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Labor Union Effects on Innovation and Commercialization Productivity: An Integrated Propensity Score Matching and Two-Stage Data Envelopment Analysis

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  • Dongphil Chun

    (Policy Development Team, Division of Policy and Cooperation, Korea Research Institute of Chemical Technology (KRICT), Yuseong-gu, Daejeon 305-600, Korea)

  • Yanghon Chung

    (Korea Advanced Institute of Science and Technology, 291, Daehak-ro, Yuseong-gu, Daejeon 305-701, Korea)

  • Chungwon Woo

    (Korea Advanced Institute of Science and Technology, 291, Daehak-ro, Yuseong-gu, Daejeon 305-701, Korea)

  • Hangyeol Seo

    (Korea Advanced Institute of Science and Technology, 291, Daehak-ro, Yuseong-gu, Daejeon 305-701, Korea)

  • Hyesoo Ko

    (Korea Advanced Institute of Science and Technology, 291, Daehak-ro, Yuseong-gu, Daejeon 305-701, Korea)

Abstract

Research and development (R&D) is a critical factor in sustaining a firm’s competitive advantage. Accurate measurement of R&D productivity and investigation of its influencing factors are of value for R&D productivity improvements. This study is divided into two sections. The first section outlines the innovation and commercialization stages of firm-level R&D activities. This section analyzes the productivity of each stage using a propensity score matching (PSM) and two-stage data envelopment analysis (DEA) integrated model to solve the selection bias problem. Second, this study conducts a comparative analysis among subgroups categorized as labor unionized or non-labor unionized on productivity at each stage. We used Korea Innovation Survey (KIS) data for analysis using a sample of 400 Korean manufacturers. The key findings of this study include: (1) firm innovation and commercialization productivity are balanced and show relatively low innovation productivity; and (2) labor unions have a positive effect on commercialization productivity. Moreover, labor unions are an influential factor in determining manufacturing firms’ commercialization productivity.

Suggested Citation

  • Dongphil Chun & Yanghon Chung & Chungwon Woo & Hangyeol Seo & Hyesoo Ko, 2015. "Labor Union Effects on Innovation and Commercialization Productivity: An Integrated Propensity Score Matching and Two-Stage Data Envelopment Analysis," Sustainability, MDPI, vol. 7(5), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:5:p:5120-5138:d:48786
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