Trend of Operating Efficiency in Korean Construction Firms, 2002-2013

The Impact of Generic Strategy and Firm Life Cycle on Operational Efficiency

“…This study classifies firm-year observations into three life cycle stages (Growth, Maturity, and Decline) using the following six descriptors commonly used in prior researches on firm life cycle [2,4,18]: sales growth, change in capital expenditure, market to book ratio, change in the number of employees, retained earnings ratio, and firm age. Classifying firm-year observations into the Growth, Maturity, and Decline stages by using the six descriptors is as follows:…”

“…Following prior studies [12][13][14][15][16][17][18], we select nine contextual variables that could moderate each efficiency score. Table 2 reports the factors affecting manufacturing firms' efficiency.…”

“…Prior studies have used sales revenue as output in estimating efficiency [12][13][14][15][16][17][18]. Regarding input, relevant studies in the context of manufacturing firms have utilized cost of goods sold (COGS), selling, general and administrative cost (SG&A), net property, plant and equipment (NPPE), and the number of employees (employee).…”