In this paper, we propose an architecture-based hypothesis of comparative advantage, which predicts that a good “fit” between “organizational capacities of manufacturing” that companies have built up over their histories product-process architecture (i.e., basic design concepts for product function, structures processes), tends to result in international competitiveness. Therefore, we attempt an empirical analysis that the net exports of Japan are relatively “Integral type.”
Concretely, we make an architecture spectrum indicator by the principal component analysis based on the answers to a corporate questionnaire (33 companies 254 products) uted in cooperation with the Ministry of Economy, Trade Industry. We also show the integral degree the modular degree of each product
Next, we performed regression analysis of the export ratio the architecture spectrum indicator by the assembly-industry products, by the process-industry products. The result supported the above-mentioned proposition. Moreover, for assembly-industry products a statistically significant result is obtained even by the regression analysis that includes the labor intensity variable. These results show that “The export ratio tended to rise both as the integral architecture indicator increases as the labor intensity levels rise for the assembly-industry products, where global competitiveness is strong.” These results have the possibility of suggesting a new development direction in international trade theory.

In this paper, we study empirically the relations between working capital management profitability of small medium firms listed on Korea Securities Market Kosdaq Market. The main results of this study can be summarized as follows.
We find that there are statistical significant relationships between each components of working capital management(accounts payable, inventory, accounts receivable, cash cycle, operating cycle) profitability of small medium firms. The lengthening the number of days accounts payable improve the small medium firms' profitability, the shortening the number of days of inventory, number of days accounts receivable, cash cycle operating cycle improve the small medium firms' profitability. Although controling the endogeneity problems, there are statistical significant relationships between each components of working capital management profitability of small medium firms. That is, the lengthening the number of days accounts payable improve the small medium firms' profitability, the shortening the number of days of inventory number of days accounts receivable improve the small medium firms' profitability. So to speak, the shortening operating cycle combined the number of days of inventory the number of days accounts receivable improve the small medium firms' profitability. Moreover, when market level of firms are accounted for, working capital management of small medium firms listed on Kosdaq Market are more important than small medium firms listed on Korea Securities Market.
Conclusively, working capital management may be recognized as a new factor which has the significant effects on profitability of Korea small medium firms. This evidence is consistent with Deloof's(2003) findings. Therefore, managers can create profits for their firms by hling correctly the cash cycle, the operating cycle, by keeping each components of working capital management to an optimum level.

This paper analyzes a bankruptcy prediction model for technology innovation SMEs. Using principal component analysis logit analysis with bankrupt non-bankrupt firms for 2005～2007 we investigate the effect of 16 technology level variables, 6 macroeconomic variables, 6 firm environmental variables of SMEs on the likelihood of bankruptcy.
According to empirical results we find that the predictive power of technology level variables is 72.9% while macroeconomic variables explain 65.3%. In addition, firm environmental variables slightly improve explanatory power by 3.1%.

This study examines the relation between cash holdings of the Korean Unlisted SMEs the set of financial factors identified, in extant research, to be significant in determining cash holdings for the Listed firms. Since a typical SME is operated by Owner-Manager has limited access to the capital market, the analysis in this study does not incorporate those factors associated either with diversities in corporate ownership structure or with idiosyncrasies in corporate governance structure. However, this study is distinct from contemporary Korean studies in that the factors examined include Zscore, which sts for an important feature of SME sustainability, as well as such traditional determinants like size, growth, debt/equity ratio, level variability of cash flows, working capital turnover period.
A total of 18,055 firm/year data, the sample in this study, consist of 5 year (2001～2005) financial data for 3,611 firms whose annual sales not exceeding 60 billion WONs (approximately €31.6 million equivalents). The results of the fixed effects regressions indicate that higher cash holdings are associated with bigger size, more favorable growth potential, lower debt/equity ratio, higher level of cash flows, more variable cash flows, shorter working capital turnover period, finally higher Zscore. Zscore is based on the model modified by Scherr Hulburt(2001) employed in Garcia-Teruel Martinez-Solano(2008). As far as the sampled firms are concerned, the results collectively seem to suggest that Korean SMEs with high cash holdings demonstrate characteristics of operationally financially sound firms.
This study possesses one more distinctive feature. A preliminary analysis does not register a significant relation between cash holdings debt/equity ratios, although the sign of the relation is negative. However, the negative relation becomes statistically significant in an extended set of tests which try to control potential non-linearity in the relation as reported in Guney et al.(2007).
The findings reported in this study seem to point out that cash holdings are symptomatic of either the degree of freedom from financial encumbrance or long-term sustainability allowed to Korean SMEs which enjoy limited access to the capital market. SMEs may simply not be in a position to weigh the opportunity costs of cash against the costs related to survival.

