• STI Policy Review
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• v.3 no.2
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• pp.111-129
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• 2012

The integration of products and services is being expanded in both manufacturing and service companies such as in Apple's iPod & iTunes, Amazon's Kindle, and Hyundai Motor Company's Mozen. This phenomenon has recently accelerated due to multiple factors including market change, lessening of differences in quality of products or services, the paradigm of participation and sharing, and deindustrialization and evolution toward becoming a service economy. The objective of this paper is to investigate and analyze the status and characteristics of integration of products and services in Korean firms and to suggest policy directions promoting this integration. Towards this purpose, income statements from the Korea Listed Companies Association (KLCA) database of companies listed on the Korea Stock Exchange are analyzed regarding the servitization of manufacturing firms as well as the productization of service firms. In addition, this research investigates the Korean Innovation Survey 2011 database for the service sector and 2010 database for the manufacturing sector in order to evaluate R&D activity in each. In the manufacturing sector, the average ratio of service sales (servitization) was low at 0.208, with bias in the level and distribution of ratios associated with the manufacturing sector. 18 out of a total of 23 sectors (78%) have low servitization, showing there's a long way to go for servitization in the Korean manufacturing sector. In the service sector, the average ratio of product sales (productization) was 9.53%, which is relatively high compared to that of the manufacturing sector. However, the distribution of ratios is also biased, as with the manufacturing sector. Based on this analysis, policy directions are proposed in terms of 1) R&D, 2) concept boost, 3) R&D result spread, 4) statistics, 5) infrastructure and 6) green growth.

• Journal of Korean Society for Quality Management
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• v.31 no.2
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• pp.82-97
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• 2003

The study attempts to review TQM models used in the health care sector and the obstacles to the application of TQM in the sector. Even though the TQM models in the manufacturing and service sectors were successfully applied, the applicability of TQM in the health care sector is still in question. The reason is the unique characteristics of the medical sector such as medical and management practices. The most of the TQM models in the health care sector come from manufacturing industries. The importance of the professional groups is, however, more emphasized in the sector than in manufacturing sector. The role of the groups are idiosyncratic to the sector. They generate some obstacles to the application of TQM in the sector. The barriers include cultural obstacles of health care organization. It naturally follows that the TQM in the health care sector requires the change of the organizational culture of the sector. The culture embraces the norms, rules, regulations, compensation system, morale, practices, and common experiences. To change the culture needs long term effort and modification of the rules, regulations, compensation system, and practices. It also requires staffs' training in the problem solving methods. The TQM in the health care sector needs that the interested parties should change. Since doctors group and nurses group are controlled in the bureaucratic and authoritative manner, they should learn the problem solving techniques which require the interaction with other groups. The management also needs to learn management skills and get thorough training on them.

• Journal of Technology Innovation
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• v.7 no.1
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• pp.14-35
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• 1999

This paper presents the relationship between the pace of structural change and the magnitude of employment growth in the manufacturing sector in OECD countries. To measure the pace of structural change, the compositional change index in value-added in manufacturing sector is introduced. For mid to long-term there seems to be a positive relationship between the pace of structural change and the magnitude of employment growth. In those countries with higher value of the compositional index, the employment growth in manufacturing sector was generally higher. To analyse the characteristics of structural change in manufacturing sector, this paper classifies manufacturing industries into groups: one based on technology, one on orientation, one on wages and one on skills. The international comparison of manufacturing sector's employment patterns based on above four classifications are presented. International comparison suggests that Korean manufacturing sector move into jobs with more skills and knowledge The structural change of SMEs and large firms are compared based on above four classification methods. It is shown that SMEs' employment in low value sectors, that is low-technology, labor-intensive, tow-wage, and unskilled sectors, have risen faster than SMEs' employment in high-technology, science-based, high-wage and skilled sectors. Large firms' employment have been mainly increased in high value sectors. However, the employment growth of both large and small firms have been concentrated on production worker-intensively-using sectors, i.e. unskilled sectors. This widened the wage differential of production workers by firm sizes and concurrently led to severe shortage of production workers for SMEs, which has little ability to pay high wage to production workers because they usually belong to low-wage sectors. Korea need to push SMEs forward to high value sectors. The premise of that is, however, to pull large firms out of production worker-intensively-using sectors.

