TY - JOUR
T1 - Related diversification using core competencies in South Korean dairy industry
AU - Kim, Dawon
AU - Kim, Rosa
AU - Lee, Tongwon
AU - Choi, Seungho
N1 - Funding Information:
This work was funded by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2020S1A5A2A01046005).
Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland.
PY - 2021/12
Y1 - 2021/12
N2 - This study aims to examine how unrelated diversification facilitate firm’s growth and innovation. To achieve this goal, we investigate how Maeil Dairies has diversified through open innovation as the Korean dairy market struggles to maintain its size. Maeil Dairies, one of the top three conglomerates in the Korean dairy industry, has gone through different forms of diversification both related and unrelated to its core competencies. This study presents what the overlapping competencies are in its diversified products and businesses, analyzes the effectiveness of diversification in terms of relatedness, and examines the need for unrelated diversification. By analyzing the four diversification categories of the Maeil Dairies case and applying diversification theory, this study shows that although related diversification is more recommendable in most circumstances, unrelated diversification may present new opportunities and is necessary in order to avoid stagnation and falling behind.
AB - This study aims to examine how unrelated diversification facilitate firm’s growth and innovation. To achieve this goal, we investigate how Maeil Dairies has diversified through open innovation as the Korean dairy market struggles to maintain its size. Maeil Dairies, one of the top three conglomerates in the Korean dairy industry, has gone through different forms of diversification both related and unrelated to its core competencies. This study presents what the overlapping competencies are in its diversified products and businesses, analyzes the effectiveness of diversification in terms of relatedness, and examines the need for unrelated diversification. By analyzing the four diversification categories of the Maeil Dairies case and applying diversification theory, this study shows that although related diversification is more recommendable in most circumstances, unrelated diversification may present new opportunities and is necessary in order to avoid stagnation and falling behind.
KW - Case study
KW - Core competencies
KW - Korean dairies market study
KW - Open innovation
KW - Related diversification
KW - Unrelated diversification
UR - http://www.scopus.com/inward/record.url?scp=85121397030&partnerID=8YFLogxK
U2 - 10.3390/joitmc7040243
DO - 10.3390/joitmc7040243
M3 - Article
AN - SCOPUS:85121397030
SN - 2199-8531
VL - 7
JO - Journal of Open Innovation: Technology, Market, and Complexity
JF - Journal of Open Innovation: Technology, Market, and Complexity
IS - 4
M1 - 243
ER -