Assessing Asset Management Efficiency and Labor Productivity in the Korean Steel Industry under Raw Material Price Volatility

Purpose – This study analyzes how supply chain uncertainty, particularly raw material price volatility during the COVID-19 pandemic, affects asset management efficiency and labor productivity across different firm size in Korea’s steel industry. Additionally, it examines how corporate resilience and financial efficiency interact under external shocks. Design/Methodology – Financial data from 47 Korean steel firms (large, mid-sized, and small enterprises) for 2019–2023 were analyzed. Asset management efficiency was assessed by employing Data Envelopment Analysis (using both CCR and BCC models), and productivity change was measured through the Malmquist Productivity Index (MPI). Labor productivity was calculated as revenue per employee, and firms were categorized into high- and low-efficiency groups for comparison. Findings – Firms with high asset management efficiency achieved superior labor productivity and stronger resilience to external shocks. The Malmquist analysis revealed distinct efficiency and productivity gaps by firm size. Large enterprises leveraged economies of scale for rapid recovery from COVID-19 disruptions, whereas mid-sized firms sustained efficiency through resource optimization. Small firms showed limited improvement in both measures. Based on MPI results for 47 Korean steel firms (2019–2023), the average total factor productivity growth reached 1.034, with a 2.8% gain in efficiency. Asset management efficiency was positively associated with labor productivity, particularly during periods of raw-material price volatility. Policy-wise, promoting digital asset governance and scale-tailored support programs could enhance supply-chain resilience in the Korean steel sector. Originality/value – This research highlights the strategic importance of operational management by connecting asset management efficiency with labor productivity, emphasizing its role in enhancing resilience and competitiveness in Korea’s steel industry amid global volatility.