• Knowledge Management Research
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• v.9 no.2
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• pp.15-34
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• 2008

The firm leading community that is built to achieve firm's ad hoc purpose has two interested parties, operator and user. The success of the firm leading community, therefore, can be driven by meeting the needs of both parties. Most studies of the community, however, have focused not on operator but on user so far. This study identifies two variables-operating activities and organizational support-as success factors of firm leading community based on prior studies and analyzes them in term of the operator of firm leading community through 2nd in-depth interview. The result of study shows that organizational support affects operating activities and then both operating activities and organizational support affect the success of the firm leading community.

• Management & Information Systems Review
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• v.25
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• pp.43-68
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• 2008

From intuitional viewpoint many researchers have been considering that information technology investment serves to increase the productivity and the profitability of firm. But the empirical studies that have examined the relationship between information technology investment and firm performance have reported mixed findings. In spite of that, recently there has been growing recognition of the importance of assessing information technology investment in determining future performance of firms. This study examines the relationship between investment in information technology and performance of securities companies in Korea. I use Tobin's Q, a financial market-based measure of firm performance and investigates the pure effect of information technology investment on firm performance after controlling for a variety of firm specific variables which may affect on firm performance. This study finds that information technology investment have a significantly positive association with Tobin's Q. This result implicates that information technology investment contributes to a firm's future performance potential.

• Asia Marketing Journal
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• v.18 no.4
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• pp.51-76
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• 2017

Although much attention has been paid to customer satisfaction (CS) as a leading indicator of firm performance, few studies have investigated the role of CS distribution across individual customers. With 10 years of National Customer Satisfaction Index (NCSI) data in Korea, we examine the relationship between the variance of CS and key corporate performance measures such as revenue, profit, Tobin's q, and stock return. There are three main findings. First, we confirm the findings of previous studies that the average CS for a firm is related to the firm's economic performance. Second, we find a moderating effect of CS variance such that the relationship between the level of CS and firm performance is attenuated by the variance of CS. Finally, the variance of CS is found to directly affect firm performance over and above the CS level effect. More specifically, the variance decreases sales and stock return.

• Journal of Korean Society for Quality Management
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• v.49 no.3
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• pp.313-326
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• 2021

Purpose: Prior studies have sought to find antecedent to improve firm performance. However, research on compensation systems and employees' psychological mechanisms have been relatively limited. In this sense, this study has investigated the impact of compensation gap between TMT and employees on firm performance, and explored the factors that affect the above relationship. Specifically, this study analyzed the direct impact of compensation gap on firm performance. In addition, the process of compensation gap to firm performance is assumed to be significantly influenced by employees' recognized promotion system and satisfaction with TMT. Therefore, we examined moderating effects of both promotion probability and opportunity, and satisfaction with TMT on the relationship between compensation gap and firm performance. Methods: For empirical test, financial variables were collected from TS-2000 database, and moderating variables were collected form Job Planet for listed firms in Korea. We conducted hierarchical regression analysis to test hypotheses. Results: The findings of empirical analysis are as follows. First, compensation gap between TMT and employees had a positive effect on firm performance. Second, when promotion probability and opportunity was high, the effect of compensation gap on firm performance was strengthened. Third, when satisfaction with TMT was high, the positive effect of compensation gap on firm performance was also strengthened. Conclusion: Our findings have expanded prior research on human resource management and labor relation by identifying the positive role of compensation gap between TMT and employees on firm outcome. Moreover, our results also indicated that promotion probability and opportunity, and satisfaction with TMT, which has not been addressed well in previous studies, were important conditions enhancing the positive relationship between compensation gap and firm performance. Finally, this study suggest several theoretical and managerial implication with future research direction.

• Journal of Internet Computing and Services
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• v.22 no.5
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• pp.79-86
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• 2021

As the usefulness of big data analysis has been drawing attention, many studies in the business research area begin to use big data to predict firm performance. Previous studies mainly rely on data outside of the firm through news articles and social media platforms. The voices within the firm in the form of employee satisfaction or evaluation of the strength and weakness of the firm can potentially affect firm value. However, there is insufficient evidence that online employee reviews are valid to predict firm value because the data is relatively difficult to obtain. To fill this gap, from 2014 to 2019, we employed 97,216 reviews collected by JobPlanet, an online firm review website in Korea, and developed a machine learning-based predictive model. Among the proposed models, the LSTM-based model showed the highest accuracy at 73.2%, and the MAE showed the lowest error at 0.359. We expect that this study can be a useful case in the field of firm value prediction on domestic companies.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.46 no.4
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• pp.1-14
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• 2023

