In this study, we examine from the basic feature of the economic development of both China & South Korea to the government’s effort and that results to bring up their own large company first. Both China and South Korea was started from the poor econom ...
In this study, we examine from the basic feature of the economic development of both China & South Korea to the government’s effort and that results to bring up their own large company first. Both China and South Korea was started from the poor economic basis like as the developing country and has the history established the highly economical growth in a short time through the innovation for the existing economic system and the government leadership of the ‘development autocracy’ form. The large companies have had the same growth methods generally as the inevitable results of the highly economic growth.
But, on the other hand, both large companies was clearly different even in the growth method and route, growth because they are facing the different social regime, non-existence of the production factor, the science technology level, the market environment of inside and outside of the country, and the society & culture environment in the early growth.
The growth as the large company is premise on the more high effectiveness (or business results) rather than other enterprise. In this study, we pointed the three sides such as the company’s possession and management structure, the competitive environment of outer companies, and the company’s core competitive power as the basic factor that can effect on the company’s effectiveness and analyzed these large companies of both China & South Korea has in common and differences.
In this study, we analyzed the institutional difference of the ownership and management structure of both China and South Korea from the ‘property right theory’ view first. And, we checked that the large companies have the different growth method, route, and result.
Second, we analyzed the outer competitive environment that both companies is facing in the initial growth process from the ‘super property right theory’ view emerged in the late 1990s. Because there was a great difference in the inner and outer competitive environment, both large companies have had the different features in the growth method.
Third, from the ‘comparative advantages theory’ view in the business administration, we analyzed their won core competitive power that both large companies have. It is different according to the company, but the independent contained core competitive power became the crucial force that overcome these some stiff competition and could grown as the large company individually for the contents such as the special production factor, company’s business abilities, technology abilities, and learning abilities. The upbringing method of the core competitive power has in common and differences in both Korea and China, and it has a strong link with the specificity of economic development of both countries naturally.
Both large companies in China-Korea have various works. How to resolve problems formed historically or newly appeared in the global flow of internationalization and information will be of paramount concerns that decide if these large companies can keep the glory or not continuously later.