• Journal of Korea Technology Innovation Society
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• v.14 no.3
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• pp.431-465
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• 2011

Focusing on open innovation which is regarded as an important framework for strengthening technological innovation capabilities, in this study empirical analysis is conducted on Korean manufacturing companies, particularly based on the survey results of 149 domestic manufacturing companies that carry out innovation activities in order to identify influence factors for open innovation activities. Analysis on the influence factors of open innovation activities categorized into characteristics of environment, firm-specific characteristics, and characteristics of institutions revealed that characteristics of environment in terms of the degree of market competition and technological changes influence outside-in open innovation activities. Such results suggest that companies respond to increased market competition or technological changes by promoting research and development (R&D) and maintaining or acquiring market competitiveness through introduction of external technology and utilization of external information by means of research collaboration, user innovation, and so on. In terms of firm-specific characteristics, outside-in open innovation activities are influence by R&D personnel, R&D investment, number of international business, export, and openness of corporate culture while inside-out open innovation activities are influenced by characteristics of international organization and CEO's capabilities. In order for companies to strengthen outside-in open innovation activities emphasis on research personnel, R&D input factors such as research funds are necessary whereas to increase inside-out open innovation activities organization solely responsible for international affairs should be established while the CEO needs to focus on open and cooperative entrepreneurship rather than internal technological innovation activities. In terms of characteristics of institutions, outside-in innovation activities are influenced by technological networking whereas inside-out innovation activities are influenced by networking for development of technology and the presence in industrial cluster. This means that the government needs to establish industrial clusters and try to expand technological networking to facilitate open innovation activities.

• Journal of Information Technology Services
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• v.17 no.1
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• pp.33-45
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• 2018

Recently, many South Korean firms have suffered financial losses and damaged corporate images from the data breaches. Accordingly, a firm should manage their IT assets securely through an information security investment. However, the difficulty of measuring the return on an information security investment is one of the critical obstacles for firms in making such investment decisions. There have been a number of studies on the effect of IT investment so far, but there are few researches on information security investment. In this paper, based on a sample of 76 investment announcements of firms whose stocks are publicly traded in the South Korea's stock market between 2001 and 2017, we examines the market reaction to information security investment by using event study methodology. The results of the main effects indicate that self-developed is significantly related to cumulative average abnormal returns (CAARs), while no significant effect was observed for discloser, investment characteristics and firm characteristics. In addition, we find that the market reacts more favorably to the news announced by the subject of investment than the vendor, in case of investments with commercial exploitation. One of main contributions in our study is that it has revealed the factors affecting the market reaction to announcement of information security investment. It is also expected that, in practice, corporate executives will be able to help make an information security investment decision.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.363-370
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• 2020

The paper aims to investigate the impact of budgetary goal on profit growth directly and indirectly through managerial performance. Two main characteristics of budgetary goal mentioning in the study are the clarity of budget goal and the difficult of budget goal. Data of the research collected from survey with 197 department managers and supervisors of 80 SMEs in Hanoi and Ho Chi Minh City who have budgeting responsible. Firstly, by using quantitative research method Cronbach's Alpha and Exploratory Factor Analysis, the research show that characteristic of budgetary goal has significant and positive impact on profit growth directly. Secondly, the regression analysis among variables show that budget goal clarity was positively and significantly related to growth of sale revenue, growth of profit and managerial performance. Therefore, the empirical findings show that that managerial performance has mediating role in the relationship between budgetary goal characteristic and financial performance. The findings of this study suggest that that managers need focus on setting clearer and more difficult but attainable budget goals to increase firm performance. This paper also provides a new insight the relationship between managerial performance and financial performance. Budgetary goal characteristics still have positive but insignificant impact on growth of sales revenue.

• The Journal of Information Systems
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• v.7 no.1
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• pp.77-98
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• 1998

Electronic Data Interchange(EDI) is a relatively new technique around the world and enables the firm more competitive because of transmitting computer-generated documents directly to a firm's trading partner's computer across a telecommunication network. This study investigates the relationship among the organizational characteristics and information systems(IS) maturity, and the extent of internal and external diffusion of Electronic Data Interchange (EDI) in Korean firms. The data for this study were collected from 131 firms that have implemented EDI. The results of t-test show that subgroups classified by industry, the extent of decentralization and formalization, and IS maturity, except the size of organization, are not different in the extent EDI diffusion. Also, the results of multiple regression analysis show that the size of organization is the major predictor of internal diffusion, and IS maturity and the size of organization are the major predictors in external diffusion of EDI. This study implies that the size of organization among organization characteristics and IS maturity should be considered as important variables for the diffusion of EDI system.

• Journal of Korea Trade
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• v.23 no.3
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• pp.52-67
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• 2019

Purpose - This study analyzes the effect of the authorized economic operator-mutual recognition arrangement (AEO-MRA) on the performance of Korean exporters and importers. The effect of the import-export companies' characteristics, such as annual sales, the number of foreign markets, and overseas experience, on the AEO-MRA is deduced; the relationship between this effect and firm performance is analyzed. Design/methodology - An empirical research model was constructed and analyzed using structural equation modeling. The effect of AEO-MRA on logistics and operational performance was derived from the aforementioned characteristics as leading factors of the AEO-MRA. The regulatory influence of cooperation with logistics companies was analyzed in the AEO-MRA effect on logistics performance. Thus, 172 valid samples were obtained from import-export companies certified by the AEO-MRA. Findings - Among the aforementioned characteristics, only "annual sales" has a positive effect on the AEO-MRA, whose effect enhances logistics and operational performances. The AEO-MRA effect did not directly affect operational performance. Owing to the adjustment effect analysis, the AEO-MRA effect and logistics performance relationship is strengthened if the cooperative relationship with the logistics company is higher than a certain level. If this cooperation falls below a certain level, the AEO-MRA effect on logistics performance reduces. Thus, logistics cooperation is an important factor in the AEO-MRA effect and logistics performance relationship. Originality/value - Hinging on the resource-based theory and relational viewpoint, an empirical model that explains the relationship between the AEO-MRA effect and firm performance is established.

