• Journal of Information Technology Services
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• v.2 no.2
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• pp.15-29
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• 2003

This thesis suggests a R&D model for Korean SI companies who aggressively drive oversea business to overcome domestic market limitation and to become world class SI players. Even though there have been a lot of discussions on IT technologies and new business models, scientific approach to a R&D model for SI companies is rare due to its natural distinctiveness from manufacturing and general service domain. Therefore, this will be a flagship thesis to keep up our study. As business market environment gets more competitive, major Korean SI players will be confronted with much more keen competition among themselves. And as they are willing to expand their oversea market presence, they can not help struggling against global SI players. So, here we are presenting SI players the reinforcement of R&D as one of the key components to build up their own core competencies. That is, SI players have to adopt and evaluate fast changing and complicated IT technologies at the right time, and to apply them into a real business with cost-effective service delivery and operation processes internally. The ultimate purpose of all of these activities is to offer a SI company the value added business model based on its innovative technical capabilities and well refined service deliver model. For this purpose, we suggests, SI company's R&D has to play an important role of emerging technology verification/evaluation/utilization, value added business model creation, future innovation lead, standard body participation, and effective service delivery and quality system development. To become a more effective R&D organization, hybrid R&D, in which central R&D and divisional sub R&D work together, is considered as an idea model. The reliability of the R&D model for Korean SI companies', here we suggest, has been checked by SI companies R&D specialists and on-site business people.

• Journal of Technology Innovation
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• v.18 no.1
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• pp.199-218
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• 2010

When assessing environmental or other regulatory programs, economists and other policy analysts have traditionally used the approach that consists of comparing the benefits from regulation with the costs that must be borne to capture these benefits. The vast majority of economic analysis of regulation was based upon the assumption that regulations increase production costs. Porter had disputed this seemingly straightforward claim. In his view, economists had failed to incorporate the capacity of stringent regulations to induce innovation into their analysis. However, at the same time, the hypothesis had been criticized by economists. This study analyzed the determinants of innovation performances as well as activities of small and medium manufacturers, based on a recently held survey among mainly manufacturing SMEs in Korea. In particular, this study took the level of innovation activities, the strength of environmental regulations, and moreover the impediment that the company went through as factors. In addition, the characteristics of innovative SMEs were compared with the other counterparts. The empirical analysis revealed that the level of environmental awareness, existence of innovative activities, characteristics of firms, and moreover the innovation types are the most important determinants of SMEs’ innovation performance both in technology as well as in economic perspective.

• Korean small business review
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• v.31 no.4
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• pp.67-93
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• 2009

