Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Performance Persistence in the Presence of Higher-order Resources-Focus on Domestic Companies

고차자원이 성과 지속성에 미치는 영향: 국내기업을 중심으로

  • Min Jo Kim (Graduate Department of Management Consulting, Hanyang University) ;
  • Yun Pyo Lee (Graduate Department of Management Consulting, Hanyang University) ;
  • Seung June Hwang (Divsion of Business Administration, Hanyang University)
  • 김민조 (한양대학교(ERICA) 일반대학원 경영컨설팅학과) ;
  • 이윤표 (한양대학교(ERICA) 일반대학원 경영컨설팅학과) ;
  • 황승준 (한양대학교(ERICA) 경상대학 경영학부)
  • Received : 2023.12.20
  • Accepted : 2024.01.17
  • Published : 2024.03.31
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Abstract

This study analyzed the impact of Higher-order resources on profit sustainability for domestic companies using a mathematical statistical model. Higher-order resources refer to resources that do not directly affect profits but influence other resources that directly contribute to profits. As a result of analysis using 30 years of actual data from more than 650 domestic companies, the average duration of competitive advantage including high-order resources was found to be about twice as long as the period suggested by the autoregressive model excluding high-order resources. Through this, if companies want to earn more profits over a long period of time than their competitors, they must not only possess resources that are more valuable, rare, difficult to imitate, and non-substitutable compared to their competitors, but also that higher-order resources can contribute to changes in these resources over time. It was confirmed that it must lead the long-term profit difference. High-level resources include strategic planning, mergers and acquisitions (M&A) capabilities, and good forecasting.

Keywords

Acknowledgement

This work was supported by the research fund of Hanyang University (HY-2022-3289).

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