Chung-Sok Suh

Globalization and Employment Relations in the Korean Auto Industry: The Case of the Hyundai Motor Company in Korea, Canada and India

Examination is made of the complex interactions between globalization and employment relations as reflected in the operations of the Hyundai Motor Company (HMC) in Korea, Canada and India. After the closure of its short-lived attempt to manufacture cars for the North American market from Canada, the HMC ‘relaunched’ its globalization strategy in India in 1998. An examination of Hyundais experience in both countries suggests that employment relations is likely to continue to be an evolving blend of company-specific policies and locally-based practices.

If at first you don't succeed: globalized production and organizational learning at the Hyundai Motor Company

This article reviews the development of a global production system through a cross-case analysis of the establishment of Hyundai Motor Companys five major overseas production facilities. It concludes that establishtying a global production network can be a catalyst for organizational learning and the development of new competencies; in particular, that the complexities and uncertainties of operating in unfamiliar economic and cultural contexts provide a powerful impetus to increasing a firms absorptive capacity. The article identifies the strategies that enabled the Hyundai Motor Company to learn from its initial failures in overseas production. It focuses on the localization of production, the internal transfer of experienced staff, the codification of previous experience and the use of aggressive goal-setting. The analysis suggests that organizational resilience, that is the ability to rebound from initial failure, is a further important aspect in the process of organizational learning.

Globalization Strategies of South Korean Electronics Companies After the 1997 Asian Financial Crisis

Most theories of foreign direct investment (FDI) either begin with the existing ownership advantages of a firm or explain that the firm-specific ownership advantages are developed internally through experience (Cantwell, 1991). Porter (1990) on the other hand lists the conditions that would be conducive to the creation of international competitive advantage of an industry. As most of the traditional theories do not aim to explain how competitive advantages, or ownership advantages in Dunning’s paradigm (1988, 1995) are created, there are limitations with these theories for explaining the emergence of latecomers such as Korean electronics companies in international markets during the past 30 years. Korean electronics companies did not have substantial firm-specific ownership advantages when they started exporting in the international market in the early 1980s. Although most of the conditions in Porter’s ‘Diamond’ (1990) were not easily identifiable among Korean manufacturers during the first stage of entering the international market, some of them have successfully established themselves and become major players in the international market. Foreign direct investment (FDI) by Korean companies began to increase rapidly in the 1990s. Although Korean companies had competitive advantages over producers in less developed countries (LDCs), their FDI decisions in the developed countries (DCs) cannot easily be explained by traditional theories of international business. The financial crisis which hit the Korean economy hard in 1997 initiated substantial changes in the Korean corporate sector, including the structure of the large business groups and their business strategies, both domestic and international. This study aims to show that there are distinct changes in the globalization strategies of the Korean companies after the 1997 financial crisis. Our findings indicate that after the changes in the structure and business strategies of these business groups, the decisions to make overseas investment/disinvestment can now be more easily explained by the traditional theories in international business developed to explain the behaviour of the companies in western industrialized countries. The electronics industry is one of the representative industries in Korea. Along with the automobile industry, they are the leading exporters in Korea. To examine the impact of the 1997 financial crisis on the globalization strategies of the Korean companies, 18 companies were chosen from the subsidiaries of the three largest Korean electronics

Whither the Developmental State in South Korea? Balancing Welfare and Neoliberalism

Abstract Scholars of political economy have been debating the role of the Korean state in the economic development of the country, as the characteristics of a developmental state, a neoliberal state and/or a welfare state have appeared simultaneously in the various governments’ policies since the 1990s. This paper argues that although the nature, degree and extent of government intervention has varied from administration to administration, the basic stance of a developmental state has been retained while neoliberal and welfare policies have been used concurrently to further economic and social development. This coexistence of contradictory approaches reflecting alternative market economic systems was the product of a combination of government policies that has for the past 20 years provided the Korean government with the ability to deploy flexible policy mixes in response to changes in the political and economic environment and to maximise the outcomes of developmental policies.

Public sector management and the changing nature of the developmental state in Korea and Malaysia

This article traces the role of the state in developmental theory and practice, paying particular attention to public sector management. The early orthodoxy of modernisation theory put the state at the centre of development, giving it prime responsibility for generating development. Realisations of the shortcomings of modernisation theory and disappointment with its results led to the rise of neoliberal approaches in development thinking and action, with a focus on the shrinking state. However, in turn, the efficacy of neoliberalism has been questioned, and its human toll has been critiqued. Coupled with evidence of the success of the East Asian developmental states, the result has been a rethinking of the state and a new acknowledgment of its central role in development. Strong institutions and efficient, effective and responsive public sector management have been identified as key ingredients of capable states that made development happen. In outlining this trajectory, the article introduces the case studies that comprise this symposium.

Structure and agency in the Malaysian government’s policies for economic development

This article examines the role of government in Malaysia’s history of economic development. In addressing two key challenges – inter-ethnic inequalities, conflicts and tensions, and exposure to global trade and economic relations – the Malaysian government has become directly involved in the economy. Strong government has played a role in Malaysia’s economic success in a range of ways, from 5-year plans to specific industry promotion and the creation of organisations for particular economic development purposes. Government has also been aware of environmental changes and in response has modified its strategies, established new organisations and invested in innovative ventures. Thus, while the drivers of economic development in Malaysia have been deeply embedded structural phenomena, the actual economic development path taken has been determined by the actions of the Malaysian government in concert with other stakeholders.

The Global Strategies and Employment Relations Practices of the Hyundai Motor Company in Korea and India

This paper examines the experience of the Hyundai Motor Company (HMC) managing its employees in a new plant established in Chennai, India. The establishment of the Indian plant in 1998 marked an important attempt by HMC to ‘relaunch’ its globalisation strategy after an earlier failure to manufacture in Canada. The ability of HMC to adopt an appropriate employment relations strategy in India will be an important factor determining its success as a global manufacturer. A key issue facing the Hyundai Motor Company of India (HMI) is the role to be accorded to unions and employee representation in the plant.

Fuel demand in electricity generation: A case study of the Republic of Korea

Abstract This paper estimates the import demand for fuel inputs by the Korean electricity sector for the period 1995–2000. To make such estimates, a linear programming model is developed and a scenario approach is adopted in creating future data related to fuel prices. The results with alternative price scenarios are reported and the sensitivities of demand for fuels to variations in oil and liquid natural gas (LNG) prices are compared.