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Dynamic capabilities, entrepreneurial rent-seeking and the investment development path: The case of Samsung

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  • Lee, Jaeho
  • Slater, Jim

Abstract

As noted by Narula and Dunning [Narula, R., Dunning. J.H., 2000. Industrial Development, Globalization and Multinational Enterprise: New Realities for Developing Countries. Oxford Development Studies, 28, 141-167.], it has been observed that some of the more advanced developing countries, those rapidly 'catching-up', outpaced the postulated Investment Development Path (IDP), in which the strategic asset-seeking type of outward foreign direct investment is supposed to occur in later stages, i.e., when countries reach the higher "developed" levels of economic progress. Firms who led the outpacing in those countries did so through their entrepreneurial commitment to upgrade technological capabilities to maintain and augment their O-advantages rather than because of the overall economic development of their home country. Samsung Electronics' recent success in the semiconductor industry allows us to identify and analyse the factors whereby it not only utilised status-quo resources but also developed dynamic capabilities as it rose to the top. Aggressive and risk-taking investment behaviour in search of entrepreneurial rent and the effective policy of managing technology development contributed to the extraordinary achievement of Samsung Electronics. The company's remarkable transformation over the last decade or so can shed light on how a firm's dynamic capabilities, the ability to improve its O-advantages by reconfiguration, transformation and learning, contribute to its home country's idiosyncratic development path.

Suggested Citation

  • Lee, Jaeho & Slater, Jim, 2007. "Dynamic capabilities, entrepreneurial rent-seeking and the investment development path: The case of Samsung," Journal of International Management, Elsevier, vol. 13(3), pages 241-257, September.
  • Handle: RePEc:eee:intman:v:13:y:2007:i:3:p:241-257
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    References listed on IDEAS

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    1. Rajneesh Narula & John Dunning, 2000. "Industrial Development, Globalization and Multinational Enterprises: New Realities for Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 141-167.
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    Cited by:

    1. Oehmichen, Jana & Puck, Jonas, 2016. "Embeddedness, Ownership Mode and Dynamics, and the Performance of MNE Subsidiaries," Journal of International Management, Elsevier, vol. 22(1), pages 17-28.
    2. Lect. Simona Gabriela Maşca Ph.D & Assist. Viorela Ligia Văidean Ph.D Student, 2010. "Outward Fdi And The Investment Development Path In Romania," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(15S), pages 27-38, November.
    3. Demirbag, Mehmet & Tatoglu, Ekrem & Glaister, Keith W., 2009. "Equity-based entry modes of emerging country multinationals: Lessons from Turkey," Journal of World Business, Elsevier, vol. 44(4), pages 445-462, October.
    4. Luo, Yadong & Zhang, Huan, 2016. "Emerging Market MNEs: Qualitative Review and Theoretical Directions," Journal of International Management, Elsevier, vol. 22(4), pages 333-350.
    5. Eric H. Y. Koh & Mohan V. Avvari & Kim Hua Tan, 2016. "An integrated framework for competency development: perspectives of risk managers in banks," Service Business, Springer;Pan-Pacific Business Association, vol. 10(3), pages 581-602, September.
    6. repec:spr:manint:v:50:y:2010:i:2:d:10.1007_s11575-010-0028-1 is not listed on IDEAS
    7. repec:eee:phsmap:v:482:y:2017:i:c:p:127-146 is not listed on IDEAS
    8. Shieh, Bih-Lian & Wu, Tzong-Chen, 2012. "Equity-based entry modes of the Greater Chinese Economic Area's foreign direct investments in Vietnam," International Business Review, Elsevier, vol. 21(3), pages 508-517.
    9. repec:eee:intman:v:23:y:2017:i:3:p:242-254 is not listed on IDEAS
    10. Ho Yeon Kim & Toshitaka Gokan, 2011. "Theories on FDI and the Behavior of MNEs in East Asia," Chapters,in: The Economics of East Asian Integration, chapter 5 Edward Elgar Publishing.
    11. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.

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