Structural Features and Mechanisms of The Korean Powerhouses: What Makes These Niche Companies Leaders in The Global Market?
PDF

Supplementary Files

Cover page
Figures
Tables
Conflict of Interest Statement
Copyright transfer
Data set
Declaration of originality

Keywords

Corporate systems
Hidden champions
Global market leaders
Korean companies
Structural diversity

How to Cite

KIM, W. (2016). Structural Features and Mechanisms of The Korean Powerhouses: What Makes These Niche Companies Leaders in The Global Market?. Journal of Economics and Political Economy, 3(2), 284–308. https://doi.org/10.1453/jepe.v3i2.770

Abstract

Abstract. This study explores the structural features and mechanisms that allow relatively small Korean companies to secure dominant market positions in their respective business sectors. By examining five specific aspects of their operations (financing structure, financial structure, growth structure, R&D activities, and business structure), the source of these companies’ unique success is better understood. Ultimately, our findings show that when these five aspects work together as a single and highly efficient “machine,” these Korean powerhouses are able to secure and maintain dominant market positions in the global market. Further, we extend the concept of Korean hidden champions based on the various results of our analysis to propose six criteria useful to redefining them as Korean powerhouses.

Keywords. Corporate systems, Hidden champions, Global market leaders, Korean companies, Structural diversity

JEL. L6, M2, M21.

https://doi.org/10.1453/jepe.v3i2.770
PDF

References

Boga, S. (2012).Hidden champions in Norway: A study of the existence and characteristics of hidden champions in the region of Hordaland in Norway, Master thesis. Norges Handelshøyskole.

Chang, H.J. & Ko, Y.H. (2014). An analysis of key success factors of hidden champions in Korea: Case study focusing on IT industry (in Korean). International Business Review, 18(2), 25-56.

Dabla-Norris, E., Kochhar, K., Suphaphiphat, N., Ricka, F., & Tsounta, E. (2015). Causes and Consequences of Income Inequality: A Global Perspective, June 2015 (IMF Staff discussion note No. 15/13). International Monetary Fund: Washington, DC.

Kim, S.W. (2010). An analysis of critical factors in the success of global hidden champion enterprises (in Korean). The Korean Venture Management Review, 13(1), 87-114.

Kim, W.J. (2013). The evolution of a corporate system: The case of production and employment structures in the Toyota Group. The Kyoto Economic Review, 82(1-2), 31-58.

Kim, W.J. (2014). An institutional economic approach to the low-cost production system: The wage–labour nexus in Hyundai Motor Group. Evolutionary and Institutional Economics Review, 11(1), 19-40. doi.10.14441/eier.110102

Kim, W.J. (2015a). De facto corporate governance mechanisms and structural changes in financing and ownership: A comparison of Toyota Group and Hyundai Motor Group. The Kyoto Economic Review, 84(1-2), 46-73.

Kim, W.J. (2015b). Transformation towards overseas-oriented expansion: The evolution of Hyundai Motor Group’s production structure. Journal of Economics and Political Economy, 2(2),235-261. doi. 10.1453/jepe.v2i2.223

Lee, J.W. (2009). The exploration of new business area in the age of economic transformation: A case of Korean ‘hidden champions’ small and medium niche enterprises (in Korean). The Korean Small Business Review, 31(1), 73-88.

Mäkeläinen, R. (2014). Finnish hidden champions: Analysis on strategy and performance of market leader SMEs, Master thesis. Aalto University.

Miyamoto, M. (2004). A Theory of Corporate System (in Japanese). Shinsei-sha: Tokyo.

Organisation for Economic Co-operation and Development (OECD). (2015). Better Policies Series-Korea: Policy Priorities for a Dynamic, Inclusive and Creative Economy. OECD Publications: Paris.

Simon, H. (1990). Hidden champions: Speerspitze der deutschenwirtschaft. ZeitschriftfürBetriebswirtschaft, 60(9), 875‐890.

Simon, H. (1996). You don’t have to be German to be a hidden champion. Business Strategy Review, 7(2), 1-13. doi.10.1111/j.1467-8616.1996.tb00118.x

Simon, H. (2009). Hidden Champions of the 21st Century: Success Strategies of Unknown World Market Leaders. Springer: London.

Smith, W.P. (2013). Holding Company. In Stanley I.K. (Ed.), Dictionary of American History (3rd ed.) (Volume 4) (pp. 146-148). Charles Scribner's Sons: New York.

Venohr, B. & Meyer, K.E. (2007). The German Miracle Keeps Running: How Germany’s Hidden Champions Stay Ahead in the Global Economy. Working Paper. [Accessed on 19 Dec, 2015].

Voudouris, I., Lioukas, S., Makridakis, S., & Spanos, Y. (2000). Greek hidden champions: Lessons from small, little-known firms in Greece. European Management Journal, 18(6), 663-674. doi.10.1016/S02632373(00)00057-8

Woo, W.S. & Choi, H.S. (2015). Determinants of capital structure for growth firms: Corporate bonds vs. equity (in Korean). Korean Journal of Financial Studies, 44(3), 595-614.

Creative Commons License
This article licensed under Creative Commons Attribution-NonCommercial license (4.0)

Downloads

Download data is not yet available.