• Asia pacific journal of information systems
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• v.24 no.1
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• pp.1-29
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• 2014

To provide a fundamental understanding on the inherent relationship between IT capabilities and sustainable firm heterogeneity, we investigate the dual roles that institutional pressures play, namely, as antecedents of IT capabilities and as moderator of the relationship between IT capabilities and IT innovation success, where IT innovation success plays a mediating role between IT capabilities and firm performance. The structural model was tested, and the results of the PLS analysis provided general support for the proposed hypotheses. IT capabilities had an indirect effect mediated by IT innovation success on firm performance. With IT activities assumed to be embedded in the institutional context, the dual roles of institutional pressures are verified. This study contributes to the literature on IT capabilities by considering both the determining role of institutional pressures on IT capabilities and the institutional context of the chain that connects IT capabilities to firm performance. The results suggest that a firm not only manages various institutional pressures to foster its IT capabilities but also adapts to different contexts with a certain level of institutional pressures to facilitate its IT capabilities and outperform its competitors, which could be sustained through IT innovation success.

• Journal of Technology Innovation
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• v.21 no.1
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• pp.109-139
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• 2013

The objective of this study attempt to examine the prospect whether conventional catch-up theory is also applicable to knowledge intensive industry like Open Source Software(OSS), and the implication from this study can be working as a stepping stone for followers. To do this, we conducted Korean SW firm's interview, and examined U.S. firm's archivings and second source of informations by means of empirical study. We use the inflection point of paradigm shift and difference of technology regime as a framework for empirical study of catch-up process between U.S. and Korean OSS firms. We find that conventional catch-up theory is no more applicable to explain OSS firm's catch-up processes. We also identified the elements that will accelerate the catch-up processes more effectively from the comparison of technology regime between U.S. and Korean OSS firms. As a result, we diagnose the limitation of conventional catch-up theory and discuss the new technology regime which will, ironically, promote the catch-up processes from the condition of low appropriation.

• Management & Information Systems Review
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• v.24
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• pp.1-24
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• 2008

This paper examines the direct effects of board independence and also its interaction effects with CEO's firm specific experience on firm performance. The findings in an hierarchial regression analysis of multiyear sample of computer hardware companies indicate that independent, outsider directors are beneficial to firms' performance when CEO has high-level of firm specific experience whereas it is harmful when CEO has low-level of firm specific experience. However, separating the positions of board chair and chief executive officer that has been used as another means for increasing board independence does not influence to firms' performance. These findings imply that researchers in corporate governance should reconsider the relative weight placed on directors' monitoring and assistance role. Rather than focusing predominantly on directors' willingness or ability to control executives, in future research scholars should yield more productive results by focusing on the assistance directors provide in bringing valued resources to the CEOs and in serving as a source of advice and counsel especially for CEO's improvement of management technique. In addition, they should pay more attention on identifying intervening processes between board and firm performance in order to provide optimal governance mechanisms and configurations to practitioners.

• The Korean Journal of Financial Management
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• v.26 no.4
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• pp.1-34
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• 2009

We test the effect of corporate cash holdings on firm value by using the KOSPI listed firms over the period between 2002 and 2007 from the agency theories perspective, which has not been the central interest of prior studies. Unlike existing studies, using the manager's ownership ratio or foreign investor's shareholder ratio as a proxy variable for agency costs, we use the individual firm's corporate governance scores by the KCGS to test the effect of agency costs on the value of firm's cash holdings. We find that a firm value is positively related with its cash holdings. We also find that a firm with good corporate governance tends to experience a higher value of its cash holdings, compared with a firm with bad corporate governance. These results are consistent even after controlling for the endogeneity problems between corporate governance and firm value, strongly supporting the agency theory of cash holdings. Therefore, a firm's cash holdings, even from liquidity or precautionary motives, could increase the firm cash value, as long as its managers' interest is shareholders' wealth maximization rather than their private benefits.

• The Journal of the Convergence on Culture Technology
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• v.9 no.3
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• pp.19-26
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• 2023

The impact of environmental, social and governance (ESG) performance on investors' decision-making is growing. Investors' focus on the financial performance of firms in the past is expanding to the non-financial performance of the interests of stakeholders surrounding firms. Against this backdrop, this study conducted a panel regression analysis on firms evaluated by Korea Corporate Governance Service to analyze the impact of ESG performance, a firm's non-financial performance, on firm risk. According to the analysis, ESG performance has a negative (-) effect on all three firm risks (systematic risk, unsystematic risk, and total risk), indicating that the stakeholder theory and risk management theory are supported. The implications of this study are: First, ESG reduces not only unsystematic risk but also broad and indiscriminate systematic risk; Second, investors can reduce the risk of their investment portfolio by executing ESG investments; Third, companies can achieve stable financial performance even in adverse circumstances by utilizing the insurance function of ESG management; Lastly, the government can enhance the stability of the financial market while improving the financial soundness of firms through reasonable ESG-related regulations.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2017.05a
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• pp.651-685
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• 2017

