This thesis contains two major parts. One is to examine technological development process in the Korean Aerospace industry based on the global model. The other is to analyze competitive strategy of the aircraft engine business along with environment, resource capability and the stages of technological development process.
The global model consists of three development stages such as introduction, internalization, and generation, as well as some propositions related to the level of transferred technology, technology acquisition modes, technology elements mastered, and major contributors of technology development in each development stage. In addition, the theoretical relationships among competitive environment, internal resource capability and strategy were identified by reviewing the existing literature.
Based on the review, the conceptual model is set-up by considering several factors affecting the technological development process and the adoption of competitive strategy in each business and 3 propositions are presented.
Through the analysis of the longitudinal data(1980-1996) of S company, we could find how these factors affect on the technological development process and the adoption of appropriate competitive strategy in each business unit.
Finally, tentative conclusions for two major parts in this study are presented as follows:
First, technological development process in the Korean Aerospace industry has been developed in accordance with the global model and current development stage is in the late internalization stage. The analysis identifies critical factors affecting the technological development process. As government policy is critical factor on technological development process, the government should provide continuously opportunities for the domestic market and support R&D activities of firms. Also, The technology transfer for core competence from oversea's developed countries is to be restricted more and more. therefore, self-R&D activities should be managed intensively. In addition, the R&D employee should be managed efficiently and brought up according to long term plan.
Second, based on the generic competitive strategy of Porter, competitive strategies of each business are found as follows: Cost focus strategy fits in the engine overhaul & assembly business and engine parts manufacturing business and cost Leadership strategy fits in large commercial engine parts manufacturing business, while differentiation strategy fits in Korean fighter program business and differentiation focus strategy fits in Industrial gas turbine engine business.
