• The Journal of Asian Finance, Economics and Business
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• v.9 no.1
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• pp.35-42
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• 2022

The paper aims to examine the impact of exports on the growth of Vietnamese manufacturing small and medium-sized enterprises (SMEs) by exploring the information of 36,053 enterprises across 24 manufacturing sectors from the Vietnam Annual Enterprise Survey (VAES) in the period 2014-2019. To deal with the problem of variable variance, autocorrelation, and endogeneity of the model, the paper uses the OLS regression method with a strong standard error method and system GMM. Export participation by SMEs is positively associated with business growth in terms of sales and total assets, according to the findings. The GMM estimate shows that the rate of sales growth among exporters is 36.5 percent greater than that of non-exporting enterprises in the case of the sales growth measure. Exporters' average total asset growth rate is 19% greater than the rate estimated for non-exporting businesses. The study's findings indicate the need of adopting policies that promote SMEs in transition economies like Vietnam to engage in exporting activities. Furthermore, the findings show that financial assistance and suitable ownership would enable SMEs to take advantage of export opportunities to increase sales and total assets.

• Information Systems Review
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• v.11 no.3
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• pp.169-189
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• 2009

Over the past three decades, the impact of information technology (IT) investments on firm performance has been the subject of active research. Despite increasing importance of research into the productivity of IT in developing countries, almost all findings on IT productivity have been based on data collected in developed countries. This study investigates the effects of IT investment on firms' financial performance in the insurance industry of Korea, which is OECD member and can be classified as a developed country in IT perspective, and in the electronics industry of China, which is a developing country, and compare them. The findings show that IT investment has a positive and significant impact on firm efficiency in both Korea and China, but a weakly positive impact on firm growth in only Korea. Moreover, the size of the impact on efficiency (ROA) in China is significantly larger than that in Korea.

• Journal of the Korean Operations Research and Management Science Society
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• v.33 no.2
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• pp.45-73
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• 2008

Quality has long been considered as an important factor in creating competitive advantage, and researches on quality have not been limited to off-line products but actively extended to e-services and information goods. However, given the nature of multi-dimensional aspect of quality, the systematic study on the quality of online service is still in its early stage. Especially, studies on the quality of ASP services have been rare in academic and professional journals despite the growth of ASP industry in its size and the rapid expansion in the range of application. In this paper we clarified the multi-dimensional quality aspects of the ASP service using a Garvin's framework (1984) which encompasses the service aspects of Products, and developed a measurement model for ASP service qualify. Then we empirically tested the effects of ASP service quality on user satisfaction and perceived firm performance using the data from 240 Korean small firms with less than 50 employees that had experienced the ASP service. Our results show that there are positive relationships among ASP service quality and personal performance, user satisfaction and perceived firm performance, and that product and service-related aspects of ASP service exert differential effects on performance measures so that the product-related aspects of the ASP service such as performance, features, reliability and conformance are considered to be more important in evaluating benefits from ASP services. Contrary to the approaches In literature where only the quality of online services is evaluated, our results emphasize the importance of differentiating Product and service-related aspects of ASP service and provide a basis for more comprehensive evaluation of ASP service quality.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.61-72
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• 2020

The purpose of this study is to investigate the determinants of the capital structure of firms operating in a developing economy, Pakistan. The quantile regression method is applied on a sample of 183 non-financial companies listed on the Pakistan Stock Exchange during the period of 2008-2017. Specifically, the empirical analysis focuses on changes in the coefficients of the determinants according to the leverage ratio quantiles of the examined listed firms. The findings show that the capital structure of Pakistan listed firms differs between firms in different quantiles of leverage. These differences are significant with the sign of explanatory variables changes with the level of leverage. The research result found tangibility, profitability and age to be positively related to leverage among listed firms in Pakistan. However, size, liquidity and non-debt tax shield (NDTS) are negatively related to leverage. A firm's growth and risk are found to be insignificant predictors of capital structure in Pakistan listed firms. Moreover, the study also found a significant impact of industry characteristic on leverage. The findings of this study indicate that an individual firm's finance policy needs to be responsive to the firm's characteristics and should match with the different borrowing requirements of listed firms.

• Journal of Distribution Science
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• v.17 no.3
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• pp.69-83
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• 2019

Purpose - This paper investigates the long term impact of RFID investment on firm value in Korea. We wand to find out why the long term performance of some firm's RFID investment is better than others. To understand the dynamics of the long term returns from RFID investment announcements, we divide our events into groups for each of the independent firm characteristic variable such as investment time period, kind of markets, industries, solvency and growth potential. We composed portfolios based on the RFID investment announcement date for each group and evaluate the monthly abnormal excess returns. Research design, data, and methodology - Based on these calendar-time portfolios, we measure the long term returns from 86 RFID investment announcements of 46 firms from 2003 to 2017. We construct the calendar-time portfolio for 3, 6, 9, 12 months of holding periods. Using the weighted least squares method, we regress the raw monthly returns of the portfolios on the Fama-French model and Carhart(1997) model. As a result, we can get the estimated risk adjusted mean monthly abnormal excess return α_P for each of the calendar-time portfolio. Results - We found that early adopters, large firms, non-manufacturing firms have very significant excess returns. We also found modestly significant excess returns for financially stable firms and slow growing firms. Put together, top managers of the firms which plan to invest RFID should understand the strategic role of RFID adoption and the generalized business process of distribution information technology investment in Korea. Moreover, the findings of this paper provide useful trading strategies to the managers of large funds who are considering on investing in RFID adopting firms. Conclusions - Put together, the results of this paper give us a new insight into how the RFID and IT technology in general and other characteristic factors' interactions affect the long term performance of firms. Using the unbiased estimates of long term returns of the calendar-time portfolios, this paper extends the understandings on short term impact of RFID adoption of existing studies. This paper also extends the current understandings of firm characteristics that affect the long term performance of RFID adopting firms.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.24 no.69
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• pp.23-35
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• 2001

