Case Study analysis entitled:

Case study on adoption of new

technology for innovation
Perspective of institutional and corporate
entrepreneurship
By Junghee Han and Chang-min Park

Presented by BSMA 4D - Group 5

Juarez, Rylyn

Liguaton, Diovie Mae

Parnecio, Hazel

Puedan, Kaye

Tacsan, Mary Jane

FACTS:

⚫ The case study examines the role of institutional entrepreneurship and

corporate entrepreneurship in the adoption of new technology.

⚫ The study focuses on Kumho Tire, which was the first tire manufacturer to
use radio-frequency identification (RFID) for passenger car tires.

⚫ Kumho Tire invested in advanced information and communication

technology to develop the cutting-edge RFID technology.

⚫ K-Tire belonged to the second tier of global tire manufacturers, rather than
being among the market leaders with significant market shares.

⚫ The company concentrated resources on communication processes and

enhancing the quality of human resources to create a distinct corporate
entrepreneurship.

⚫ K-Tire construct it’s manufacture, logistics, and marketing tracking system,

which consists of infrastructure across various sections such as manufacture,
logistics, and marketing for the first time thanks to RFID adoption.

⚫ The study is published in the Asia Pacific Journal of Innovation and

Entrepreneurship and is licensed under the Creative Commons Attribution
(CC BY 4.0) license.

ISSUES:

⚫ The main issue addressed in the case study is the role of institutional
entrepreneurship and corporate entrepreneurship in coping with firm
impasses and achieving a competitive advantage through the adoption of
new technology.

⚫ The study aims to understand the factors that facilitate innovation and
adoption of new technology, such as corporate and institutional situations,
technological situations, and environmental situations.

⚫ It seeks to provide insights that could be valuable for start-up companies

looking to foster corporate and institutional entrepreneurship from their
inception to ensure growth and survival.

ALTERNATIVE COURSE OF ACTION (ACA’s):

 1. Continuously monitor and evaluate the outcomes
— Consistently monitor and evaluate the outcomes of technological
activities to determine their impact on innovation, performance, and
competitiveness. This may include tracking key metrics, requesting
feedback from stakeholders, and performing post-implementation
assessments to identify areas for improvement and fine-tune the
adoption strategy.

2. Create corporate entrepreneurship projects within your

organization
— Implement measures to foster entrepreneurial attitudes among
employees. This could entail the establishment of specialist innovation
hubs or interdisciplinary teams tasked with researching and evaluating
emerging technology. Giving employees the tools, information, and
motivation they need to drive innovation can play a critical role in
supporting the incorporation of new technologies for innovative
reasons.

3. Stimulate collaboration and alliances

— Promote collaboration across multiple entities, such as
organizations, universities, research institutes, and government
authorities, in order to facilitate the exchange of resources, knowledge,
and expertise while adopting new technology. These collaborative
alliances can successfully manage resource constraints, provide access
to specialized talents, and accelerate innovation uptake.

4. Encourage lifelong learning and skill development

— Businesses should invest in training and development activities to
improve their employees' expertise in emerging technology. These
efforts may include organizing workshops, webinars, or collaborating
with educational institutions to provide customized training courses.
Companies may streamline the integration and successful use of
cutting-edge technologies by building a team with the necessary
competence.

COST AND BENEFIT ANALYSIS:

1. Continuously monitor and evaluate the outcomes
A cost and benefit analysis for continuous monitoring and evaluation
entails comparing expenses such as labor, technology, data
management, training, and time to benefits such as improved decision-
making, quality enhancement, cost reduction, risk mitigation, customer
 satisfaction, and compliance adherence. The particular outcomes vary
depending on the business and industry, so a thorough analysis is
required to determine the financial justification and scope of
implementation.

2. Create corporate entrepreneurship projects within your

organization
Establishing corporate entrepreneurship efforts within your business
necessitates an initial financial commitment, the likelihood of
disruptions due to employee time reallocation, the possibility of project
setbacks, and an increased demand for managerial resources. On the
positive note, it can spur innovation, provide a competitive advantage,
increase employee involvement, diversify your business portfolio,
create cash, present significant learning opportunities, and strengthen
relationships with stakeholders. The success of this venture is
dependent on efficiently controlling these expenses and benefits while
aligning with your organization's strategic objectives.

3. Stimulate collaboration and alliances

When fostering collaboration and forming partnerships, it is critical to
compare the costs of time, resources, financial commitments, and the
potential for setbacks to the benefits of securing resource access, risk
reduction, increased creativity, market expansion, cost-effectiveness,
and a competitive edge. The decision should be made after carefully
assessing these aspects and taking into account the specific context,
industry, and goals at hand.

