• Journal of Information Technology Services
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• v.11 no.4
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• pp.87-105
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• 2012

The purpose of this case study is to demonstrate the effectiveness of the disruptive innovation strategy based on the Resources Process Values(RPV) theory for a successful firm. Disruptive innovations seemed not initially perform well enough to be sold or used successfully in markets. The products and services used disruptive technologies have not been as effective as those used in the established markets. However, they have other attributes such as simplicity, convenience, and low cost, which appeal to a new, small and initially unattractive set in new or low-end applications. The Hyundai Heavy Industries Co.(HHI) performed the Jubail Industrial Harbour Project(JIHP), which built the Open Sea Tanker Terminal(OSTT) in Saudi Arabia, using the disruptive innovation strategy in order to lower the manufacturing cost of the offshore jacket and to complete the project successfully. The HHI developed the design and drawing systems to manufacture the jacket and also developed the HYundai Jacket Analysis System(HYJAS) software to use the structural analysis against stresses from rolling and pitching of the barge while transporting the jacket by sea.

• Journal of Technology Innovation
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• v.14 no.2
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• pp.29-48
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• 2006

This paper analyzes organizational behavior of an established firm when disruptive innovation, a change in product architecture, occurs on a previous product. For the analysis, the paper analyzes and compares the behavior of an established fm through product trajectories between NEC (an established firm) and Toshiba (a new entrance) in the Japanese laptop computers industry. An established firm that has developed and produced a previous product is difficult in adapting to a disruptive innovation due to accumulated immense knowledge through a previous product. By using regression model in the product trajectory analysis, the paper analyzes the behavior of established firms. Product trajectory means a pattern of product strategy shown in a series of products. Two facts found in the paper are as follows. First, though NEC was able to develop a laptop computer at the same time with Toshiba, it was restricted by the resources of a previous product in the early stage. Second, possibility of teaming trap in the adapting process was found. The paper found the risk that too much commitment in one evolution stage would prohibit the adapting behavior in the next evolution stage.

• Asian Journal of Innovation and Policy
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• v.3 no.1
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• pp.117-139
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• 2014

Indigenous innovation is the main strategy for China during 2006 - 20 period. China may hope that indigenous innovation policy will spur on industrial upgrading. The purpose of this paper is to evaluate the indigenous innovation policy. The paper begins with the background of the strategy, follows the detailed content of the national strategy, then analyzes how the strategy is implemented. We find that the package of indigenous innovation policy is constructive and efficient for a catch-up economy with clear industry targets but not good for innovation. If China want to be an innovative country, it needs to give market competition more space to incubate and eventually yield increment or disruptive innovation, even radical innovation. Chinese enterprises cannot close themselves off to the global technology system. Only open innovation can give Chinese enterprises the possibility to win in the next wave of innovation in the world and make China an innovative country.

• Journal of Distribution Science
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• v.14 no.9
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• pp.5-13
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• 2016

Purpose - This study proposes a framework for service innovation strategy to cope with the emergence of electric vehicles. Research design, data, and methodology - This study designs an electric-vehicle lease program and collects the resulting data to analyze. By analyzing the previous studies on the electric-vehicle market with cases, a theoretical framework based on existing theories is to be set. Results - This study proposes a strategy for the rapid diffusion of electric vehicles. First, a partitioned-pricing system is proposed to create an advantage for electric vehicles in terms of initial purchasing cost relative to traditional internal combustion vehicles. Second, focusing on reducing switching costs is important because electric vehicles have relatively low resale values due to the uncertainty of battery life. Third, a battery-leasing strategy is supposed to reduce the cost of switching from a traditional internal combustion vehicle to an electric vehicle. Conclusions - This paper can provide strategic guidance for decision makers in firms that have already entered the electric-vehicle leasing market by making a recommendation such as a service innovation strategy. The proposed strategy can be considered as an electric vehicle market in the future and can contribute to the wider diffusion of electric vehicles.

• Journal of Service Research and Studies
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• v.6 no.2
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• pp.23-35
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• 2016

Firms should seek greater profits and corporate growth through new businesses. New businesses contribute realizing creative economy that creates good jobs, and expanding the company by securing new markets and creating new profits and growth. However, new business is risky management decision-making to have a high failure rate because it involves the adaptation of new business environment and the burden of new investments, including the uncertainty of success in business. Therefore, innovation strategies play important roles for the new business entry, using product innovation, process innovation, business model innovation, disruptive innovation, and strategic innovation, etc. and company will get huge economic results by pushing them into successful business. It is essential that innovation strategy and IT development strategy along with business strategy of a firm are linked, and their strategic alignment is considered to be a critical success factor for new business success. Hyundai Heavy Industries(HHI) pursued marine engine business for the development of precision machinery industry and shipbuilding industry of Korea, and the company recognized the importance of new business strategy, innovation strategy, and IT strategy inter-linked, and pushed strategic alignment boldly. As a result, HHI won the competition in European and Japanese engine manufacturers and climbed into the world's largest engine manufacturer. This study suggests investigating and analyzing a case that HHI succeeded in marine engine business expansion using strategic innovation strategy as a way of the introduction of CNC machine tools and the development of HEMAPT system.

