Knowledge Absorptive Capacity for Technological Innovation Capabilities: The Case of Korea

Knowledge Absorptive Capacity for Technological Innovation Capabilities: The Case of Korea

Murad Ali, Kichan Park
ISBN13: 9781466698147|ISBN10: 1466698144|EISBN13: 9781466698154
DOI: 10.4018/978-1-4666-9814-7.ch024
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MLA

Ali, Murad, and Kichan Park. "Knowledge Absorptive Capacity for Technological Innovation Capabilities: The Case of Korea." International Business: Concepts, Methodologies, Tools, and Applications, edited by Information Resources Management Association, IGI Global, 2016, pp. 497-522. https://doi.org/10.4018/978-1-4666-9814-7.ch024

APA

Ali, M. & Park, K. (2016). Knowledge Absorptive Capacity for Technological Innovation Capabilities: The Case of Korea. In I. Management Association (Ed.), International Business: Concepts, Methodologies, Tools, and Applications (pp. 497-522). IGI Global. https://doi.org/10.4018/978-1-4666-9814-7.ch024

Chicago

Ali, Murad, and Kichan Park. "Knowledge Absorptive Capacity for Technological Innovation Capabilities: The Case of Korea." In International Business: Concepts, Methodologies, Tools, and Applications, edited by Information Resources Management Association, 497-522. Hershey, PA: IGI Global, 2016. https://doi.org/10.4018/978-1-4666-9814-7.ch024

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Abstract

This chapter presents the development stages of a theoretical model of Knowledge Absorptive Capacity (KAC) that shows how most, if not all, firms in developing countries initiate, implement, assimilate, improve, and develop external knowledge. The chapter reviews the literature, models, and frameworks related to knowledge absorptive capacity. The chapter utilizes a qualitative content analysis as an explanation method in case study research to validate the proposed model. The chapter then analyzes Korean firms as a case in point to illustrate how Korean firms have built their knowledge absorptive capacity. The model consists of four stages: 1) knowledge initiation, 2) knowledge imitation, 3) knowledge improvement, and finally, 4) knowledge innovation or 4KI. The framework shows four development stages at Korean firms as: 1) entrance of foreign companies into the Korean market and their reluctance to transfer their knowledge and information sharing to Korean firms, initiating its knowledge absorptive capacity, 2) Korean firms started knowledge absorptive capacity by means of imitating knowledge from external (especially foreign firms), 3) it then developed knowledge absorptive capacity by means of improving external knowledge, and finally, 4) capability to create their own knowledge and becoming one of the leading economy in the world which challenges firms from advanced countries in the global market. The chapter also highlights the developmental changes in the electronics industry of Korea. Keeping past experiences in consideration, the authors conclude that this model provides useful implications for developing economies, known as latecomers following the same pattern of KAC.

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