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http://dx.doi.org/10.7469/JKSQM.2018.46.3.551

The Impact of Technology Innovation Activity on Managerial Efficiency: An Inverted U shaped Model  

Ha, Gui Ryong (Yeungnam University)
Choi, Suk Bong (Korea University)
Publication Information
Journal of Korean Society for Quality Management / v.46, no.3, 2018 , pp. 551-568 More about this Journal
Abstract
Purpose: This study addressed the relationship between technological innovation activity and management efficiency of Korean automobile firms. We tested the hypothesis of non-liner relationship of innovation activity in relation to management efficiency. Methods: We discussed prior literature in the firm innovation strategy and management efficiency studies to provide better understanding of relationships between technological innovation activity and management efficiency. As a result, we developed develop and tested a model (Inverted-U shaped) capturing the non-linear impact of technological innovation activity. While we used R&D expenditure and patent registration data for measuring firms' innovation activity, management efficiency was evaluated by using DEA(Data Envelopment Analysis). Results: Main findings of our empirical analysis indicated that the relationships between technological innovation activity and management efficiency was inverted U shaped. This implied that the relationship between technological innovation and management efficiency is inverted U-shaped non-linear, with management efficiency increasing up to a point, beyond which higher levels of R&D and patent registration activities led to a decrease in management efficiency. Conclusion: This study empirically assessed the inconclusive findings of previous research in the area of effects of innovation activities in relation to firm performance. The paper also provided theoretical and practical implications for firms who explore efficient strategy to promote the management performance through technological innovation activities. Future research directions with the limitation of the study was discussed.
Keywords
Technological Innovation Activity; Management Efficiency; Inverted-U shaped; Korean Automobile Firm;
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