Dynamic capabilities of Japanese and Korean enterprises and the 'flying geese' of international competitiveness

Ray, P, Ida, M, Suh, C and Rahman, S 2004, 'Dynamic capabilities of Japanese and Korean enterprises and the 'flying geese' of international competitiveness', Asia Pacific Business Review, vol. 10, no. 34, pp. 463-484.


Document type: Journal Article
Collection: Journal Articles

Title Dynamic capabilities of Japanese and Korean enterprises and the 'flying geese' of international competitiveness
Author(s) Ray, P
Ida, M
Suh, C
Rahman, S
Year 2004
Journal name Asia Pacific Business Review
Volume number 10
Issue number 34
Start page 463
End page 484
Total pages 22
Publisher Routledge
Abstract The study by Ray et al. is concerned with an empirical examination of the capability gaps that exist between Korean and Japanese industries competing in global industries. Using the Flying Geese (FG) model,they propose a set of hypotheses to test if Korean firms have replicated the competitive advantage conceded by firms in the lead country, Japan, within a mature industry. The framework also examines if the developmental pattern in Korea is in subordination to the hierarchical nature of FDI-led international production.The authors present two results. First, they report computations from trade data that reveal the trajectory of export competitiveness and import dependence in Japan and Korea, respectively. Second, they set out the results from a discriminant analysis that highlights the differences between Japanese and Korean enterprises in terms of their attainments in relation to scale, vertical integration, innovative efforts and profitability. The findings indicate that overall, Korea has successfully made the transition from resource-based industries to high technology industries, as per Kojima's nomenclature of 'structural diversification' in the FG model. But whether Korean industries have moved into the next stage of self-sufficiency in knowledge-intensive sectors like capital goods and machinery is somewhat doubtful.
DOI - identifier 10.1080/1360238042000264469
ISSN 1360-2381
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