Author Chihiro Watanabe, Jae Yong Hur
Publish Aprill - September 2004
Title Firm Strategy in Shifting to Service-Oriented Manufacturing - The Case of Japan's Electrical Machinery Industry
Abstract Shifting to service-oriented manufacturing is a potential survival strategy for manufacturing industry firms facing a paradigm shift from an industrial society to an information society. However, due to the intangible nature of the gross value of firm, the development of such a strategy is rather complicated, often leading to an unsatisfactory performance trajectory. Technological knowledge stock is considered a significant contributor to the gross value of firm, and is proportional to the level of R&D investment. However, due to economic stagnation, R&D investment has declined in recent years, leading to a greater need for effective utilization of potential resources in innovation. In this regard, a strategy that contributes to increased marginal productivity of technology has become a crucial issue for firm strategy in a business environment increasingly characterized by mega competition. In light of the above,
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