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Metanational Learning in TFT-LCD Industry: An Organizing Framework

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  • Kazuhiro ASAKAWA

Abstract

Japan's dominance in TFT-LCD production share has weakened over time, while Korea and Taiwan have taken over the leading positions. After reviewing conventional wisdom regarding the factors influencing the decline in Japan's production volume, we reframe the entire issue from the perspective of "metanational" learning. Success behind Korean and Taiwanese firms lies in the fact that they have adopted the metanational approach: learning knowledge from Japan and adopting the global best-supplier policy for equipment and materials, regardless of nationality (e.g. Samsung). We argue that the relevance of the metanational approach (as opposed to the domestic "black box" approach) is determined by the competitive advantage of home country/industry and company. While this approach is generally considered appropriate for firms that are trying to overcome their home country disadvantages, we argue that the metanational approach remains appropriate for firms which need to cope with eroding country and industry competitiveness, such as Japanese firms in the TFT-LCD industry.

Suggested Citation

  • Kazuhiro ASAKAWA, 2007. "Metanational Learning in TFT-LCD Industry: An Organizing Framework," Discussion papers 07029, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:07029
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    References listed on IDEAS

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    1. Richard P. Rumelt, 1991. "How much does industry matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 167-185, March.
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