The purpose of this study is to define opportunity capturing process of entrepreneurs as a continuous process of 'problem recognition' and 'problem solution', and to examine the effect of preceding factors on problem recognition and the effect of problem solving on firm performance. We conducted empirical analysis to consider the following: 1) the relationship between problem recognition capability and problem solving capability; 2) a precedent factor influencing problem recognition capability (previous start-up experience, practical experience, knowledge); 3) the effect of problem solving capability and competitiveness of business model on innovation performance and financial performance of a start-up firm. First, the results shows that the higher the problem recognition capability, the higher the problem solving capability. Second, prior experience of starting a business of entrepreneurs directly affects the problem recognition capability, whereas the working experience indirectly improves the problem recognition capability by increasing the knowledge level. Third, problem solving capability of the start-up firms enhances innovation performance and financial performance indirectly by affecting the competitiveness of business model, rather than directly affecting firm performance. The results of the empirical analysis confirm that it is very important to identify the general problems people experience and analyze them in detail for sustainable growth and long-term survival of the enterprise. In addition, it is found that a company with a high level of problem recognition capability can form a virtuous cycle that leads to problem solving capability, business model competitiveness, and high corporate performance. Finally, in order to generate company’s performance, it is important to have competitiveness of business model such as originality, differentiation, technical completeness, market and ripple effects in industry.

In vertical industrial structure, moral hazard problem occurs either in upstream or downstream sectors. For example, for any wholesale price, the manufacturer do not internalize the externalities of his R&D investment. Then, the manufacturer provides too little innovation. This problem can also be applied to (downstream) promotional effort. The retailer causes the market demand to be small. Holmström (1982) suggest a marginal source (third party), which partially solves the multilateral moral hazard problem. In this paper, we search other instruments that can solve these problems, such as cooperative advertising or two-part tariff.

This study analyzed the status of venture capital investment and recovery to identify problems in venture and startup investment policies and found ways to enhance the effectiveness of venture or start-up investment policies. The amount of the Korea venture investment association is still higher than that of the start-up investment association. With only 50.5 percent of investment in the , passive investment is taking place.
Investment status by firm age has shown that investment in venture companies in the early stages of start-up has decreased and the proportion of investment in the latter phase increased. While the number of private venture capital registered companies is decreasing, that of the general corporations is increasing. The average return rate (IRR) of 706 s that disbanded from 2003 to 2017 is 3.8%, and the return rate of the start-up investment association is 3.0%, and the return rate of the Korea Venture Investment Association is 7.4%, more than double.
To enhance the effectiveness of venture and startup investment policies, asymmetric venture capital related laws and regulations are required. Currently, Korea needs to change regulations on the same function of venture capital to the same regulation to promote competition in venture capital and enhance capabilities to develop venture capital and create environment so that functions that support growth of venture businesses that invest in will work properly. In addition, there is a need to overhaul supporting laws related to small and medium-sized businesses that focus on deregulation, create private-led Mega funds, and expand opportunities for venture capital investment by innovative venture companies.
Meanwhile, the role of Ministry of SMEs and Startups should be strengthened so that it can effectively implement the initiative and overall coordination of venture and startup policies. The government should give the authority to supervise the budget for policy funds, including parent funds, through the operation of policy councils, and to adjust relevant laws to effectively coordinate related policies, institutions and laws.

The great paradigm of the economy is changing according to the change of the age and developments of the times. From past of a productive paradigm to recently a future-oriented paradigm. The development of mechanisms for economic growth based on the past created by the harmony of core capital and labor force is emerging. Beyond the convergence of information and knowledge with the wave of the 4th industry, all information and technology have converged to become a present and future oriented point that enables convergence of digital, bio, and physical systems. In this realistic situation, the growth of venture companies such as individuals and small entrepreneurs in economic and industrial areas in the country, it is becoming an important core industry and technical policy that can promote national development such as job creation and economic circulation in terms of enterprise. In recent years, domestic entrepreneurship trends have been rising, and the speed and size of entrepreneurial enterprises have been increasing. From this point of view, we will empirically analyze the increasing number of start-up companies, we examined the effects of entrepreneurship, entrepreneurship, and the experience of transferring entrepreneurship on entrepreneurship performance. As a result of the study, it is confirmed that there is a difference in the degree of entrepreneurship, enterprise capability and experience which are corporate resources in terms of resource-based theory, depending on each characteristic. It is found that the competence of the entrepreneur possessed by the entrepreneur has a high influence on the partnership and cooperation performance. This suggests that the competency of the entrepreneurs is the most important factor in corporate performance.

The purpose of this study is how to utilize AI (Artificial Intelligence) technology for raising up success ratio of new product development in view of SMEs (Small and Medium Enterprises). That is, This study focuses on whether PSS (Product-Service System) is still a useful driver of innovation strategy, from AI point of view, in this era of 4th Industrial Revolution. This study also focuses that, between ‘Servitization of Product’ and ‘Productization of Service’, which method is more adopted in performing development and innovation. Research adopted 3 methodologies simultaneously; case study, experiment and expert interview. The 101 cases, which used AI, were analyzed, experiment and interview were used as verification method. Findings were used in setting up methods of innovative product succeeding. This study proves that AI technology helps new product development through ‘productization of service’ method. This fact was more effective tool when applying to knowledge-based services. After analyzing 101 cases, we found that 83 cases pursued ‘Productization of Service’ which were able to overcome constraints of time and space. But SMEs didn’t use AI much due to the poor financial condition.

Rapid technological progress in the era of 4th Industrial Revolution is inducing fundamental changes in the sphere of production, such as techniques and behaviors of the agents in the sphere. These changes are also likely to induce further changes in status and structure of already existing industries. However, the problem is that most small businesses are not prepared for the innovations of 4th industrial revolution, though it is said that these firms are key to raising the domestic productivity. Small businesses suffer from manpower shortage when they put their personnel into training, lack of skilled human resource and financial constraint, thus setting limits to their capability to prepare for the 4th industrial revolution. This study offers an alternative way for small businesses to avoid such economic conflicts. We offer the concept of proactive service such an alternatives. Proactive service simply means providing service prior to the point of application. This approach does not incur much cost but also helps solving problems that can occur ex-post, thus with better results such as consumer satisfaction and cost reduction. Based on these advantages, this study argues for the necessity of proactive service. Given that this concept is not widespread yet the definition and details of proactive service will also be explained here through review of related literature. Furthermore this research will provide some actual cases of firms that are applying proactive service in their operation, and analyze the improvements this change brought to them. This concrete analysis of actual cases may help small businesses to develop further in current business environment.

Organizational ambidexterity has been argued to be the critical aspect of a firm’s long-term, superior performance. However, the conventional notion of organizational ambidexterity can hardly be applied directly to small- and medium-sized enterprises (SMEs), which largely suffer from resource constraints. How do SMEs achieve organizational ambidexterity when available resources are likely to be exhausted in everyday operations only to stay afloat? In this study, the concept of organizational ambidexterity is flipped to be reconceptualized and understood from the perspectives of SMEs. Instead of externally exploring for new opportunities and internally exploiting to achieve efficiency, internal exploration to create new opportunities and external exploitation of contingent opportunities in the environments are proposed for SMEs to achieve organizational ambidexterity under the challenge of constrained resources.