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Impact of R&D Expenditure Size on financial Performance Focused on the IT Service Industry  

Lee, Yeon-Hee (포항공과대학교 기술경영대학원)
Lee, Hye-Jin (포항공과대학교 기술경영대학원)
Publication Information
Journal of Information Technology Services / v.8, no.3, 2009 , pp. 1-14 More about this Journal
Abstract
Due to economic turbulence and fierce competition in the IT service industry, companies have been seeking breakthrough of offerings by investing in research and development (R&D). This paper aims to examine the impact of R&D expenditure size on financial performance focusing on Korean IT service companies. The expected growth rate of revenue and net profit in the upcoming two years were analyzed based on three groups according to different R&D expenditure rates using collected data from 100 of IT service companies. Unlike our presumptions, our finding presents a non-significant relationship between the R&D expenditure size and companies' financial performance. An interesting result among others is that all companies invested in R&D strongly believe there will be an increase of their financial performance in the future.
Keywords
IT Service Company; R&D Expenditure; financial Performance;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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