• Title/Summary/Keyword: Firm's performance

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Does the Understanding of Core Competencies Matter to IT Outsourcing Performance? (기업의 핵심역량이 IT 아웃소싱 성과에 직접적인 관련이 있을 것인가?)

  • Kim, Young-Jin;Nam, Ki-Chan;Koo, Chul-Mo
    • Journal of the Korean Operations Research and Management Science Society
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    • v.32 no.3
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    • pp.97-114
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    • 2007
  • IT outsourcing providers has been expanded from a single functional system to the entire IT service to gain sustainable competitiveness. This new trend of IT outsourcing need outsourcing management capability based on a firm's core capacity. Hiring external IT service providers to manage part or all of its information-related services helps a firm focus on its core business and provides better services to its clients, thus obtaining sustainable competitive advantage. This research investigates the major factors that determine the level of a particular firm's success at IT outsourcing. Based on process innovation and core-competency theories, we identify three significant components of a firm's IT outsourcing management method (ITOMM): level of core-competency-based management, maturity of outsourced tasks, and maturity of outsourcing management. Comprehensive data collection was conducted through an outsourcing association. The survey data were analyzed using a structural analysis method. Maturity of outsourced tasks and maturity of outsourcing management were found to affect project performance directly, while level of core-competency-based management only indirectly impacted project performance through its positive impact on the other two ITOMM components.

Janus's Two Faces: SME's Performance Through Ambidextrous Organization Capabilities (야누스(Janus)의 두 얼굴: 조직의 양손잡이 역량을 통한 중소기업의 성과관리)

  • Choi, Yoon Jeoung;Lee, Woo Jin;Oh, Hye Mi
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.15 no.1
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    • pp.197-208
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    • 2020
  • The firms must perform both exploitation activities that efficiently use current resources and exploration activities that capture new opportunities. A company that simultaneously performs two opposite attributes, exploitation and exploration activities, is called an 'Ambidexerity Organization' or 'Organizational ambidexterity', which is called the Ambidextrous organization. This study examines whether the key factors of entrepreneurial orientation affect a firm's performance using two-handed strategies, and empirically analyzes the moderating effects of environmental dynamics. The results show that the entrepreneurial orientation has a significant effect on a firm's performance in the Ambidextrous organization. In addition, the moderating effect of environmental dynamics showed a moderating effect on the relationship between entrepreneurial orientation and organizational ambidexterity. This study not only suggests practical implications for SMEs, including venture firms and startups, but also has a significant impact on the relationship between organizational ambidexterity and a firm's performance. It is expected to make academic contributions by introducing variables and analyzing influential relationships.

The Effect of Interactivity between KIBS Firms and Customers on Innovations in KIBS Firms

  • Yong Jin Kim;Myung-Seong Yim
    • Asia pacific journal of information systems
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    • v.30 no.4
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    • pp.758-784
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    • 2020
  • In today's dynamic and hypercompetitive business environment, knowledge and innovation have emerged as bases for sustained competitive advantage. This paper addresses two specific research questions. First, we ask, "What is the effect that firm interactivity has on various types of innovation?" As we address this question, we explain that interactivity helps firms create knowledge, which then promotes and enables innovation. Second, we ask, "How do the various types of innovation impact firm performance?" We develop a research model and a set of hypotheses from the basis of organizational knowledge creation theory and the knowledge-based view of the firm. We test this model using survey data, and find that interactivity is positively associated with innovation. We also find that several types of innovation, including service innovation, process innovation, and organizational innovation have a positive impact on firm performance.

