Browse > Article
http://dx.doi.org/10.5762/KAIS.2019.20.9.156

A Study on the Relationship between the Management Strategies, Innovation Activities, and Business Performance of a Company  

Shim, Taeyong (Dept. of E-Business, Kyonggi University)
Lee, Daegyu (Dept. of Business Administration, Baekseok University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.20, no.9, 2019 , pp. 156-166 More about this Journal
Abstract
For this study, a survey was conducted with the employees of small and medium-size enterprises (SMEs) located in Seoul and in Gyeonggi province. In the end, a total of 328 valid questionnaires were received and used in the analysis. The data of this study were analyzed using two statistics programs: SPSS Statistics 22.0 and AMOS 22.0. As for the method to verify the hypothesis, we used a structural equation model. The key findings of this study are as follows. First, the results of correlation analysis between management strategy factors, innovation activities, and business performance showed that the factors that were at a higher level of correlation were the technology differentiation strategies, marketing differentiation strategies, and the cost-driven strategy. Second, the strategic management factors that influenced innovation activities were in the following order: marketing differentiation, technology differentiation, and the cost-driven strategy, while the valid factors that affected business performance with significance were only the marketing differentiation strategy and the cost-driven strategy. Third, while the analysis showed that the technology differentiation strategy did not have a direct effect on business performance, it was shown that the relationship between the technology differentiation strategy and business performance was completely mediated by innovation activities.
Keywords
Management Strategy; Cost-Driven Strategy; Marketing Differentiation; Technology Differentiation; Innovation Activities; Business Performance;
Citations & Related Records
연도 인용수 순위
  • Reference
1 B. W. Seo, "A study of the effects that management policies and accounting and information systems of small and medium businesses have on business performances", The Journal of Eurasian Studies, Vol.7, No.4 pp. 101-125, 2010. DOI: https://doi.org/10.31203/aepa.2010.7.4.006   DOI
2 J. J. Jeong, "A study on the effect of fitness among differentiation strategies, management innovations and management accounting informations on organization performances", Journal of Industrial Economics and Business, Vol.20, No.4 pp. 1579-1606, 2004.
3 M. O. Seon, W. C. Lee, "Small business-specific management strategies and its impact on business performance", Korea International Accounting Review, Vol.50 pp. 305-322, 2013. DOI: https://doi.org/10.21073/kiar.2013..50.015   DOI
4 H. Makkonen, M. Pohjola, R. Olkkonen, A. Koponen, "Dynamic capabilities and firm performance in a financial crisis", Journal of Business Research, Vol.67, No.1 pp. 2707-2719, 2014. DOI: https://doi.org/10.1016/j.jbusres.2013.03.020   DOI
5 J. J. Jung, "A Study on the Effect of Fitness Among Differentiation Strategies, Management Innovations and Management Accounting Informations on Organization Performances", Journal of Industrial Economics and Business, Vol.20, No.4 pp. 1579-1606, 2007.
6 S. H. Song, "Organizational Contingency Factors and Technological Innovation in Korean Telecommunications Industry : A Contingency Approach", Korean Journal of Management, Vol.14, No.2 pp. 177-213, 2006.
7 J. S. Lee, J. H. Park, "The Influence of SMEs' Innovation Activities according to Types of Strategy on their Perception to the Opening of Economies: The Moderating Effects of External Search and Market Entry Strategy", The Korean Society For Technology Management & Economics, Vol.21, No.1 pp. 199-228, 2013.
8 B. R. Miller, R. H. Friesen, "Oral atropine premedication in infants attenuates cardiovascular depression during halothane anesthesia", Anesthesia and Analgesia, Vol.67, No.2 pp. 180-185, 1988. DOI: https://doi.org/10.1213/00000539-198802000-00013   DOI
9 S. S. Lee, B. K. Kim, "A study on the relationships between competitive strategies, business, innovation, and performance", Korean Journal of Business Administration, No.36 pp. 321-343, 2003.
10 N. J. Lee, K. Y. Oh, C. S. Lee, "Effects of Resource Characteristics on the Performance of Small Business and relevance to Management Strategies", Journal of Korea Accounting Information Association, Vol.31, No.2 pp. 141-162, 2013.
11 J. E. Kim, "The relations between KPI use on strategy practice and performance evaluation and firm's performance", Korean Corporation Management Review, Vol.30 pp. 197-219, 2009.
12 S. K. Cho, The effect of management innovation techniques and attributes of performance management system on the business performance of small and medium size companies , Ph.D dissertation, Dong-A University of Pusan, Korea, 2009.
13 K. S. Jang, Y. B. Kim, I. S. Koo, "A Study on the Relationship between Innovation Activity and Business Results -Focused on the Small and Medium Manufacturing Enterprises-", Korean Society For Quality Management, Vol.38, No.4 pp. 512-520, 2010.
14 K. D. Kim, W. S. Hong, "Effect of Firm's Activities on Their Performances", Journal of Korea Technology Innovation Society, Vol.14, No.2 pp. 373-404, 2011.
