• Korean Management Science Review
• /
• v.6 no.2
• /
• pp.73-88
• /
• 1989

This paper presents a model for analyzing a firm's competitive position. The model utilizes M. Porter's Value Chain concept and develops a framework for analyzing a firm's cost structure and identifying the sources of a firm's competitive advantage. The paper first discusses the nature of a firm's competitive advantage and identifies different types of competitive advantage a firm can pursue. The paper then introduces the concepts of cost driver and its linkage as a new way of examining organizations, and develops a model for analyzng a firm's competitive advantage. Next, it illustrates detailed procedures of the model by applying it into a real world organization, and draws some strategic implications for the organization. Finally, the paper discusses the limitations of the research and suggest future related research.

• Industrial Engineering and Management Systems
• /
• v.10 no.2
• /
• pp.115-122
• /
• 2011

This research considers a system containing a manufacturing firm who generates waste material during manufacturing process, and a disposal firm who collects and disposes the waste material. Identification of the optimal number of pick ups and the amount of waste to be disposed at certain period of time in terms of cost minimization is studied. Two types of waste accumulation rates, constant and linearly increasing, are discussed and mathematical models are developed. It can be shown that the results for these two different types of waste accumulation differ in a wide range because of the difference in the way of how waste is accumulated, which disturbs the storage cost. An integrated model is also developed and discussed in which both the manufacturing firm and the disposal firm benefit from the coordination between the two parties. It is shown that the optimal policy adopted by the integrated approach can provide a strong and consistent cost-minimizing effect for both the manufacturing firm and the disposal firm over the existing approach. Finally, all the models are verified by a numerical example and the results are compared.

• Asian Journal of Innovation and Policy
• /
• v.7 no.1
• /
• pp.103-130
• /
• 2018

It is generally understood that clusters are the promoters of innovation and therefore, the attention of researchers has been increasingly to discern the factors driving innovation among the firms in a cluster, especially in a high-tech cluster. In this study, we identify the variables capturing the nature of a firm that possibly impact the absorptive capacity of a firm and subsequently ascertain their impact on the degree of interactions between a firm, and other firms and associated institutions within and outside a cluster, respectively. Furthermore, we probe the influence of these interactions as a whole on firm-level innovation. The study was carried out in the context of Bengaluru, which houses the densely interconnected network of innovation-intensive high-tech manufacturing firms forming a high-tech manufacturing cluster. Data were drawn from 101 high-tech manufacturing firms belonging to electronics, machine tools, electrical and pharmaceutical industries. Based on the cluster analysis and subsequent graphical analysis on each of the three profiled clusters, it was found that size and origin of a firm have significant impact on the degree of firm's interactions. In turn, higher dynamism of firms in terms of degree of interactions led to higher innovation performance.

• Asia pacific journal of information systems
• /
• v.29 no.4
• /
• pp.690-716
• /
• 2019

Open innovation has attracted significant attention from both academics and practitioners. However, theoretical and empirical researchers disagree on how open innovation improves firm performance. The inconsistent results reported in the literature may be attributed to the fact that they failed to provide an integrative view of how to make use of internal and external knowledge to enhance innovation performance. Furthermore, although the adoption value of innovation approaches varies depending on firm size and IT capabilities, their impacts have not been adequately taken into consideration. Drawing on complementarity theory, this study revisits the research problem and develops eight hypotheses. Surveys collected from 339 Korean firms were analyzed to test the hypotheses using the supermodularity functions. The results indicated that an internal knowledge-oriented innovation approach has a positive impact on innovation performance regardless of firm size. However, an external knowledge-oriented innovation approach has a positive effect on innovation performance in large firms while having no significant effect on innovation performance of SMEs. Results also confirmed a complementary relationship between internal and external knowledge-oriented innovation approaches in large firms, whereas substitutable relationships were confirmed in SMEs. This study sheds new light on open innovation by identifying the role of different types of innovation approaches, firm size, and IT capabilities.

