• Journal of Technology Innovation
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• v.25 no.4
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• pp.239-261
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• 2017

This paper analyzes how corporate product innovation affects firms' revenue and financial stability, and thereby draws the implications for the corporate strategy for sustainable growth. Corporate product innovation is defined as the development of new products within the firm, including bought-in products. Corporate revenue is measured by per capita sales and its growth rate, while financial stability is measured by debt-to-equity ratio and liquidity ratio. In the empirical analysis, the two-stage estimation method was used to control for the endogeneity of new product development. The data are drawn from the first (2005) to the sixth (2015) wave of the Human Capital Corporate Panel (HCCP) Survey, which are matched to the data from the Korea Investors Service (KIS). The results of the first-stage estimation indicate that product innovation of the firm is promoted by the firm's knowledge capital stock, human resources investment, and market-leading strategy. The second-stage estimation results indicate a positive relationship between the firm's level of activity in product innovation and short-term revenue (per capita sales and its growth), and financial stability (lower debt-to-equity ratio and higher liquidity ratio). These findings confirm that the firm's investment in technology innovation and subsequent product innovation are important strategies to enhance both short-term corporate revenue and long-term financial stability.

• Journal of Korea Technology Innovation Society
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• v.9 no.2
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• pp.373-390
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• 2006

In knowledge-based economies, the facilitation of knowledge diffusion among R&D performing actors has become the most important factor for the growth of national science and technology. Korea has strived for revitalizing R&D partnerships between public and private sectors since 1970, but results of KIS (Korean innovation survey) data analysis show that R&D cooperation with public institute or academic sector are not a great help to Korean firm's innovation on the whole. Especially, in small and medium sized firm, R&D partnerships with public sector do not have positive influence on their innovation. This implies policies of activating R&D partnership should be formulated based on firm's cooperation demand. In addition to this, discriminatory cooperation plans between large firms and small and medium sized firms are needed to raise the effectiveness of R&D partnership.

• STI Policy Review
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• v.4 no.1
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• pp.74-93
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• 2013

Although open innovation (OI) has been an important research theme for over a decade, its theoretical framework has been relatively under-researched. As OI involves a wide range of innovation activities, a firm's capacities in the use of the various firm resources play a critical role in OI implementation. However, it is unclear how they affect firms' performances for little is known of OI capacities. Based on a theoretical framework derived from the literature, this study looks into the relationships between six OI capacities (inventive, absorptive, transformative, connective, innovative, and desorptive) and financial performance using the Korean Innovation Survey (KIS) 2008 data. The research model was tested using structural equation modelling (SEM) while potential differences in capacities between different firm groups were also investigated. The results indicate that 1) OI capacities are significantly associated with firms' financial performance; 2) capacities are highly correlated with one another; and 3) some capacities are differently configured between different types of firms. Findings suggest that policy makers should pay more attention to helping firms enhance OI capacities and attempt to develop relevant policies in order to complement inadequate capacities.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.737-746
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• 2020

A new business venture faces intense competition in a dynamic environment. To survive, new business ventures and established companies both need to generate creativity and significant new ventures to be highly competitive and have high levels of performance. In this study, we examined new business ventures that determined their competitiveness and performance generated from entrepreneurial creativity and mediated by ambidextrous innovation. This research used survey data collected from 143 Indonesian's new business shipping agencies, which was collected using an online survey and analyzed through structural equation modeling. The results showed that entrepreneurial creativity in new business ventures is positively associated with competitive advantage but not significant to create a competitive advantage. In contrast, entrepreneurial creativity is positively associated with firm performance. This result indicates that efforts to generate entrepreneurial creativity are not sufficient to create a competitive advantage despite having a significant influence on firm performance. However, entrepreneurial creativity is significantly and positively associated with firm performance and competitive advantage when mediated by ambidextrous innovation. The findings of this study suggest that the competitive advantage of a new business venture in facing intense competition in a dynamic environment condition can be overcome by generating strategic action in the form of entrepreneurial creativity and ambidextrous innovation.

• Journal of Technology Innovation
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• v.24 no.1
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• pp.49-84
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• 2016

The importance of technological innovation orientation, which denotes the firm's general direction of thought toward steadily pursuing and promoting technological innovation in the long run for its viability and competitiveness, is on the rise. Although the technological innovation orientation has conceptually and practically important implications for securing the firm's sustainable competitive advantage, to date there has been limited research systematically analyzing the role of the technological innovation orientation for the firm's successful technological innovation and performance. Recognizing such deficiency in previous research regarding technological innovation orientation, this study selected internal and external critical factors which might affect the technological innovation orientation, and proposed and empirically examined a research model and hypotheses demonstrating the contingency relationships among the antecedent factors, technological innovation orientation and technological innovation performance. In the proposed research model, the selected antecedents of technological innovation orientation included two internal factors of CEO's technical-function experience and cross-functional integration and two external factors of environmental uncertainty and intensity of competition, and eventually it was suggested that these antecedent factors affected the firm's technological innovation performance via the technological innovation orientation. In addition, the research model suggested that the two environmental factors of environmental uncertainty and intensity of competition had a positive moderation effect on the relationship between technological innovation orientation and technological innovation performance. Analysis of data on sample of 86 Korean IT SMEs showed that CEO's technical-function experience, cross-functional integration and environmental uncertainty had a positive impact on the firm's technological innovation orientation and that the technological innovation orientation positively influenced the firm's technological innovation performance. The results also revealed that environmental uncertainty positively moderated the relationship between the firm's technological innovation orientation and technological innovation performance. The theoretical and practical implications for the results of this study were discussed.

