Authors: Young Won Park; Junjiro Shintaku
Addresses: Manufacturing Management Research Center, Graduate School of Economics, The University of Tokyo, Japan, Kojima Hall 5F, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan ' Graduate School of Economics, Faculty of Economics, The University of Tokyo, Japan, Kojima Hall 5F, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan
Abstract: Providing differentiated products and services in emerging markets to counter stagnation in developed markets and foster growth in emerging markets, including BRICs, has recently become a source of competitive advantage. Therefore, it is important to examine the success factors of a localisation strategy. This paper presents a research framework that describes the nature of localisation strategies and their replication processes. Using this research framework, we present case studies on two LG Electronics divisions, LG India and LG Poland, describing the story of LG executives who implemented the empowerment management style in India and Poland. The lessons of the localisation successes in these two countries provided an excellent learning effect in Korea. Moreover, the middle manager who learned the principles of localisation from a senior executive in India moved to Poland, where he successfully applied the same principles of localisation. The lessons of this case study are summarised and its managerial implications are discussed in this paper.
Keywords: global localisation strategy; replication process; product architecture; learning effect; LG Electronics; South Korea; case study; LG India; LG Poland; empowerment management; middle management; factory location.
International Journal of Business Innovation and Research, 2016 Vol.10 No.1, pp.8 - 25
Published online: 30 Nov 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article