Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
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Innovation Space Driving Business Growth of Semiconductor Enterprises: A Case Study of South Korean Samsung's Investment in China

  • Nam, Eun-Young (Department of Business Administration, Sejong University) ;
  • Wang, Xiao-Long (Graduate School of Management of Technology, Pukyong National University)
  • Received : 2020.03.12
  • Accepted : 2020.09.08
  • Published : 2020.10.31
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Abstract

Purpose - The purpose of this study is to investigate the direct and indirect impact of innovation space factors on the growth of semiconductor enterprises. Design/methodology - This empirical study uses the financial statements of 83 semiconductor listed companies in 23 provinces from 2004 to 2019 approved by CSRC (2019). A stepwise regression and backward regression are employed in order to examine the role of innovation space to expand technology investment in promoting business growth and uses South Korean Samsung's investment in China as a test case. Findings - Results indicate that innovation space, technology input, geographical area, owner's background, operating years and financing liabilities all contribute to a boost in business growth. Factors such as carbon emission, financial liberalization, government efficiency, technology input, and financing liabilities further influence management growth. Innovation space follows a nonlinear pattern, and this plays a positive role in magnifying the influence of technology on management growth. Additionally, operations of the state-owned companies and expansionary financing enterprises are influenced by the external economy. Regarding the spatial distribution, the Samsung investment in 24 companies in China shows that Samsung focuses on the acquisition of scarce resources for semiconductor production as a component of its investment and innovation strategy. Originality/value - Even though prior research has considered the concepts studied here, this study contributes to empirically evaluate the direct impact of innovation space on business growth, and the indirect impact of innovation space on business growth through technology investment. This study includes an in-depth discussion of the practical effects that innovation space has on China's economy, using a case of South Korean Samsung's investment in China as a test the empirical findings.

Keywords

Acknowledgement

This work was supported by Shanghai Municipal Education Commission "Research on Intellectual Property Public Domain Issues under the Strategy of Innovation-Driven Development" (2019-01-07-00-07-E00077) the China Science and Technology Association (Project: NO.19WURD006).

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