Systems (Oct 2023)
Overseas Market Expansion Strategy of the Global Electronic Components Company Based on the AHP Analysis of Factors in Technology, Organization, and Environment Context: A Case of Samsung Electro-Mechanics
Abstract
The overseas market expansion strategy is important for achieving competitive advantage and sustainable growth of global electronic component companies. Although the global electronic component market has grown rapidly recently, research focusing on the innovation strategy of global electronic component companies’ expansion into overseas markets is scarce. This paper defines the key factors that influence the success of a global electronic component company’s overseas market expansion strategy based on the Technology, Organization, and Environment (TOE) framework and quantitatively identifies the relative importance of factors at the technology, organization, and environmental levels through Analytic Hierarchy Process (AHP) analysis. As a case study, we analyze Samsung Electro-Mechanics, which has grown as a global electronic components company through an overseas market expansion strategy in recent decades. As a result of the analysis, among the three top factors defined as key factors, the technology factor was evaluated as the most important factor, and among the subfactors of the technology factor, “R&D Availability”, and “Production Availability” were analyzed as the most important influencing factors. These analysis results suggest that global electronic component companies can achieve successful results when they pursue overseas market expansion strategies by prioritizing technology development and focusing on growth strategies suited to the market environment. This study is meaningful as an academic study focusing on the overseas market expansion strategies of global electronic component companies and makes a practical contribution by providing management implications that can be taken by electronic component companies seeking to expand overseas markets.
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