This paper attempts to identify the relationship between the business model and its financial performance through the construct of business paradigm, fit which may be defined as the congruence between the customer needs (the demand side) and the firm competence( supply side) to meet them, Each business model\`s business paradigm fit reflects how well the technology that business model has taken is interconnected with market. Basically, the business paradigm fit consists of two parts, product fit dealing with the product(s) to meet the customer needs well and process fit focusing on producing and/or providing that product(s) at the lowest costs. For empirical tasting the business paradigm fit matrix and the measures for them were developed and the data about 73 companies as sample were collects with questionnaires. The findings are: First business paradigm fit can be used as a strong empirical indicator for the firm performance, Second. balance fit in product or process gives to the most desirable outcomes and no fit brings about the worst ones. Third the over fit(the case of doing more excessive innovative efforts than to be needed) shows much better outcomes than the under fit(the case of doing less innovative efforts) Fourth, this paper shows where, in what situation, and what type of innovation has to be taken for firm success at firm level, whereas Schumpeter(1934) already indicated the importance of innovation for economic growth at the economy /industry level. However, further study should be done later with more refined measures and expanded sample data.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.4
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• pp.1-9
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• 2017

Companies must capture value for sustainable growth. Capturing value is a critical task for companies, particularly when operating own businesses and organizations or starting new business. The business strategy of many companies focuses on capturing the maximum value from customers and other stakeholders. Even though a wide range of studies on value creation and appropriation has been conducted in the strategic management field, most of studies are still conceptual and theoretical. Thus more empirical studies are required to suggest future-oriented value strategy. This study reveals the value creation and appropriation elements in the aviation industry of Korea. The purpose of this study is to understand the trend of value creation and appropriation in the industry. In addition, the relationship between the elements and firm's performance are tested. The firm's performance is defined by that past and future point of views. The sample were collected from Korean Air and Asiana Air. The empirical test shows that the elements of value creation-appropriation have significant impact on firm's performance. Further, the element of value appropriation to customer has a positive impact both on firm's past and future performance. Our results show that investors acknowledge a value-based strategy as a sign of stock valuation. The results of this test correspond with the earlier one, showing that maximizing customers value rather than shareholder value does deliver impressive returns. The finding suggest that companies need to change their strategy to efficiently manage performance. With the test results, we propose a value-based strategy to maximize firm's future financial and stock performance.

• Korean Journal of Construction Engineering and Management
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• v.4 no.3 s.15
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• pp.76-84
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• 2003

The bankruptcy possibility of construction firms have been higher by the environment of current construction industry. Thus, converting management environment for growth into that for value or profit is required. Nowadays, funds of construction firms is almost provided by financial institutions. As the firms' size grow, they have a form of fund provision through the securities market; however, fair distribution for returns is not practiced by opening company. Especially, construction firms lost trust of Investor by lack of awareness to firm clearness, and then a vicious cycle of no effectiveness in fund provision through securities market is continued again. On this study correlation between stock quotations and primary financial factors of firms in order to grasp actual management condition in construction firms was analyzed. By this, the correlation between stock quotations and the result of firm management was provided. Also, necessity of firm's capital provision was explained, thus ways to ensure firm clearness was searched.

• Journal of Technology Innovation
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• v.26 no.4
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• pp.98-121
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• 2018

This article analyzes the survival of Korean software firms from 1995 to 2015 by Cox regression model and product-limit method. The results show that survival rates are different for each sector: IT service, package software, game software and internet service. In addition, firm growth and investment in research and development positively affect software firm's survival, while slack resources negatively affect the software firm's survival. The implication of this study is that characteristics of the software industry and technologies should be taken into consideration in survival strategy of software firms and government policy. Previous research on survival analysis has been mainly conducted in the manufacturing industry or at the special circumstance such as the foreign exchange crisis of Korea in the late 1990s. The contribution of this study is that expanding the survival analysis to software firms in Korea which are becoming more important recently.

• Journal of Korea Trade
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• v.25 no.6
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• pp.57-77
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• 2021

Purpose - International strategic alliance has been regarded as a strategic decision made by firms' managerial problems and ensure performance growth. From the perspective of the proactive behavior for changing strategies in a global market, this study aims to identify whether performance feedback influences firms' decisions to pursue strategic alliances. This study examines the effects of performance feedback on performance when firms use strategic alliances. Design/methodology - To analyze the impact of performance feedback on forming an international strategic alliance, this study adopt the concept of performance feedback to develop a research model and our hypotheses. Thus, this study used a two-stage least squares unbalanced panel data analysis with random effects. This study is based on 24,543 observations from Korean manufacturing firms from 2007 to 2016. Findings - The results show that firms pursue the formation of strategic alliances more actively, if their past financial and R&D performance are lower than their aspiration level, based on the result of performance feedback. An in split sample analysis for examining the effect of a firm's technology sophistication based on the OECD's classification, negative innovation performance discrepancy has positive effects on the probability of international alliance in high-tech and medium-high-tech industries. Financial performance also improves when a firm decides to form a strategic alliance based on the results of performance feedback. Originality/value - This research extends recent efforts to better understand the effect of performance feedback on firms' performance when they use strategic alliances. These findings suggest that the CEOs and managers of firms should consider the performance feedback perspective when deciding to pursue a strategic alliance to improve performance. In other words, the decision-makers in a firm must analyze and consider various complex variables inside and outside the firm and expand such subjects of examination to more complex and dynamic factors.