• Journal of the Korean Operations Research and Management Science Society
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• v.32 no.3
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• pp.81-96
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• 2007

This paper analyses the Korean information and communication technology supply side across the economy using 1995, 2000 and 2003 input-output tables. Input-output analysis considers inter-industry relations in an economy, depicting how the output of one industry goes to another industry where it serves as an input, and thereby makes one industry dependent on another both as customer of output and as supplier of Inputs. It can be evaluated that the recent growth of Korean ICT sector has come from the development of communication service and equipment industry and software industry. Although the high performance and positive revealed comparative advantages in ICT manufacturing sector, the value added and employment in that sector are not satisfactory. It may reflect in part high portion of imported intermediate goods in ICT manufacturing. However, it is fortunate that ICT services, which accounted for relatively high value added, induce the development of ICT manufacturing and follow strong export performance. Moreover, it is expected that the software sector with high value added and employment will be a major driver of ICT growth.

• Journal of Korean Society for Quality Management
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• v.31 no.4
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• pp.55-63
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• 2003

Total quality management (TQM) is regarded as a tool for improving the competitiveness not only for a manufacturing sector, but also for a service sector, The objective of this paper is to classify TQM education by management level, to identify how TQM education be implemented by the type of industry, to analyze the relationship of TQM education with business performance, and finally to analyze the difference between companies with ISO certification and those without ISO certification in terms of TQM education. The findings suggest that there was a significant difference between manufacturing and service sector in TQM education level. Also, the relationship of TQM education with business performance was partially correlated. Finally there was no significant difference between companies with ISO certification and those without ISO certification in terms of TQM education.

• Journal of Technology Innovation
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• v.6 no.1
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• pp.71-98
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• 1998

This paper analyzes the characteristics of technological knowledge flow-structure of Korean manufacturing in dynamic perspective. In doing that, the concept of the knowledge network is introduced which is defined as a set of industries and their interaction(knowledge flow) or linkage. The analysis of the inter-industrial knowledge flows is based on the technological similarity by using R&D researchers' academic background in the year of 1984, 1987, 1990. The analysis is carried out by such methodology as network analysis, indicator analysis and simple statistical analysis. And the final results are drawn both in absolute terms(dimension effect) and in relative terms(proportion effect) respectively. The main findings are as follow. First, the Korean manufacturing knowledge network appears to strengthen existing inter-industrial knowledge linkages rather than to construct new linkages. Second, the network seems to form a dualistic structure in that some high-technology sectors(knowledge production sectors) emerge along with traditional sectors(knowledge absorbing sectors). Third, since the mid-1980s, an inter-industrial fusion is witnessed among technologically intensive sectors, indicating that some sophisticated innovation modes are emerging in Korean manufacturing system. And fourth, by using the relations of the inter-industrial knowledge-flows, we classified manufacturing industries into 3 type ; knowledge-outflow sector, knowledge-inflow sector and knowledge intermediary sector.

• KDI Journal of Economic Policy
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• v.43 no.1
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• pp.53-80
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• 2021

The main objective of this study is to determine whether there have been TFP increases in the Korean manufacturing sector due to trade liberalization since the 1990s. Based on the methodology proposed by Pavcnik (2002), which focuses on the channel through which trade liberalization measures enhance overall industrial productivity by triggering the exit of low-productivity firms, this study tests the following two hypotheses: first, the TFP increase in the Korean tradable industry is not higher than that in the non-tradable industry, and second, plants with lower TFP levels did not exit from the tradable industry. Through the rejection of these two hypotheses, it is possible to infer indirectly the effect of trade liberalization on firm productivity rates in Korea since the 1990s. First, this analysis reveals that since the 1990s, the TFP of the tradable sector compared to the non-tradable sector presented a statistically meaningful increase only in the 2000s, when China joined the WTO and trade increased sharply between Korea and China. Secondly, TFP growth in the tradable sector was positively affected by exits, as it was plants with lower TFP levels that ceased to exist.

