Abstract
The purpose of this study is to analyze the efficiency and productivity of the Korean ship parts manufacturing industry. To this end, the manufacturing process was divided into two stages (operating activities, financial activities), and the Dynamic Network SBM model and Malmquist Productivity Index were used. We collected analysis data from KIS-VALUE, and analyzed 40 companies from 2014 to 2020. As a result of the analysis, from 2014 to 2017, the average operating efficiency was 0.7825, the average financial efficiency was 0.5208, and the average total efficiency was 0.4537. It was found that improving efficiency requires improving both activities simultaneously, rather than focusing on a specific activity. Operating activities DMI was 1.0025, financial activities DMI was 0.9236, and OMI was 0.9464. In order to improve OMI, it is necessary to improve the financial activities DMI, which is the cause of the decrease in productivity. In order to improve financial activities DMI, government policy or technology change to improve DFS was found to be necessary. Finally, the effect of environmental factors on efficiency was analyzed by tobit regression. It was found that Firm Size had a negative (−) effect on efficiency, and Firm Age had a positive (+) effect on efficiency. The analysis results of this study will help to understand the relationship between input and output, which has been treated as a black box in the manufacturing industry, in two stages; and this will serve as a guideline for those working in Korea’s ship parts manufacturing industry to establish policies.
Highlights
IntroductionKorea’s shipbuilding industry has grown continuously since the 1970s
Accepted: 24 November 2021Korea’s shipbuilding industry has grown continuously since the 1970s
This study analyzes the efficiency of the management processes of Korean ship parts manufacturing companies by dividing them into operating activities (Stage 1) and financial activities (Stage 2)
Summary
Korea’s shipbuilding industry has grown continuously since the 1970s. It has established itself as an important industry, and Korea once recorded the world’s largest share of orders in this industry [1]. Due to the 2008 financial crisis, the growth in China, and the decline in ship orders, companies in the shipbuilding industry accumulated losses and had to restructure [2,3,4]. In Korea, the performance of large corporations in the shipping industry has been improving, and the government is actively supporting it [5]. In Korea, the 52-h workweek system has been implemented in large enterprises and in SMEs with fewer than 50 employees, increasing the difficulties in SME management [7]
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