Korean Manufacturing Firms Research Articles

Overcoming Financial Constraints on Firm Innovation: The Role of R&D Human Capital

This paper examines how R&D human capital can mitigate the negative effects of financing constraints on firm innovation, using survey data from 4000 South Korean manufacturing firms. The results confirm that financing constraints are generally associated with lower levels of product innovation. However, firms with stronger R&D human capital—measured by higher education levels and a larger proportion of R&D employees—are better able to overcome these financial barriers. Moreover, the positive moderating effect of R&D human capital is significantly enhanced in firms with an entrepreneurial culture, which supports risk-taking and innovation. These findings underscore the importance of investing in intangible assets, such as human capital and fostering a culture of entrepreneurship to sustain innovation during periods of financial distress. Policymakers should consider expanding financial support for R&D activities, particularly for small and medium-sized enterprises (SMEs) that face higher costs of capital. This study contributes to the literature by using direct measures of financial constraints and highlighting the role of human capital in innovation, especially in financially constrained environments.

Cost-Effectiveness of Energy Efficiency Investments and Their Determinants in Korean Manufacturing Firms

Cost-Effectiveness of Energy Efficiency Investments and Their Determinants in Korean Manufacturing Firms

공급사슬네트워크에서 비즈니스 애널리틱스의 영향에 관한 연구

The purpose of this study is to empirically investigate the relationship between organizational business analytics capability and supply chain performance in order to identify the impact of business analytics in supply chain network. Specifically, drawing on literature streams in Supply Chain Operations Reference Model and Information Processing Theory, this study conceptualizes the notion of business analytics capability in supply chain network, develops its structure as a reflective model, and tests the constructs and operational measures in the model. And then this study investigates the relationship between analytics capabilities in the plan, source, make and deliver area of the supply chain network and its performance using business process orientation and information system support as moderators that form the basis of our theory. Conducting an empirical study of 170 Korean manufacturing firms, this study, through the successive stages of measurement model analysis, provides empirical evidence for modeling reflective indicator and construct of business analytics capability in supply chain network. As a result, the construct of business analytics capability is posited to reflect a combination through analytics capabilities in the plan, source, make and deliver area of the supply chain network. And the findings suggest the existence of a statistically significant relationship between business analytics capabilities and supply chain performance. The moderation effect of information systems support is considerably stronger than the effect of business process orientation. These findings provide a better understanding of the areas in supply chain network where the impact of business analytics may be the strongest.

Greening the Supply Chain: Drivers and Outcomes in the Korean Manufacturing Industry

This research investigates the determinants of green supply chain management (GSCM) adoption and its impact on organizational performance, while considering the potential moderating factors influencing GSCM adoption. Despite the growing prevalence of GSCM practices among Korean firms, the factors driving their adoption have not received sufficient attention. To bridge this gap, the study uses structural equation modeling, integrating stakeholder theory and resource-based theory to explore how green entrepreneurial orientation (GEO), institutional pressure, and relational capital affect GSCM adoption. Additionally, the study explores the effects of GSCM implementation on competitiveness and economic performance. Drawing data from a sample of 213 Korean manufacturing firms, the PLS-SEM analysis highlights the significant influence of GEO, institutional pressure, and relational capital on GSCM adoption. Additionally, the study emphasizes the positive impact of GSCM implementation on firm competitiveness. These findings provide valuable insights for enhancing sustainability in supply chain management and are applicable to similar context countries such as Taiwan, China, Japan, and the Netherlands.

한국 제조기업의 기술혁신, 고용, 기업성과 간 관계에 대한 3SLS 분석: 고용의 양적·질적 특성 관점에서

한국 제조기업의 기술혁신, 고용, 기업성과 간 관계에 대한 3SLS 분석: 고용의 양적·질적 특성 관점에서

코스피 상장 제조기업의 2000-2019년 재고수준 변화에 대한 고찰

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.