• Korea Trade Review
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• v.46 no.3
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• pp.65-79
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• 2021

This paper investigates how corporate governance characteristics are related to long-term corporate survival in an emerging economy. We used the data of 311 companies listed on the Korean Stock Exchange (KSE) in 1979 and examined the survival chances of those companies through the IMF crisis in 1998, upon governance characteristics that are expected to increase long-term strategic orientations. We utilized Cox regression model for the analysis. The results indicate that firms with particular governance characteristics that may be tied to CEO's long-term orientations show higher long-term survivability. Specifically, the probability of a firm's long-term survival is increased when founding family ownership is sustained, the company ownership is concentrated, and the CEO is the largest shareholder. This study has significance in that it is one of initial tries to examine the impact of corporate governance on long-term corporate survival with large scale statistical analysis. Also, the study findings provide some clues as to why the portion of family firms in emerging economies is continuously increased, thus providing meaningful insights to corporate governance literature.

• Journal of the Economic Geographical Society of Korea
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• v.12 no.4
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• pp.421-437
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• 2009

China has transformed her strategies for economic development from exogenous development founded on foreign capitals to endogenous development based on enhancing technology innovation capabilities since 2000. More specifically, Chinese business activities have coupled with new institutional settings which enable them to facilitate advanced technology and management methods. As a result, the characteristics of the spatial economy in China are likely to transfer from export-led developmental space to technology-oriented developmental space. In this context, this paper aims to identify the characteristics of technology-oriented space by investigating intra-, inter- and extra-firms relations of Korean FDI firms in Shanghai, China. In terms of intra-firm relations, Korean FDI firms adopted strategies for maximizing business efficiency and effectiveness by transforming their personal networks into formal networks. In terms of inter-firm relations, the distinction of Korean FDI firms' networks has been found in accordance with firm size, industrial sectors, ways of investment etc. Finally, Korean FDI firms has formal networks resulted from institutional involvement, as well as informal (personal) networks based on guanxi (inter-personal relations) in extra-firm relations. Therefore, two types of processes affecting the networks and institutional legacies of the Soviet system can be identified. First is the interaction of institutions and restructuring of pre-existing networks. Second is the insulated institutions and endurance of preexisting networks. And these two governance types have created regional economies which are embedded and over-embedded.

• Korea Trade Review
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• v.41 no.2
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• pp.61-96
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• 2016

This study investigates the effects of M&A experience of Chinese firms and characteristics of deal partners in cross border M&A deal failures. 1,610 firms that participated in 1,558 cross border M&As from 2000 to November 2015 are used as samples. The dependent variable is the M&A transaction failures, which were cases of deal pending or withdrawal of Chinese firms. Major independent variables are the nationality diversity of transaction partner firm, the partner firm belonging to a developed country, domestic M&A experience of the Chinese firms, M&A experience in a particular target country, etc. After conducting a probit model analysis, we find that deal partner firm's nationality diversity increases the failure rate of M&A. While prior domestic M&A experience in China has no influence on deal failure, prior M&A experience of Chinese and focal firms in a particular country have a negative effect on the probability of deal failure. This study has academic implication on figuring out why firms are likely to fail in the process of strategic activities based on the inter-organizational learning through partnerships perspective.

• Journal of Labour Economics
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• v.35 no.3
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• pp.1-28
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• 2012

We measure a worker's analyzability by how correctly he grasps its causes when a problem occurs, comprehensiveness by how much he understand the overall process of his firm, and flexibility by how frequently unusual situations occur at his job. After controling firm-specific fixed of fandom effects, his age, tenure, position, and rank, the characteristics increase a worker's wage. A worker who grasps correctly the causes of problem is paid more by 5.2% than a worker who scarcely does. A worker who understands the overall process of his firm is paid more by 2.52% than a worker who understands roughly the process of his team or department. A worker whose job is mew one by one is paid more by 2.98% than a worker whose job is routine and repetitive.

• The Journal of Asian Finance, Economics and Business
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• v.3 no.4
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• pp.25-37
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• 2016

This study aims to investigate the determinants of dividend payout of Oil and Gas industry of Pakistan using secondary data from published annual reports from 2008 to 2014 listed on KSE (Karachi Stock Exchange). Dividend payout can be affected by profitability, firm size, financial leverage, sales growth, investment opportunities, liquidity, business risk, and ownership structure. Panel data technique used due to panel characteristics of available data with ordinary least square regression model to find out the impact of set of explanatory variables on the dividend payout using the Stata. Financial leverage, sales growth and business risks are the most significant variables of the study where financial leverage and business risk have significant negative effect on dividend payout while sales growth has favorable positive impact on dividend payout. Results revealed significant positive link of profitability and firm size with dividend payout whereas government ownership is negatively associated with dividend payout. Investment opportunities, liquidity and managerial ownership showed insignificant relationship with dividend payout. This Suggests that dividend payout policy is dependent on business strategies including both investment and financing decisions. Financial managers should consider these factors while formulating dividend policy of the firm.