Related Diversification Using Core Competencies in South Korean Dairy Industry
ABSTRACT: This study aims to examine how unrelated diversification facilitate firm’s growth and innovation. To achieve this goal, we investigate how Maeil Dairies has diversified through open innovation as the Korean dairy market struggles to maintain its size. Maeil Dairies, one of the top three co...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2021-12-01
|
| Series: | Journal of Open Innovation: Technology, Market and Complexity |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2199853122001834 |
| _version_ | 1797391866328514560 |
|---|---|
| author | Dawon Kim Rosa Kim Tongwon Lee Seungho Choi |
| author_facet | Dawon Kim Rosa Kim Tongwon Lee Seungho Choi |
| author_sort | Dawon Kim |
| collection | DOAJ |
| description | ABSTRACT: This study aims to examine how unrelated diversification facilitate firm’s growth and innovation. To achieve this goal, we investigate how Maeil Dairies has diversified through open innovation as the Korean dairy market struggles to maintain its size. Maeil Dairies, one of the top three conglomerates in the Korean dairy industry, has gone through different forms of diversification both related and unrelated to its core competencies. This study presents what the overlapping competencies are in its diversified products and businesses, analyzes the effectiveness of diversification in terms of relatedness, and examines the need for unrelated diversification. By analyzing the four diversification categories of the Maeil Dairies case and applying diversification theory, this study shows that although related diversification is more recommendable in most circumstances, unrelated diversification may present new opportunities and is necessary in order to avoid stagnation and falling behind. |
| first_indexed | 2024-03-08T23:39:51Z |
| format | Article |
| id | doaj.art-9b5882c6015048f59a66f2c8f8d46a2d |
| institution | Directory Open Access Journal |
| issn | 2199-8531 |
| language | English |
| last_indexed | 2024-03-08T23:39:51Z |
| publishDate | 2021-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj.art-9b5882c6015048f59a66f2c8f8d46a2d2023-12-14T05:21:18ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312021-12-0174243Related Diversification Using Core Competencies in South Korean Dairy IndustryDawon Kim0Rosa Kim1Tongwon Lee2Seungho Choi3Ewha School of Business, Ewha Womans University, Seoul 121791, Korea; dianekim1997@gmail.com (D.K.); rosakim080300@hanmail.net (R.K.); dorothy4371@gmail.com (T.L.)Ewha School of Business, Ewha Womans University, Seoul 121791, Korea; dianekim1997@gmail.com (D.K.); rosakim080300@hanmail.net (R.K.); dorothy4371@gmail.com (T.L.)Ewha School of Business, Ewha Womans University, Seoul 121791, Korea; dianekim1997@gmail.com (D.K.); rosakim080300@hanmail.net (R.K.); dorothy4371@gmail.com (T.L.)Correspondence: ; Tel.: +82-2-3277-4138; Ewha School of Business, Ewha Womans University, Seoul 121791, Korea; dianekim1997@gmail.com (D.K.); rosakim080300@hanmail.net (R.K.); dorothy4371@gmail.com (T.L.)ABSTRACT: This study aims to examine how unrelated diversification facilitate firm’s growth and innovation. To achieve this goal, we investigate how Maeil Dairies has diversified through open innovation as the Korean dairy market struggles to maintain its size. Maeil Dairies, one of the top three conglomerates in the Korean dairy industry, has gone through different forms of diversification both related and unrelated to its core competencies. This study presents what the overlapping competencies are in its diversified products and businesses, analyzes the effectiveness of diversification in terms of relatedness, and examines the need for unrelated diversification. By analyzing the four diversification categories of the Maeil Dairies case and applying diversification theory, this study shows that although related diversification is more recommendable in most circumstances, unrelated diversification may present new opportunities and is necessary in order to avoid stagnation and falling behind.http://www.sciencedirect.com/science/article/pii/S2199853122001834related diversificationunrelated diversificationcore competenciescase studyKorean dairies market studyopen innovation |
| spellingShingle | Dawon Kim Rosa Kim Tongwon Lee Seungho Choi Related Diversification Using Core Competencies in South Korean Dairy Industry Journal of Open Innovation: Technology, Market and Complexity related diversification unrelated diversification core competencies case study Korean dairies market study open innovation |
| title | Related Diversification Using Core Competencies in South Korean Dairy Industry |
| title_full | Related Diversification Using Core Competencies in South Korean Dairy Industry |
| title_fullStr | Related Diversification Using Core Competencies in South Korean Dairy Industry |
| title_full_unstemmed | Related Diversification Using Core Competencies in South Korean Dairy Industry |
| title_short | Related Diversification Using Core Competencies in South Korean Dairy Industry |
| title_sort | related diversification using core competencies in south korean dairy industry |
| topic | related diversification unrelated diversification core competencies case study Korean dairies market study open innovation |
| url | http://www.sciencedirect.com/science/article/pii/S2199853122001834 |
| work_keys_str_mv | AT dawonkim relateddiversificationusingcorecompetenciesinsouthkoreandairyindustry AT rosakim relateddiversificationusingcorecompetenciesinsouthkoreandairyindustry AT tongwonlee relateddiversificationusingcorecompetenciesinsouthkoreandairyindustry AT seunghochoi relateddiversificationusingcorecompetenciesinsouthkoreandairyindustry |