A Study on the Process Model of Knowledge Absorptive Capacity for Technological Innovation Capabilities: The Case of Samsung Electronics

摘要

Objectives: This study presents the development stages of a theoretical knowledge absorptive capacity (KAC) model and related propositions that show how most, if not all, firms in developing countries (DCs) initiate, implement, assimilate, improve and develop external knowledge. The hypothetical model consists of four stages. 1) Knowledge initiation, 2) Knowledge imitation, 3) Knowledge improvement and finally 4) knowledge innovation. Methods: This paper reviews the past literatures, models and frameworks related to KAC. It then analyzes Samsung Electronics as a case in point to illustrate how Korean firms have built their KAC. Results: The framework shows four development stages at Samsung Electronics as: 1) Entrance of foreign companies into the Korean market and their reluctance to transfer their knowledge and information sharing to Samsung, initiating its KAC, 2) Samsung started KAC by means of imitating knowledge from improving external (especially foreign firms), 3) it then developed KAC by means of improving external knowledge and finally 4) capability to create their own knowledge and becoming one of the leading companies in the world which challenges firms from advanced countries in the global market. Propositions are developed that outline the process of development stages in DCs. The paper also highlights the developmental changes in the electronics industry of Korea. Conclusions: Keeping past experiences in consideration, we conclude that this model provides useful implications for newly industrializing countries (NICs) following the same pattern of KAC.