Building Network Capabilities in Turbulent Competitive Environments Business Success Stories from the BRICs

Brazil, Russia, India, and China (BRIC) are among the largest and fastest-growing economies in the world. The enormous size of the customer base in these emerging markets is the strategic concern of global business firms. Successful market performance in these markets requires sound understanding of dynamic environmental factors and timely investment of appropriate resources. This book presents strategies for recognizing the challenges and optimizing the opportunities for building network capabilities and competitive advantage within the context of these emerging markets. Building Network Capabilities in Turbulent Competitive Environments provides a thorough review of the literature and an unparalleled abundance of fascinating case studies featuring Japanese, Korean, and indigenous business examples. To gather real-world information, research teams made numerous field visits to many firms in the BRIC markets to meet and interview executives and observe their manufacturing and supply chain practices. The information in this book is presented within a fully formulated theoretical framework of three core competencies: technology competence (capability to offer innovative products that fit these markets), customer competence (capability to understand and satisfy different customer needs), and linkage competence (ability to integrate technology and customer competence). The book also covers the concepts of product architecture and supply chain management to provide a more in-depth analysis of global firms operating in BRIC markets.

PrefaceThe AuthorsResearch Framework: Core Competence and Global StrategyImportance of Network Capability in the BRICs Market EnvironmentNetwork Capability and Global Competitive StrategyThree Types of Core Competence and Global Expansion StrategyCore Competence and Product ArchitectureProduct Architecture and Supply Chain IntegrationNetwork Capability Dynamics and Portfolio StrategyNetwork Capability and Intellectual Property StrategyStructure of This BookComparisons of Strategies of Established Global Firms and Indigenous Firms from BRICsIntroductionGlobal Supply Chain Management (SCM) Strategy and SpecializationSupply Chain Management in Emerging MarketsSupply Chain Management and Product ArchitectureCases of Collaboration between Global Firms and Indigenous FirmsGlobal Supply Chain Collaboration between Apple and FoxconnGrowth Process of the Chinese Mobile Phone IndustryLCD Industry: An Illustration of Supply Chain Structure in East AsiaConclusionRESEARCH FRAMEWORKStrategies of Chinese Indigenous FirmsIntroductionChinese Economic ContextCase Studies of Chinese FirmsCase Study of HaierHistory of HaierStrategic Management System: Four Phases of Development StrategyHaier’s Product StrategyLenovo CaseIts Early Market Experiences and Global Market EntryEstablishing Lenovo’s Brand and Pursuit of Its Unique Customer BaseDiversification of Its Businesses and Enhancement of Global CompetitivenessLenovo Acquired IBM PC and Expanded Its Global Target MarketConclusionStrategies of Indian Indigenous FirmsIntroductionIndia’s Economic Growth PatternsCase Studies of Indian FirmsTata GroupMahindra & Mahindra Limited (M&M)Big BazaarConclusionStrategies of Brazilian Indigenous FirmsIntroductionBrazil’s Economic ContextBrazilian FirmsEmbraerConclusionStrategies of Russian Indigenous FirmsIntroductionRussian Economic ContextEnergy-Dependent Economic StructureAggressive Public ExpendituresRussia’s Automotive IndustryCurrent Status of the Russian Automotive IndustryGrowth of Russian Indigenous Firms: AvtoVAZRussian Energy IndustriesGrowth of Russian Indigenous Firms: GazpromComparison of Gazprom with Other FirmsConclusionEMERGING GLOBAL FIRMS FROM CHINA, INDIA, BRAZIL, AND RUSSIAStrategies of Japanese Firms in the Chinese MarketIntroductionStrategy of Komatsu ChinaAn Overview of Komatsu ChinaStructure of KOMTRAX of Komatsu ChinaKOMTRAX’s Usage Patterns in Emerging MarketsCompetition with Local Chinese FirmsStrategy of Daikin ChinaDaikin’s China Market StrategyProduct Development Strategy of Daikin ChinaBrand Marketing Strategy of Daikin ChinaStrategic Talent Development That Supports Global Monozukuri (i.e. Japanese Manufacturing)Strategy of Honda GuangzhouHonda’s Entry Strategy for the Chinese MarketProduct and Technology Strategy of Honda ChinaMarketing Strategy of Honda ChinaImplementation of Localization Strategy: Establishing Collaboration System and Talents DevelopmentToyota’s Global Supply Chain Management (SCM) in ChinaStrategies of Other Japanese Global FirmsStrategy of Yaskawa Electrics of ChinaStrategy of Panasonic ChinaStrategy of Clarion ChinaConclusionStrategies of Japanese Firms in the Indian MarketIntroductionStrategy of Toyota IndiaToyota Kirloskar Motor (TKM) and Toyota Kirloskar Auto Parts (TKAP)Development of Etios SedanStrategy of Honda IndiaNikkei Makers Lead in Indian Motorcycle MarketHonda’s India StrategyStrategies of Other Japanese Global Firms in IndiaStrategy of Seiko Epson IndiaStrategy of Makino IndiaStrategy of Denso IndiaConclusionStrategies of Japanese Firms in the Brazilian MarketIntroductionKomatsu BrazilA Brief OverviewConstruction Equipment Usage Patterns in Brazil and Komatsu’s ResponseSummaryStrategy of Toyota BrazilBrazilian Automotive IndustryToyota’s Entry into the Brazilian MarketToyota Brazil: Plants and Quality ManagementPresent and Future of Toyota BrazilBrazil Honda’s StrategyBrazilian Motorcycle MarketHonda’s Entry into the Brazilian MarketHonda Brazil’s Motorcycle Production and Marketing StrategyOther Japanese Firms in BrazilStrategy of Bridgestone BrazilCase of Epson BrazilConclusionJAPANESE AND KOREAN GLOBAL FIRMS IN EMERGING MARKETSStrategies of Korean Firms in the Chinese MarketIntroductionSamsung China’s SCM Collaboration StrategySamsung LCD’s SCM SystemSamsung China LCD’s Integration of BLU SuppliersLCM (Low Cost Module) Strategic ChallengesConclusionGlobal SCM Strategy of Hyundai BeijingHankook Tire StrategyMarket RealityStrategic Focus/Organizational LeadershipProduct/Value InnovationStrategic AllianceGlobal MarketConclusionStrategies of Korean Firms in the Indian MarketIntroductionHistorical Background of Korean Firms’ Entrance to IndiaLocalization Strategy of Hyundai Motor India (HMI)Investment Goals in Indian ContextLocalization Strategy: Local Adaptive Product Development and Marketing StrategyHuman Resource (HR) Policies: Develop Native Leaders and Education/Training at HeadquartersSamsung India Electronics (SIE)Investment Context and Strategic PriorityLocalization Strategy: Pursuit of FPD TV–Based Premium StrategyHR Policy of Management–Employee Relationships: Continuous Improvement by Field EmployeesLG Electronics India (LGEI)Investment Contexts and Strategic PriorityLocalization Strategy: Customer-Driven Marketing and Premium Product StrategyHR Policy and Management–Employee Relationships: Native Leadership and Incentive SystemsConclusionStrategies of Korean Firms in the Brazilian MarketIntroductionStatus of Korean Firms in BrazilLocalization Strategy of Korean Firms in BrazilSamsung BrazilLG BrazilComparisons of Samsung and LGConcluding RemarksConcluding Remarks and Future Research IssuesComparison of Japanese and Korean Global Firms versus Indigenous Firms from BRICsEmerging Market Strategy: Direction and ProspectNational and Firm Level Collaborations Among BRICs and BeyondFirm Level Strategies in Global BOP MarketsCompetitive Advantage of Firms in Emerging EconomiesReferencesIndex