A Study of Effects of Stock Option on Firm's Performance (주식매수선택권이 기업성과에 미친 영향에 대한 연구)

  • Shin, Yeon-Soo
    • The Journal of Information Technology
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    • v.9 no.4
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    • pp.75-85
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    • 2006
  • This study is to test the influence of stock option granting information on the firm's performance. The important issue in stock option is that agent cost is the important determinant factor for the long term performance. The agent cost arises between the manager and shareholders. So many study are concentrated in diminishing the agent cost, and develop some substitute tools to measure the agent cost. The event study about stock option analyzes returns around event date at a time. Event study provides estimation periods and cumulative returns. Announcements about stock option are generally associated with positive abnormal returns in short term period, but not showing positive effect in long term period. It is important to investigate the responses of stocks to new information contained in the announcements of stock option. Therefore it is important to study the long term performance in the case of stock option. The event time portfolio approach exists the CAR model, BHAR model and WR model. And the calendar time portfolio approach has the 3 factor model, 4 factor model, CTAR model, and RATS model. This study is forced to develop and arrange two approach method in evaluating the performance, the event time portfolio approach and calendar time portfolio approach.

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A study on the Relationship between Market Orientation, Localization and Performance: The case of Korean firms operating in China (중국진출 한국기업의 시장지향성, 현지화, 성과의 관계에 관한 연구)

  • Kang, Dae-Kyong
    • International Commerce and Information Review
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    • v.12 no.2
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    • pp.161-182
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    • 2010
  • This study tried to analyzed the relationship between market orientation, localization and performance in order to suggest to a methodology for performance 7hypothesis were constructed for analysis based on previous literature review. The results of empirical analysis shows that market orientation gave significant effect on firm's performance and localization. Localization also positively related to firm's performance. These result explains that firms which try to take superior of performance must build high level of market orientation should be realized and reacted the complicated market situation. such as consumer needs, competitor's action, change of technology and provider's action, etc. For this, management of uncertainty should be required through the high level of information-oriented.

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An Impact on Management Performance by IT Service Firm's Creativity and Knowledge Management Factor (IT서비스 기업의 창의성 및 지식경영 요인이 경영성과에 미치는 영향)

  • Ahn, Yeon S.
    • Journal of Information Technology Services
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    • v.12 no.3
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    • pp.95-109
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    • 2013
  • This paper discussed about creativity and knowledge management variables as for effect factors on the management performance of IT service firms. Specially the mediation effects of knowledge management variables between the creativity and management performance were examined. To prove empirically the related hypothesis, the statistical analysis were based on the response from the 160 Korean IT Service firms. As an analysis results, it was found that the creativity of organizations was not the direct effector on the management performance. But the virtue of knowledge which are accumulated from knowledge management activity and shared in organizations was the direct effector. Also, the knowledge management activity is mediator on the in the relationship between the creativity and management performance. So this paper suggests that knowledge management activity and knowledge's virtue in the related the creativity in organizations are the important mediate factors for enhancement of IT service firm's performance.

The Study on Strategic Coalition Modeling using Social Network Analysis for B2B Activation in Public Oriented e-Marketplace -An Application of Public Parts of Cybercity Reference Model- (공적 e-Marketplace에서 사회관계망 분석을 이용한 기업간 전자상거래 활성화를 위한 전략적 제휴모형에 관한 연구 - 사이버시티 참조모델의 공적부문을 중심으로 -)

  • 정석찬;박기남
    • The Journal of Society for e-Business Studies
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    • v.7 no.2
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    • pp.113-128
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    • 2002
  • This paper proposes a public oriented e-Marketplace that induces strategic coalition using database in which detail information about each firm is contained. A public oriented e-Marketplace links each firm through the type of Internet business model and constructs a trading community. We introduce a design methodology of public oriented e-Marketplace called as social network analysis. Social network analysis helps each firm's network easily visualized and completely modeled. Additionally, this paper tries to analyze the relationship among the level of competition, potential of strategic coalition, and financial performance. We demonstrate the firm to easily accept various strategic coalitions can make higher financial performance under the more competitive condition. This implies that strategic coalition through public oriented e-Marketplace provide the each firm with various opportunities.

