From mass production to complex production: case of the Korean telecom equipment sector

Abstract

This study addresses the following question: why did Samsung and LG fail to transition from the mass-produced goods sector production to complex product system sector production? In general, there are four necessary factors to facilitate successful operation in complex product systems: research and development capability, organic networking among various actors, the capability to leverage suitable support from government and the establishment of a large demand base. Samsung and LG has strong RD capabilities and engaged in useful networking and their failure to succeed in the complex product system sector can be attributed to inappropriate support from government and their failure to establish a large demand base. We conclude that technological factors are necessary but insufficient to facilitate the successful transition from a mass-produced goods sector to a complex product system.