• Asia-Pacific Journal of Business
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• v.14 no.2
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• pp.1-15
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• 2023

Purpose - This study investigates whether the inventory levels of Korean manufacturing firms increased or decreased from 2000 to 2019. We also explore the relationship between inventory levels and firm performance. Design/methodology/approach - We use panel data on KOSPI-listed firms in the manufacturing industry. We measure days in inventory as a proxy for inventory levels, and firm performance is measured by return on assets, return on sales, and EBITDA ratio. The panel data regression method is employed in our analysis. Findings - We find that days in inventory of Korean manufacturing firms significantly increased from 2000 to 2019, especially for raw materials and finished goods inventory. In addition, while days in inventory of large- and medium-sized firms were less than those of small-sized firms, the change in days in inventory of large- and medium-sized firms was positively significant over time. Moreover, the increase in days in inventory was more prevalent among industries related to foods, clothes, chemicals, and transportation. Finally, we show that the days in inventory are negatively related to firm performance. Research implications or Originality - While the Korean manufacturing industry has enormously grown over the last 20 years and managing inventory is critical in the manufacturing industry, our findings counter-intuitively show that the days in inventory of the Korean manufacturing industry had been gradually increased. We speculate that the increase in days in inventory is due to the Korean manufacturing firms' heavy reliance on global supply chains.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.3
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• pp.252-261
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• 2019

In this study, we analyzed the factors affecting the introduction of Smart Factory by domestic SMEs through AHP analysis and tried to provide implications for the introduction of Smart Factory. It was confirmed that the manufacturing and introduction group, the non-manufacturing introduction group, and the already introduced group had the highest weight in the cost reduction in the first hierarchy standard. At this time, it can be seen that the weight for cost reduction is relatively high in the manufacturing introduction group and the introduction group, and the weight for the productivity improvement is relatively high in the non-manufacturing introduction group. It can also be seen that the portion of marketing enhancement does not have a significant impact on smart factory choices. It was confirmed that image enhancement is the highest in the manufacturing introduction group and the non-manufacturing introduction group in the first hierarchy standard, and the marketing has the highest weight in the introduction group. In the two - tiered standard, customer - friendly and proper inventory maintenance weights were relatively high in all the introduced groups, except for the high rankings.

• International journal of advanced smart convergence
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• v.13 no.2
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• pp.235-248
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• 2024

The performance of informatization differs depending on its utilization, investment and construction methods. This study analyzed the key factors affecting the performance of informatization based on a public survey on the information system operation of small and medium-sized companies in Korea. Through structural equation modeling and one-way ANOVA, the study identified the pathways leading to performance. As a result of the analysis, it was confirmed that higher levels of top management support are associated with increased information system use and performance. Similarly, higher levels of information system use are correlated with better performance of information systems. This research is significant as it investigates and reveals how top management support and information system usage work in the cases of SMEs in South Korea, which is a leading country in manufacturing. The findings of this study will provide valuable insights for SMEs, whether they have already developed an information system or plan to do so, in their efforts to enhance corporate competitiveness.

• Journal of Digital Convergence
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• v.9 no.5
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• pp.31-43
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• 2011

Since the R&D Program for Small and Medium-sized Enterprises started in 1997 as a part of Small and Medium Business Administration, many companies succeeded to carry out the tasks and were charged royalty fees from the government aid program in return. However, some of them were unable to pay a royalty because of their poor financial positions. Failure to pay a royalty also led to adding administrative duties including debt collection and imposing a penalty of participation restriction for other R&D programs. To solve the problems incurred by a failure of royalty collection, a divided payment using a surety insurance was introduced in 2009. That is, the R&D program recipients who were charged royalties issue surety insurance policies and submit them to a collection agency with a plan of divided payment. In this study, we estimate the main benefits of introducing surety insurance for royalty collection. First, we analyze royalty collection results from recipients supported by the R&D program from 1997 to 2006. By doing so, we calculate the main parameters that will be used for estimating the 2011 collection results. Next, besides estimating the quantitative effect, which summarizes an increase of royalty collection via surety insurance, we also analyze various qualitative effects such as simplification of the collection process and expansion of opportunities for participation in R&D programs.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.863-871
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• 2021

This study aims to document empirically the mediating role of corporate social responsibility (CSR) on the influence of competitive pressure toward business performance on the batik industry in Central Java, Indonesia. This study also examined the effect of competitive pressure and CSR on business performance of small- and medium-sized enterprises (SMEs) in the batik industry in Central Java. This study used an explanatory quantitative approach. Samples of 254 MSEs in the batik industry have been successfully collected. Hypothesis testing uses SEM-PLS. The results of this study indicate that competitive pressure has a positive and significant effect on the batik MSEs business performance in Central Java. Competitive pressure also has positive direct effect on corporate social responsibility, and CSR has a significant and positive direct effect on business performance. The results of this study have successfully documented empirically that CSR has a mediating role on the relationship of competitive pressure toward business performance in the batik MSEs in Central Java, Indonesia. This study provides a comprehensive understanding of the owners of the batik MSMEs in coping with competitive pressure by using CSR as a strategy to create uniqueness that is difficult to imitate and can create an organizational reputation that eventually can increase business performance.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.267-274
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• 2020

