The Role of R and D and Business Performance in Korean Electronics Companies
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Copyright: © 2020 Woosik Kim and Seok Yoon. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
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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- Business performance
- R and D investment