Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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An Empirical Study on the Effects of Defense Materials Supplier's Innovation Capability on Business Performance

방산물자 공급 기업의 혁신역량이 경영 성과에 미치는 영향에 대한 실증연구

  • Received : 2021.11.23
  • Accepted : 2021.12.24
  • Published : 2021.12.31
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Abstract

Over the past 40 years, Korea's defense industry has been deepening into a low-efficiency industrial structure as the government directly controls prices, quantities, and costs. By implementing the Defense Industry Building Act in 2021, the government is creating a healthy ecosystem for the defense industry and strengthening its global competitiveness. In this study, based on KPC's Productivity Management System (PMS), a diagnostic model of defense companies implemented since 2013, the on-site diagnosis was performed from 4 to 28 days depending on the size of the company data was collected based on the results. The causal relationship was analyzed through structural equation model path analysis for the effect of innovation capability on productivity performance. As a result, it suggests that defense materials suppliers should focus on which core processes to innovate and strengthen and improve their innovation capabilities.

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References

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