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ISSN : 1738-3110
Mechanism-based View of Innovative Capability Building in POSCO
Abstract
Purpose - Studies of mechanism as a competitive strategy, a relatively new field in the study of strategic management research, has recently drawn the attention of the business management scholars. The literature has so far proposed the subjective-based view, environment-based view, and the resource-based view in its analyses of firm management. Hence, it is highly likely for the firm management to be reasonably thought of as a combination of and interaction among the three key elements of subject, environment, and resources this is the mechanism-based view (MBV). It is reasonable to consider firm management to be the combination of and interaction among the three key elements of subject, environment, and resources. The overall dynamic process that integrates these three elements and creates functional harmony is identified as the mechanism, the principle of firm management. Much of the extant literatures on MBV has mainly focused on case studies, a qualitative approach prone to subjectivity of the researcher, although the intuition from the study may lead to meaningful insights into a firm-specific mechanism. This study's focus is also on case analysis, but it still attempts a quantitative approach in order to reach a scientific and systematic understanding of the MBV. Research design, data, and methodology - I used both a qualitative and quantitative approach to a single model, given the complexity of the innovation processes. I conducted in-depth interviews with POSCO employees-20 from general management, two from human resources, eight from information technology, five from finance and accounting, and five from production and logistics management. Once the innovative events were selected, the interview results were double-checked by the interviewees themselves to ensure the accuracy of the answers recorded. Based on the interview, I then conducted statistical validation using the survey results as well. Results - This study analyzes the building process of innovation and the effect of the mechanism pattern on innovation by examining the case of POSCO, which has survived over the past 21 years. I apply a new analytical tool to study mechanism innovation types, perform a new classification, and describe the interrelationships among the mechanism factors. This process allows me to see how the "Subject"factor interacts with the other factors. I found that, in the innovation process of the adoption stage, Subject had a mediating effect but that the mediating effect of resource and performance was smaller than the effect of Subject on performance alone. During the implementation stage, the mediating effect of Subject increased. Conclusion - Therefore, I have confirmed that the subject utilizes resources reasonably and efficiently. I have also advanced mechanism studies: whereas the field's research methods have been largely confined to single case studies, I have used both qualitative and quantitative methods to examine the relationships among mechanisms.
- keywords
- Innovation, Process, Pattern, Mechanism
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