A Comparative Study on the International Strategies of Leading South Korean Secondary Cell Battery Manufacturers: A Dynamic Capability View

Abstract

Purpose This study aims to draw implications from three leading South Korean secondary cell batter manufacturers, LG Energy Solution, Samsung SDI, and SK On, by comparing their international strategies from a perspective of dynamic capability composed of sensing, resource acquisition, and resource reconfiguration. Design/Methodology/Approach Academic papers, websites, and newspaper articles were used to collect information on business and international strategies, and to analyze basic information. Next, interviews with secondary cell battery industry experts were conducted to verify this information and confirm additional content. Findings We found that resource acquisition was positively related to international strategies. In addition, while the motives for the three companies in entering the foreign market were similar, the international strategies were different. For example, LG Energy Solution focused on independent R&D and foreign direct investment for production subsidiaries. Samsung SDI’s international strategies are a combination of foreign direct investment subsidiaries, joint venture and international M&A. SK On is pursuing efficient operation through joint ventures and equity investment. Research Implications This study attempted to integrate a dynamic capability perspective and international strategies by analyzing three secondary cell batter manufacturers. In a practical sense, this study emphasized opportunity sensing, resources acquisition, and the resource deployment of multinational corporations, particularly secondary cell battery manufacturers in a global context.