IRKOM Brief

A Study of Innovation Strategies and Leadership in East Asian Companies: A Comparison Between Samsung's Lee Kun-hee and TSMC's Maurice Chang

writer: admin

date: 2024-08-30

category: Ongoing Research

view: 217

author: Kim, Eun Hwan

This project aims to conduct an in-depth comparative analysis of innovation driven by Lee Kun-hee and Morris Chang, former chairmen of Samsung and TSMC, respectively, leading companies of Korea and Taiwan, the late industrial developers of East Asia. As the chairmen of the business giants, the two leaders enabled the two enterprises to make inroads into the IT industry led by a few advanced companies around the world and to grow from OEMs to major players in the industry value chain. The two nations have a lot in common in geopolitics, culture, history, and economy. Specifically, the divided nations on the front lines of the Cold War have been influenced by the Confucian culture, were colonized by Japan, and are characterized by export-oriented and international market-dependent economies. Against this backdrop, the business leaders accomplished amazing innovation. This paper is designed to compare and analyze the business strategies and leadership of the two tycoons, drawing insights for fostering business innovation among emerging industry leaders. Most of the existing innovation theories have focused on leading companies armed with tangible and intangible infrastructure, covering followers in a very limited way. New perspectives and suggestions are required to effectively examine the innovation of emerging businesses that should create something out of nothing.

Even though they started with similar conditions, South Korea and Taiwan have contrasting business structures and strategies. The former relies on large conglomerates while the latter depends on small and mid-sized companies. The cases of the two big tech companies walking different paths under similar circumstances can be regarded as comparative tests in real business environments. They are also expected to play a role in testing various innovation hypotheses. This study thoroughly reviews whether the strategies and leadership of the business tycoons remain effective in the economies and industries of both countries, which have now joined the ranks of developed nations. Moreover, this paper examines whether the model only applies to special situations for latecomers in innovation or if it has theoretical and practical implications for universal innovation theories.

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