15 I. S. Koo, "The effects of innovation activity to business performance in small and medium enterprises", Asia-Pacific Journal of Business and Venturing, Vol.7, No.4 pp. 1-8, 2012. DOI: https://doi.org/10.16972/apjbve.7.4.201212.1   DOI
16 T. H. Ban, S. K. Song, "The relationship between business strategy, management innovation, strategic managerial accounting system and business performance", Korean Accounting Journal, Vol.21, No.1 pp. 203-236, 2012.
17 P. Drucker, Innovation and entrepreneurship. Routledge, 2014.
18 A. D. Chandler, Strategy and structure: Chapters in the history of the American industrial enterprise . MA: MIT press, 1962.
19 Y. H. Cho, "Effects of Innovation Types and Competitive Strategy of Logistics Firms on Business Performance", The Journal of Korea Research Society for Customs, Vol.16, No.1 pp. 249-269, 2015.
20 S. S. Lee, B. K. Kim, "A Study on the Relationships Between Competitive Strategies, Business, Innovation, and Performance", The Korean Academic Association of Business Administration, Vol.16, No.2 pp. 321-343, 2003.
21 S. H. Song, Environment, strategy, organizational characteristics and techological innovation: Configuration approach. Doctoral Thesis, Korea University of Korea, pp. 56-59, 1991.
22 S. A. Zahra, G. George, "Absorptive capacity: A review, reconceptualization, and extension", Academy of Management Review, Vol.27, No.2 pp. 185-203, 2002. DOI: https://doi.org/10.5465/amr.2002.6587995   DOI
23 T. Y. Shin, J. K. Song, W. S. Lee, C. W. Song, H. H. Kim, S. J. Son, "The determinants of technological innovation in manufacturing industries and policy implications", STI Policy Review, pp. 1-271, 2006.
24 L. B. Mohr, "Conceptual Issues in the Study of Innovation", Administrative Science Quarterly, Vol.21, No.4 pp. 700-714, 1976. DOI: https://doi.org/10.2307/2391725   DOI
25 E. M. Rogers, Diffusion of innovations(4th ed). New York: The Free Press, 1995.
26 V. Govindarajan, J. Fisher, "Strategy, control systems, and resource sharing: Effects on business-unit performance", Academy of Management Journal, Vol.33, No.2 pp. 259-285, 1990. DOI: https://doi.org/10.5465/256325   DOI
27 K. R. Andrews, The concepts of corporate strategy, 2nd edition. Homewood II: Irwin, 1980.
28 M. E. Porter, Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press, 1980.
29 D. C. Hambrick, "High profit strategies in mature capital goods industries: A contingency approach", Academy of Management Journal, Vol.26, No.4 pp. 687-707, 1983. DOI: https://doi.org/10.5465/255916   DOI
30 W. R. King, T. S. Teo, "Assessing the impact of proactive versus reactive modes of strategic information systems planning", Omega, Vol.28, No.6 pp. 667-679, 2000. DOI: https://doi.org/10.1016/s0305-0483(99)00079-1   DOI
31 T. H. Ban, S. G. Song, "The Relationship between Business Strategy, Management Innovation, Strategic Managerial Accounting System and Business Performance", Korean Accounting Journal, Vol.21, No.1 pp. 203-236, 2012.
32 M. Simon, B. Elango, S. M. Houghton, S. Savelli, "The successful product pioneer: maintaining commitment while adapting to change", Journal of Small Business Management, Vol.40, No.3 pp. 187-203, 2002. DOI: https://doi.org/10.1111/1540-627x.00050   DOI
33 K. W. Park, Relationship between management strategy, use of performance measurement system, diversity of measurement, and management performance. Ph.D dissertation, Sogang University of Korea, pp. 13-17, 2007.
34 C. D. Lee, "The Causal Relationship among Strategy, Organization Culture, Innovation", The Korean Academic Association of Business Administration, Vol.24, No.6 pp. 3441-3460, 2011.
35 Hyun. Kim, Effects of Business Innovation and Performance Management Efficiency on the Relationship of Differential Strategy and Business Performance. Master's Thesis, Dong-a University of Korea, 2012.
36 H. I. Ansoff, Corporate strategy: An analytic approach to business policy for growth and expansion. New York: McGraw-Hill, 1965.
37 R. M. Baron, D. A. Kenny, "The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations", Journal of Personality and Social Psychology, Vol.51, No.6 pp. 1173-1186, 1986. DOI: https://doi.org/10.1037//0022-3514.51.6.1173   DOI
38 P. T. Ward, R. Duray, "Manufacturing strategy in context: environment, competitive strategy and manufacturing strategy", Journal of Operations Management, Vol.18, No.2 pp. 123-138, 2000. DOI: https://doi.org/10.1016/s0272-6963(99)00021-2   DOI
39 K. W. Lee, The effect of creativity management on innovation and business performance. Doctoral Thesis, Seokyeong University of Korea, pp. 36-41, 2015.
