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Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 50, No. 2, pp.505-531
ISSN: 1226-1874 (Print)
Print publication date 30 Apr 2021
Received 31 Jul 2020 Revised 12 Jan 2021 Accepted 25 Jan 2021
DOI: https://doi.org/10.17287/kmr.2021.50.2.505

기업의 선도수준이 연구개발 투자와 미래성과 간의 관계에 미치는 영향

Hee-young Ma ; Ji-yeon Yoo
(First Author) National Tax Officials Training Institute gandatwo@gmail.com
(Corresponding Author) Department of Management Seowon University yoojiyeon@seowon.ac.kr
The Effect of Firm’s Leading Level on the Relationship Between R&D Investment and Future Performance


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 analyzes the impact of R&D investment on future performance according to industry leadership level. R&D investment is advantageous for firms with ample funds due to characteristics such as time lag, high cost, and uncertainty. Leading firms are more likely to raise funds and use more money than Followers, so they will try to maintain the advantages of leaders such as maintaining market share and increasing profitability through R&D investment. Therefore, R&D investment of leaders will have a more positive impact on future performance than followers.

The results of analysis are as follows. First, the R&D investments of leaders had more positive effects on future profitability than those of followers, and had significant effects on future profitability three years later. Second, the R&D investments of leaders had more positive effects on future productivity than those of followers. In addition, the results of analysis conducted after dividing industries into high-tech industries and low-tech industries were similar to those of the main analysis.

This study is meaningful in that it has found that R&D investment has a discriminatory effect on future profitability and productivity according to a firm's position in the industry.

Keywords:

R&D investment, Profitability, Productivity, Leaders, Followers

Acknowledgments

This paper is a development of the corresponding author’s doctoral dissertation.

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∙The author Hee-young Ma is currently working as an accounting professor at the National Tax Service Officials Institute. She earned Bachelor of business administration at Konkuk University. In addition, she obtained her master’s and doctorate in business administration at the Graduate School of Korea University. Her main research areas are earings management, audit quality, and tax strategy.

∙The author Ji-yeon Yoo is an Assistant Professor in the Department of Business Administration at Seowon University. She earned a Bachelor of Business Administration at Dongduk Women’s university. In addition, she obtained her master’s and doctorate in business administration from the Department of Accounting at the Graduate School of Hanyang University. Her main research areas are earning management and research and development expenses.