The Perception of Occupational Safety and Health (OSH) Regulation and Innovation Efficiency in the Construction Industry: Evidence from South Korea

Abstract

Due to safety issues in the construction industry, interest in research on occupational safety and health (OSH) regulations remains high. Previous studies indicated that OSH regulations not only affect performance in and of themselves, but also indirectly by increasing awareness of such regulations. Studies also demonstrated that OSH regulation can affect innovation and corporate safety. However, the effect of OSH regulation on innovation remains unclear, as the relationship between the perception of OSH regulation and innovation is not fully understood. This study measures the innovation efficiency of companies in the Korean construction industry using data envelopment analysis (DEA), and investigates the relationship between innovation efficiency and companies’ perceptions of OSH regulations. Results indicate that companies that positively recognize OSH regulations tend to be more innovative than those that do not. This study also validates differences in innovation efficiency depending on the perception of OSH regulations by bootstrap DEA. The results of this study suggest appropriate strategies to promote innovation in the construction industry from the perspectives of both government and practitioners in firms.