Implementing agility in a big firm-driven economy: Digital disruption and Korea's retail chaebol

Solee Shin

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

The mid-1990s brought dramatic transformation to Korea’s domestic market environment and businesses resulting from abrupt market liberalization and the rise of digital technologies. These transformations necessitated that businesses worldwide readapt their organizations. Korea’s large-business group-driven business system, with strengths in mass and heavy-industrial production, however, was not particularly well suited for this challenge. Yet, a group of domestic businesses – particularly a group of chaebol divisions (in retail, food, and fashion) – effectively responded to these trends and rose into nimbler, and trendier, consumer goods operators. They have implemented agile techniques to develop and retain competitive advantages in the fast-changing consumer goods sectors, and in some cases, rose into significant branded consumer goods manufacturers and retailers within the domestic and international markets. This chapter traces the history of this transformation, including the changing market and political economic environment, the conditions that led to these retail chaebol’s capability development, and how they implemented agile manufacturing techniques within their supply chains. Three cases are discussed to illustrate the shift: AmorePacific in cosmetics, Samsung C&T in fashion apparel, and Shinsegae E-Mart in food retail operations. The overall insight is one that emphasizes the necessity for coherence between firm strategy and organizational structure in firm adaptation, as the successful chaebol firms demonstrate.
Original languageEnglish (US)
Title of host publicationThe Routledge Companion to Asian Family Business
Subtitle of host publicationGovernance, Succession, and Challenges in the Age of Digital Disruption
EditorsHo-Don Yan, Fu-Lai Tony Yu
PublisherRoutledge
Pages298-312
Number of pages15
ISBN (Electronic)9780429342813
ISBN (Print)9780367359508, 9780367754631
DOIs
StatePublished - Apr 28 2021

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance
  • General Business, Management and Accounting

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