Research Article
The Impact of Leadership and Organizational Capabilities on the Overseas Expansion Strategy: A Case of SM Entertainment in K-pop Music Market
1 Kyungpook National University
Published: January 2013 · Vol. 17, No. 1 · pp. 243-266
Full Text
Abstract
Recently, the ‘Korean Wave’ has increased its status in the music industry across Asia,Europe and the United States. It has grown in popularity into a term we know as K-pop. As globalization has increased into one global market, domestic organizations struggle to catch such demands on a global scale. We investigate SM Entertainment by single case study. This study determines how leadership and organizational capabilities affect the process of overseas expansion strategies. The result of this study indicates that, the shrinkage of the domestic music market with weak infrastructure stimulated the firm to penetrate into the overseas market. It also notes that leadership of CEO positively influences building up organization capabilities. Charismatic leadership appears to enhance the organizational capability. This also made positive influences on employing the overseas expansion strategy. Additionally, overseas expansion strategies of the K-pop firm seem to follow a series of localization, standardization,and integration, which would be implemented successfully with the support of the organizational capabilities suitable to each one.
