Your browser does not support the PubReader view.
Go to this page to see a list of supporting browsers.
Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 50, No. 6, pp.1641-1668
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2021
Received 22 Jun 2021 Revised 05 Aug 2021 Accepted 20 Aug 2021
DOI: https://doi.org/10.17287/kmr.2021.50.6.1641

Dynamic Two-Stage Network DEA 모형을 활용한 양면성 조직의 효율성과 생산성 평가: 한국 핀테크 기업을 중심으로

Sung-Min Park ; Hongryol Cha
(First Author) Kyungpook National University, School of Business Administration bomsungmin@naver.com
(Corresponding Author) Kyungpook National University, School of Business Administration hongryol.cha@knu.ac.kr
Assessing Efficiency and Productivity of Ambidextrous Organizations Using a Dynamic Two-Stage Network DEA Model: Fintech Firms in Korea


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 paper examines the efficiency and productivity of ambidextrous organizations, focusing on Fintech firms in Korea. Using a dynamic two-stage network data envelopment analysis(DEA) model and a Malmquist Productivity Index(MPI), we measure the efficiency and productivity of Fintech firms that conduct ambidexterity strategy for sustainable growth under the technological and market uncertainty. From the ambidexterity perspective, we distinguish two stages of management processes: technology management (Stage 1 for exploration) and financial investment (Stage 2 for exploitation). We select a sample of 47 Fintech firms in Korea between 2016 and 2020, using the KIS-VALUE and WIPS ON databases. Our findings show that the period efficiency of Fintech firms has improved until 2018 but rapidly decreased during 2019 and 2020 when the firms could not enhance efficiency by balancing two stages. This study contributes to the interdisciplinary literature on strategic management and operation management with the new methodological approach of the dynamic two-stage network DEA model to measure efficiency and productivity of ambidextrous organizations and offers some insights for management and policymakers.

Keywords:

Fintech, Data Envelopment Analysis, Efficiency, Dynamic Network SBM, Malmquist Productivity Index

