Browse > Article
http://dx.doi.org/10.29214/damis.2019.38.1.001

Relationship between Network Intensity of Top Managers and R&D Investment - Focus on Moderating Effects of the Corporate Division Type and System -  

Min, Ji-Hong (Dept. of Business Administration, Konkuk University)
Yoo, Jae-Wook (Dept. of Business Administration, Konkuk University)
Kim, Choo-Yeon (Dept. of Business Administration, Konkuk University)
Publication Information
Management & Information Systems Review / v.38, no.1, 2019 , pp. 1-21 More about this Journal
Abstract
This study focuses on (1) the relationship between the network intensity of top managers and the R&D investment of Korean firms, and (2) the moderating effects of the type (related-division vs. unrelated-division) and system (physical division vs. spin-offs) of corporate division on this relationship. The sample of this study was all type and/or system of corporate division implemented by Korean firms during 18-years (1999-2016) study periods. The results of multiple regression analyses as follow. First, as was expected in hypothesis 1 the network intensity of top managers has a strong positive linear relation with the R&D investment of Korean firms. Second, regarding the moderating effect of division type the results show that related-divisions significantly intensify the positive relationship of the network intensity of top managers with the R&D of Korean firms although unrelated-divisions did not. Third, in the analysis of moderating effect of corporate division system the results present the stronger positive moderating effect of spin-offs rather than physical divisions. The findings of the study implies that strong network intensity of top managers can be beneficial to long-term decision such as R&D investment of Korean firms. They accords to network theory that emphasize the importance of strong network effect among top managers based on their trust. The findings also implies that researchers and practitioners should consider organizational-level factors such as organizational structure, culture, corporate governance, etc as well as individual-level factors such as the characteristics and relationships of organizational members when making the decision for firm.
Keywords
Network intensity; R&D investment; Corporate division type; Corporate division system;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
연도 인용수 순위
1 Damanpour, F.(1991), "Organizational Innovation : A Meta-analysis of Effects of Determinants and Moderators," Academy of Management Journal, 34(3), 555-590.   DOI
2 European commission(2017), "The 2017 EU Industrial R&D Investment Scoreboard," Joint Research Centre, Directorate Growth and Innovation.
3 Gupta A. K.(1987), "SBU Strategies, Corporate-SBU Relations, and SBU Effectiveness in Strategy Implementation," Academy of Management Journal, 30(3), 477-500.   DOI
4 Hall, L. A. and Bagchi-Sen, S.(2002), "A Study of R&D, Innovation, and Business Performance in the Canadian Biotechnology Industry," Technovation, 22(4), 231-244.   DOI
5 Hambrick, D. C., Cho, T. S. and Chen, M. J.(1996), "The influence of top management team heterogeneity on firms competitive Moves," Administrative Science Quarterly, 41(4), 659-684.   DOI
6 Hambrick, D. C. and P. A. Mason(1984), "Upper echelons: The organization as a reflection of its top managers," Academy of Management Review, 9(2), 193-206.   DOI
7 Hansen, G. and C. Hill(1991), "Are institutional investors myopic? A time-series study of four technology-driven industries," Strategic Management Journal, 12(1), 1-16.   DOI
8 Hayes, R. H. and Abernathy, W. J.(1980), "Managing Our Way to Economic Decline," Harvard Business Review, 58(4), 67-77.
9 Hill, C. W. L., M. A. Hitt and R. E. Hoskisson(1992), "Cooperative verse Competitive Structures in Related and Unrelated Diversified Firms," Organization Science, 3(4), 501-521.   DOI
10 Hoffman, R. C. and Hegarty, W. H.(1993), "Top Management Influence on Innovations Effects of Executive Characteristics and Social Culture," Journal of Management, 19(3), 549-574.   DOI
11 Jensen, M. C. and W. H. Meckling(1976), "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, 3(4), 305-360.   DOI
12 Johnson, R. A., R. E. Hoskisson, and M. A. Hitt(1993), "Board of director involvement in restructuring: The effects of board versus managerial controls and characteristics," Strategic Management Journal, 14(S1), 33-50.
13 Jones, G. R. and C. W. L. Hill(1988), "Transaction Cost Analysis of Strategy-Structure Choice," Strategic Management Journal, 9(2), 159-172.   DOI
14 Keizer, J. A., Dijkstra, L., and Halman, J. J. M.(2002), "Explaining Innovative Efforts of SMEs," Technovation, 22(1), 1-13.   DOI
15 Kim, Y.(2005), "The Board Network Characteristics and Firm Performance in Korea," Corporate Governance: An International Review, 13(6), 800-808.   DOI
16 Kim, Y. and A. A. Cannella(2008), "Social capital among corporate upper echelons and its impacts on executive promotion in Korea," Journal of World Business, 43(1), 85-96.   DOI
17 Kimberly, J. R. and Evanisko, M. J.(1981), "Organizational Innovation : The Influence of Individual, Organizational, and Contextual Factors on Hospital Adoption of Technological and Administrative Innovations," Academy of Management Journal, 24(4), 689-713.   DOI
18 Krishnaswami, S., Spindt, P., Subramaniam, V.(1999), "Information asymmetry, monitoring and the placement structure of corporate debt." Journal of Financial Economics, 51(3), 407-434.   DOI
19 Meisel, J. B. and S. A. Y. Lin(1983), "The Impact of Market Structure on the Firm's Allocation of Resources to Research and Development," Quarterly Review of Economics and Business, 23(4), 28-43.