Organizational Agility and Communicative Actions for Responsible Innovation: Evidence from manufacturing firms in South Korea

Responsible Innovation (RI) has increasingly attracted attention in academic research and business practice for UN Sustainable Development Goals (SDGs). Especially, the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) highlights RI as a key concept to address how to institutionalize and organize action programs to solve grand challenges. However, we know little about the determinants of organizing RI in business. By applying agile management and stakeholder theory, this study proposes the critical organizational factors to implement RI, namely: Organizational Agility and Communicative Actions. Based on the large-scale data analysis of 13,234 South Korean manufacturing firms during the period between 1999 and 2019, this paper investigates whether and how organizational factors can affect RI in the Asian context, using the zero-inflated negative binomial regression model. Findings show that well-organized agile management and communicative actions with stakeholders are essential to enhance RI performance in a holistic view. This study contributes to the recently emerging field of RI and offers novel theoretical and practical implications for academics and practitioners regarding the underlying mechanism of organizing RI.

The moderating role of market uncertainty in the effectiveness of government policies and R&D activities promoting innovation in manufacturing firms

PurposeThe purpose of this study is to examine the impact of government support policies and research and development (R&D) activities on product innovation under market uncertainty.Design/methodology/approachThis study applies logistic regression analysis to a sample of 4,000 South Korean manufacturing firms in order to investigate the impact of government policies and R&D activities of the firm on firm innovation performance, with particular interest in the moderating role of the firm's perceived market uncertainty (PMU).FindingsPolicies supporting industry/university/institute/local collaboration are found to have greater benefit under high PMU. Surprisingly, support for a consortium among different-sized firms has a negative effect on product innovation, although this negative effect disappears under high PMU. Both support for the protection of intellectual property (IP) and support for the resolution of manpower shortages have strong positive effects on the propensity to innovate products, but in both cases the moderating effects of uncertainty are negative. Finally, all types of R&D activities have positive effects on the propensity to innovate, more so for new product innovation than for improved product innovation.Originality/valueTo the best of the authors' knowledge, this is the first study to examine analytically the moderating effect of PMU in the effectiveness of government policies promoting innovation in the manufacturing sector. The study is potentially useful both for policymakers in deciding which policies to implement under prevailing market conditions; and for entrepreneurs choosing between different forms of government support, particularly given the abnormal levels of market uncertainty prevailing in the Covid-19 era.

Does GVC Participation Improve the Productivity of Korean Manufacturing Firms? : Evidence from Subgroup Analysis Using Enterprise-level Data

Purpose – Considering the recent instability of world economy and its heavy dependence on foreign, Korea must formulate breakthrough approaches to proactively cope with these adverse global developments. As such, this study aims to ascertain how participation in global value chains (GVCs) relates to corporate productivity and derive policy implications. Design/methodology – This study utilizes the microdata of Korean manufacturers to develop indicators of GVC participation at the enterprise level and analyzes the effects of GVC participation on the firm’s total factor productivity by using fixed effect model. Findings – Enterprises with highest rates of export-side GVC participation see their productivity grow as their export-side GVC participation rates increase. In addition, when companies are classified by their export-side GVC participation rates, increasing export values improves all firm’s productivity. In particular, those with low participation rates are analyzed to achieve higher productivity by increasing their imports, not only exports, which implies that companies with lower export-side GVC participation can boost productivity by reinforcing their export and import activities. Originality/value – This research paper distinguishes itself from others in that it makes a novel attempt to design the indicators of GVC participation at the enterprise level, not at the national or industry level. In addition, this study contributes to the existing literature by dividing companies into subgroups depending on their GVC participation rates for each of export and import and identifying variances in the effect of GVC participation on productivity growth among subgroups.

Government Support Mechanisms and Open Innovation: An Empirical Look at Korean Manufacturing Firms

Purpose - The purpose of this study is to examine how a broad palette of government support measures and firms' membership in government-developed clusters are related to firms' openness in innovation processes. Design/methodology/approach - Empirically, this study analyzes the Korea Innovation Survey 2018 data on the innovation activities of 1,450 Korean R&D-active manufacturing firms in a three-year period from 2015 through 2017. Findings - The results suggest that firms engage in open innovation to a greater extent--as measured by the breadth of external collaborating partners and of the utilized external sources of knowledge--when they are provided with a broader palette of government support measures and are located in government-developed clusters. However, the effect of diverse government support measures is attenuated for firms located in these clusters. Research implications or Originality - This study contributes to the innovation literature by illuminating how firms' open innovation can be understood in a national innovation system. Moreover, it provides valuable implications for firms seeking to obtain government support and collaborate with others.

