Evolution of Design-Driven New Product Architectures: in the case of Hyundai-Kia Motors

Type de publication:

Conference Paper

Source:

Gerpisa colloquium 2014, Kyoto (2014)

Résumé:

What has been the most vital endowment within the constant growth of the South Korean carmakers in the past three decades? In reconsidering through the Resource-Based View of the firm, the most distinct seems their corporate governance. The authors also see the effective corporate governance in resource management has formed their Dynamic Capabilities in global development of new product architectures.
The purpose of this research is to examine their control patterns in efficiently realising strategic fit between the corporate competences and global demands. Our focus is placed more specifically upon the Korean-style corporate leadership throughout the remarkable evolution of design-driven product architectures. The essence within their mechanism of executing change management in speed derives from the solid leadership in decision-making.

Texte complet:

Conference Paper Proposal:
Reconsidering the Corporate Governance of South Korean Carmakers: The Evolution of Design-Driven Product Architectures

Eugene K. Choi, Associate Professor, Graduate School of Technology Management, Ritsumeikan University, JAPAN
Pil-Soo Kim, Professor, Department of Automotive Engineering, Daelim University College, SOUTH KOREA

Keywords: South Korean Carmakers, New Product Development, Leadership, External Experts, Heavy-Weight Designers

RESEARCH FOCUS
What has been the most vital endowment within the constant growth of the South Korean carmakers in the past three decades? In reconsidering through the Resource-Based View of the firm, the most distinct seems their corporate governance. The authors also see the effective corporate governance in resource management has formed their Dynamic Capabilities in global development of new product architectures.
The purpose of this research is to examine their control patterns in efficiently realising strategic fit between the corporate competences and global demands. Our focus is placed more specifically upon the Korean-style corporate leadership throughout the remarkable evolution of design-driven product architectures. The essence within their mechanism of executing change management in speed derives from the solid leadership in decision-making.
As a typical instance, the governance core of Hyundai-Kia Motors Group has constituted the top-down family business leadership; this study attempts to verify that the dominant governance has successfully reformed their competitive capabilities in global perspective. Regardless of the foreign ownership, the other carmakers such as GM Korea, Renault Samsung, and Ssanyong, have

CONTEXT
Despite a few noticeable turbulence in performance, Koreans’ overall presence in the global automotive market has constantly increased in the past decade. The distinguished success in global branding would demand our scholarly attention, but more significantly, their determined transformation in product architectures requires an even closer investigation, i.e. the swift transition from the past architecture solely for price competitiveness to the new one.
For instance, Hyundai Motors Corporation kicked off this tactical shift as soon as it merged Kia Motors Corporation in 1998. The strategic context of this daring change management would interest international scholars. The architectural change in product development became dire due to the following couple of reasons: sustaining the cost leadership in production, and extending the product portfolio.
The former induced a further enhanced modular platform strategy whilst the latter brought in the corporate-level branding during the turn of the century. The new branding strategy demanded new sources of differentiation from the beginning of the 2000s. In tandem with quality improvement, the strategic choice of Hyundai and Kia was of product design management. Since the 2nd half of the 2000s, South Korean models have stood out in a variety of prestigious global design competitions including Red Dot Design Awards.
Our key hypothesis concerns the following research perspective: how and why the corporate-level change management was accomplished in speed? We consider that the distinctively top-down leadership in corporate governance powered not only corporate transformation but also product-level architectural changes. That is, our research proposition concerns a strong positive correlation between the highly centralised corporate governance and the efficient formation of new product architectures. The South Korean carmakers would provide a typical case to reconsider the intensifying substance of effective corporate governance in the global automotive industry.

RESEARCH METHODS
To examine the explored perspectives within the South Korean cases, the authors will access and pursue the reliable primary sources. The most certain source would be found from the carmakers (e.g. Hyundai-Kia); in regard to the industrial perspective on the transformation as well as the consequence of the product architectures, industrial associations (e.g. KAMA, KAICA) would supply a sufficient set of verified macro data. Besides, the data from the domestic automotive market research agency (e.g. Marketing Insight) would provide the vital socio-economic and cultural indices regarding the consumers’ (especially, the South Koreans’) perceptions as well as recognition of the architectural changes.
A series of interviews with the key persons, involved with our research theme (e.g. the project managers of new product architectures, corporate designers, and external experts in product design) will be conducted in South Korea. To clarify the enduring strategic insights throughout the evolution of corporate governance, the research method of oral history (i.e. interview-driven qualitative data collection) would constitute the authors’ essential analyses; simultaneously, rigorous quantitative data collection will be accompanied to verify analytical exactitude.

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