When to Spread Technological Bets: A Longitudinal Study of the Global Flat Panel Display Industry

HKUST IEMS Thought Leadership Brief No. 72


Yong Kim and Ziyi Chen

Corporate groups can be an effective organizational structure for firms to balance both flexibility and commitment during technological changes. By establishing subsidiaries that each concentrate on a particular technology, corporate groups can take advantage of pursuing multiple alternative technologies while maintaining the advantages of technological commitment.

Corporate groups pursuing a flexibility strategy benefit more from external collaboration. However, without proper internal coordination, a subsidiary's external collaboration can have an adverse impact on other members of the corporate group.

The success of a flexibility strategy is contingent on the resolution of uncertainty. The advantages of the flexibility strategy in terms of innovation are more pronounced among late entrants who encounter increasing socio-economic uncertainty. 

This project is supported by HKUST IEMS Research Grants. 

About the Authors

Yong Kim is an Assistant Professor of Management at Mays Business School, Texas A&M University. He is a Faculty Associate of HKUST Institute for Emerging Market Studies. Prior to joining Mays, he was on the faculty at the Hong Kong University of Science and Technology. He received his Ph.D. in Business Administration (Management and Organizations Area) from the Stephen M. Ross School of Business at the University of Michigan, and earned a B.A. and M.A. in Sociology from Yonsei University. His research interests include nonmarket strategies, corporate social responsibility, and international business. More >>

Ziyi Chen is a Ph.D. candidate in Strategic Management at the Hong Kong University of Science and Technology. Upon graduation, he will join the University of Melbourne’s Faculty of Business and Economics as an Assistant Professor. His research examines how firms innovate in a global context, as well as how formal and informal institutions influence firm strategy and performance. Prior to his doctoral studies, he has obtained a B.A. in Economics from Tsinghua University in China.

Academic Seminar

This Thought Leadership Brief will be presented in an Academic Seminar held by HKUST IEMS. Find out more >> 

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