R&D, Marketing, Strategic Planning, or Human Resources? Which CEO Career Is Most Helpful for the Economic Sustainability of ICT Startups in South Korea?

Abstract

The market performance of a company is greatly influenced by the functional experience of the chief executive. In the case of a small startup, the functional experience of the chief executive is even greater. Based on career data of chief executives, this study first classifies startups in the information and communication technology (ICT) industry into four different groups. In addition, this study analyzes the effect of the CEO's experience on the market performance of ICT startups by deriving the efficiency of each company using the financial data of ICT startups provided in the database. This study estimates the technical efficiency of each group using stochastic frontier analysis and then uses meta-frontier analysis to compare the efficiency of different groups. As a result, the CEO group with a career in strategy and planning showed the highest meta-frontier efficiency, whereas the CEO group with a career in R&D showed the lowest.