• Journal of Information Technology Services
• /
• v.11 no.2
• /
• pp.307-317
• /
• 2012

We investigate the long-term effect of servitization strategy on firm value. Manufacturing companies recognize servitization as their competitive strategies. While most of existing literature have focused on developing theory, presenting framework, or cases, only a few papers examine effects of servitization strategy empirically. We aims to empirically test the long-term relationship between servitization strategy and firm value. Service ratio and Tobin's q are used to measure the degree of servitization and firm performance, respectively. Data set covers 130 manufacturing companies for 12 years from 1998 to 2009.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.35 no.1
• /
• pp.154-160
• /
• 2012

This paper reviewed the two proposed hypotheses. The first hypothesis is to test the relationship between knowledge management and incremental innovation, and the second hypothesis is to test the moderating effect of firm-size on that relationship. Data were gathered from 434 employees in service industry, and multiple regression analysis was used to test two proposed hypotheses. In the first hypothesis, it was appeared that knowledge acquisition and knowledge transfer have positive effects on all incremental innovation factors (process innovation, operation innovation, service innovation). In the second hypothesis, it was appeared that firm-size has an positive interaction effect on incremental innovation in knowledge transfer, but not in knowledge acquisition. It means that knowledge transfer has more positive effect on incremental innovation in large firm-size than in small firm-size.

• Journal of Information Technology Services
• /
• v.11 no.sup
• /
• pp.153-164
• /
• 2012

There is a belief that timely and precise data are important to decisions and the better decisions are related to better firm performance. However, empirical research investigating the effect of data quality on firm financial performance is still scarce up to recently. Current study empirically explores such an effect of data quality on firm accounting performance in the Korean manufacturing industry during 2008~2010 with secondary data. The results show that better data quality does not impact on sales and operating profit, but positively and significantly impacts on EVA(Economic Value Added). Raising the level of data quality management maturity by one level can increase EVA by about 34% in manufacturing firms.

• 한국경영정보학회:학술대회논문집
• /
• 2007.06a
• /
• pp.409-414
• /
• 2007

Over the past three decades, the impact of IT investments on firm performance has been the subject Q{active research. Although many studies have shown positive and significant benefits derived from IT investment, the findings of almost all these studies are based on data collected in developed countries. This study tries to investigate the effects of IT investment on firm financial performance in the Chinese electronics industry, a typical developing country, and compare it with the United States. Findings show that there is a positive impact of IT investment on firm performance in China. Moreover, the impact in China is not different from what occurred in the United States in the direction and the size against the assertion of previous studies and expectation.

• Asia-Pacific Journal of Business
• /
• v.11 no.4
• /
• pp.225-241
• /
• 2020

Purpose - The purpose of this study was to examine the effect of the ratio of outside directors, especially the ratio of outside directors according to their tenure, on firm value. Design/methodology/approach - This study collected total 3,861 firm-year data about companies listed KRX KOSPI market in Korea. The Pooled Ordinary Least Square Model and Panel Fixed Effects Model were hired in order to analyze the data. Findings - First, it was found that the ratio of outside directors for total sample had no significant effect on firm value, and the estimation coefficient of dummy variable for the average tenure less than 3 years had a significant positive(+) effect on firm value. Second, the ratio of outside directors corresponding to the tenure of less than 3 years had a significant positive(+) effect on the firm value. On the contrary, the ratio of outside directors corresponding to the tenure of 3 years or more had a significant negative(-) effect on firm value. Third, the ratio of outside directors corresponding to the tenure for more than 6 years did not show any significant influence on firm value. Research implications or Originality - First, if other matters are not additionally considered, keeping the tenure of outside directors shortly on average could help to increase firm value. Second, in the case of firms facing the decision to reappoint outside directors for the first time, it is highly likely that the firm value would decrease on average, so careful decisionmaking considering various aspects is required. However, this study does not take into account the legal standards for the appointment of outside directors, diversity of outside directors, and the actual independence of outside directors according to other criteria in the analysis. Therefore, if these factors are considered, there is a possibility that the empirical analysis results of this study may show different patterns.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.29 no.4
• /
• pp.135-140
• /
• 2004

It considers advertising as an instrument to increase the stock of goodwill or reputation. summarising the effects of past and current advertising expenditures carried out by a firm. on the current demand for her goods. A relevant result emerging from the Dorfman-Steiner (1954) condition. establishing that advertising investment is proportional to sales. This paper investigates optimal advertising level between the good firm and the bad firm. So. We knew that between the good firm and the bad firm are establishing the Dorfman-Steiner condition.