The Effect of Cooperation-Strategy Fit on the Performance of Subcontractors-Focused on Samsung Electronics' Subcontractors

This study examines the effects of the relationships between cooperative relationships and competitive strategies in domestic companies, as well as of such cooperation-competitive strategic fit, on subcontractors. Toward this end, 90 primary subcontractors of Samsung Electronics were examined based on hypotheses. The findings of this study revealed that primary subcontractors of Samsung Electronics, similarly to the predict-tion of the contingency theory, adopted competitive strategies fit for their cooperative relationships. Also, compared with low-performance groups, high-performance groups had higher levels of cooperative relationship-competitive strategy fit. These findings imply that the cooperative relationship-competitive strategy fit has positive effects on corporate performance. Thus it is argued that for subcontractors, their cooperation with their principal contractor companies have important effects on their competitive strategy and on their business performance.