Global Firms versus Indigenous Firms from BRICs Emerging Market Strategy: Direction and Prospect National and Firm Level Collaborations Among BRICs and Beyond Firm Level Strategies in Global BOP Markets.......... 204 Competitive Advantage of Firms in Emerging Economies.......................................................................210 References Index

Summary Brazil, Russia, India, and China (BRIC) are among the largest and fastest-growing economies in the world. This book presents strategies for recognizing the challenges and optimizing the opportunities for building network capabilities and competitive advantage within the context of these emerging markets. It provides a thorough review of the literature and an unparalleled abundance of fascinating case studies featuring Japanese, Korean, and indigenous business examples. The information is presented within a fully formulated theoretical framework of technological competence, customer competence, and linkage competence, as well as covering the concepts of product architecture and supply chain management. Short Biography Dr. Paul Hong is a professor of operations management at the University of Toledo, USA. He holds a PhD degree in manufacturing management and engineering from the University of Toledo. He also holds an MBA and an MA in economics degree from Bowling Green State University, USA and a BA from Yonsei University in Seoul, Korea. He has presented and published more than 200 articles in conferences and journals including Journal of Operations Management, International Journal of Production Research, Corporate Governance: An International Review, Journal of Supply Chain Management, Benchmarking: An International Journal, British Journal of Educational Technology, Strategic Outsourcing: An International Journal and European Journal of Innovation Management, Journal of Production Economics, International Journal of Operations and Production Management, Journal of Business Research, International Journal of Technology Management, International Journal of Information Management, Management Decision, Journal of Cleaner Production, Journal of Purchasing and Supply Management, Journal of Service Management, and Business Horizons. He is the recipient of Journal of Operations Management Best Paper Finalist Award (2006) for the paper, “Role Change of Design Engineers in Integrated Product Development),” Emerald Literati Network 2011 Awards for Excellence for the paper, “Integration of Supply Chain IT and Lean Practices for Mass Customization: Benchmarking of product and service focused manufacturers,” and Best Paper Awards on “Flexible and Redundant Supply Chain Practices to Build Strategic Supply Chain Resilience: Contingent and Resource-Based Perspectives” and “Using Social Media for Competitive Advantage: An Empirical Study“ at Annual North American Research Symposium in Tempe, Ariz. 2012 and 2013. He is an editorial review board member of several journals including Journal of Operations Management, Journal of Humanitarian Logistics and Supply Chain Management (JHLSCM), and Journal of Enterprise Information Management (JEIM). Since 2006, he has been special issue editor for journals such as Benchmarking: An International Journal (BIJ), International Journal of Business Excellence (IJBEX), International Journal of Services and Operations Management (IJSOM), International Journal of Procurement Management (IJPM), and International Journal of Production Economics (IJPE). He is conference chair and international network coordinator of annual International Symposium and Workshop on Global Supply Chain, Intermodal Transportation and Logistics—4th Symposium in Madrid, Spain, 5th Symposium in Tokyo, Japan and 6th Global Supply Chain Conference in Dearborn, USA. His research interests are in business ecosystem innovation strategy, global supply chain management, and international comparative studies.

Dr. Youngwon Park is an associate professor of GCOE Project of Manufacturing Management Research Center at the University of Tokyo, Japan. He holds a PhD degree in the Department of Advanced Social and International Studies from the University of Tokyo, Japan. His articles have been published in journals including Management Decision, International Journal of Production Economics, International Journal of Technology Management, International Journal of Information Management, Business Horizons, Journal of Business Research, Benchmarking: An International Journal, International Journal of Services and Operations Management, International Journal of Logistics Systems and Management, International Journal of Business Excellence, International Journal of Procurement Management, Akamon Management Review, Japan Academy of International Business Studies, Japanese Society for Science and Technology Studies, and the Japan Society of Information and Communication Research. He has received research awards including Dissertation Paper Awards from the Japan Association for Social Informatics (JASI), Best Paper Awards from The Japan Society of Information and Communication Research (JSICR), Research Awards of the Social Science Field from The Telecommunications Advancement Foundation (TAF), and Research Students Awards of the Social Science Field from The Telecommunications Advancement Foundation (TAF). His research interests are in technology management, manufacturing and IT strategy, and global supply chain management. Catalog no. K15052 January 2015 c. 280 pp. ISBN: 978-1-4665-1575-8 $79.95 / £44.99 Shelving Guide/Bookshop Category: Business Management/Supply Chain Management