Plant is a technology-intensive complex system that is composed of software field including engineering, physical field including equipment and material, and service field including construction. Plant industry has wide range including manufacturing facilities for manufacturing industry and infrastructure. Plant industry in Korea has been regarded as one of the most important industries which has played the role of locomotive for economic development of the nation, influencing wide range of other industries. Recently, Korean plant industry which has grown on high growth rate in quantitative dimension based on the comparative advantage in labor cost since government's economic development plan in 1970s is placed in the environment of economic uncertainty, open competition and industrial restructuring. Existing studies on this industry mainly focuses on marketing and export to increase quantitative sales from the static point of view.
With this background, the primary objective of this thesis is to analyze the competitiveness of Korean plant industry based on Porter's Determinants of National Competitive Advantage and to explore the way which strengthen the competitiveness based on its determinants and source from the dynamic point of view. Detailed purpose of this thesis is as follows.
1) Investigation of important determinants of the competitiveness of Korean plant industry
2) Understanding of the status of the competitiveness of Korean plant industry
3) Exploration and suggestion of the way which strengthen the competitiveness based on the major determinants and the status identified.
For the research purpose, the analysis of each determinant is performed according to the application of practical data to applied model based on existing model for the analysis of industrial competitiveness. The analysis of each determinant is performed quantitatively in comparison with that of nations which have competitive power in this area. For the case that qualitative analysis is necessary in consideration of the characteristics of the determinants, the analysis is performed in comparison with the criteria based on related theories and necessary conditions. In consideration of wide range of the industry, the research focuses on the environment and the power plant industry.
From this analysis, following conclusions and implications were derived.
First, of the various determinants of industrial competitiveness, firm strategy, structure and the role of government are the most important determinants in Korean plant industry, and the role of manager and internal rivalry are also important determinants, influencing others.
Second, overall competitiveness of Korean plant industry is 64% to 67%, 0.9% to 11%, 12% to 16% of advanced countries which has competitive power in productivity, production share and trade share respectively. Strong points of the determinants of the competitiveness of Korean plant industry are concentrated on quantitative aspect. On the contrary, weak points of the determinants are concentrated on qualitative aspect.
Third, the key factors to strengthen the competitiveness are to adopt resource-based and dynamic capabilities approach for firm strategy and to adopt long-term based, consistent and bilateral government policies. These factors influence internal rivalry of firms and other determinants. These two factors are major parts in the process of strengthening industrial competitiveness of Korean plant industry.
As an overall study, the outcomes could provide the guidance for future research on the industry concentrating on important determinants in connection with the key factors for strengthening the competitiveness.
