Dynamic Capabilities at Samsung Electronics: Analysis of its Growth Strategy in Semiconductors

Seung-Joo Lee

KDI School of Public Policy and Management

August 22, 2011

Samsung Electronics has emerged as the world’s largest memory chip maker with a leading position in the DRAM and NAND flash markets. This paper explores and analyzes the key success factors of Samsung in the semiconductor industry using the dynamic capabilities framework. Based on literature review and case studies, the following five dimensions of dynamic capabilities were identified to explain Samsung’s successful growth in semiconductors: 1) opportunity recognition and entrepreneurial insight by top management, 2) rapid catch-up through technology acquisition and learning, 3) leapfrogging competitors through product and process innovation 4) product line diversification leveraging existing capabilities and resources, 5) resource release through restructuring during the financial crisis. This study provides insights on the growth strategy of a latecomer firm striving for global leadership and illustrates the importance of dynamic capabilities in creating competitive advantage and sustaining growth.

Number of Pages in PDF File: 35

Keywords: dynamic capabilities, Samsung, growth strategy, semiconductors

JEL Classification: L63, M10, N80

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Date posted: August 24, 2011  

Suggested Citation

Lee, Seung-Joo, Dynamic Capabilities at Samsung Electronics: Analysis of its Growth Strategy in Semiconductors (August 22, 2011). Available at SSRN: http://ssrn.com/abstract=1914116 or http://dx.doi.org/10.2139/ssrn.1914116

Contact Information

Seung-Joo Lee (Contact Author)
KDI School of Public Policy and Management ( email )
P.O. Box 184
Seoul, 130-868
United States
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