기술기반 부품·소재기업의 성장전략 분석

Abstract

Technology-based materials and components firms are important players in the national economy, as these firms provide the competitive nucleus in industries which use their products as inputs. Among small and medium sized firms (SMEs), technology-based materials and components firms have demonstrated strong growth even in the midst of the global economic depression. Korean firms of this type have become significant players in the global marketplace. However, the common success factors of these firms have not been investigated in a systematic way to date. By identifying the firm characteristics, paths of growth and success factors which have led to the success of firms producing similar products we will be better positioned to frame the most effective government support policy for industry and the needs of SMEs. To analyze the above objectives, we have adopted the following case study framework: Using background theories of resources and capabilities, and the characteristics of organization and external environments (market and industry), each firm's characteristics are reviewed in the dimensions of organization, control and incentives, networks, market position, and the six forces of the industry as well as each firm’s position in it. Furthermore, by focusing on firm strategy with regards to technology development, commercialization, growth and performance, we have identified the strategic fits among success factors in the backdrop of the organizational characteristics, industrial forces and cooperation network structures in the value chain. The strategic foci identified are upgrading, diversification and alliances. The upgrading strategies used by firms are progress, product, functionality, technology, and inter-sectoral product upgrading. The diversification strategies include product and geographic dimemsions. The strategic alliances employed are backward and forward integration as well as network strategies. This study analyzes the growth strategies of technology-based materials and components firms. From the digital electronics, materials and industrial electronics industries, we selected 19 firms that have been successful in developing technologies and utilizing them in the market. By reviewing the organizational characteristics of the firms (including the CEO’s risk profile), their industrial environments, and their strategies, we have tried to identify and categorize the common factors of their success. The firms are divided into two technology types: Original technology and application technology. In addition to the corresponding products and the value chain of the firms, their alliance and cooperation types have also been considered in order to recognize the relevant growth strategies. Although this paper explains the success factors in firm growth, the framework is not dynamic which may explain the current leading factor - progress - in the performance of firm growth. The analysis highlights several points which may suggest important strategic fits of technology-driven firms. The strategic fits are categorized firstly according to their technology type, since these types dictate the most prominent characteristic differences between firms that may thereupon affect the differences in product production and growth strategies. The findings of the study are as follows. First, in the case of original technology firms, if there exist entry barriers and few substitutes in the industry, the firms use low risk upgrading strategies such as improvement of products and technology, rather than high-risk innovative strategies such as inter-sectoral new product development. The incumbent firms do not need to take on risky projects in a secure market. However, when the CEO is a risk taker, the firm tries to expand to foreign markets with big allied firms. In these cases, the firm will take a ‘little’ bold step such as vertical integration in the value chain, related diversification or inter-sectoral product development. Typically, the risk-taking CEO attempts to use external financial resources for such projects, while the risk-averse CEO will choose to use retained earnings inside the firm instead. In a mature market, firms are likely to finance from external sources to balance the risk associated with exploring inter-sectoral product development. Second, in an alliance strategy, an original technology firm having a good relationship with a customer firm will pursue foreign expansion with an interdependent customer firm through forward alliance, in order to diversity products and/or develop new products inter-sectorally. On the other hand, the application technology firm in cooperation with a customer firm of higher bargaining power will use the customization strategy for their ally abroad with help from the ally. Third, in the application firm's case, a strategy employing mass production is used to utilize production economies of scale. The economies of scale from mass production will ensure the price competitiveness of the firm in the market. Brand reputation along with low price from mass production in the various marketing channels allows the firm to pursue localization technology upgrading and inter-sectoral product development. Fourth, localization technology upgrading leads to securing a sustainable technology brand, which in turn makes external financing possible. The vertical alliance, forward as well as backward, also helps with related diversification and inter-sectoral diversification. Vertically-allied firms thus develop a core competency in foreign expansion with the help of the big buyer firm’s power in marketing channels. In the virtuous cycle of mass production comprising strategic alliances with backward and forward firms, and technology/product upgrading and diversification - vertical alliances are the key success factor in the survival and growth of materials and components firms. Fifth, growth strategies are dependent upon the nature of the CEOs' risk profile. With a risk-taking CEO, outside financing is preferred for innovation and product development, while a risk-averse CEO prefers to use internal funding for less risky projects and for compensating researchers. Original technology firms use vertical integration in the value chain, while application technology firms use vertical alliances. From the results of this study a few policy recommendations are suggested:Government support in the form of technology or financing is very important for the survival of technology-driven firms. Also, alliances with big firms are essential in the growth of technology-driven firms. Government policy to promote alliances between big firms and small to medium sized firms is a must to secure sustainable growth of SMEs. Since technology-driven firms use external research funds for innovative activities such as development of new products, external financing needs to be available to firms with innovative but high-risk projects. The government may support those firms by providing credit guarantees or financial support. However, tight monitoring should accompany generous support for high risk projects to avoid the pitfalls of moral hazard. Foreign marketing channel access and local information in foreign countries are also valuable assets to the success of technology-driven firms in international expansion. Governments may provide this information and connect firms to foreign marketing channels in expansion markets, enhancing the sustainability of technology-driven firm growth. The study has the following limitations. By selecting successful firms as cases, this study does not cover the initial stage of the firm’s growth. Although the objective of this study is to identify the success factors of the technology-driven firms, the survival of the SMEs in the initial stage is very crucial for the ensuing growth after the survival. The distinctions between original technology firms and application strategies are not quite conspicuous, although there are many different aspects between firms in two technology categories. If we have enough number of firms, more systematic statistical analysis of the success factors that guarantee the high returns of the technology-driven firms.