• Asian Journal of Innovation and Policy
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• v.9 no.3
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• pp.281-307
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• 2020

A variety of approaches are being applied to improve the existing ex-ante evaluation by expert panels in publicly funded R&D. While the objective evaluation criteria are constantly being improved to screen and select the superior projects, alternative approaches such as random prioritization and logical modeling are also underway to overcome the conservative bias of reviewers and to secure disruptive innovation. This study intends to find critical implications for ex-ante evaluation of public R&D system from the comparison of Indonesia and Korea. For the comparative analysis, literature review and expert in-depth interviews are conducted on the national R&D system and the selection evaluation process. In Korea, the selection criteria of projects are legally promulgated for establishing an objective evaluation system, and at the program level, the major considerations in the planning process are specified by Presidential Decree. On the other hand, while Indonesia conducts R&D in 47 strategic fields largely by public research institutes (PRI) based on the non-competitive government contributions. This study draws out implications of institutionalizing the planning process at the level of program, and of increasing the ratio of contract-based competitive funding at the level of project in the national R&D portfolio.

• Journal of Korea Technology Innovation Society
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• v.11 no.2
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• pp.145-170
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• 2008

The existence of network is indeed the single most important factor that brings about new business phenomena in the new digital economy, especially in the IT industry. Network effect refers to a phenomenon that the increase in size of the network leads to increased network value and user utility. It determines the competitive structure of an industry and the performances of industry competitors (Shapiro and Varian, 1999). The phenomenon of increasing returns and winner-take-all enjoyed by the early winner in the competition can be attributed to the existence of positive feedback which increases the value of network and induces more users into join the network (Arthur, 1996; Shapiro and Varian, 1999; Song and Lee, 2003). This research attempts to shed light on the topic of innovation and competitive strategy of network-based industries. We analyze the case of the Korean mobile communications industry, in which a shift in technological paradigm from 2G to 3G brought new changes to the competitive structure of the industry. The Korean mobile communications industry makes an ideal case for analysis since it is an industry whose value is inherently dependent upon its user network. It is characterized by the typical increasing returns, in which a monopolizing player is enjoying firstmover's network effects. Because of the existence of network in the mobile communications industry, latecomers' disruptive innovations could not outcompete the incumbent's sustaining innovations. The contribution of this research lies in laying a groundwork for future studies by introducing a numerical simulation model to analyze the complexity theory and network effect.

• The Journal of Society for e-Business Studies
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• v.23 no.3
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• pp.173-187
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• 2018

After Satoshi Nakamoto published 'Bitcoin: A peer-to-peer electronic cash system' in 2008, Blockchain has been GPT (General Purpose Technologies) that affect the whole cycle of the $4^{th}$ Industrial Revolution. This study attempted to identify the innovativeness of Blockchain. Because of Blockchain's ambidextrous characteristics, Blockchain has two kinds of innovativeness, technological innovation by physical technology and social innovation by social technology. Thus, this study will be useful to increase understanding and establishing strategy for Blockchain.

• Journal of Powder Materials
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• v.23 no.2
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• pp.149-169
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• 2016

Additive manufacturing (AM) is defined as the manufacture of three-dimensional tangible products by additively consolidating two-dimensional patterns layer by layer. In this review, we introduce four fundamental conceptual pillars that support AM technology: the bottom-up manufacturing factor, computer-aided manufacturing factor, distributed manufacturing factor, and eliminated manufacturing factor. All the conceptual factors work together; however, business strategy and technology optimization will vary according to the main factor that we emphasize. In parallel to the manufacturing paradigm shift toward mass personalization, manufacturing industrial ecology evolves to achieve competitiveness in economics of scope. AM technology is indeed a potent candidate manufacturing technology for satisfying volatile and customized markets. From the viewpoint of the innovation technology adoption cycle, various pros and cons of AM technology themselves prove that it is an innovative technology, in particular a disruptive innovation in manufacturing technology, as powder technology was when ingot metallurgy was dominant. Chasms related to the AM technology adoption cycle and efforts to cross the chasms are considered.

• Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
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• v.7 no.1
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• pp.35-44
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• 2017

In this paper, we attempt to investigate the moderating effect of brand power on the effect of in-flight service quality on customer satisfaction and recommendation in the aviation industry. The results were as follows. First, in the case of high brand power FSC(full service carriers), the cost-to-benefit ratio as well as all other flight service properties influence to customer satisfaction. However, in the case of low brand power FSC, the cost-to-benefit ratio showed a greater impact of customer satisfaction compared to other in-flight services. Second, as in the case of customer satisfaction, while the cost-to-benefit ratio more influence to customer recommendation than other in-flight services in low brand power FSC, the cost-to-benefit ratio as well as all other flight service properties influence to customer recommendation together in high brand power FSC. Therefore, low brand power FSC required tit-for-tat strategy against to LCC(low cost carriers) by pursuing disruptive innovation for price. And high brand power FSC required sustaining innovation strategy through improving flight services.