Our study aims to examine the spread of TPS through Korea, by focusing on the experience of Hyundai Motor Company (hereafter Hyundai). Hyundai is an interesting case for several reasons.
First, Hyundai is a ‘Cinderella’ case, having been transformed from a low-cost domestic manufacturer in a developing country in the early 1970s to a major player in the contemporary global auto market.
At present, it is ranked among the top 10 automakers worldwide, both in terms of production volume and product quality (Jo 2005).
Second, Hyundai is a sterling example that can shed light on how TPS has been implemented by Korean manufacturing firms, since it represents a typical or influential business model in terms of corporate governance, management style, market strategy, and labour relations in Korea.
Third, given the fact that little research literature exists on the transferability of TPS to developing countries, the Hyundai case may contribute to broadening our understanding of the logistics, advantages and disadvantages of TPS dissemination to non-Western, developing economies.
Finally, Hyundai presents a good case to figure out key factors constraining and shaping the adoption of TPS at a recipient site, thereby helping to further develop a theoretical framework to analyse the
processes and outcomes of TPS diffusion in new venues.