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).

Sunbalance® is Asahi Glass’ low-E insulating glass used in construction. It was first marketed in 1993 and gained popularity as a sophisticated energy-saving glass for use in new-single family homes. As a result, it has become the de facto industry standard. What were the types of organizational and strategic efforts underpinning the success? The results show that creating a concept with a “visible” function and proposing concepts that can be viscerally experienced were some of the success factors. Asahi Glass adopted this process internally and used it in the development of other types of functional glass. It is believed that the effort put into a series of proposal-type developments in the same company was an effective approach for suppliers.