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Fabless Semiconductor Firms’ Financial Performance Determinant Factors: Product Platform Efficiency and Technological Capability

1
Graduate School of Management of Technology, Korea University, 145, Anam-ro, Seongbuk-gu, Seoul 02841, Korea
2
Korea Electronics Technology Institute, 25, Saenari-ro, Bundang-gu, Seongnam-si 13509, Korea
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Department of Industrial Management Engineering, Korea University, 145, Anam-ro, Seongbuk-gu, Seoul 02841, Korea
4
Division of Industrial Management Engineering, Korea University, 145, Anam-ro, Seongbuk-gu, Seoul 02841, Korea
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(10), 3373; https://doi.org/10.3390/su10103373
Received: 29 July 2018 / Revised: 9 September 2018 / Accepted: 18 September 2018 / Published: 20 September 2018
(This article belongs to the Section Economic and Business Aspects of Sustainability)
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. View Full-Text
Keywords: product platform efficiency; technological capability; technological assets; technology breadth; technology depth; fabless semiconductor firm product platform efficiency; technological capability; technological assets; technology breadth; technology depth; fabless semiconductor firm
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MDPI and ACS Style

Park, J.H.; Kook, S.H.; Im, H.; Eum, S.; Lee, C. Fabless Semiconductor Firms’ Financial Performance Determinant Factors: Product Platform Efficiency and Technological Capability. Sustainability 2018, 10, 3373. https://doi.org/10.3390/su10103373

AMA Style

Park JH, Kook SH, Im H, Eum S, Lee C. Fabless Semiconductor Firms’ Financial Performance Determinant Factors: Product Platform Efficiency and Technological Capability. Sustainability. 2018; 10(10):3373. https://doi.org/10.3390/su10103373

Chicago/Turabian Style

Park, Jun H., Sang H. Kook, Hyeonu Im, Soomin Eum, and Chulung Lee. 2018. "Fabless Semiconductor Firms’ Financial Performance Determinant Factors: Product Platform Efficiency and Technological Capability" Sustainability 10, no. 10: 3373. https://doi.org/10.3390/su10103373

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