As markets and industries continue to evolve rapidly, technology opportunity discovery (TOD) has become critical to a firm's survival. From a common consensus that TOD based on a firm's capabilities is a valuable method for small and medium-sized enterprises (SMEs) and reduces the risk of failure in technology development, studies for TOD based on a firm's capabilities have been actively conducted. However, previous studies mainly focused on a firm's technological capabilities and rarely on business capabilities. Since discovered technologies can create market value when utilized in a firm's business, a firm's current business capabilities should be considered in discovering technology opportunities. In this context, this study proposes a TOD method that considers both a firm's business and technological capabilities. To this end, this study uses patent data, which represents the firm's technological capabilities, and trademark data, which represents the firm's business capabilities. The proposed method comprises four steps: 1) Constructing firm technology and business capability matrices using patent classification codes and trademark similarity group codes; 2) Transforming the capability matrices to preference matrices using the fuzzy function; 3) Identifying a target firm's candidate technology opportunities using the collaborative filtering algorithm; 4) Recommending technology opportunities using a portfolio map constructed based on technology similarity and applicability indices. A case study is conducted on a security firm to determine the validity of the proposed method. The proposed method can assist SMEs that face resource constraints in identifying technology opportunities. Further, it can be used by firms that do not possess patents since the proposed method uncovers technology opportunities based on business capabilities.

• Journal of Intelligence and Information Systems
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• v.22 no.4
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• pp.123-138
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• 2016

This study investigates intents of acquisitions in information technology industries. Mergers and acquisitions are a strategic decision at corporate-level and have been an important tool for a firm to grow. Plenty of firms in information technology industries have acquired startups to increase production efficiency, expand customer base, or improve quality over the last decades. For example, Google has made about 200 acquisitions since 2001, Cisco has acquired about 210 firms since 1993, Oracle has made about 125 acquisitions since 1994, and Microsoft has acquired about 200 firms since 1987. Although there have been many existing papers that theoretically study intents or motivations of acquisitions, there are limited papers that empirically investigate them mainly because it is challenging to measure and quantify intents of M&As. This study examines the intent of acquisitions by measuring specific intents for M&A transactions. Using our measures of acquisition intents, we compare the intents by four acquisition types: (1) the acquisition where a hardware firm acquires a hardware firm, (2) the acquisition where a hardware firm acquires a software/IT service firm, (3) the acquisition where a software/IT service firm acquires a hardware firm, and (4) the acquisition where a software /IT service firm acquires a software/IT service firm. We presume that there are difference in reasons why a hardware firm acquires another hardware firm, why a hardware firm acquires a software firm, why a software/IT service firm acquires a hardware firm, and why a software/IT service firm acquires another software/IT service firm. Using data of the M&As in US IT industries, we identified major intents of the M&As. The acquisition intents are identified based on the press release of M&A announcements and measured with four categories. First, an acquirer may have intents of cost saving in operations by sharing common resources between the acquirer and the target. The cost saving can accrue from economies of scope and scale. Second, an acquirer may have intents of product enhancement/development. Knowledge and skills transferred from the target may enable the acquirer to enhance the product quality or to expand product lines. Third, an acquirer may have intents of gain additional customer base to expand the market, to penetrate the market, or to enter a foreign market. Fourth, a firm may acquire a target with intents of expanding customer channels. By complementing existing channel to the customer, the firm can increase its revenue. Our results show that acquirers have had intents of cost saving more in acquisitions between hardware companies than in acquisitions between software companies. Hardware firms are more likely to acquire with intents of product enhancement or development than software firms. Overall, the intent of product enhancement/development is the most frequent intent in all of the four acquisition types, and the intent of customer base expansion is the second. We also analyze our data with the classification of production-side intents and customer-side intents, which is based on activities of the value chain of a firm. Intents of cost saving operations and those of product enhancement/development can be viewed as production-side intents and intents of customer base expansion and those of expanding customer channels can be viewed as customer-side intents. Our analysis shows that the ratio between the number of customer-side intents and that of production-side intents is higher in acquisitions where a software firm is an acquirer than in the acquisitions where a hardware firm is an acquirer. This study can contribute to IS literature. First, this study provides insights in understanding M&As in IT industries by answering for question of why an IT firm intends to another IT firm. Second, this study also provides distribution of acquisition intents for acquisition types.

