Due to the rise of Information & Communication Technology (ICT) adoption in many fields, it is necessary to diagnose the informatization situations of corporations in agriculture and give suggestions for improvement. For this goal, surveys were designed and conducted to understand the current informatization situations of agriculture corporations in Korea. The survey covers the plan for utilizing information technology, the establishment of infrastructure for information technology, IT application status, and its effect on their performance. The specific focus of our research is to segment the corporations by their type of industries and their level of sales and give differentiated managerial implications for each segment. This is because the type of informatization and information technology assistance they need highly depends on their industry type and sales level. Based on descriptive statistics and regression analyses, tailored managerial and polic
In several industries, including the agriculture industry, information and communication technology (ICT) expenditure has been gradually increasing. This study explores the ICT investment of Korean agricultural corporations, and examines the effect of ICT investment on their profitability using an IT portfolio framework. As the organizational capabilities and environment in which ICT is used is critical in examining its impact, the IT-savvy level is used as a moderator. An increase in ICT investment size results in a significantly positive effect on profitability in organizations with higher IT-savvy levels, whereas there is no effect in organizations with lower IT-savvy levels. This study shows the necessity of understanding the structure of ICT investments in the agriculture industry, and suggests the importance of organizational capabilities and environment in making best use of ICT.
Agricultural corporations have been introduced to increase the productivity of farming via entrepreneurial farm management. There are two main subgroups of agricultural corporations. One is composed of farming association corporations and the other consists of agricultural corporation companies. Major tax incentives for agricultural corporations are as follows:
1. Exemption of corporate income tax.
2. Exemption of capital gains tax for farmland investment.
3. Reduction and exemption of dividend income tax for investors.
This study analyze factors influencing business performance by types of agricultural corporation for improving performance. The number of agricultural corporations have been increasing but their profitability has been decreasing. In this situation, it is important to analyze factors influencing business performance for improving their profitability. We estimate a model including financial indexes and corporation’s characters using ordinary least square. We use agricultural corporations survey data for 10years(2005~2014) of Statistics Korea. This study analyze bookkeeping recorded agricultural corporations for the same period. As a result, we find factors to influence Return on Assets(ROA). Additionally, we calculate optimized current ratio and debt ratio for ROA maximization. Operation period and the number of full-time workers also have a positive effect on ROA. Agricultural production, processing and distribution variables by business types have a positive effect on ROA, but some of their interaction terms have a negative effect on ROA. We expect that this result will help for improving corporation’s business performance.