The purpose of this paper is to explore the relations between financial constraints and dividend smoothing of innovative small and medium sized enterprises(SMEs) listed on Korea Securities Market and Kosdaq Market of Korea Exchange. The innovative SMEs is defined as the firms with high level of R&D intensity which is measured by (R&D investment/total sales) ratio, according to Chauvin and Hirschey (1993). The R&D investment plays an important role as the innovative driver that can increase the future growth opportunity and profitability of the firms. Therefore, the R&D investment have large, positive, and consistent influences on the market value of the firm. In this point of view, we expect that the innovative SMEs can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. And also, we expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Aivazian et al.(2006) exert that the financial unconstrained firms with the high accessibility to capital market can adjust dividend payment faster than the financial constrained firms. We collect the sample firms among the total SMEs listed on Korea Securities Market and Kosdaq Market of Korea Exchange during the periods from January 1999 to December 2007 from the KIS Value Library database. The total number of firm-year observations of the total sample firms throughout the entire period is 5,544, the number of firm-year observations of the dividend firms is 2,919, and the number of firm-year observations of the non-dividend firms is 2,625. About 53%(or 2,919) of these total 5,544 observations involve firms that make a dividend payment. The dividend firms are divided into two groups according to the R&D intensity, such as the innovative SMEs with larger than median of R&D intensity and the noninnovative SMEs with smaller than median of R&D intensity. The number of firm-year observations of the innovative SMEs is 1,506, and the number of firm-year observations of the noninnovative SMEs is 1,413. Furthermore, the innovative SMEs are divided into two groups according to level of financial constraints, such as the financial unconstrained firms and the financial constrained firms. The number of firm-year observations of the former is 894, and the number of firm-year observations of the latter is 612. Although all available firm-year observations of the dividend firms are collected, deletions are made in the case of financial industries such as banks, securities company, insurance company, and other financial services company, because their capital structure and business style are widely different from the general manufacturing firms. The stock repurchase was involved in dividend payment because Grullon and Michaely (2002) examined the substitution hypothesis between dividends and stock repurchases. However, our data structure is an unbalanced panel data since there is no requirement that the firm-year observations data are all available for each firms during the entire periods from January 1999 to December 2007 from the KIS Value Library database. We firstly estimate the classic Lintner(1956) dividend adjustment model, where the decision to smooth dividend or to adopt a residual dividend policy depends on financial constraints measured by market accessibility. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between current payout rato and target payout ratio each year. In the Lintner model, dependent variable is the current dividend per share(DPS_t), and independent variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t). We hypothesized that firms adjust partially the gap between the current dividend per share(DPS_t) and the target payout ratio(Ω) each year, when the past dividend per share(DPS_t-1) deviate from the target payout ratio(Ω). We secondly estimate the expansion model that extend the Lintner model by including the determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory. In the expansion model, dependent variable is the current dividend per share(DPS_t), explanatory variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t), and control variables are the current capital expenditure ratio(CEA_t), the current leverage ratio(LEV_t), the current operating return on assets(ROA_t), the current business risk(RISK_t), the current trading volume turnover ratio(TURN_t), and the current dividend premium(DPREM_t). In these control variables, CEA_t, LEV_t, and ROA_t are the determinants suggested by the residual dividend theory and the agency theory, ROA_t and RISK_t are the determinants suggested by the dividend signaling theory, TURN_t is the determinant suggested by the transactions cost theory, and DPREM_t is the determinant suggested by the catering theory. Furthermore, we thirdly estimate the Lintner model and the expansion model by using the panel data of the financial unconstrained firms and the financial constrained firms, that are divided into two groups according to level of financial constraints. We expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, because the former can finance more easily the investment funds through the market accessibility than the latter. We analyzed descriptive statistics such as mean, standard deviation, and median to delete the outliers from the panel data, conducted one way analysis of variance to check up the industry-specfic effects, and conducted difference test of firms characteristic variables between innovative SMEs and noninnovative SMEs as well as difference test of firms characteristic variables between financial unconstrained firms and financial constrained firms. We also conducted the correlation analysis and the variance inflation factors analysis to detect any multicollinearity among the independent variables. Both of the correlation coefficients and the variance inflation factors are roughly low to the extent that may be ignored the multicollinearity among the independent variables. Furthermore, we estimate both of the Lintner model and the expansion model using the panel regression analysis. We firstly test the time-specific effects and the firm-specific effects may be involved in our panel data through the Lagrange multiplier test that was proposed by Breusch and Pagan(1980), and secondly conduct Hausman test to prove that fixed effect model is fitter with our panel data than the random effect model. The main results of this study can be summarized as follows. The determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory explain significantly the dividend policy of the innovative SMEs. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between the current payout ratio and the target payout ratio each year. In the core variables of Lintner model, the past dividend per share has more effects to dividend smoothing than the current earnings per share. These results suggest that the innovative SMEs maintain stable and long run dividend policy which sustains the past dividend per share level without corporate special reasons. The main results show that dividend adjustment speed of the innovative SMEs is faster than that of the noninnovative SMEs. This means that the innovative SMEs with high level of R&D intensity can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. The other main results show that dividend adjustment speed of the financial unconstrained SMEs is faster than that of the financial constrained SMEs. This means that the financial unconstrained firms with high accessibility to capital market can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Futhermore, the other additional results show that dividend adjustment speed of the innovative SMEs classified by the Small and Medium Business Administration is faster than that of the unclassified SMEs. They are linked with various financial policies and services such as credit guaranteed service, policy fund for SMEs, venture investment fund, insurance program, and so on. In conclusion, the past dividend per share and the current earnings per share suggested by the Lintner model explain mainly dividend adjustment speed of the innovative SMEs, and also the financial constraints explain partially. Therefore, if managers can properly understand of the relations between financial constraints and dividend smoothing of innovative SMEs, they can maintain stable and long run dividend policy of the innovative SMEs through dividend smoothing. These are encouraging results for Korea government, that is, the Small and Medium Business Administration as it has implemented many policies to commit to the innovative SMEs. This paper may have a few limitations because it may be only early study about the relations between financial constraints and dividend smoothing of the innovative SMEs. Specifically, this paper may not adequately capture all of the subtle features of the innovative SMEs and the financial unconstrained SMEs. Therefore, we think that it is necessary to expand sample firms and control variables, and use more elaborate analysis methods in the future studies.

