Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 49, No. 6, pp.1595-1620
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2020
Received 11 Mar 2020 Revised 07 Sep 2020 Accepted 15 Sep 2020
DOI: https://doi.org/10.17287/kmr.2020.49.6.1595

경쟁환경이 연구개발비 지출에 미치는 영향: 산업수준요소를 중심으로

Byoungyun Ha ; Cheolkyu Hong
(First Author) Ph.D. Candidate, Graduate School, Chung-Ang University byoungyun@empas.com
(Corresponding Author) Professor, College of Business & Economics, Chung-Ang University ckhong04@cau.ac.kr
The Effect of Competition on R&D Costs: Focusing on Industry-Level Factors


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This study examines the effects of competitive environment on R&D costs. R&D costs are a significant expense for companies to increase their competitiveness. However, there are few previous studies related to R&D costs and competitive environment. This study examines the effect of industry competition on R&D costs.

The results of this study are as follows. First, the R&D costs are high in the market with a large product differentiation strategy. The market with a high product differentiation strategy shows that R&D costs are increasing to secure competitive advantage. Second, the market with high entry barriers and R&D costs are positively related. Finally, market growth and R&D costs are positively related.

This study has the following contributions. This study is significant in that it shows empirically that the expenditure level of R&D costs can be changed from the perspective of the company's survival, focusing on the industrial level factor.

Keywords:

R&D, industry-level, product differentiation strategy, competition, market growth

Acknowledgments

This paper is written by revising and supplementing part of the first author’s doctoral thesis.

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∙ The author Byoungyun Ha is a doctoral candidate at Chung-Ang University. His research interests include Public Entities’ Strategy & Operations, Public Innovation, Performance management.

∙ The author Cheolkyu Hong is a professor of accounting at the College of Business & Economics, Chung-Ang University. He received his Ph.D in Accounting from London School of Economics. The main research areas are cost accounting, managerial accounting, Performance management/ evaluation, Public Entities’ management, Information communication public policy.