위탁기업의 협력업체 지원이 위탁기업의 국제화에 미치는 영향에 대한 연구

Intensified global competition compels firms to focus on their core competencies and develop and secure additional competencies through supply chain cooperation. Among the various types of supply chain relations, subcontracting raises concerns about the asymmetric bargaining power between the subcontracting company and the subcontractors. This calls for a discussion on supply chain cooperation in subcontracting relations and its effect on business outcomes. This study analyzed the influence of voluntary support policies of buyer firms for their subcontractors on the level of buyers’ internationalization. Using a sample of 1,016 Korean manufacturing firms, we found that buyer’s management support for subcontractors, high proportion of cash settlement, and pursuit of long-term subcontracting relations raise the level of buyer’s internationalization. This implies that the policies that support subcontractors can create a virtuous cycle for better business outcomes for buyers. Additionally, the assessment of the moderating effect of business group membership of buyers revealed that buyers who are members of business groups experience less positive influence of subcontractor supporting policies on internationalization. Based on these results, academic and practical implications are presented, and future research directions are discussed.

Importing and Firm Productivity: Evidence from Korean Manufacturing Firms

Purpose - This paper empirically investigates the relationship between firm productivity and importing intermediate inputs in the Korean manufacturing sector.
 Design/methodology - This paper tests the two related hypotheses on the relationship between importing and productivity for a sample of Korean manufacturing firms. We test the self-selection hypothesis by comparing pre-entry levels of productivity between importers and non-importers. We test the learning-by-importing hypothesis by employing propensity score matching with differencein- differences approach.
 Findings - Future importers are more productive than future non-importers years before they start to import, which supports the self-selection hypothesis. In contrast, there is no strong evidence for learning-by-importing.
 Originality/value - This paper is the first study to explore the relationship between importing and firm-level productivity for Korean firms. The results have an important implication on trade policies to lower or raise trade barriers in imported inputs.

Changes in foreign ownership and innovation investment: the case of Korean corporate governance reforms

ABSTRACT The goal of this paper is to investigate how deregulating foreign equity ownership influences a firm’s innovation investment. We attempt to answer this question using data from 530 Korean manufacturing firms between 1998 and 2003 through generalised estimating equations. Our findings suggest that foreign ownership and R&D investment exhibit an inverted U-shaped relationship because the incentives to monitor managers’ decision-making processes initially play a greater role, but this role stagnates as the share owned by foreign investors becomes concentrated. In addition, we consider firm heterogeneity and observe the negative moderation effects of firm age and the positive moderation effects of growth opportunity.

제품혁신의 유형과 성과에 영향을 미치는 외부지식탐색 기반의 개방형 혁신창출 프로세스에 대한 연구

본 연구는 흡수역량과 개방형 혁신 분야의 외부지식탐색전략(외부 지식탐색활동의 다양성과 깊이)에 대한 이론적 주장을 바탕으로 외부로부터 확보한 지식을 통해 혁신을 창출하는 기업의 개방형 혁신창출 프로세스를 다차원적 개념으로 측정하고, 각각의 활동이 제품혁신의 유형과 성과 창출에 미치는 차별적 영향과 경로를 파악하는데 주된 목적을 두고 있다. 이를 위해 기업의 개방형 혁신 창출프로세스를 외부와 내부 학습활동으로 구분하고, 이를 다시 기술지식과 시장지식 확보를 위한 활동으로 세분화한 뒤 각각의 내·외부 활동들이 어떠한 인과관계와 경로를 통해 제품혁신의 유형과 성과에 차별적 영향을 미치는지를 분석하였다. 2014 한국기업혁신조사(제조업부문)로부터 추출한 612개 혁신기업들을 대상으로 한 직렬-병렬 혼합 다중매개 분석 결과 외부지식 탐색의 다양성은 기업 내부의 R&D투자보다는 시장지식에 대한 투자활동을 강화하고 이를 매개로 점진적 혁신 제품의 출시와 성과향상에 순차적인 영향을 미치는 것으로 나타났다. 반면 깊이 있는 외부지식탐색 활동은 기업 내부에서 R&D투자와 시장지식에 대한 투자활동을 모두 활성화함으로써 결과적으로 급진적 혁신과 점진적 혁신 모두의 산출을 통해 성과향상에 기여하는 것으로 나타났으며 매개효과의 크기에 있어서도 유의한 통계적 차이를 보이지 않았다. 본 연구의 결과는 기업이 외부로부터 확보하는 지식의 범위를 기술지식에서 시장지식으로 확장하고 이들을 확보, 내재화, 활용하는데 관여하는 내부, 외부 학습프로세스를 제시함으로써, 혁신의 유형과 성과에 있어 기업 간 차이를 설명했다는 측면에서 선행연구들과 차별되는 학문적 가치를 제공한다. 또한 외부 파트너와의 깊이 있는 협력 관계 구축을 통해 기업은 환경의 변화가 요구하는 지식을 선택적으로 창출하는 동태적 역량을 확보할 수 있다는 실무적 시사점을 제시하고 있다.