The focus of this study is to investigate the mediating role of online market orientation on information capital readiness-business performance relationship. The construct of information capital readiness is rarely researched. The readiness here refers to the availability of information capital needed to support strategy execution. As quantitative research, this study employs the partial least squares structural equation modeling (PLS-SEM) to test the hypotheses. Data was collected using questionnaires from the owners/managers of the micro, small, and medium-sized enterprises (MSMEs) in the East Java Province, Indonesia. As many as 433 respondents had participated. The result indicates that information capital readiness directly and positively affects business performance. Further analysis reveals that online market orientation partially mediates information capital readiness-business performance relationship. In conclusion, this study suggests that the owners/managers of the MSMEs should improve their information capital readiness to support online market orientation strategy so that it can improve their business performance. This is the first study that brings together the issues of information capital readiness and online market orientation as the antecedents of business performance in the Indonesian MSMEs research setting. The mediating role of online market orientation is rarely explored in previous studies.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.41-48
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• 2023

Over the past ten years, numerous industries have undergone upheavals that have significantly altered how businesses interact with their clients and how goods are created and produced bySMEs. Many cutting-edge technologies have recently been created and implemented to enhance business models, facilitate sustainability features for organizations, and boost business capabilities. This essay seeks to understand how digital entrepreneurship functions in developing nations. The results of this study show the effectiveness of digital transformation in the context of SMEs is greatly influenced by aspects including the change of managerial intensity and the involvement and perception of workers, customers, and shareholders. One of the needs that business owners showcased in this study in terms of digitization is infrastructure resources to support digitization such as devices, the Internet, and funds, but also the ability to use digital media for business development. Practical skills that business people want to learn such as product design and management of their social media accounts. There are also aspects of time and self-motivation of the business actor that can speed up or slow down the digitization process. Finally, government support that is structured in encouraging MSMEs is also one of the supporters and drivers of digitalization in the blue economy.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.505-515
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• 2021

The essential purpose of this study is to propose strategies for developing micro-, small-, and medium-sized enterprises (MSMEs) to realize sustainable competitive advantage by applying the SWOT analysis method. Thus, the main problems investigated in this study are: a) around 60-70% of MSMEs in Kulonprogo regency do not yet have access or financing from banks; b) lack of knowledge of production technology; c) in general, MSMEs business actors are still incorporated legal entities; d) MSMEs do not have a good financial administration and management system; e) coordination between MSMEs stakeholders has not been integrated; f) limited facilities and infrastructure of MSMEs, primarily related to technological tools; and g) limited access to raw materials so that MSMEs often get low-quality raw materials. This study employed a survey method with questionnaires and interviews. By using the Slovin tools sampling technique, the number of samples was 39 MSMEs in Kulonprogo Regency, Yogyakarta, Indonesia. The results of this study confirmed that the Kulonprogo MSMEs should pay attention to seven aspects of business management to achieve sustainable competitive advantage. The seven aspects are: 1) business strategy; 2) human resources; 3) information technology; 4) products; 5) promotion; 6) cooperation; and 7) corporate social responsibility (CSR).

• Journal of Korea Technology Innovation Society
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• v.9 no.4
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• pp.812-841
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• 2006

Previous studies have shown that the ex-ante financial ratios, mainly used by financial institutions for loan evaluation purpose, are related to the ex-post finn's performance of venture firm's. The main objective of this study is to examine whether non-financial variables such as 'technology', 'marketability', and 'other business indexes' have extra explanatory power in forecasting the ex-post firm's performance of small and medium size venture firm's in Korea. The implications and results of this study are expected to be useful in loan evaluation, investment decision and internal management decisions of venture firms. Among small and medium sized manufacturing firms funded in the year of 1999 through 2005, 416 firms are selected for our analysis. The relationship between evaluation indexes and firm's success/failure is investigated using binary logistic regression analysis and factor analysis with an aid of SPSS program. The summarized results are as follows. First, current evaluation model, used for loan evaluation purpose for small and medium size manufacturing firms show the same discriminatory power as previous prediction model. Second, among the tested additional variables, significant indices are 'technological capability of CEO', 'managerial capability of CEO', and 'business feasibility'. Third, while previous studies on evaluation structure had 3 factors, this study showed that valuation's structure has 6 factors.

• Journal of Digital Convergence
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• v.17 no.7
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• pp.115-124
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• 2019

This study is an empirical study of 'the effect of the key factors of Smart Factory on management performance through internal environmental factors in small and medium enterprises'. The purpose of the research is to verify that the implementation of a Smart Factory affects the performance of management and contribute to the continued development of the company, and to suggest the national policy of expanding the deployment of a Smart Factory. The procedures were surveyed by working-level officials of small and medium-sized manufacturing companies with a Smart Factory and statistically analyzed with the SPSS and SMART PLS. The results of the study showed that first, the environmental factors within the company had a positive effect on the key components of the Smart Factory. Second, the key factor in Smart Factory has had a positive impact on management performance. The above evidence shows that the key factors in smart factory considering the environmental factors of an enterprise affect its management performance, thus laying the theoretical foundation for the performance of smart factory construction. In the future, we will study how to build a Smart Factory.