• Journal of Korea Technology Innovation Society
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• v.10 no.3
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• pp.509-530
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• 2007

This paper examined the relationship between innovation and firm performance by integrating industry competitive context and firm-level knowledge constructs. After controlling for firm site, age, and the presence of a union, cross-section analysis of survey data from 1,419 medium sized manufacturing firms yielded following findings. The first was the expected positive relationship between firm-level innovation and firm knowledge and also industry dynamism, as measured by the intensity of industry-level R&D. This results indicate that industries with greater aggregate levels of R&D intensity are home to higher rates of firm-level innovative activity and managers must increase their numbers of technical staff and the level of training. But the interaction between firm knowledge and industry dynamism was non-significant. Second, innovation was not significantly related to firm performance, as measured by revenue growth. This relationship was not moderated by industry dynamism and firm level knowledge. In high and low technology sectors, the relationship between innovation and performance was non-significant, consistent with the full-sample analysis. The results suggest that the effects of firm-level knowledge assets and investments in training don't work in different ways in different industry settings. This research used three control variables to analyze innovation and firm performance. Firm age was negatively associated with firm performance and did not significantly predict innovation. Firm size was positively associated with innovation and performance in the low-technology sector. The presence of a labor union was not a significant with respect to innovation.

• Asia Marketing Journal
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• v.15 no.3
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• pp.53-77
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• 2013

As advertising and promotions are categorized as operating expenses, managers tend to reduce marketing budget to improve their short term profitability. Gauging the value and accountability of marketing spending is therefore considered as a major research priority in marketing. To respond this call, recent studies have documented that financial market reacts positively to a firm's marketing activity or marketing related outcomes such as brand equity and customer satisfaction. However, prior studies focus on the relation of marketing variable and financial market variables. This study suggests a channel about how marketing activity increases firm valuation. Specifically, we propose that a firm's marketing activity increases the level of the firm's product market information and thereby the dispersion in financial analysts' earnings forecasts decreases. With less uncertainty about the firm's future prospect, the firm's managers and shareholders have less information asymmetry, which reduces the firm's cost of capital and thereby increases the valuation of the firm. To our knowledge, this is the first paper to examine how informational benefits can mediate the effect of marketing activity on firm value. To test whether marketing activity contributes to increase in firm value by mitigating information asymmetry, this study employs a longitudinal data which contains 12,824 firm-year observations with 2,337 distinct firms from 1981 to 2006. Firm value is measured by Tobin's Q and one-year-ahead buy-and-hold abnormal return (BHAR). Following prior literature, dispersion in analysts' earnings forecasts is used as a proxy for the information gap between management and shareholders. For model specification, to identify mediating effect, the three-step regression approach is adopted. All models are estimated using Markov chain Monte Carlo (MCMC) methods to test the statistical significance of the mediating effect. The analysis shows that marketing intensity has a significant negative relationship with dispersion in analysts' earnings forecasts. After including the mediator variable about analyst dispersion, the effect of marketing intensity on firm value drops from 1.199 (p < .01) to 1.130 (p < .01) in Tobin's Q model and the same effect drops from .192 (p < .01) to .188 (p < .01) in BHAR model. The results suggest that analysts' forecast dispersion partially accounts for the positive effect of marketing on firm valuation. Additionally, the same analysis was conducted with an alternative dependent variable (forecast accuracy) and a marketing metric (advertising intensity). The analysis supports the robustness of the main results. In sum, the results provide empirical evidence that marketing activity can increase shareholder value by mitigating problem of information asymmetry in the capital market. The findings have important implications for managers. First, managers should be cognizant of the role of marketing activity in providing information to the financial market as well as to the consumer market. Thus, managers should take into account investors' reaction when they design marketing communication messages for reducing the cost of capital. Second, this study shows a channel on how marketing creates shareholder value and highlights the accountability of marketing. In addition to the direct impact of marketing on firm value, an indirect channel by reducing information asymmetry should be considered. Potentially, marketing managers can justify their spending from the perspective of increasing long-term shareholder value.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.223-231
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• 2020

This research aims to examine (1) the effect of carbon emission disclosure on firm value, (2) the effect of good corporate governance on firm value, (3) the mediating role of financial performance between carbon emission disclosure and firm value, and (4) the mediating role of financial performance between good corporate governance and firm value. The research sample includes 43 mining, agro, and manufacturing firms listed in the Indonesian Stock Exchange over the 2015-2017 period. Carbon emission disclosure is measured by an indicator of the Global Reporting Initiative Series of Environmental Aspect. Good corporate governance is measured by the corporate governance score of shareholder rights, boards of directors, outside directors, audit committee and internal auditor, and disclosure to investors. Financial performance is measured by return on assets, while firm value is measured by Tobin's Q. Data analysis uses the structural equation modeling. The result shows carbon emission disclosure and good corporate governance have no direct effect on firm value. On the other hand, financial performance mediates the effect of carbon emission disclosure and good corporate governance on firm value. It shows that higher carbon emission disclosure and good corporate governance are meaningless for the investor if they do not give any financial performance improvement.