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An Analysis of Samsung Electronics’ Success Myths from the Perspective of Dynamic Capabilities

Hyun-Jong Choo ()
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Hyun-Jong Choo: Nihon University

Chapter Chapter 3 in Strategic Management and Innovation Strategies, 2025, pp 51-78 from Springer

Abstract: Abstract This study explores the sources of Samsung Electronics’ sustained competitive advantage in the telecommunications equipment sector by examining two landmark cases: the Anycall Myth in the feature phone era and the Galaxy Myth in the smartphone era. Employing the Dynamic Capabilities (DC) framework, the analysis highlights how Samsung effectively sensed market shifts, seized emerging opportunities, and transformed its organizational resources and capabilities to adapt to disruptive changes in the global market. The findings emphasize the pivotal role of Samsung’s control tower in facilitating rapid decision-making, inter-affiliate collaboration, and vertically integrated production systems. However, following the dismantling of the control tower in 2017, Samsung’s decentralized management approach has led to delays in strategic coordination and weakened adaptability, particularly in the semiconductor sector. The discussion underscores the urgent need to rebuild a governance structure that balances strategic agility with transparency and accountability. This paper concludes that restoring a reformed control tower is critical for Samsung Electronics to sustain its competitive edge in the AI-driven era. By offering a comprehensive case analysis grounded in DC theory, this study contributes to a deeper understanding of corporate strategy, of dynamic capabilities, and of governance in rapidly evolving industries.

Keywords: Dynamic capabilities; Control tower; Vertically integrated production systems; Samsung electronics; Governance; Anycall myth; Galaxy myth (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-8437-3_3

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DOI: 10.1007/978-981-96-8437-3_3

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