TY - JOUR
T1 - Fabless semiconductor firms' financial performance determinant factors
T2 - Product platform efficiency and technological capability
AU - Park, Jun Hong
AU - Kook, Sang Ho
AU - Im, Hyeonu
AU - Eum, Soomin
AU - Lee, Chulung
N1 - Funding Information:
This work was supported under the framework of international cooperation program managed by National Research Foundation of Korea (NRF-2016K2A9A2A11938449). National Research Foundation of Korea: NRF-2016K2A9A2A11938449
Publisher Copyright:
© 2018 by the authors.
PY - 2018/9/20
Y1 - 2018/9/20
N2 - The semiconductor industry is experiencing a rapid change since new markets and new technologies have emerged to give insights to product innovation. The semiconductor industry is now specializing into the integrated device manufacturer (IDM), fabless, and foundry sectors. We investigated the determinant factors that affect the financial performance of firms in the fabless sector, which is the most technology-intensive and product-oriented sector among the three sectors. The correlation among technological capability, product platform, and financial performance is analyzed by structural equation modeling. The data includes 17,256 patents from 2005 to 2014 and financial data from 2012 to 2016 from 57 firms that run businesses in the fabless sector. Specifically, technological capability includes technological assets, technology breadth, and technology depth. New product development occurs by applying product platform efficiency. Financial performance includes growth and profitability. The results show that advancing product platform efficiency brings positive effects to financial performance. Also, increasing technological depth and technological assets not only improve product platform efficiency, but also bring positive effects to financial performance. In addition, technological depth affected growth positively, and technological breadth affected profitability positively. The results show the direction that new product development strategy needs to take.
AB - The semiconductor industry is experiencing a rapid change since new markets and new technologies have emerged to give insights to product innovation. The semiconductor industry is now specializing into the integrated device manufacturer (IDM), fabless, and foundry sectors. We investigated the determinant factors that affect the financial performance of firms in the fabless sector, which is the most technology-intensive and product-oriented sector among the three sectors. The correlation among technological capability, product platform, and financial performance is analyzed by structural equation modeling. The data includes 17,256 patents from 2005 to 2014 and financial data from 2012 to 2016 from 57 firms that run businesses in the fabless sector. Specifically, technological capability includes technological assets, technology breadth, and technology depth. New product development occurs by applying product platform efficiency. Financial performance includes growth and profitability. The results show that advancing product platform efficiency brings positive effects to financial performance. Also, increasing technological depth and technological assets not only improve product platform efficiency, but also bring positive effects to financial performance. In addition, technological depth affected growth positively, and technological breadth affected profitability positively. The results show the direction that new product development strategy needs to take.
KW - Fabless semiconductor firm
KW - Product platform efficiency
KW - Technological assets
KW - Technological capability
KW - Technology breadth
KW - Technology depth
UR - http://www.scopus.com/inward/record.url?scp=85053708338&partnerID=8YFLogxK
U2 - 10.3390/su10103373
DO - 10.3390/su10103373
M3 - Article
AN - SCOPUS:85053708338
VL - 10
JO - Sustainability
JF - Sustainability
SN - 2071-1050
IS - 10
M1 - 3373
ER -
