What characteristics make an enterprise more proactive toward innovation? Case of adopting RFID at Kumho Tire in Korea

A firm adopting IT technologies ahead of others shows characteristics that distinguishes it from others in terms of innovativeness. The purpose of this study is to analyze and present a case of innovation at a specific company, which holds a number of implications for innovative driven firms as well as start-ups. Kumho Tire is the first tire manufacturer in the world, not to mention Korea, to adopt RFID. In this era of the Internet of Things (IoT), the adoption of this new technology places the company at the lead. A case study on Kumho Tire revealed that the company demonstrates institutional entrepreneurship that does not shy away from changing the rules and norms of the existing enterprises. In particular, in terms of the development and use of information technologies (ITs), the company is characterized by its official and unofficial commitment of resources. Kumho Tire also maximized government support by utilizing its environmental situation. In addition, the company concentrated its resources into building the organization's communication process and enhancing the quality of its human resources from the early stages of its company history. In addition, the company focused its capabilities on gaining trust inside and outside of the company, as well as building a secure relationship with its customers through its wear life warranty program.