• Journal of Information Technology Applications and Management
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• v.24 no.2
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• pp.55-70
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• 2017

A key factor of competitiveness of a firm is technology innovation including product and process innovation. This paper explores the importance and performance of innovation in IT industry across manufacturing and service business. Using importance-performance analysis based on a survey of Korean manufacturing and service firms, we find the characteristics of innovation in IT under the context of industry difference. Out study indicate that Korean IT firms need to recognize the importance of technology innovation and enhance the performance in some areas. In future research, we will expand the boundary of innovation into non-technology innovation as well as service-specific innovation.

• Journal of Technology Innovation
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• v.28 no.3
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• pp.1-28
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• 2020

This study examines whether the firm with high innovation efficiency realizes high operating performance. We measured innovation efficiency by the ratio of patent applications for R&D expenditure or R&D stock and measured operating performance by the ratio of operating income or operating cash flow to total assets for the following year. The sample consists of 1,880 manufacturing firm-years, which listed on the Korean Exchange between 2014 and 2017. We analyze the effect of innovation efficiency on operating performance using a model of Hirshleifer et al. (2013) results show that both innovation efficiency variables have a significantly positive relationship with the total asset operating margin. Besides, the following year's performance, measured by the total asset operating cash flow ratio, also shows a positive relationship with the two innovation efficiency variables at the 5% and 1% significance levels, respectively. The results indicate that high innovation efficiency firms that link the outcomes of R&D to more patent applications realize higher operating performance. Also, we divided the R&D-intensive and non-R&D-intensive industries and performed the same analysis. As a result, the innovation efficiency has a significant positive effect on operating margin in both industries. However, the effect of innovation efficiency on the operating cash flow is only significant in R&D-intensive industries. This study suggests that the effects of innovation efficiency are more consistent in the R&D-intensive industry. Additionally, we divided the high patent application and low patent applications industries and performed the same analysis. As a result, the innovation efficiency has a significant positive effect on operating margin in both industries. This study suggests that the effects of innovation efficiency are more consistent in the high patent application industry. We show that a firm's innovation efficiency is a critical factor for a firm's performance, while prior studies on the R&D performance have not considered the innovation efficiency of each firm. The evidence suggests that firms not only consider R&D expenditures but also improve the performance of companies by increasing innovation efficiency. Investors need to consider their innovation efficiency when evaluating the value of firms.

• Korean small business review
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• v.41 no.2
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• pp.1-24
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• 2019

This paper seeks to explore the effects of search strategies on innovation performance in the context of small and medium enterprises. The empirical results of 3,398 Korean SMEs demonstrate that there is a substitutive relationship between search depth and search width, and this substitutive relationship is weakened when a firm possesses collaboration experience. Furthermore, although these two types of search enhance innovation performance, the impact of search depth is greater than that of search width. The positive effect of search width on innovation performance is weakened when the firm adopts formal information protection mechanisms.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.4
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• pp.399-408
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• 2022

Corporate governance and innovation have been a hot topic in recent boardroom talks, whether in the trade or manufacturing industries. Governance innovations are highly significant for the survival of the motor vehicle industry like Honda, Nissan, New General Motors, and Toyota. The study chooses the motor vehicle industry which crosses the age of a century and sufficient corroborative support exists with the perspective of distinctive objectives. Using the population of all the automobile companies listed on the Pakistan stock exchange (PSX), we distill automobile companies to evaluate the firm performance using the panel data regression approach. The results show that there is a significant relationship between gender diversity, audit committees, and firm performance. Further, board size also has a positive impact on firm performance. We identify that the governance mechanism of firms found in default of the frequency of audit committee meetings. By considering results, only limited knowledge of finance directors and also very few numbers of female directors are on the board. Empirical findings of this work might be useful for policymakers in attempting to draft a corporate governance framework better able to monitor the financial performance of firms through female directors and also serve as a catalyst for the regulators of electric vehicles.

• Korea Trade Review
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• v.44 no.3
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• pp.227-252
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• 2019

This study explores the effects of exports on the innovation of Korean firms listed on two Korean stock markets, the Korean Stock Exchange and the Korean Securities Dealers Quotations, between 1999 and 2016. By matching exporting firms to non-exporting ones with propensity score matching, this study accounts for a problem from sample selection bias that may arise from differences in firm-characteristics between the two groups. From the study results, first, both export participation and export volume significantly increase subsequent innovation performance, as measured by the number of patent applications. This result seems to support the "learning by exporting" hypothesis for Korean listed firms. Second, both export participation and export volume narrow innovation scope, proxied as the number of unique International Patent Classification (IPC) codes of the patent applied, the degree to which patents are concentrated in a particular class, and the degree of proximity in the patents. The findings of innovation scope suggest a possible explanation that the learning effect appears in familiar technology fields that firms have previously held, rather than in unfamiliar ones. Third, these results are robust using alternative proxies in the innovation scope, Tobit regressions to consider the non-trivial portion of sample firms with patent applications equal to zeros, and generalized method of moments (GMM) to control for the persistence of innovation measures hearing over years. Finally, the two main results are more pronounced in large firms than in small and medium-sized ones. As for Chaebol firms, however, these results do not appear.

