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

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.