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Transformation towards overseas-oriented expansion: the evolution of Hyundai Motor Group’s production structure
Abstract
In this paper, we analyze the Hyundai Motor Group’s newly evolved-production structure to illustrate the evolution of a corporate system. Specifically, we explore why Hyundai Motor Group’s domestic-oriented production structure could be maintained until the more recent history of Korea’s domestic automobile market. Our findings show that since 2012, the Hyundai Motor Group’s production structure—which has been affected by internal and external factors in the automobile market—has transformed from a domestic-oriented production structure to an overseas-oriented production structure. Our findings further demonstrate that both technical factors embedded in the Hyundai Motor Group’s production system and non-technical factors that strive to equate the production conditions in the Group’s foreign and domestic facilities support the smooth operation of the overseas-oriented production structure.
Keywords. Corporate system, Production structure, Automobile industry, Hyundai Motor Group, Evolutionary transformation.JEL. F23, L 11, L62, M21.
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DOI: http://dx.doi.org/10.1453/jepe.v2i2.223
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