In the present study, we focus on Industry 4.0 and the GVCs of South Korean (hereafter, Korean) MNEs for three reasons. First, Korea is one of the leaders in country-level innovation, making Industry 4.0 particularly salient among Korean MNEs. The Korean government and presidential committee of Industry 4.0 have prioritized the preparedness and competitiveness of Korea’s Industry 4.0 efforts. Furthermore, Korea’s leading information and communication technology companies, such as Samsung, LG, and SK, have made huge investments in Industry 4.0 capabilities. These efforts are reflected in some notable rankings: Korea ranked first on the Bloomberg Global Innovation Index in 2019 and 2021, second for R&D intensity and value-added manufacturing, and fourth for high-tech density. In 2019, Korea tied with Japan for third place in the world’s high-tech rankings (including Industry 4.0) compiled by The Nikkei (2020 ), the holding company of The Financial Times.
Second, Korean MNEs have extensive experience with subsidiary-level sales and purchases within their GVC networks “due to their accumulated age and diverse foreign direct investments (FDIs) across all realms of the globe” (Lee, Jiménez, Yang, & Song, 2020 (link): 451). Historically, Korean MNEs have concentrated on the advantages offered by both internal value chains and GVCs, yet their organizational strategies have recently expanded to include external suppliers and customers within their GVC networks.5 Thus, Korean MNEs leverage tangible and intangible resources through both domestic and foreign suppliers and customers to obtain “upgraded technological and process management skills,” “distinctive capabilities,” and “internationalization knowledge” (Lee et al., 2020 (link): 452).
Finally, in 2019, Korea’s FDI outflow of USD 36 billion was the 9th largest in the world, according to the World Investment Report 2020 by the United Nations Conference on Trade and Development (UNCTAD, 2020 ). All of the above suggest that Korea is an ideal country for the study of Industry 4.0 and its impact on MNEs’ globalization.
Second, Korean MNEs have extensive experience with subsidiary-level sales and purchases within their GVC networks “due to their accumulated age and diverse foreign direct investments (FDIs) across all realms of the globe” (Lee, Jiménez, Yang, & Song, 2020 (link): 451). Historically, Korean MNEs have concentrated on the advantages offered by both internal value chains and GVCs, yet their organizational strategies have recently expanded to include external suppliers and customers within their GVC networks.5 Thus, Korean MNEs leverage tangible and intangible resources through both domestic and foreign suppliers and customers to obtain “upgraded technological and process management skills,” “distinctive capabilities,” and “internationalization knowledge” (Lee et al., 2020 (link): 452).
Finally, in 2019, Korea’s FDI outflow of USD 36 billion was the 9th largest in the world, according to the World Investment Report 2020 by the United Nations Conference on Trade and Development (UNCTAD, 2020 ). All of the above suggest that Korea is an ideal country for the study of Industry 4.0 and its impact on MNEs’ globalization.
