The impact of service R&D on the performance of Korean information communication technology small and medium enterprises

• Published in: Journal of engineering and technology management Vol. 28; no. 1; pp. 77 - 92
• Main Authors: Lee, Yeonhee, Kim, Sooyoung, Lee, Hyejin
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.03.2011; Elsevier Sequoia S.A
• Subjects: Categories; Financial performance; Hypotheses; Impact analysis; Information communication; Information communication technology firms; Information technology; Korean companies business performance; Management; R&D; Research & development; Research and development; Service industries; Service R&D; Small & medium sized enterprises-SME; SME; Structural equation modeling (SEM); Studies; South Korea; Korean companies business performance; Service R&D; Information communication technology firms; Structural equation modeling (SEM); SME; L86; L8; O; O32
• ISSN: 0923-4748; 1879-1719
• DOI: 10.1016/j.jengtecman.2010.12.005

In recent years, research and development (R&D) in the service industry has attracted a great deal of attention from both academia and industrial firms. However, compared to the manufacturing sector, little research exists on the implications of R&D for the financial and/or non-financial performance of firms in the service industry. The purpose of this study is to examine the impact of service R&D on the performance of information communication technology (ICT) firms. We identify five categories of R&D activities and investigate their impact on the financial and non-financial performance of 100 ICT firms, with a focus on small and medium enterprises (SMEs) in South Korea. We postulate positive relationships between R&D efforts and a firm's performance. However, the findings only partially support our hypotheses; unexpected results demonstrate that the presence of R&D management negatively influences a firm's performance. We present detailed statistical results and discuss the implications of the study.