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http://dx.doi.org/10.11627/jksie.2021.44.4.177

An Empirical Study on the Effects of Defense Materials Supplier's Innovation Capability on Business Performance  

Lee, Jaeha (Department of Business Administration, Namseoul University)
Park, Woojong (Korea Productivity Center)
Cho, Jungyoung (Korea Productivity Center)
Kim, Houngyu (Graduate School of Business Management, Kyunghee University)
Oh, Hyung Sool (Department of Industrial & Management Engineering, Kangwon National University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.44, no.4, 2021 , pp. 177-185 More about this Journal
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.
Keywords
Defense Materials Supplier; Defense Industry Ecosystem; Productivity Management System;
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