The impact of technological capability on financial performance in the semiconductor industry

Jun Hong Park; Hyunseog Chung; Ki Hong Kim; Jin Ju Kim; Chulung Lee

doi:10.3390/su13020489

The impact of technological capability on financial performance in the semiconductor industry

Jun Hong Park, Hyunseog Chung, Ki Hong Kim, Jin Ju Kim, Chulung Lee

Research output: Contribution to journal › Article › peer-review

8 Citations (Scopus)

Abstract

The modern semiconductor industry is going through rapid changes as new markets and technologies appear. In this paper, such technology-intensive firms’ relationship between technological capability and financial performance is analyzed with regression analysis. Revenue and market capitalization are used as dependent variables. For the independent variables, the technological intensity, technological diversity, technological asset, and technological efficiency are used. The analysis results revealed different effects of technological capability on financial performance. Also, regression analysis is conducted by dividing firms into high and low groups based on technological asset and technological efficiency, and the analysis result revealed different effects of technological intensity and technological diversity on financial performance. For technological asset, the financial performance in the high group is affected more by technological intensity, and the financial performance in the low group is affected more by technological diversity. For technological efficiency, only the financial performance in the high group is affected by technological intensity. Although both groups’ financial performance is somewhat affected by technological diversity, there was no statistically significant differences between the groups. By separating the effect of technological capability on financial performance, this research can provide more detailed analysis results compared to previous literature and the methods of managing technological capability for semiconductor firms.

Original language	English
Article number	489
Pages (from-to)	1-20
Number of pages	20
Journal	Sustainability (Switzerland)
Volume	13
Issue number	2
DOIs	https://doi.org/10.3390/su13020489
Publication status	Published - 2021 Jan 2

Bibliographical note

Funding Information:
This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea Government (Ministry of Science and ICT) (No. NRF-2020R1F1A1076812). This work was also supported by a Korea University Grant.

Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland.

Keywords

Financial performance
Semiconductor firm
Technological asset
Technological capability
Technological diversity
Technological efficiency
Technological intensity

ASJC Scopus subject areas

Computer Science (miscellaneous)
Geography, Planning and Development
Renewable Energy, Sustainability and the Environment
Building and Construction
Environmental Science (miscellaneous)
Energy Engineering and Power Technology
Hardware and Architecture
Computer Networks and Communications
Management, Monitoring, Policy and Law

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.3390/su13020489

Cite this

@article{67150a1e3f544a8d839e58b4cca4b4e1,

title = "The impact of technological capability on financial performance in the semiconductor industry",

abstract = "The modern semiconductor industry is going through rapid changes as new markets and technologies appear. In this paper, such technology-intensive firms{\textquoteright} relationship between technological capability and financial performance is analyzed with regression analysis. Revenue and market capitalization are used as dependent variables. For the independent variables, the technological intensity, technological diversity, technological asset, and technological efficiency are used. The analysis results revealed different effects of technological capability on financial performance. Also, regression analysis is conducted by dividing firms into high and low groups based on technological asset and technological efficiency, and the analysis result revealed different effects of technological intensity and technological diversity on financial performance. For technological asset, the financial performance in the high group is affected more by technological intensity, and the financial performance in the low group is affected more by technological diversity. For technological efficiency, only the financial performance in the high group is affected by technological intensity. Although both groups{\textquoteright} financial performance is somewhat affected by technological diversity, there was no statistically significant differences between the groups. By separating the effect of technological capability on financial performance, this research can provide more detailed analysis results compared to previous literature and the methods of managing technological capability for semiconductor firms.",

keywords = "Financial performance, Semiconductor firm, Technological asset, Technological capability, Technological diversity, Technological efficiency, Technological intensity",

author = "Park, {Jun Hong} and Hyunseog Chung and Kim, {Ki Hong} and Kim, {Jin Ju} and Chulung Lee",

note = "Funding Information: This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea Government (Ministry of Science and ICT) (No. NRF-2020R1F1A1076812). This work was also supported by a Korea University Grant. Publisher Copyright: {\textcopyright} 2021 by the authors. Licensee MDPI, Basel, Switzerland.",

year = "2021",

month = jan,

day = "2",

doi = "10.3390/su13020489",

language = "English",

volume = "13",

pages = "1--20",

journal = "Sustainability (Switzerland)",

issn = "2071-1050",

publisher = "Multidisciplinary Digital Publishing Institute (MDPI)",

number = "2",

}

TY - JOUR

T1 - The impact of technological capability on financial performance in the semiconductor industry

AU - Park, Jun Hong

AU - Chung, Hyunseog

AU - Kim, Ki Hong

AU - Kim, Jin Ju

AU - Lee, Chulung

N1 - Funding Information: This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea Government (Ministry of Science and ICT) (No. NRF-2020R1F1A1076812). This work was also supported by a Korea University Grant. Publisher Copyright: © 2021 by the authors. Licensee MDPI, Basel, Switzerland.

PY - 2021/1/2

Y1 - 2021/1/2

N2 - The modern semiconductor industry is going through rapid changes as new markets and technologies appear. In this paper, such technology-intensive firms’ relationship between technological capability and financial performance is analyzed with regression analysis. Revenue and market capitalization are used as dependent variables. For the independent variables, the technological intensity, technological diversity, technological asset, and technological efficiency are used. The analysis results revealed different effects of technological capability on financial performance. Also, regression analysis is conducted by dividing firms into high and low groups based on technological asset and technological efficiency, and the analysis result revealed different effects of technological intensity and technological diversity on financial performance. For technological asset, the financial performance in the high group is affected more by technological intensity, and the financial performance in the low group is affected more by technological diversity. For technological efficiency, only the financial performance in the high group is affected by technological intensity. Although both groups’ financial performance is somewhat affected by technological diversity, there was no statistically significant differences between the groups. By separating the effect of technological capability on financial performance, this research can provide more detailed analysis results compared to previous literature and the methods of managing technological capability for semiconductor firms.

AB - The modern semiconductor industry is going through rapid changes as new markets and technologies appear. In this paper, such technology-intensive firms’ relationship between technological capability and financial performance is analyzed with regression analysis. Revenue and market capitalization are used as dependent variables. For the independent variables, the technological intensity, technological diversity, technological asset, and technological efficiency are used. The analysis results revealed different effects of technological capability on financial performance. Also, regression analysis is conducted by dividing firms into high and low groups based on technological asset and technological efficiency, and the analysis result revealed different effects of technological intensity and technological diversity on financial performance. For technological asset, the financial performance in the high group is affected more by technological intensity, and the financial performance in the low group is affected more by technological diversity. For technological efficiency, only the financial performance in the high group is affected by technological intensity. Although both groups’ financial performance is somewhat affected by technological diversity, there was no statistically significant differences between the groups. By separating the effect of technological capability on financial performance, this research can provide more detailed analysis results compared to previous literature and the methods of managing technological capability for semiconductor firms.

KW - Financial performance

KW - Semiconductor firm

KW - Technological asset

KW - Technological capability

KW - Technological diversity

KW - Technological efficiency

KW - Technological intensity

UR - http://www.scopus.com/inward/record.url?scp=85099166824&partnerID=8YFLogxK

U2 - 10.3390/su13020489

DO - 10.3390/su13020489

M3 - Article

AN - SCOPUS:85099166824

SN - 2071-1050

VL - 13

SP - 1

EP - 20

JO - Sustainability (Switzerland)

JF - Sustainability (Switzerland)

IS - 2

M1 - 489

ER -

The impact of technological capability on financial performance in the semiconductor industry

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this