References

  • Adler, P., B. Goldoftas, and D. Levine(1999), “Flexibility Versus Efficiency? A Case Study of Model Changeovers in the Toyota Production System,” Organization Science, 10: 43-68. [https://doi.org/10.1287/orsc.10.1.43]
  • Bae, J., O. Park, and I. Hwang(2010), “Ambidextrous Innovation Strategy, High Commitment Human Resource Management System, and Firm Performance,” Korean Journal of Industrial Relations, 20(1), pp.21-52.
  • Banker, R. D., A. Charnes, and W. W. Cooper(1984), “Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis,” Management Science, 30(9), pp.1078-1092. [https://doi.org/10.1287/mnsc.30.9.1078]
  • Boumgarden, P., J. Nickerson, and T. R. Zenger (2012), “Sailing into the Wind: Exploring the Relationships among Ambidexterity, Vacillation, and Organizational Performance,” Strategic Management Journal, 33(6), pp.587-610. [https://doi.org/10.1002/smj.1972]
  • Brown, S. L., and K. M. Eisenhardt(1997), “The Art of Continuous Change: Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations,” Administrative Science Quarterly, 42(1), pp.1-34. [https://doi.org/10.2307/2393807]
  • Charnes, A., W. W. Cooper, and E. Rhodes(1978), “Measuring the Efficiency of Decision Making Units,” European Journal of Operational Research, 2(6), pp.429-444. [https://doi.org/10.1016/0377-2217(78)90138-8]
  • Chen, Y. and A. I. Ali(2004), “DEA Malmquist Productivity Measure: New Insights with an Application to Computer Industry,” European Journal of Operational Research, 159(1), pp.239-249. [https://doi.org/10.1016/S0377-2217(03)00406-5]
  • Choi, C-Y. and H-B. Ham(2015), “Theoretical Study on the Business Model of Fintech Enterprises,” The E-Business Studies, 16(4), pp.85-100. [https://doi.org/10.15719/geba.16.4.201508.85]
  • Chosun Biz, “Hundreds of Billions of Dollars Every Year... Companies Bend over to Keep Patents,” 2013. Available at https://biz.chosun.com/site/data/html_dir/2013/05/29/2013052903858.html
  • Chung, N-K.(2006), “Analysis of Korean SMEs' Financial Structure,” Journal of Social Science, 8, pp.407-429.
  • Edaily, “Startups with Patents, Growth Potential 35 Times, Sales Growth 3 Times,” 2019. Available at https://www.edaily.co.kr/news/read?newsId=02709286622488920&mediaCodeNo=257&OutLnkChk=Y
  • Fare, R., R. Färe, R. Fèare, S. Grosskopf, and C. K. Lovell(1994), Production Frontiers, Cambridge University Press, England. [https://doi.org/10.1017/CBO9780511551710]
  • Fukuyama, H., and W. L. Weber(2015), “Measuring Japanese Bank Performance: A Dynamic Network DEA Approach,” Journal of Productivity Analysis, 44(3), pp.249-264. [https://doi.org/10.1007/s11123-014-0403-1]
  • Gandhi, A. and R. Shankar(2014), “Efficiency Measurement of Indian Retailers Using Data Envelopment Analysis,” International Journal of Retail & Distribution Management, 42(6), pp.500-520. [https://doi.org/10.1108/IJRDM-10-2012-0094]
  • Gibson, C. B. and J. Birkinshaw(2004), “The Antecedents, Consequences, and Mediating Role of Organizational Ambidexterity,” Academy of Management Journal, 47(2), pp.209-226. [https://doi.org/10.5465/20159573]
  • Golany, B. and Y. Roll(1989), “An Application Procedure for DEA,” Omega, 17(3), pp.237-250. [https://doi.org/10.1016/0305-0483(89)90029-7]
  • Ha, S. W.(2010), “The Impact of Exploitation and Exploration on the Firm Performance: SMEs in the Korean Electronic Parts Industry,” Korean Management Review, 39(4), pp.907-937.
  • Hashimoto, A. and S. Haneda(2008), “Measuring the Change in R&D Efficiency of the Japanese Pharmaceutical Industry,” Research Policy, 37(10), pp.1829-1836. [https://doi.org/10.1016/j.respol.2008.08.004]
  • House, C. H. and Price, R. L.(2009). The HP Phenomenon: Innovation and Business Transformation, Stanford University Press. [https://doi.org/10.1515/9780804772617]
  • KITA Institute for International Trade, “Overcoming the Death Valley of IT Venture Companies and Its Implications,” 2015. Available at http://iit.kita.net/newtri2/report/iitreporter_view.jsp?sNo=1321&sClassification=7
