Profitability gains of Korean defense firms: Technological progress or cost shifting?

Jeong, Kyong-Ihn; Lee, Jeong‐Dong; Lee, Choonjoo

doi:10.1080/19761597.2010.9668699

Cited by 7 publications

(4 citation statements)

References 12 publications

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“…On the quantitative aspect, Jeong, Lee and Lee (2010) used stochastic frontier models (SFM) to analyse the influencing factors of the profitability of Korean defence enterprises and tested the hypothesis of national defence industry cost transfer based on the efficiency measurement method. Jeong et al (2010) pointed out that the average technical efficiency of the defence part was not significantly higher than the commercial part. Additionally, Jiong (2012) selected a panel data of 52 military-listed companies from 2008 to 2010 and used a multivarite linear regression model to empirically study the relationship between ownership structure and business performance of China's military-listed companies.…”

Section: Literature Reviewmentioning

confidence: 99%

The technical efficiency of military industrial enterprises: A civil–military integration perspective

Anaba

et al. 2019

South African Journal of Business Management

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Background: This article takes a look at the technical efficiency of 53 A-share listed companies of Chinese military industrial enterprises in the '10 Major Military-industrial Groups' based on the random Frontier B95 model and the panel data of listed companies from 2010 to 2015. Objectives:The research put forward five influencing factors, namely ownership structure, asset turnover, enterprise size, staff education and regional differences. Method:The article proposed five hypotheses to measure the technical efficiency of the military and civilian enterprises. Results:The results showed a gradual increase in the technical efficiency of sampled military industrial enterprises, even though the overall results were low with a decreasing scale income. There was a positive correlation between ownership concentration and the technical efficiency of military industrial enterprises, but not significant. However, the proportion of state-owned large shareholders and the technical efficiency of military industrial enterprises had a negative correlation and were not significant. Asset turnover ratio, firm size, employee education level and regional differences correlated positively with the technical efficiency of military industrial enterprises, and their influence was seen to be very important. Conclusion:The conclusion of the study provides an empirical basis for further studies enhancing the technical efficiency of military industrial enterprises in China.

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Section: Literature Reviewmentioning

confidence: 99%

The technical efficiency of military industrial enterprises: A civil–military integration perspective

Anaba

et al. 2019

South African Journal of Business Management

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“…Secondly, research has been carried out on the important role, institutional standards, influencing factors, and countermeasure research of military-civilian collaborative innovation. Mclvor [26] discussed the significance of the militarycivilian integration strategy and believed that militarycivilian collaborative innovation is conducive to the overall development of the national defense economy and the civilian economy; Jeong [27] took the trend of the technical efficiency of the Korean national defense firms in 1990-2005 as the research object by applying Stochastic Frontier Analysis (SFA). The results show that military-civilian collaborative innovation can effectively improve the speed of national technology innovation.…”

Section: Military-civilian Collaborative Innovationmentioning

confidence: 99%

The Cooperative Stability Evolutionary Game Analysis of the Military‐Civilian Collaborative Innovation for China’s Satellite Industry

Fang

Chan

2019

Mathematical Problems in Engineering

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The military-civilian collaborative innovation is an implementation path for most countries to develop strategic emerging industries. The satellite industry is an important area in strategic emerging industries. Based on the evolutionary game theory, we build an evolutionary game model of China's satellite industry military-civilian collaborative innovation with military enterprises and civil enterprises as the main participators under the bounded rationality. Then we analyze the long-term evolution of the system and the factors influencing cooperative stability and perform numerical simulation using Matlab. Our research shows that the cooperative stability of China's satellite industry military-civilian collaborative innovation is positively related to the cooperation revenue, liquidated damages, and government incentives and negatively related to basic income, R&D costs, information communication costs, technology secondary conversion costs, risk costs, and betrayal income. The reasonable income distribution coefficient is conducive to the cooperative stability, and we give a primary standard for government incentives. Finally, corresponding management implications are put forward.

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“…Many existing studies have measured the efficacy of CMI enterprises by applying the SFA or DEA model. For example, Jeong et al (2010) evaluated the technological innovation efficiency of the Korean military industry through the SFA method. They observed that the “reasonable equilibrium point” of designing strategically benefits the distribution mechanism and thus is essential for the effective allocation of innovation.…”

Section: Conceptual Views and An Overview Of The Literaturementioning

confidence: 99%

Measurement of innovation resource allocation efficiency in civil–military integration enterprises

Wang

Zhang

Jhony

2019

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Purpose As a transition economy, China is interested in allocating its limited innovation resources economically, reasonably and efficiently to produce as many outputs as possible with its limited financial and human resources. Nonetheless, what is the efficiency of the allocation of innovative resources for civil–military integration enterprises, and what factors hinder its efficiency improvement? The purpose of this paper is to explore these problems. Design/methodology/approach The improved two-stage network data envelopment analysis (DEA) method is used to measure the overall efficiency and stage efficiency of the innovation resource allocation of 58 Chinese civil–military integration listed companies from 2010 to 2016. Tobit model is used to analyze the influencing factors of resource allocation efficiency. Findings The results indicate that the overall efficiency and stage efficiency of innovation resource allocation fluctuate in varying degrees during the period. The optimization of overall efficiency is restricted by lower efficiency of innovation achievement transformation. Enterprise scale was found to have a significant negative impact on both overall and two-stage efficiencies. Proportion of research and development (R&D) personnel had a positive effect on the overall and two-stage efficiency. Government support had a significant positive effect on the stage of innovation resource development and overall efficiency. Originality/value Previous research studies have used either the DEA or stochastic frontier analysis method to measure the efficiency of innovation activities as a whole and ignored the stage of initial investment to final output in innovation activities. That is, the process in which initial input of R&D resources becomes innovation output, and then becomes economic benefits. Therefore, this paper studies the efficiency of innovation resource allocation of civil–military integration listed companies. The improved two-stage chain network DEA method and Tobit model were used.

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Profitability gains of Korean defense firms: Technological progress or cost shifting?

Cited by 7 publications

References 12 publications

The technical efficiency of military industrial enterprises: A civil–military integration perspective

The technical efficiency of military industrial enterprises: A civil–military integration perspective

The Cooperative Stability Evolutionary Game Analysis of the Military‐Civilian Collaborative Innovation for China’s Satellite Industry

Measurement of innovation resource allocation efficiency in civil–military integration enterprises

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