Asia-Pacific Journal of Business Venturing and Entrepreneurship
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v.17
no.3
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pp.257-267
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2022
The employment effect of innovation-certified SMEs (venture certification, inno-biz certification and main-biz certification) and general SMEs was compared and analyzed. Through propensity score matching, general SMEs with similar tendencies to SMEs for each innovation certification were selected. The employment effect was approached from two perspectives: the absolute employment effect, the employment growth rate, and the relative employment effect, the sales-employment coefficient. As a result of the analysis, it was confirmed that venture certified SMEs and inno-biz certified SMEs, which are technology innovation-type certifications, have an advantage in absolute employment effect. In addition, it was concluded that innovation-certified SMEs have more room for employment than general SMEs by achieving sales growth that exceeds employment growth. Therefore, there is a possibility to enhance the employment effect of innovation-certified SMEs by strengthening employment-related incentives for innovation-certified SMEs.
The Journal of Korean Institute of Communications and Information Sciences
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v.38B
no.10
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pp.808-816
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2013
In recent years, the knowledge service industry is getting much attention in terms of the role as new growth driver and employment creation sector whereas the overall potential growth rate in Korea has been slowed due to reduced investment and employment in manufacturing sector. This study examines how the knowledge service industry contributes to economic development and employment creation by analyzing the structure transition pattern of the knowledge service industry from 1995 to 2010 and suggests, based on these results, some policy implications for the industry's development. It turns out that the knowledge service industry greatly contributes to total production increase and employment creation during the period of 1995 to 2010. Special strategy for increase in labor productivity will be required for the knowledge service industry to contribute consistently as growth driver and employment creation sector since production increase rate and growth contribution level have been gradually decreased while employment growth rate and its contribution level have been consistently increased in the knowledge service industry.
This paper investigated the difference in the employment effectiveness of foreign invested companies in Korea by investor ratio and CEO nationality. To analyze the relationship between employment growth and investment ratio, CEO nationalty, firm age, company size, analysis of variance and regression are employed. Investment ratio is classified into three groups: 1. 0%${\leq}100%$. CEO nationality is classified into three groups: '1' if the CEO nationality is Korean, '2' Korean and Foreign, '3' Foreign. Employment growth turned out to be lower in groups of investment ratio equal to or bigger than 50% than in group which has investment ratio smaller than 50%. and the employment effect was not different depending on the type of CEO. By analyzing the employment growth with respect to investment ratio type and CEO nationality theoretically and empirically, the effect of inward foreign direct investment on employment and its preparation plan can be considered. The policy implication is that investment ratio should be considered in the future employment policy.
This paper presents the relationship between the pace of structural change and the magnitude of employment growth in the manufacturing sector in OECD countries. To measure the pace of structural change, the compositional change index in value-added in manufacturing sector is introduced. For mid to long-term there seems to be a positive relationship between the pace of structural change and the magnitude of employment growth. In those countries with higher value of the compositional index, the employment growth in manufacturing sector was generally higher. To analyse the characteristics of structural change in manufacturing sector, this paper classifies manufacturing industries into groups: one based on technology, one on orientation, one on wages and one on skills. The international comparison of manufacturing sector's employment patterns based on above four classifications are presented. International comparison suggests that Korean manufacturing sector move into jobs with more skills and knowledge The structural change of SMEs and large firms are compared based on above four classification methods. It is shown that SMEs' employment in low value sectors, that is low-technology, labor-intensive, tow-wage, and unskilled sectors, have risen faster than SMEs' employment in high-technology, science-based, high-wage and skilled sectors. Large firms' employment have been mainly increased in high value sectors. However, the employment growth of both large and small firms have been concentrated on production worker-intensively-using sectors, i.e. unskilled sectors. This widened the wage differential of production workers by firm sizes and concurrently led to severe shortage of production workers for SMEs, which has little ability to pay high wage to production workers because they usually belong to low-wage sectors. Korea need to push SMEs forward to high value sectors. The premise of that is, however, to pull large firms out of production worker-intensively-using sectors.
This study empirically analyzes the effects of non-technical innovation activities on employment growth. The study estimates the effects of organizational innovation and marketing innovation on employment growth using the data on manufacturing and service firms from the 2016 Korea Innovation Survey. The estimation results suggest that the detailed types of organizational innovation and marketing innovation have different effects on employment growth. In the case of organizational innovation, changes in business practices and changes in workplace organization do not have any significant impact on employment growth in both manufacturing and service firms. On the other hand, new external relationships have a positive employment effect in the manufacturing firms. Marketing innovations such as new methods in product placement and product promotion also have an effect of increasing employment in the manufacturing sector. However, the study finds that marketing innovation does not have any positive employment effect in the service firms.
Asia-Pacific Journal of Business Venturing and Entrepreneurship
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v.1
no.1
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pp.105-125
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2006
This paper relates recent empirical research on the growth. Smaller and younger firms have been growing more quickly than larger and older firms, thus, generating proportionately more new jobs. It is not difficult to understand why small and medium firms receive so much attention. Because SMEs provide about 80 percent of private sector employment so SMEs performance is an important economic and social factor. Despite this, they are subject to higher risk and mobility than those at the large firms. This paper is analyzes the relationship between firm growth measured as growth in employment, sales and production and firms age, size and R&D investment. The growth and its relationship with the determinants is linked to industrial policy in Korea. Empirical results are based on an unbalanced panel data covering period 1999-2002. Results show significant relationship between growth, size and age of firm.
