Research Article Open Access

The Role of R and D and Business Performance in Korean Electronics Companies

Woosik Kim1 and Seok Yoon1
  • 1 ,
American Journal of Applied Sciences
Volume 5 No. 7, 2008, 860-865

DOI: https://doi.org/10.3844/ajassp.2008.860.865

Submitted On: 25 November 2007 Published On: 31 July 2008

How to Cite: Kim, W. & Yoon, S. (2008). The Role of R and D and Business Performance in Korean Electronics Companies. American Journal of Applied Sciences, 5(7), 860-865. https://doi.org/10.3844/ajassp.2008.860.865

Abstract

This study examines the electronics industry in Korea with two points of view; management activity and research and development (R and D) activity for reviewing effectiveness and analyzes effects of R and D activity on business performance. The conclusion of the study shows (1) in terms of DEA measurement in order to compare with efficiency of business performance and R and D activity, those enterprises show high efficiency on their business performance record and low efficiency on their R and D activity. Most enterprises tend to have lower efficiency on R and D activity than business performance. That is to say, the result is in accord with Hypotheses 1 (H1). (2) In terms of effects of R and D activities on business performance, the management activity variable, there is a positive (+) correlation and a statistical significance existed. This result rejects Hypothesis 2 (H2) formulated in this study.

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Keywords

  • Business performance
  • efficiency
  • R and D investment