  • Junggi Economy, “Patent Registration Cost Burdens for Firms,” 2016. Available at https://www.junggi.co.kr/article/articleView.html?no=12943
  • Kang, D-Y., and K-S. Lee(2019), “Efficiency Analysis for Certified Integrated Logistics Warehousing Firms Using DEA,” Journal of Korean Navigation and Port Research, 43(4), pp.256-263.
  • Kim, J., H. Kim, B. Leem, and J. Yoon(2012), “Analyzing the National Medical Service Efficiency of OECD Countries Using DEA and Malmquist Productivity Index,” Journal of the Korean Operations Research and Management Science Society, 37(4), pp.125-138. [https://doi.org/10.7737/JKORMS.2012.37.4.125]
  • Kim, J. Y.(2009), “Introduction to Business Management Analysis - Ⅱ. Corporate Activities and Financial Statements,” Plant Journal, 5(3), pp.17-24.
  • Kim, K-H., S-J. Hwang, and J. Lee(2018), “Efficiency and Productivity Analysis for Global Natural Gas Companies: Focusing on the 2 Step DEA Model and Malmquist Productivity Index Model,” Korean Journal of Business Administration, 31(2), pp.347-376. [https://doi.org/10.18032/kaaba.2018.31.2.347]
  • Kim. H. and W. Choi(2018), “The Effects of Ambidexterity of Exploitation and Exploration on Firm Performance Considering Organizational Learning Process - Focusing on Combination and Balance,” Korean Journal of Business Administration, 31(1), pp.201-224. [https://doi.org/10.18032/kaaba.2018.31.1.201]
  • Ko, K.(2017), Theory of Efficiency Analysis: Data Envelopment Analysis and Stochastic Frontier Analysis, MoonWooSa, Gyeonggi-do
  • The Korea Economic Daily, “Taeman Kim, President of Patent Development Institute. The Analysis of Competitors’ Technologies is the First Step in Patenting Policy,” 2020. Available at https://www.hankyung.com/it/article/2020122841431
  • Kuo, K. C., W. M. Lu, and T. N. Dinh(2020), “Firm Performance and Ownership Structure: Dynamic Network Data Envelopment Analysis Approach,” Managerial and Decision Economics, 41(4), pp.608-623. [https://doi.org/10.1002/mde.3124]
  • Korea Policy Briefing, “Fintech,” 2021. Available at https://www.korea.kr/special/policyCurationView.do?newsId=148865913
  • Lee B. H., S. W. Lee, and S. A. Wi(2014), “The Effect of Government R&D Supports on SME’s Technological Innovation Performance in Korea,” Asia-Pacific Journal of Business Venturing and Entrepreneurship, 9(5), pp.157-171.
  • Lee, J. V.(2013), DEA Management Efficiency. MyungJin, Seoul.
  • Lee, J-D. and Oh, D-H.(2010), Data Envelopment Analysis Theory, IB Book, Seoul.
  • Lee, K., M. Heo, Y. Hwangbo, and J. Jun(2016), “Understanding Fintech,” The Journal of Information Systems, 25(2), pp.173-189. [https://doi.org/10.5859/KAIS.2016.25.2.173]
  • Lee, S. B.(2021), “Aspects and Implications of Financial Innovation by Fintech,” Korea Capital Market Institute, 21(3), pp.1-77.
  • Malmquist, S.(1953), “Index Numbers and Indifference Surfaces,” Trabajos de Estadística, 4(2), pp.209-242. [https://doi.org/10.1007/BF03006863]
  • March, J. G.(1991), “Exploration and Exploitation in Organizational Learning,” Organization Science, 2(1), pp.71-87. [https://doi.org/10.1287/orsc.2.1.71]
  • Moon, K-M.(2011), “Invested Capital and Efficiency of Local Public Enterprises: Application of Slacks-Based Dynamic Data Envelopment Analysis Model,” Korean Journal of Policy Analysis and Evaluation, 21(2), pp.219-246.
  • Moon, S. M. and M. G. Huh(2013), “The Harmony between Exploitation and Exploration: Multidimensional Approach to Organizational Ambidexterity,” Korean Management Review, 42(1), 293-320.
  • MoneyS, “Jung Yu-shin, Chairman of Korea Fintech Support Center, Raises the Second Toss(A Leading Fintech Firm in Korea),” 2021. Available at https://moneys.mt.co.kr/news/mwView.php?no=2021061116078098991
  • Nourani, M., E. S. Devadason, and V. G. R. Chandran (2018), “Measuring Technical Efficiency of Insurance Companies Using Dynamic Network DEA: An Intermediation Approach,” Technological and Economic Development of Economy, 24(5), pp.1909-1940. [https://doi.org/10.3846/20294913.2017.1303649]
