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

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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
    Department of Systems Management Engineering, Sungkyunkwan University, Seoburo 2066, Suwon 16419, Korea)

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.

Suggested Citation

  • Chae Hyun Im & Keun Tae Cho, 2021. "Comparing and Identifying Influential Factors of Technological Innovation Efficiency in Manufacturing and Service Industries Using DEA: A Study of SMEs in South Korea," Sustainability, MDPI, vol. 13(23), pages 1-21, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:12945-:d:685624
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    Cited by:

    1. Xueling Guan & Lijiang Chen & Qing Xia & Zhaohui Qin, 2022. "Innovation Efficiency of Chinese Pharmaceutical Manufacturing Industry from the Perspective of Innovation Ecosystem," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    2. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
    3. Jinfa Li & Ruijie Qin & Hongbing Jiang, 2022. "Measurement of Innovation Efficiency in China’s Electronics and Communication Equipment Manufacturing Industry-Based on Dynamic Network SBM Model," Sustainability, MDPI, vol. 14(3), pages 1-18, January.
    4. Yuanyuan Chen & JungHyun Song, 2023. "The Technological Innovation Efficiency of China’s Renewable Energy Enterprises: An Estimation Based on a Three-Stage DEA Model," Sustainability, MDPI, vol. 15(8), pages 1-18, April.

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