The purpose of this study is to investigate industry-wise employment growth factors in rural areas. Regional economic vitalization is sensitive to internal and external interaction changes among various industrial and occupational sectors. Thus, rural regional economic vitalization requires a comprehensive approach in analyzing industry-dependent employment structures and growth factors in rural areas. However, research conducted thus far has mostly focused on agriculture and farmers. Considering the evidence that rural communities continue to be stagnant and 80% of the rural population is engaged in nonagricultural activities, it becomes necessary to review industry-specific employment change factors in rural areas. This study targeted 5 counties in Chungnam. The results revealed that agriculture, forestry, and fisheries occupied the foremost positions with regard to population employed and regional GRDP share. The influence of national growth on employment and business variation effects was as high as 98.1% and 78.6%, respectively, thus demonstrating the high likelihood of rural economy to be influenced by external factors. Growth in the public sector appeared to support employment structure. Moreover, wholesale and retail businesses, constituting 14.4% of employment in rural areas, showed a strong trend toward degeneration, to the extent that difficulties have been forecasted for the supply of goods and services essential for basic livelihood of the rural residents. The implications based on the above observations need to be considered for policy-making to ensure that industrial structure is modified on the basis of internal demand of the region, and support for small businesses is integrated in rural area development projects.
Since the 1990s rising intangible asset has become one of the main driving forces of investment stagnation and jobless growth in advanced income countries. We investigate how does the impact of firms' profitability on employment growth depends on the intangibility and whether the relationship between profitability and tangibility has complementarity. With data on Korean firms over the period 1988~2017 we investigate the effects of intangibility and profitability on employment growth based on the econometric approach of system GMM. The empirical results are as follows. (1) the profit rate has gradually led to lower employment growth, while it had positive effect on employment before the period of financial crisis. The estimated values and signs of profit rate coefficients varies from traditional industries to high/medium tech. industries. (2) the effect of increasing asset intangibility ratio on employment growth is negative and statistically significant. (3) the coefficients of interaction term of (profit rate ${\times}$ intangibility ratio) have significant negative values. It means employment effect of profit rate are becoming higher(lower) as intangibility ratio is at the lower(higher) level; profits rate and intangibility are not complement with each other. The results imply that to boost employment industrial policy which has the capacity to coordinate business intangibility is preferred to expansionary demand policy.
The development of regulatory systems varies between transition and non-transition economies. This suggests that they provide different incentives for entrepreneurial development and could have varied effects on the economy because they have different methods to deal with market failure. However, limited empirical evidence exists to prove the assumption of dichotomy. Using comprehensive data for institutional quality, labor market and financial market development, this research sought to analyze their effect on employment growth at micro level. The results show that the quality of institutions in transition economies are poorer relative to those in non-transition economies, but their financial and labor markets are more developed than the latter. Further analysis for the transition sample shows that the three variables are individually positively related with employment growth. For the non-transition sample, institutional quality and labor market flexibility bear a positive and significant effect on employment. Financial market development enters the model with a negative coefficient when regressed alone, but a joint test of significance finds that all the variables have a positive effect on employment growth. This result could imply that there is interdependence between institutional quality, labor flexibility and financial market development in firm-employment-growth relationship, or complementarity between regulations and the quality of institutions. Alternatively, this finding suggests that a stringently regulated credit market in non-transition economies have a selection effect-allocating credit only to entrepreneurs who already demonstrate strong growth potential. In sum, despite differences in the evolution of regulatory environment between the two samples, both of them complement employment growth at firm level. The overall implication of these findings is that less rigid regulations and coherent policies that are enforced with impartiality provide incentives for firms to expand.
This study analyzed the determinants of high-growth firms using the technology appraisal data of the Korea Technology Finance Corporation. This study is differentiated from previous studies for three reasons. First, it analyzed the determinants of firms that will grow into high-growth firms in the future, not the characteristics of current high-growth firms. Second, it analyzed high-growth firms by dividing them in two aspects: sales and employment. In other words, they were divided into three types: the case in which a firm achieves high growth in both sales increase and creation of jobs, the case in which a firm achieves high growth in creation of jobs but low growth in sales increase, and the case in which a firm achieves high growth in only sales increase but low growth in creation of jobs. Third, this study applied the technology appraisal indicators of Kibo Technology Rating System(KTRS) by the Korea Technology Finance Corporation as the explanatory variable. As a result of analysis, it was found that a firm achieved high growth in both sales and employment if the position in the technology life cycle was appropriate and the technology readiness level was high. However, it turned out that the management system of technical manpower had conflicting effects on high growth of employment and sales. In other words, a firm that had well managed its technical manpower achieved high growth in terms of employment, but rather showed low growth in terms of sales. This result suggests the inference that firms showing high growth in employment may appear mainly in the high-tech industry where management of technical manpower is important. Accordingly, as a result of adding dummy variables that represent whether or not firms are in the high-tech industry, it was found that the result supported the inference, as firms in the high-tech industry were highly likely to achieve high growth in employment.
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