Capability building and architecture selection in process industries

Japanese and Korean steel industry case studies

Abstract

This study is an empirical analysis of the selection processes for specific organizational manufacturing capabilities and product and process architectures by means of emergent corporate strategy formulation. In addition, it analyzes the results of these processes in the form of subtle intra-industry trade. More specifically, it examines case studies of technology transfer in Japanese and Korean steel companies. In so doing, the study attempts to mobilize an analytic framework while relying on the theory of competitive advantage of design location. The study posits that a compatible relationship between architecture and organizational capability, unevenly distributed in a country, impacts the international competitive strength of a given product).