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The Effect of E-Business on Firm's Growth and Profitability in the Distribution Industry (e-비즈니스의 유통기업 성장성 및 수익성 기여 효과분석)

  • Baek, Chul-Woo
    • Journal of Distribution Science
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    • v.15 no.1
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    • pp.123-130
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    • 2017
  • Purpose - This research aims to examine the effect of e-business adoption on firm's growth and profitability in the distribution industry. The value added from the distribution industry acts as the cost of other industries. As the distribution industry develops, its stage becomes shorter and the distribution margin becomes smaller. Therefore, e-business is expected to have a different effect on the distribution industry than other industries. Research design, data and methodology - The previous research generally used e-business adoption as an independent variable and firm's performance as a dependent variable. This study elaborated the model using a dynamic panel model that includes the performance variable of the previous year as an independent variable. By employing system GMM (Generalized Method of Moments), the endogeneity problem in the dynamic panel model can be solved. For the analysis, I extracted the distribution companies as the raw data in the National Statistical Office's Business Activity Survey over the period 2006 to 2012. Results - The growth rate of firms adopting e-business was 0.299%p higher than that of the non-adopter. However, only ERP (Enterprise Resource Planning), KMS (Knowledge Management System) and SCM (Supply Chain Management) contributed positively to the growth rate. In the case of profitability, it was 0.04%p higher than the distribution companies that did not adopt e-business. ERP and LMS (Learning Management System) improve profitability, while SCM reduces profitability. Consequently, while ERP improves both growth and profitability, SCM improves growth but reduces profitability. In addition, KMS improves firm's growth only, and LMS does only profitability, showing that each e-business has a differentiated effect. Conclusions - Since the distribution industry has different characteristics from manufacturing and other service industries, the introduction of e-business may not guarantee the growth and profitability of distribution companies. Careful introduction considering the characteristics of the distribution industry is required. In particular, it is necessary to select an e-business meeting the characteristics and needs of a distribution company, and thereafter, it is required for the company's own efforts to internalize it within the system.

How Should Service Innovation Strategy be Aligned with Business Strategy? : Focused on the Moderating Effect of IT Capability (서비스혁신 전략과 비즈니스 전략 간 연계와 정보기술 역량의 조절효과에 관한 연구)

  • Ryu, Hyun-Sun;Lee, Jae-Nam
    • Journal of Information Technology Services
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    • v.14 no.2
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    • pp.195-229
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    • 2015
  • Service innovation is considered a new way to gain competitive advantage and enhance firm performance. However, service innovation does not always guarantee the desired outcome. The effective organization and management of well-planned service innovation practices, which are consistent with the firm's business environment, become a critical challenge for service innovation success. In addition, an increasing number of studies have focused on the role of information technology (IT) capability in service innovations. Most studies on service innovation have focused on the influences of the strategic alignment and IT capability separately. In contrast, the current study combines them by investigating the positive moderating effect of IT capability on the alignment between business strategy and service innovation strategy. Based on data collected from 183 service firms in Korea, we first explore the effect of service innovation strategies when coupled with different business strategies on better firm performance. We then investigate the moderating effect of IT capability on the relationship between strategic alignments and firm performance. Empirical evidence indicates that a synergistic effect between alignment and IT capability on firm performance exists. Firms that have aligned service innovation strategy with business strategy should consider improving their organizational IT capability to ensure substantial leverage.

The Relationship between Earnings Management and Future Firm Performance in Public Institutions (공공기관의 이익조정과 미래 경영성과와의 관련성)

  • Jang, Ji-Kyung;Kim, Hong-Bae
    • The Journal of the Korea Contents Association
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    • v.17 no.6
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    • pp.319-328
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    • 2017
  • Earnings management is a collection of management decisions which firms do not report the true performance. Many prior studies suggest that earnings management could be the results of either managerial earnings management or manager's private information for future performance. This study attempts to delve into the fundamental implications inherent in earnings management by analyzing how earnings management affects future firm performance in public institutions. If discretionary accruals as a measurement of earnings management embrace manager's private information, it will have a positive effect on future performance in succeeding period. In contrast, if discretionary accruals embrace manager's opportunistic earnings management, it will have a negative effect on future performance in succeeding period. Empirical findings are summarized as following.: Earnings managements are negatively associated with future firm performance for all succeeding period. This negative relationship continues for all succeeding period. The overall results can be serve as a evidence that the discretionary accruals capture opportunistic earnings management on average.