• Korean small business review
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• v.43 no.3
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• pp.91-117
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• 2021

The purpose of this study is to study the effect of internatioanl entrepreneurial orientation of small and medium-sized Chinese manufacturing companies on export performance. A total of 183 corporate data were used for empirical analysis for Chinese manufacturing export companies. In summary, first, international entrepreneurial orientation was shown to have a significant positive effect on export performance, second, international etrprenurial orientation was shown to have a significant positive effect on absorption capacity, and third, the stronger environmental dynamics and network capacity, the stronger international business orientation and export ability. The implications of this study are summarized as follows. It suggests that the more innovative, enterprising and risk-taking Chinese SMEs are, the better their export performance and the better their ability to absorb foreign knowledge. It also suggests that small business managers must continue to strengthen their network capabilities to improve export performance through international entrepreneurial orientation, and this relationship is further strengthened in a dynamic environment. It also suggests that the impact of firm's absorption capacity on export performance will weaken over time.

• Korean small business review
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• v.41 no.3
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• pp.49-75
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• 2019

Market instability offers opportunities as well as the need for careful innovation strategies and learning for a company's survival. Companies that find new opportunities decide to carry out innovation and decide on the size of their investments by considering their position in the market they are aiming for and the intensity of competition. This study was conducted to check whether obstacles to innovation face by SMEs in the manufacturing sector vary depending on the stage of corporate growth and to identify the impact of the government support system on the decision-making process on the performance of innovation. According to the analysis, there were differences in obstacles to innovation depending on the stage of corporate growth. It was found that more innovative SMEs are, more obstacles they face, and to overcome such obstacles, they try to access government support systems more. In addition, the use of a government support system eliminated obstacles to innovation, and the positive and significant effects of investing in innovation were identified. This study is meaningful in that it explicitly approached these hypotheses by applying a multistage model to the process of innovation carried out by SMEs in the manufacturing sector.

• Journal of Technology Innovation
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• v.29 no.4
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• pp.31-57
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• 2021

This study explores the effect of open innovation activities on innovation performance by dividing into two dimensions of breadth and depth of open innovation activity, and it also verifies the mediating effect of technical protection between open innovation activities and innovation performance. In order to examine the hypothesis, it has surveyed 1,403 companies of manufacturing and service with experience in producing innovative results. The results find that the breadth of open innovation activities has a positive effect on the achievement of radical innovation, and the depth of open innovation activities brings a positive effect on the achievement of incremental innovation. The verification result of the mediating effect of technology protection indicates that partially mediated between the breadth of innovation activities and radical innovation activities, and in the case of the depth, it is completely mediated. The results of this study provide the crucial implications not only for the company promoting open innovation, but especially also for the companies promoting product innovation by acquiring technology.

• Journal of the Korean Data Analysis Society
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• v.20 no.6
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• pp.3101-3116
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• 2018

The objective of this study is to find out the direction and strategies of dynamic capacity utilization for the strategic supply chain management (SCM), which is an innovative means for enhancing the efficiency of the firm, and to create an optimal management environment for the competitiveness of firms. The market and technology will be able to generate higher business performance when adapting the strategic direction and culture to the formal dynamic capacities possessed by the firm and reflecting the technology related to the dynamic capacities for the strategic SCM in the process. In this study, we empirically analyze the effect of market and technology orientations on the firm performance and how dynamic capacities affects firm performance. The results of this study show that market and technology orientations have positive effects on dynamic capacities and dynamic capacities have positive effect on firm performance. In addition, it is proved that dynamic capacities mediated the relationship between market orientation, technology orientation, and firm performance.