• Journal of Information Technology Applications and Management
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• v.30 no.6
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• pp.31-52
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• 2023

The government's various support policies have helped Korea's SMEs and startups to grow from the beginning to the end, from domestic companies to exporters. In particular, direct business support policies such as financial support, R&D projects, and export support have been effective in helping a large number of entrepreneurs and startup companies to establish themselves in the market and have achieved tangible results every year since the establishment of the Ministry of SMEs and Startups. As such, the government is making significant efforts to create and promote various types of support policies and to help companies utilize them in their business. However, this study aims to analyze the factors that affect the satisfaction of government policies and the achievement of managerial performance from the companies' perspective and to suggest the purpose of government support policies and the direction companies should take. Specifically, this study categorizes entrepreneurial self-efficacy into marketing, innovation, management, risk-taking, and financial management, using the relationship model of self-efficacy and collective efficacy to ultimately lead to practical results for SMEs and startups support policies. It uses perceived firm efficacy as a variable to reveal the influence relationship. In addition, the direct and mediating effects of entrepreneurial self-efficacy and policy satisfaction on managerial performance were analyzed to determine what SMEs and startups support policies should do. The results showed that, first, among the five components of entrepreneurial self-efficacy, innovation, and risk-taking efficacy positively affected perceived firm efficacy. Second, the specific components of entrepreneurial self-efficacy, marketing, and financial management efficacy positively influenced policy satisfaction. Third, we found that perceived firm efficacy positively influenced policy satisfaction and managerial performance, which are factors of SMEs and startups' policy performance. Specifically, perceived firm efficacy positively influenced policy satisfaction managerial performance. Fourth, we found that policy satisfaction positively influenced managerial performance.

• Journal of Technology Innovation
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• v.7 no.2
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• pp.101-118
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• 1999

Factory automation(FA) is a part of technological innovation to make production process more efficient and it also facilitates technological innovation by accumulating the internalization ability of newly imported technology Introduction of FA, however, does not guarantee the increase of production efficiency and high product quality, moreover, the competitiveness of firm. The purpose of this paper is to analyze the relationship between firm's behavioral characteristics during implementation process of FA and organizational performance, and to find out success factors of FA. Results of the case studies for 4 SME's show that financial stability and the fitness between corporate strategy and the purpose of FA are the necessary conditions for successful implementation of FA. But the organizational restructuring for new manufacturing system, openness of all communication channels, and common mind of employees are also needed to achieve the high degree of performance from FA, especially the benefits of qualitative or organizational level.

• Asia pacific journal of information systems
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• v.25 no.1
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• pp.61-81
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• 2015

Investment in research and development (R&D) is critical in the information technology (IT) firms, where newer and better technology is a quintessential goal that directly affects innovation and competitive advantage. This study investigates how R&D investment influences firm performance and value, and how the effect of R&D investment differs between IT hardware and software firms. We also analyze the relationship between firm age and R&D investment in order to identify learning effects on continuous R&D investment. The empirical investigation in this study, based on longitudinal archival data from 2001 to 2010, found a significant effect of R&D investment on firm performance in IT firms. Further, this study demonstrates causal relationship between firm age, and verifies that learning effects are present in R&D investment. Moreover, the results are found to differ between IT hardware and IT software 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.

• Proceedings of the Technology Innovation Conference
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• 2006.02a
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• pp.44-77
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• 2006

The technological innovation has been recognized critical factors of productivity of firms and key contribution of improvement of firm performance for a long time. Many researchers have investigated the relationship between R&D investment or patents as a proxy of innovation and productivity. But there were some problem such as lacking of data and ambiguity of innovation definition. So, previous literatures have some difficulty in reliability of analysis for using only survey data. And investigating the relationship R&D and other factors is very difficult. Therefore, this paper tries to investigate and analysis the relationship between innovation and performance of Korean manufacturing firms. Using KIS2002(Korean Innovation survey 2002) which was based on Oslo manual in 2002 and financial data of firms (KISINFO), I will intend to establish the reliability of multiple analysis. In detail, I will investigate whether the innovation input have effect on the innovation output, whether the innovation output have effect on productivity for heterogeneity and what factor of innovation environment have effect on the innovation itself.