Empirical Analysis of the Effect of an Evidence-Based Policy for a Wicked Problem—Lessons Learned from the South Korean Industry Policy History for the Structural Reform of Subcontracting Practice in the Software Industry

Songhee Kang, Jörn Altmann () and Gangmin Park
Additional contact information
Songhee Kang: Seoul National University
Jörn Altmann: Seoul National University
Gangmin Park: Software Policy and Research Institute

Journal of the Knowledge Economy, 2024, vol. 15, issue 3, No 101, 12809-12829

Abstract: Abstract The highly concentrated and stratified subcontracting structure, which successfully led to efficient production and excessive exports in South Korean manufacturing industries, represented by automobiles and heavy machinery, had difficulty replicating the same success in the software industry. In 2016, the government put a policy to reform the subcontracting structure to simplify the hierarchy and promote horizontal collaboration. We discuss the impact and implications through panel difference-in-differences analysis from 2013 to 2018 based on integrated dyadic transaction and financial data of 2,665 South Korean local software firms. Our research confirmed the effectiveness of the industrial structure reform policy. In our assessment of evidence-based policymaking, we focus on the often-overlooked perspective of the subcontractors. By comprehensively synthesising various industrial structure theories, the present study found that the optimal subcontracting collaboration structure differs according to the characteristics of industries. Also, designing evidence-based policies, even for wicked problems involving conflicting stakeholders, can obtain the expected outcomes if the policy-makers secure good evidence and support intermediary organisations such as cooperatives and associations.

Keywords: Subcontracting structure; Collaboration; Industry; Firm growth; Evidence-based policy making; Wicked problem (search for similar items in EconPapers)
JEL-codes: D02 L14 M21 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-023-01562-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01562-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-023-01562-9

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().