• Journal of Industrial Convergence
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• v.20 no.8
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• pp.1-13
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• 2022

Although the number of venture start-ups has increased significantly, it is difficult to judge the success or failure based on short-term performance alone. The survival of a company cannot be guaranteed if it does not show sustainable growth prospects. As a growth factor for venture companies, the level of technology commercialization capability and competitive strategies are considered important. Recently, the emergence of innovative business models is creating new opportunities and driving the growth of numerous venture start-ups. This study tried to investigate the mediating effect of business model innovation in the relationship between technology commercialization capability, competitive strategy and the growth prospects of venture companies. For this, empirical analysis was conducted using the original data of the Research on the Precision Status of Venture Firms 2021. As a result, production, manufacturing, marketing capability, cost leadership and product differentiation had a positive(+) effect on growth prospects. The mediating effect of business model innovation between all factors except for manufacturing capacity and growth prospects was verified. This study expanded the scope of research by shedding new light on the factors influencing the long-term growth prospects of venture companies and revealing business model innovation as a new mediating variable. In future research, it is necessary to develop an objective measurement tool and to identify differences according to industrial characteristics.

• Journal of Distribution Science
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• v.11 no.10
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• pp.27-36
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• 2013

Purpose - This paper empirically studies the effects of advanced design innovation strategy on business performance, to investigate manufacturing industries that can develop design-driven-innovation strategies. Many researchers now recognize the importance of design in a CEO's decision-making process. To analyze these effects, this study deduces the definition of advanced design strategy by reviewing existing studies. The advanced design is a strategy that is applied to improve business performance instead of the appearance of a product for increasing its sales. In terms of business processes, the advanced design strategy is defined as the incorporation of business activities prior to the development of the product, to offer new experiences and values to users, from those designs. Research design/data/methodology - This paper establishes a model for empirical analysis. In this study, we derived factors of the characteristics of advanced design based on previous studies. We tried to investigate whether advanced design innovation strategy and entrepreneur's characteristics could have any impact on business performance. At the same time, we tried to find out the moderating effect of entrepreneurs' characteristics. The advanced design is made up of three elements: precedence, integration, and immersion of design activities. These three elements are independent variables for the model. The dependent variables are: increased rate of sales, R & D performance, and public image of the company. Specifically, this study establishes a CEO's characteristics as a moderating variable between the independent and dependent variables. Results - We proved that the level of entrepreneurs' characteristics has a moderating effect on the business performance. The findings of this study offer the following theoretical implications. The precedence of design activities positively affects the increased rate of sales by offering new experiences to users and creating new values. The integration of design activities also has a positive effect on the R&D performance. In addition, the immersion of design activities positively influences all the elements comprising business performance. The analysis of moderating variables elucidates that CEO's characteristics have a moderating role between precedence, integration, and immersion of design activities, and business performance. Conclusions - The practical implications of the study are as follows. This study contributes to the progression of advance design theories by conducting an empirical study on the advanced design concept. More importantly, the empirical study on the CEO group seeking exploratory innovation supports Verganti's "design-driven innovation" concept, according to which design can make innovation successful by offering useful values to users, as evident in the case of many innovative companies, such as Nintendo and Apple. Future studies need to investigate the reliability of practical examples, including the various activities of business. We suppose that there may be real differences between the results of this study and the applicative situation in the presence of a CEO group.

• Journal of Digital Convergence
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• v.13 no.3
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• pp.65-73
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• 2015

The purpose of this study is to examine the relationship between sustainable PLM(Product Lifecycle Management) activity and performance. To ensure this purpose, we designed the S-PLM Framework which is consisted of traditional PLM activity and sustainable PLM activity. We also conducted path analysis to investigate PLM success factor on manufacturing company and to understand the relationship between these success factors. First the result of analysis of the relationship between traditional PLM activity and sustainable performance. Second, there is significantly positive relationship between sustainable activity and performance. Third, traditional PLM activity and sustainable PLM activity factor have an influence on the innovation performance factor. Fourth, sustainable performance have an effect on the management and business performance. In conclude we analyzed and verified the influence sustainable PLM establishment mechanism and the sustainable PLM activity factors. Therefore this study is to create innovative performance and to improve efficiency of Convergence PLM establishment and operation.