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The Impact of Leadership and Organizational Capabilities on the Overseas Expansion Strategy: A Case of SM Entertainment in K-pop Music Market

LEE JANG-WOO1 · Heo1 · LEE JANG-WOO

1 Kyungpook National University

Published: January 2013 · Vol. 17, No. 1 · pp. 243-266
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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.
Keywords: 글로벌문화콘텐츠조직역량한류(K-pop)해외진출 전략카리스마적 리더십