This study examines how experience diversity of chief technology officer (CTO) drives radical innovation of the firm, and the moderation effect of group attributes of top management team. Using data of 148 firms in U.S. manufacturing industries, this study finds that a CTO's diverse functional experience increases a firm radicalness, and diverse industrial experience also increases the radicalness. This study also examined the moderating effect of top management team (TMT) characteristics such as TMT size, TMT tenure, and gender composition in TMT. The positive relationship of CTO knowledge diversity and firm radicalness is weakened as TMT size or TMT tenure increased while the relationship is strengthened as gender diversity in TMT increased. These results of the analysis of firm-level radicalness provide implications for both academics and practitioners.

• Asia pacific journal of information systems
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• v.15 no.3
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• pp.163-186
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• 2005

When firms are confronted with IT investment decision-makings, technical or financial factors are widely considered. However, based on sociotechnical systems theory, it is argued that in addition to the traditional factors, social issues must be considered in the IT investment decision-makings. Even though the strategic criteria of social issues within organization are important for IT investment decision-makings, the social or organizational issues are hardly considered in IT implementation and adoption(Ryan and Harrison, 2000). The objective of this study is to empirically verify how the comprehensive consideration of both of technical and organizational issues related with IT investment affects firm performance through its impact on IT technical capability and IT personnel skills. Senior managers of 153 Korean firms were surveyed, and the collected data were analyzed with PLS technique. The results of the PLS path analysis show that the comprehensive consideration of the technical and social issues affected indirectly firm performance through IT technical capability and IT personnel skills. It is found that the comprehensive consideration had a significant impact on IT technical capability and IT personnel skills, and that IT technical capability and IT personnel skills affected firm performance. IT personnel was also found to affect IT technical capability. Finally, this study found that the consideration of social factors had greater impacts on firm performance than that of technical factors.

• Journal of Korea Society of Industrial Information Systems
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• v.27 no.1
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• pp.63-77
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• 2022

This paper investigates the effect of the lack of ESG management legitimacy on the firm's corporate giving. From the institutional theory perspective, ESG management has become a globally institutionalized business standard. A firm can survive and prosper when it conforms to the institutionalized norms. Thus, we argue that firms will increase corporate giving to restore social legitimacy when they experience a lack of social legitimacy regarding ESG management. Our study also focuses on the role of family executives. As family members identify themselves with their firm and intend to hand over the business to next generation, they highly value the social legitimacy of their firm. Therefore, the relationship between the lack of ESG management legitimacy and the firm's corporate giving will be further strengthened as the number of family executives increases. Empirical results provide supports for the two hypotheses.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.41 no.4
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• pp.81-90
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• 2018

Modern investment theory has empirically proved that stock returns can be explained by several factors such as market risk, firm size, and book-to-market ratio. Other unknown factors affecting stock returns are also believed to still exist yet to be found. We believe that one of such factors is the operational efficiency of firms in transforming inputs to outputs, considering the fact that operations is a fundamental and primary function of any type of businesses. To support this belief, this study intends to empirically study the relationship between firm efficiency and stock price performance. Firm efficiency is measured using data envelopment analysis (DEA) with inputs and outputs obtained from financial statements. We employ cross-efficiency evaluation to enhance the discrimination power of DEA with a secondary objective function of aggressive formulation. Using the CAPM-based performance regression model, we test the performance of equally weighted portfolios of different sizes selected based upon DEA cross-efficiency scores along with a buy & hold trading strategy. For the empirical test, we collect financial data of domestic firms listed in KOSPI over the period of 2000~2016 from well-known financial databases. As a result, we find that the porfolios with highly efficient firms included outperform the benchmark market portfolio after controlling for the market risk, which indicates that firm efficiency plays a important role in explaining stock returns.

• Proceedings of the Korea Inteligent Information System Society Conference
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• 2003.05a
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• pp.255-263
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• 2003

A multi-agent system designed to represent newly deregulated electricity markets in the USA is aimed at testing the capability of the multi-agent model to replicate the observed price behavior in the wholesale market and developing a smart business intelligence which quickly searches the optimum offer strategy responding to the change in market environments. Simulation results show that the optimum offer strategy is to withhold expensive generating units and submit relatively low offers when demand is low, regardless of firm size; the optimum offer strategy during a period of high demand is either to withhold capacity or speculate for a large firm, while it is to be a price taker a small firm: all in all, the offer pattern observed in the market is close to the optimum strategy. From the firm's perspective, the demand-side participation as well as the intense competition dramatically reduces the chance of high excess profit.