20 Lammers, I., A. P. Man and M. Jelinek(2009), "Inside the Tertius Gaudens: The Case of ASML," Faculty of Economics and Business administration, May 7th
21 Parrino R.(1997), "Spin-offs and wealth transfer: the Marriott case," Journal of financial Economics, 43(2), 241-274.   DOI
22 Pathak, S. D., Z. Wu and D. Johnston (2014), "Toward a Structural View of Co-opetition in Supply Networks," Journal of Operations Management, 32(5), 254-267.   DOI
23 Sapienza, H., Parhankangas, A. and Autio, E.(2004), "Knowledge relatedness and post-spin-off growth," Journal of Business Venturing, 19(6), 809-829.   DOI
24 Soda, G., Usai, A., and Zaheer, A.,(2004), "Network Memory: The Influence Of Past and Current Networks On Performance," Academy of Managerment Journal, 47(6), 893-906.
25 Van der Panne, Van Beers, C., and A. Kleinknecht(2003), "Success and Failure of Innovation: A Literature Review," International Journal of Innovation Management, 7(03), 309-338.   DOI
26 Ware, M., and Mabe, M.(2015), The STM Report: An overview of scientific and scholarly journal publishing, 4th ed., : The Netherlands.
27 김지영.유재욱(2015), "최고경영자재임기간에 따른 최고경영자와 이사회의 관계적 특성 구축방안에 대한 실증적 연구," 대한경영학회지, 28(8), 1985-2003.
28 강내철.진태홍(2012), "기업분할 방법과 공시 효과," 재무관리연구, 29(1), 57-80.
29 권구혁.이준우(2002), "다각화된 기업의 본사와 계열사 간의 분권화에 대한 통합적 연구," 경영학연구, 31(6), 1469-1498.
30 김영조(2007), "최고경영자의 전략적 리더십, 연구개발투자, 인사제도와 기술혁신 성과의 관계에 관한 연구," 인사관리연구, 31(4), 49-83.
31 김창완.김정포.이율빈(2006), "지식이전 파트너간 관계특성과 지식이전성과간의 관계," 한국국제경영관리학회 학술발표대회 논문집, 211-228.
32 박경서.정찬식(2011), "기업집단의 분리를 통한 기업집단의 순기능과 역기능에 관한 연구," 한국증권학회지, 40(3), 461-499.
33 신용균.한만용(2016), "기업분할 형태와 공시효과," 한국경영컨설팅학회, 16(3) 99-113.
34 박경진.신현한.장진호(2005), "기업분할과 경영성과," 전략경영연구, 8(2), 81-104.
35 박기성.김용민(2000) "노동시장에 나타난 출신지역간 차이," 노동경제논집, 23(2), 195-217.
36 박주형.이호영.신해명(2016), "이사회의 지연과 학연에 기초한 사회적 연결관계가 내부자거래를 위한 경영자의 이익조정에 미치는 영향," 경영학연구, 45(5), 1697-1733.
37 양영석(2008), "사회적 네트워크의 전략적네트워크로 성장가능성실증분석 대덕연구개발 특구기업의 사회적 네트워크분석을 중심으로," 산업경제연구, 21(3), 1041-1060.
38 이동기.조영곤(1999), "경영자 지분이 연구 개발투자에 미치는 영향에 관한 연구," 전략경영연구, 2(2), 25-40.
39 오현탁.이헌상.전세환.김종만(2006), "기업 분할이 기업가치에 미치는 영향에 관한 실증적 연구," 산업경제연구, 19(3), 1027-1049.
40 유재욱(2016), "경기침체기의 다각화전략과 성과에 대한 최고경영자 나르시시즘의 영향과 기업지배구조의 조절효과에 대한 연구," 경영과 정보연구, 35(4), 1-19.
41 이상욱(2009), "기업분할에 따른 현금흐름과 신규투자의 관계," 대한경영학회지, 22(5), 2809-2829.
42 이정환.이진주.박남규(2012), "한국기업의 지배구조가 기업분할 유형선택에 미치는 영향에 관한 연구," 전략경영연구, 15(1), 65-87.
43 조정일.심한택(2005), "기업분리의 단기성과," 대한경영학회지, 18(1), 247-266.
44 Ancona, D.G. and D.F. Caldwell(1992), "Demography and Design: Predictors of New Product Team Performance," Organization Science, 3(3), 321-341.   DOI
45 주혜려.유재욱(2014), "중국 기업 최고경영자 팀의 배경특성과 국제화 간의 관계와 이사회 독립성의 조절효과에 대한 연구," 경영과 정보연구, 33(1), 157-172.
46 한수경.유재욱.김추연(2017), "과거 혁신성과와 R&D 투자 간의 관계와 기업가 지향성의 매개효과에 대한 연구," 경영과 정보연구, 36(3), 219-237.
47 홍재범.황규승(1997), "한국기업의 다각화의 경제적 성과에 관한 연구," 경영학연구, 26(3), 493-511.
48 Bartlett, C. A. and Ghoshal, S.(1989), Managing Across Borders: The Transnational solution, Harvard Business School Press: Boston MA
49 Baysinger, B. D. and Hoskisson, R. E.(1989), "Diversification strategy and R&D intensity in large multiproduct firms," Academy of Management Journal, 32(2), 310-332.   DOI
50 Becheikh, N., Landry, R., and Amara, N.(2006), "Lessons from Innovation Empirical Studies in the Manufacturing Sector: A Systematic Review of the Literature from 1993-2003," Technovation, 26(5-6), 644-664.   DOI
51 Daley, L., Mehrotra, V. and Sivakumar, R.(1997) "Corporate focus and Value creation evidence from spinoffs," Journal of Financial Economics, 45(2), 257-281   DOI
52 Bowman, E. and H. Singh(1993), "Corporate restructuring: Reconfiguring the firm," Strategic Management Journal, 14(S1), 5-14   DOI
53 Cho, M. H. and M. A. Cohen(1997), "The economic causes and consequences of corporate divestiture," Managerial and Decision Economics, 18(3), 367-375.   DOI