  • O’Reilly, C. A. and M. L. Tushman(2013), “Organizational Ambidexterity: Past, Present, and Future,” Academy of Management Perspectives, 27(4), pp.324–338. [https://doi.org/10.5465/amp.2013.0025]
  • Park, S. G.(2015), “Research on Fintech Industry Trends and Major Business Models,” Korea Multimedia Society, 19(1), pp.1-8.
  • Park, Y. T.(1996), “Concept Establishment and Systematization Model of Technology Management,” Science and Technology Policy Institute, 1, pp.1-63.
  • Reshadi, M.&and A. B. Espah(2012), “Dynamic DEA: Relative Efficiency Measure of Units,” Applied Mathematical Sciences, 6(55), pp.2719-2725.
  • Ryu, J.(2019), “Evolution of FinTech and Its Tax Implication - A Study on Crowdfunding, P2P Lending, and Blockchain,” Seoul Tax Law Review, 25(3), pp.529-582. [https://doi.org/10.16974/stlr.2019.25.3.012]
  • Sin, J-H. and S-J. Hwang(2017), “Measuring Financial Efficiency Using Directional Distance Function,” Korean Management Review, 46(5), pp.1427-1444. [https://doi.org/10.17287/kmr.2017.46.5.1427]
  • Song, K. S.(2015), “The Study on the Performance of Local Public Enterprises by using DEA-Malmquist Index,” Korean Journal of Policy Analysis and Evaluation, 25(4), pp.115-140.
  • Takouda, P. M. and M. Dia(2016), “Relative Efficiency of Hardware Retail Stores Chains in Canada,” International Journal of Operational Research, 27(1-2), pp.275-290. [https://doi.org/10.1504/IJOR.2016.078465]
  • Tone, K. and M. Tsutsui(2014), “Dynamic DEA with Network Structure: A Slacks-Based Measure Approach,” Omega, 42(1), pp.124-131. [https://doi.org/10.1016/j.omega.2013.04.002]
  • Tone, K. and M. Tsutsui(2009), “Network DEA: A Slacks-Based Measure Approach,” European Journal of Operational Research, 197(1), pp.243-252. [https://doi.org/10.1016/j.ejor.2008.05.027]
  • Tone, K. and M. Tsutsui(2010), “Dynamic DEA: A Slacks-Based Measure Approach,” Omega, 38(3-4), pp.145-156. [https://doi.org/10.1016/j.omega.2009.07.003]
  • Tone, K.(2001), “A Slacks-Based Measure of Efficiency in Data Envelopment Analysis,” European Journal of Operational Research, 130(3), pp.498-509. [https://doi.org/10.1016/S0377-2217(99)00407-5]
  • Tone, K., Q. L. Kweh, W. M. Lu, and I. W. K. Ting (2019), “Modeling Investments in the Dynamic Network Performance of Insurance Companies,” Omega, 88, pp.237-247. [https://doi.org/10.1016/j.omega.2018.09.005]
  • Tushman, M. L. and C. A. O’Reilly(1996), “Ambidextrous Organizations: Managing Evolutionary and Revolutionary Change,” California Management Review, 38(4), pp.8–29. [https://doi.org/10.2307/41165852]
  • Yang, J. C.(2006), “The Efficiency of SMEs in the Global Market: Measuring the Korean Performance,” Journal of Policy Modeling, 28(8), pp.861-876. [https://doi.org/10.1016/j.jpolmod.2006.07.004]
  • Yonhap News, “Korean Patent Trolls Make Technology Markets Chaos,” 2020. Available at https://www.yna.co.kr/view/AKR20201008045600063
  • You, T., Chen, X., and M. E. Holder(2010), “Efficiency and Its Determinants in Pharmaceutical Industries: Ownership, R&D, and Scale Economy,” Applied Economics, 42(17), pp.2217-2241. [https://doi.org/10.1080/00036840701765445]
  • White, M. A. and Bruton, G. D.(2011), The Management of Technology and Innovation: A Strategic Approach, 2nd ed. South-Western Cengage Learning, Mason, OH.

∙ The author Sung-Min Park is a BK21 FOUR Post-Doc in the School of Business Administration at Kyungpook National University. He received a master’s degree and a Ph.D. in Business Administration from Kyungpook National University. His research interests are efficiency, supply chains & service quality, and arts administration.

∙ The author Hongryol Cha is a BK21 FOUR Post-Doc in the School of Business Administration at Kyungpook National University. He received a master’s degree in Economics at Vanderbilt University and a Ph.D. in Business Administration from Temple University. His research interests are strategic management, international business, platforms, and business ecosystems.