Comparing and Identifying Influential Factors of Technological Innovation Efficiency in Manufacturing and Service Industries Using DEA: A Study of SMEs in South Korea

Chae Hyun Im and Keun Tae Cho
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Chae Hyun Im: Graduate School of Management of Technology, Sungkyunkwan University, Seoburo 2066, Suwon 16419, Korea
Keun Tae Cho: Graduate School of Management of Technology, Sungkyunkwan University, Seoburo 2066, Suwon 16419, Korea

Sustainability, 2021, vol. 13, issue 23, 1-21

Abstract: Although technological innovation is critical for growth and future survival, small and medium scale enterprises (SMEs) are at a disadvantage compared to larger organizations given the resources available. It is important to examine the possible methods for making research and development more efficient. This study analyzes the technological innovation efficiency of SMEs in the manufacturing and service industries in South Korea and determines the factors affecting efficiency. The models of data envelopment analysis and Tobit regression analysis were used. According to the analysis results, the technical and pure technical efficiencies were higher in the service industry than in the manufacturing industry. The factors affecting efficiency were also different between the two industries. This study is significant because it evaluates the innovation activity efficiency of small and medium manufacturing and service companies in South Korea and provides specific criteria and a rationale to improve the efficiency.

Keywords: data envelopment analysis; DEA; small and medium-sized enterprises; technological innovation; efficiency (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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