• Journal of Korea Technology Innovation Society
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• v.19 no.1
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• pp.137-160
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• 2016

This study assesses the structure relationships between resource, product and process innovation capability, technology commercialization competence and performance of firms in Daedeok Innopolis. In particular, this study attempts to analyze technology commercialization competence that may be influenced by product and process capabilities. The development of the research model is based on the literature of resource-based view and the empirical studies of technology commercialization competence. The survey of 109 firms was conducted from January 5, 2015 through February 4, 2015. We investigate the role of a firm's technology commercialization competence in determining its performance by performing Partial Least Squares analysis. The results indicate that a firm's human resources and intangible resources lead to a higher level of its product and process innovation capabilities. This study, however, finds that a firm's tangible resources do not have significant effects on its product and process innovation capabilities. And the study finds evidence that firm's product and process capabilities have positive effects on its technology commercialization competence. The study also finds that a firm's technology commercialization competence is a driving force behind its performance, showing that its technology commercialization competence positively involves its performance. In addition the study finds that technology commercialization competence mediates the relationship between a firm's innovation capability and performance, indicating that the technology commercialization used as mediating variable positively affects its innovation performance.

• Journal of Korea Technology Innovation Society
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• v.8 no.1
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• pp.116-134
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• 2005

This paper investigates the relationships between export and firm characteristics, focusing on technology factors. It is based on a longitudinal data covering listed firms in the Korean manufacturing industry. A regression model for the determinant of export/sales ratio including dynamic adjustment process is tested on a cross-section sample of the year 2001. Empirical findings suggest that there is no significant relationship between export/sales ratio and firm's technological level. The hypotheses concerning human capital intensity and physical capital intensity are also rejected. But we found a positive and inversely U-shaped relationship between firm size and export/sales for basic material and capital good industry. As a dynamic aspect, we found that the pattern of export/sales ratio changed unstably over the last decade. Finally, some policy implications are presented.

• Management & Information Systems Review
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• v.21
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• pp.239-269
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• 2007

The purpose of this thesis is to analyze empirically the relationship between market structure, measured by Herfindahl-Hershmann Index(HHI), and financial factors, and innovation in Korean industry panel datasets for 2000-2006. Results show that debt ratio and scale of the firm has a consistent positive effect on the investment in research and development. As more scale of the firm is getting bigger, the investment in R&D decrease. Also, as more debt ratio of firm rise, the investment for innovation increase. Concentration ratio, the HHI and the classification factor of High-tech industry and Low-tech industry has a consistent positive effect on the innovation. Factors affecting the investment in research and development include market structure and characteristics of industry as well as the internal affairs of the firm.

• Management & Information Systems Review
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• v.30 no.2
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• pp.211-235
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• 2011

We examined the relationship between innovation capability of R&D and the firm's performance by mainly comparing regional strategy industry with non-regional strategy industry. Also, this analysis involved comparing the relationship by regional strategy industry. For the purpose of this study, we divided innovation capability of R&D into input, process and output. The first of main results in this study was that regional strategic industry was significantly higher than non-regional strategy industry in innovation capability of R&D with the exception of the CEO's mind for technological innovations. However, we found no significant difference in the firm's performance. Second, in the results of comparing innovation capability of R&D and the firm's performance by regional strategy industry, electronic-information equipment industry was significantly superior to other industries. Third, it was found that the relationship between innovation capability of R&D and the firm's performance was different by regional strategy industry. Also, R&D manpower and R&D process were more significant factors affecting the firm's performance rather than R&D input and output.

• Journal of Korea Technology Innovation Society
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• v.1 no.3
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• pp.285-298
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• 1998

Innovation with strategic interaction is to overcome the technological uncertainty and to create co-evolution through competition among individuals or organizations for the acceleration of innovation. The concept of innovation in the past was concentrated on cooperation rather than on competition for the efficient management of limited resources. However, in order to minimize the technological uncertainty, we need an innovation on the basis of competition between organizations. Competition stimulates technological adaptability. It is on the analogy of complex system. This is to satisfy consumers' needs, to transform the resources into a technology, and to apply for the development of new products and new technologies. If the emergence of a new technology threatens present technology and develops into a new level of technology through inter-relation, it becomes a mutually supporting technologies. When theses effects are simultaneously realized, it is possible for firm to have strategical innovation and to create a mutually evolutionary development. Furthermore, when the competition among more than two individuals or two organizations continues towards the same direction, the mutual competition and cooperation can be expected to create a synergy effect. The competitive environment should be composed of R&D, production, and consumers' choice. This will lead to interaction among organizations through strategic competition and cooperation. Intra-firm competition and Inter-firm competition are required to exist together.