How Strategic Conformity Interacts with Innovation: An Empirical Study on Korean Manufacturing Firms from the Perspective of Optimal Distinctiveness

Whether to have a similar or different strategy than firms in same industry is the fundamental question for firms that want to build a competitive advantage. Recent literature, such as the new institutional theory and the perspective of optimal distinctiveness, has emphasized the configuration of competing forces that make firms simultaneously similar by conforming to industry norms and different by implementing innovation, leading to high performance. The primary rationale is that firms can exploit their high status of conformity as a stock of capital to differentiate themselves when required. Upon this rationale, we conducted research to test the hypotheses for optimal distinctiveness in the strategies of manufacturing firms in Korea. The results show that Korean firms have higher performance when they are mutually involved in higher conformity and innovation. It also suggests that firms in the industry with high volatility have difficulties in managing optimal distinctiveness of strategic conformity with innovation.

우리나라 제조업 수출기업의 내수전환 결정요인 분석 (The Determinants of a Firm’s Exit from Exporting: Evidence from Korean Manufacturing Firms)

Korean Abstract: 본 연구는 2006~2014년 통계청의 기업활동조사 자료를 이용하여 우리나라 제조업 수출기업의 내수전환 결정요인을 실증적으로 분석하였다. 이를 위해 생존분석 기법인 Complementary Log-Log 모형을 통해 우리나라 제조업 수출기업의 내수전환 가능성에 기업 및 산업 특성과 거시경제 변수들이 미치는 영향을 추정하였다. 분석결과, 기업 특성인 고용규모, 자본집약도, 무형자산 소유여부, 외국인 소유여부와 산업 특성인 신규기업의 고용대체율 등이 내수전환 가능성에 유의한 영향을 미치며, 거시변수 중 세계수요 증가, 국내 수요 감소가 수출기업의 내수전환 가능성을 유의하게 감소시키는 반면, 환율의 영향은 유의하지 않은 것으로 추정되었다. 또한, 시장금리가 상승하면 금융시장 자금조달여건이 불리해짐에 따라 수출기업의 내수전환 가능성이 커지며, 부채비율이 높은 기업이 이러한 금융여건의 영향을 더욱 크게 받는 것으로 나타났다. 한편, 수출 주력산업인 경우 생산성이 높을수록 수출기업의 내수전환 가능성이 감소하는 것으로 분석되었다. 본 연구결과는 기업 및 산업 특성과 거시 실물 변수 및 금융여건이 내수전환에 복합적으로 영향을 미치고 있음을 보여준다. 또한, 수출 주력산업 내 기업들의 생산성 제고와 기업의 재무건전성 향상이 수출기업들의 내수전환 가능성을 감소시키는 방향으로 작용할 수 있음을 시사한다. English Abstract: We empirically investigate the determinants of a firm’s exit from exporting, using Korean manufacturing firm-level data for the period of 2006 to 2014. Specifically, we estimate the effects of not only firm-level and industry-level characteristics but also macroeconomic variables on the probability that a firm stops exporting by applying a Complementary Log-Log Model analysis. The results of our estimation suggest that firm-level heterogeneity, such as workforce size, capital intensity, intangible assets and foreign ownership, industry-level variation, such as the labor displacement rate, and macroeconomic variables, such as domestic demand and world demand, significantly affect the possibility of a firm ceasing exports. Also, we show that market interest rates increase the possibility of an export cessation and that the effects of market interest rates are more pronounced on firms with higher debt ratio. In the primary exporting industries, the probability of a firm ceasing exports decreases as productivity at the firm rises.