4. Encourage lifelong learning and skill development

Encouragement of lifelong learning and skill development has costs
such as money expenditure, time commitment, and missed
opportunities. Personal development, career advancement, flexibility,
innovation, economic growth, social benefits, reduced unemployment,
long-term cost savings, and increased quality of life are among the
benefits. Overall, the long-term benefits frequently outweigh the initial
expenditures, making lifelong learning a worthwhile investment for
both individuals and society.

BEST ALTERNATIVE COURSE OF ACTION:

➢ Monitoring and evaluating the outcomes of technology adoption initiatives is a

crucial step in the process of adopting new technology for innovation. It helps
organizations assess the impact of their initiatives and make informed decisions
regarding the future direction of their technology adoption strategies.

Here are some further details on monitoring and evaluating outcomes:

 ⚫ Define Key Performance Indicators (KPIs): Start by identifying and defining
the KPIs that will be used to measure the outcomes of the technology
adoption initiatives. These KPIs should align with the organization's overall
goals and objectives. For example, KPIs may include improvements in
efficiency, cost reduction, customer satisfaction, or revenue growth.

⚫ Collect and Analyze Data: Implement a data collection and analysis system
to track relevant data and metrics related to the technology adoption
initiatives.

⚫ Gather Stakeholder Feedback: Engage with relevant stakeholders, including

employees, customers, and partners, to gather their feedback on the
outcomes of the technology adoption initiatives.

⚫ Conduct Post-Implementation Reviews: After the initial implementation of

the technology, conduct post-implementation reviews to evaluate the
overall outcomes and effectiveness of the adoption initiatives.

⚫ Benchmarking and Comparison: Compare the outcomes of the technology

adoption initiatives with industry benchmarks or competitors' performance
to gain a broader perspective.

⚫ Adjust and Refine Strategy: Based on the findings from monitoring and
evaluating the outcomes, make necessary adjustments and refinements to
the technology adoption strategy.

⚫ Continual Improvement: Monitoring and evaluating outcomes should be an

ongoing process, as technology adoption and innovation are iterative and
dynamic. Continually assess the impact of technology adoption initiatives,
gather new data, and update KPIs to ensure that the organization is on track
towards achieving its innovation and business objectives.

CONCLUSION

The case study on the adoption of new technology for innovation from the
perspective of institutional and corporate entrepreneurship, focusing on Kumho Tire,
offers critical insights into the intersection of innovation, entrepreneurship, and
technology adoption. It showcases how an organization, even outside the market
leader category, can leverage strategic entrepreneurship to gain a competitive edge
through the early adoption of technology, in this case, radio-frequency identification
(RFID) for passenger car tires.

RECOMMENDATIONS

⚫ Continuous Monitoring and Evaluation: Implement a robust system for

monitoring and evaluating technology adoption outcomes. Define KPIs
 aligned with organizational goals, gather stakeholder feedback, conduct
post-implementation reviews, and compare performance with industry
benchmarks.

⚫ Strategic Collaboration: Foster a collaborative ecosystem involving external

stakeholders, industry experts, and regulatory agencies. Collaborative
alliances can help manage resource constraints and accelerate innovation.

⚫ Invest in Human Capital: Invest in training and development programs to

enhance employees' expertise in emerging technology. This includes
workshops, webinars, and partnerships with educational institutions.

⚫ Innovation Hubs: Establish specialized innovation hubs or interdisciplinary

teams within the organization dedicated to researching and evaluating
emerging technologies. Empower employees with the tools, information,
and motivation needed to drive innovation.

⚫ Strategic Resource Allocation: Allocate resources strategically to enhance

technology infrastructure and communication processes early in the
innovation journey.

⚫ Adaptive Strategy: Embrace an iterative approach to technology adoption,

adjusting and refining the strategy based on ongoing monitoring and
evaluation. Continual improvement is key.

KEY TAKEAWAYS:

⚫ Role of Entrepreneurship: Institutional and corporate entrepreneurship

played a pivotal role in Kumho Tire's ability to adopt and implement RFID
technology, leading to improved supply chain management and customer
satisfaction.

⚫ Strategic Investment: Kumho Tire's early investment in advanced

information and communication technology laid the foundation for
successful RFID adoption, emphasizing the importance of technology
infrastructure.

⚫ Resource Allocation: The company's commitment to enhancing

communication processes and human resources quality resulted in the
development of a distinctive corporate entrepreneurship culture, fostering
innovation.

⚫ Collaborative Ecosystem: Collaborative efforts involving external

stakeholders, regulatory agencies, industry specialists, and partnerships
 played a significant role in creating an environment conducive to technology
adoption.

⚫ Validation through Pilots: The use of pilot projects and proof-of-concept

studies allowed Kumho Tire to assess the feasibility and benefits of RFID
technology, mitigating risks associated with full-scale adoption.

⚫ Continuous Learning: Encouraging lifelong learning and skill development

among employees was instrumental in building the necessary expertise to
support technology adoption.