Dr. Paul Hong is a professor of operations management at the University of Toledo, USA. He holds a PhD degree in manufacturing management and engineering from the University of Toledo. He also holds an MBA and an MA in economics degree from Bowling Green State University, USA and a BA from Yonsei University in Seoul, Korea. He has presented and published more than 200 articles in conferences and journals including Journal of Operations Management, International Journal of Production Research, Corporate Governance: An International Review, Journal of Supply Chain Management, Benchmarking: An International Journal, British Journal of Educational Technology, Strategic Outsourcing: An International Journal and European Journal of Innovation Management, Journal of Production Economics, International Journal of Operations and Production Management, Journal of Business Research, International Journal of Technology Management, International Journal of Information Management, Management Decision, Journal of Cleaner Production, Journal of Purchasing and Supply Management, Journal of Service Management, and Business Horizons. He is the recipient of Journal of Operations Management Best Paper Finalist Award (2006) for the paper, "Role Change of Design Engineers in Integrated Product Development)," Emerald Literati Network 2011 Awards for Excellence for the paper, "Integration of Supply Chain IT and Lean Practices for Mass Customization: Benchmarking of product and service focused manufacturers," and Best Paper Awards on "Flexible and Redundant Supply Chain Practices to Build Strategic Supply Chain Resilience: Contingent and Resource-Based Perspectives" and "Using Social Media for Competitive Advantage: An Empirical Study" at Annual North American Research Symposium in Tempe, Ariz. 2012 and 2013. He is an editorial review board member of several journals including Journal of Operations Management, Journal of Humanitarian Logistics and Supply Chain Management (JHLSCM), and Journal of Enterprise Information Management (JEIM). Since 2006, he has been special issue editor for journals such as Benchmarking: An International Journal (BIJ), International Journal of Business Excellence (IJBEX), International Journal of Services and Operations Management (IJSOM), International Journal of Procurement Management (IJPM), and International Journal of Production Economics (IJPE). He is conference chair and international network coordinator of annual International Symposium and Workshop on Global Supply Chain, Intermodal Transportation and Logistics—4th Symposium in Madrid, Spain, 5th Symposium in Tokyo, Japan and 6th Global Supply Chain Conference in Dearborn, USA. His research interests are in business ecosystem innovation strategy, global supply chain management, and international comparative studies. Dr. YoungWon Park is an associate professor of GCOE Project of Manufacturing Management Research Center at the University of Tokyo, Japan. He holds a PhD degree in the Department of Advanced Social and International Studies from the University of Tokyo, Japan. His articles have been published in journals including Management Decision, International Journal of Production Economics, International Journal of Technology Management, International Journal of Information Management, Business Horizons, Journal of Business Research, Benchmarking: An International Journal, International Journal of Services and Operations Management, International Journal of Logistics Systems and Management, International Journal of Business Excellence, International Journal of Procurement Management, Akamon Management Review, Japan Academy of International Business Studies, Japanese Society for Science and Technology Studies, and the Japan Society of Information and Communication Research. He has received research awards including Dissertation Paper Awards from the Japan Association for Social Informatics (JASI), Best Paper Awards from The Japan Society of Information and Communication Research (JSICR), Research Awards of the Social Science Field from The Telecommunications Advancement Foundation (TAF), and Research Students Awards of the Social Science Field from The Telecommunications Advancement Foundation (TAF). His research interests are in technology management, manufacturing and IT strategy, and global supply chain management.