• International Journal of Internet, Broadcasting and Communication
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• v.16 no.1
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• pp.269-279
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• 2024

The study explores the evolving landscape of overseas expansion strategies by Korean corporations, focusing on recent geopolitical tensions, the COVID-19 pandemic, and disruptions in global supply chains. It emphasizes the challenges faced by industries producing high-value products and delves into the concept of "Friend-Shoring" policies in the United States, leading major Korean companies to invest in local semiconductor, battery, and automotive factories. Recognizing the potential fragmentation of Korea's manufacturing sector, the paper introduces the "Mother Factory" strategy as a policy initiative, inspired by Japan's model, to establish core production facilities domestically. The discussion unfolds by examining the cases of major companies in Japan and the United States, highlighting the need for Korea to adopt a mother factory strategy to mitigate risks associated with friend-shoring policies. Inspired by Intel's "Copy Exactly" approach, the paper proposes a Korean mother factory model integrating smart factory technology and digital twin systems. This strategic shift aims to enhance responsiveness to geopolitical challenges and fortify the competitiveness of Korean high-tech industries. Finally, the paper proposes a Korean Mother Factory based on smart factory concepts. The suggested model integrates smart factory technology and digital twin frameworks to enhance responsiveness and fortify competitiveness. In conclusion, the paper advocates for the adoption of a comprehensive Korean Mother Factory model to address contemporary challenges, foster advanced manufacturing, and ensure the sustainability and competitiveness of Korean high-tech industries in the global landscape. The proposed strategy aligns with the evolving dynamics of the manufacturing sector and emphasizes technological advancements, collaboration, and strategic realignment.

• Journal of Korean Society for Quality Management
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• v.38 no.3
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• pp.363-377
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• 2010

Although the importance of the service sector has been highlighted recently, service innovation remain under-researched by scholars. Innovation research based on manufacturing sector suggests that innovation strategy varies according to the objectives of innovation and has a positive influence on firm performance. To investigate the path that links the objectives of innovation, innovation strategy used and firm performance, this study develops a conceptual model of service innovation from the literature and tests the Structural Equation Model(SEM) using STEPI (Korea's Science and Technology Policy Institute) data. We could identify the causal relationships both between the objectives of innovation and innovation strategy and between innovation strategy and firm performance in service as in manufacturing, but we also found that the results of the empirical study for the service industry, in particular, the empirical results on the relationship between the aims of innovation and innovation strategy used, are quite different from those for manufacturing.

• Journal of Korea Trade
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• v.25 no.2
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• pp.75-94
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• 2021

Purpose - This article will take the Korean manufacturing industry as an example to estimate Korea's global value chain status from the perspective of overall and sub-industry, hoping to provide a theoretical reference for Korean manufacturing to climb the global value chain. Design/methodology - Based on the WIOD data. The data is calculated by using MATLAB (2014a) coding. The data for 6 sectors are classified according to the International Standard Industrial Classification revision 3 (ISIC Rev. 3), the WIOD data are used to calculate and compare the position, participation and dynamics of the Korea, China and USA' manufacturing industry in the 1995-2016. Findings - The empirical results supported conclusions of the theoretical model. In the Korean GVC of electrical and optical sector, while stronger forward linkages than backward linkages to GVC are advantageous for an average advanced country, the benefits of downstream tasks are pronounced for non-advanced countries. And proved the correlation for an index to capture a country's upstream position or downstream position, it makes sense to compare that Korea's exports of intermediates in the same sector that are used by China and USA. Originality/value - The first is to re-examine the characteristics of South Korea's participation in global value chains under a more systematic and accurate theoretical framework, which provides a new empirical reference for related research; the second is to content covers of the manufacturing 6 sectors, so as to more completely describe the characteristics of Korean manufacturing's participation in global value chains; The value of this paper is providing empirical evidence of the effect of Korea's the GVC of manufacturing sectors. In the GVC of 6 sectors, first three have a higher position in the value chain and are in the upper middle and upper reaches of the GVC. The latter two have a low GVC position index, which has become the main sector that pulls down the overall position of Korea's manufacturing industry.