An effective process mechanism for a NTBF from the perspective of DFC

Abstract

This article analyzes the NTBF (New Technology Based, Firm) based upon the new framework of Dynamic Firm Capability (DFC) to identify the process mechanism. Research methodology includes the case study involving structured interview and data collection from two leading Korean ICT (Information Communication Technology) firms in the same sector (DVR). IDIS, spun off from the university, has accumulated the innovative capability based on the R＆D department. On the other hand, KODICOM has retained the technological trajectory in terms of marketing competence. Underlying hypothesis is that a firm should show a idiosyncratic evolutionary pattern by acquiring different complimentary asset (CA). In addition, effective internal process should be matched with the essential characteristics not only at the firm level but also at sectoral level. By analyzing those two different NTBFs, we will find the strategic successful factors based upon the evolutionary point of view. It is a key contribution of this paper to study on the process mechanism of NTBFs, and to explain detailed process mechanism by viewing two different characteristics of the firm at the functional level.