한 · 미 · 일 제조업체의 집단주의 성향이 유통업체에 대한 영향전략과 장기지향성에 미치는 영향

한 · 미 · 일 제조업체의 집단주의 성향이 유통업체에 대한 영향전략과 장기지향성에 미치는 영향

Strategic Effects of Supply Chain Inventories on Sales Performance

This paper examines the non-linear relationship between a firm’s inventory and sales performance. Specifically, whether there exists an optimal level of inventory that maximizes sales performance is investigated. In order to better understand the effect of supply chain inventories on firm performance, three types of inventories: raw materials, work-in-process, and finished goods are separately considered. Analyzing the panel data set of 272 Korean manufacturing firms for the period 1996 to 2012, the following conclusions based on regression methodology has been drawn. After controlling for previous inventory, we find there exists an optimal level of current inventory that maximizes current firm profitability. Furthermore, it is examined whether the external competition level is high using clustering analysis. We find that the effects of supply chain inventories on performance are influenced by the competitive intensity of an industry. The results suggest that while all types of inventories show the non-linear effects on firm performance in the highly competitive market, only finished goods inventory shows significant effects on firm performance in the low competitive market. Our study provides empirical supports for how each type of inventories should be managed and contributes to the extant literature by suggesting managerial implications from a supply-chain perspective perspective for practical engineers and technical professionals.

Entrepreneurial Orientation, Resource Orchestration Capability, Environmental Dynamics and Firm Performance: A Test of Three-Way Interaction

This study investigated the effect of entrepreneurial orientation on firm performance with the firm resource orchestration capability and environmental dynamics in moderating roles. Using survey data collected from 301 Korean manufacturing and service firms, we devised a three-way interaction model to uncover the complex and dynamic conditions that maximize the effect of entrepreneurial orientation on firm performance. We found a positive association between entrepreneurial orientation and firm performance. Moreover, our findings indicated that both the firm resource orchestration capability and environmental dynamics played positive moderating roles in the above relationship. The results also showed that, in the case of a high level of environmental dynamics, entrepreneurial orientation was more positively related to firm performance for firms with a high resource orchestration capability. In addition, in the case of low resource orchestration capability, entrepreneurial orientation was associated more positively with firm performance for firms with high environmental dynamics. Thus, this study confirmed the importance of interaction between the three factors for enhancing firm performance. Furthermore, our investigation of substantial moderators provided key insights regarding the conditions that better explain how entrepreneurial orientation promotes firm performance. In addition to two-way interaction, the support for a three-way interaction suggests that moderators of the relationship interact to further explain the relationship. The theoretical and practical implications are discussed.

International Trade and Female Employment: Evidence from Korean Manufacturing Firms

우리나라는 여성고용률 제고가 긴요한 상황임에도 기업의 여성고용에 영향을 미치는 요인에 대한 분석이 부족한 실정이다. 이에 본 연구에서는 우리나라 제조기업의 성장동력으로서 중요한 역할을 하는 수출입이 기업의 여성고용에 미치는 영향을 2009-2016년 중 기업수준 데이터를 이용하여 실증분석하였다. 고정효과 패널모형 및 동태적 패널모형을 이용하여 추정한 결과, 기업의 수출비중이 높을수록 여성고용 비중이 높아지며, 그 영향은 여성노동 집약적 산업에서 더욱 크게 나타났다. 그러나 수입비중이 여성고용 비중에 미치는 영향은 유의하지 않았다. 이러한 결과는 여성노동 집약적 산업의 기업에 대한 수출지원이 여성고용률을 제고하는 데에 기여할 수 있음을 시사한다.