Metanational Learning in TFT-LCD Industry: An Organizing Framework

Kazuhiro Asakawa

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: Japan's dominance in TFT-LCD production share has weakened over time, while Korea and Taiwan have taken over the leading positions. After reviewing conventional wisdom regarding the factors influencing the decline in Japan's production volume, we reframe the entire issue from the perspective of "metanational" learning. Success behind Korean and Taiwanese firms lies in the fact that they have adopted the metanational approach: learning knowledge from Japan and adopting the global best-supplier policy for equipment and materials, regardless of nationality (e.g. Samsung). We argue that the relevance of the metanational approach (as opposed to the domestic "black box" approach) is determined by the competitive advantage of home country/industry and company. While this approach is generally considered appropriate for firms that are trying to overcome their home country disadvantages, we argue that the metanational approach remains appropriate for firms which need to cope with eroding country and industry competitiveness, such as Japanese firms in the TFT-LCD industry.

Pages: 34 pages
Date: 2007-05
New Economics Papers: this item is included in nep-cse and nep-tid
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