40 C. Fornell, D. F. Larcker, "Structural equation models with unobservable variables and measurement error: Algebra and statistics", Journal of marketing research, Vol.18, No.3 pp. 382-388, 1981. DOI: https://doi.org/10.2307/3150980   DOI
41 C. S. Ahn, Y, D, Lee, "An empirical analysis of the influence factors on open innovation activities in Korea", Journal of Korea Technology Innovation Society, Vol.14, No.3 pp. 431-465, 2011.
42 Y. S. Cho, "The relationship between precedent factors, commitment and performance for successful inter-firm cooperation : Focused on small and medium raw material importing enterprises in Korea", Korean Journal of Business Administration, Vol.24, No.2 pp. 1183-1203, 2011.
43 K. H. Kim, G. I. Jee, C. G. Park, J. G. Lee, "The stability analysis of the adaptive fading extended Kalman filter using the innovation covariance", International Journal of Control, Automation and Systems, Vol.7, No.1 pp. 49-56, 2009. DOI: https://doi.org/10.1007/s12555-009-0107-x   DOI
44 J. L. Pierce, A. L. Delbecq, "Organization structure, individual attitudes and innovation", Academy of Management Review, Vol.2, No.1 pp. 27-37, 1977. DOI: https://doi.org/10.5465/amr.1977.4409154   DOI
45 J. Birkinshaw, G. Hamel, M. J. Mol, "Management innovation", Academy of management Review, Vol.33, No.4 pp. 825-845, 2008. DOI: https://doi.org/10.2139/ssrn.1306981   DOI
46 K. J. Park, "The influence of employee cooperation and CEO support on the management innovation performance", Journal of Social Sciences, Vol.15 pp. 127-147, 2010.   DOI
47 Y. J. Ahn, "A review on innovation", Journal of Korea Service Management Society, Vol.12, No.1 pp. 257-277, 2011.   DOI
48 R. C. Yam, W. Lo, E. P. Tang, A. K. Lau, "Analysis of sources of innovation, technological innovation capabilities, and performance: An empirical study of Hong Kong manufacturing industries", Research Policy, Vol.40, No.3 pp. 391-402, 2011.   DOI
49 T. Koc, C. Ceylan, "Factors impacting the innovative capacity in large-scale companies", Technovation, Vol.27, No.3 pp. 105-114, 2007. DOI: https://doi.org/10.1016/j.technovation.2005.10.002   DOI
50 E. Mansfield, "Size of firm, market structure, and innovation", Journal of Political Economy, Vol.71, No.6 pp. 556-576, 1963. DOI: https://doi.org/10.1086/258815   DOI
51 S. H. Kwak, "The Moderating Effect of Innovation Activity on Business Performance in Service Industry", Journal of the Korea Service Management Society, Vol.12, No.4 pp. 227-245, 2011. DOI: https://doi.org/10.15706/jksms.2011.12.4.011   DOI
52 R. Kaplan, D. Norton, "Using the Balanced Scorecard as a Strategic Management System", Harvard Business Review, Vol.29, No.1 pp. 75-85, 1996.
53 M. H. Park, S. J. Lim, "Effect of Innovation Activities on Business Performances : Focused on KM and TQM", Korea International Accounting Association, Vol.0, No.49 pp. 363-386, 2013. DOI: https://doi.org/10.21073/kiar.2013..49.016   DOI
54 Y. T. Cha, "The Influence of Innovation Activities of Mainbiz Enterprise on Competitive Advantage and Management Per formance", Journal of the Korea management engineers society, Vol.20, No.3 pp. 87-103, 2015.
55 T. Li, R. J. Calantone, "The impact of market knowledge competence on new product advantage: conceptualization and empirical examination", Journal of Marketing, Vol.62, No.4 pp. 13-29, 1998. DOI: https://doi.org/10.2307/1252284   DOI
56 M. A. Huselid, "The impact of human resource management practices on turnover, productivity, and corporate financial performance", Academy of Management Journal, Vol.38, No.3 pp. 635-672, 1995. DOI: https://doi.org/10.2307/256741   DOI
57 Y. H. Kim, The relationships between creative management, innovative behaviors and performance. Doctoral Thesis, Dongyang University of Korea, pp. 22-26, 2009.
58 B. P. Stivers, T. J. Covin, N. G. Hall, S. W. Smalt, "How nonfinancial performance measures are used", Strategic Finance, Vol.79, No.8 pp. 44-49, 1998.
59 S. J. Kong, The effects of business strategy on business performance: IT applicability with parameter and regulation effect. Doctoral Thesis, Hoseo University of Korea, pp. 46-49, 2013.
60 V. Govindarajan, A. K. Gupta, Linking control systems to business unit strategy: Impact on performance. Boston, MA: Springer, pp. 646-668, 1985. DOI: https://doi.org/10.1007/978-1-4899-7138-8_29