In this study, I considered arguments regarding export performance suggested by perspectives based on resources based view relational perspectives for Korean SMEs. The regression results show us that firm's R&D capability, product differentiation capacity are partially affecting its export performance. However, the firm's low cost capability international marketing alliance's capability would positively affect its export performance. These results show us that Korean SMEs in electronic industry are still depending on the low cost capacity rather than depending on product differentiation. Additional findings from the regressions suggest that the interaction between firms’ R&D capability as well as product differentiation capability its international marketing alliance's capability affect firm's export performance in negative way. These results show us that there might be some conflicts between the firm the alliances these conflicts could lead the negative affect on firm's export performance.

The researches on the factors of the procurement path choices have been increased since e-procurement, a new procurement fashion, is introduced. The previous researches have not much been interested in off-line procurement paths nor the domestic small midium enterprises (SME). In this paper, the factors of the e-procurement off-line procurement in the domestic SME are investigated. Some independent factors are derived based on the previous works, among them the 5 principal factors, market uncertainty, organization openness, the power of supplier, the scale of SME, are discriminated by multinomial logit analysis.

This paper examines an association of business performance with the satisfaction of SMEs' cost reduction government's support policies. Especially, we examine whether the satisfaction of government's support policies plays a role of a moderating effect on business performance.
We provide two main sets of insights. First, we find that the satisfaction of a cost reduction factor 1(motivation ability, ability of internal process efficiency, satisfaction of customer response ability) that the satisfaction of a government's support business factor 1(stard for a reasonable profit unit cost, satisfaction of support policy for high-quality labor technical development) have a positive effect on business performance.
Second, we find that the government's support policies, which are a government's support business factor1, have a moderating effect play an important role in enhancing business performance of SMEs.
Our Factor Analysis indicates that we have to consider the moderating effect of government's support policies the factors of cost reduction that affect business performance.

The Korean cultural industries have got a great performance in domestic foreign markets since 1998, with the active governmental policies. This can be evaluated that entrepreneurial activities of cultural professionals have found business opportunities in non-profit cultual areas transformed them into new markets. This paper tried to get some policy implication around improving the entrepreneurship in domestic cultural industries analyzing small medium firms of those industries implementing regression analysis with the data collected from broadcasting production firms. The results of the empirical test indicate that at the expansion stage of development of cultural industries, entrepreneurship would be a more important factor affecting the economic performance in them than any other factors. This paper would suggest that policy orientations which place importance on market-oriented components such entrepreneurship, such as supporting education training program for cultural professionals institutional system in market rather than supplier-oriented components such as offering public funds, hardware infrastructures.

The objective of this paper is to theoretically empirically explore the relationship between firm size, technological capability innovation. Through the facts that there are economies of scale in obtaining technological capability that technological capability innovation are dynamic complements in both ways, it can be predicted that (1) there will be differences in technological capability innovation performance between large small firms (2) there will be high probability for small firms to fall into 'low technology trap'. The firms in low technology trap cannot carry out innovation but also do not adjust themselves in changing circumstances. So, the implication for public policy for this paper is that there would be a urgent need for the policy of supporting the build-up of technological capability to small firms.

Most of domestic small medium-sized firms consider globalization only as an option. Since their customer groups are mostly natives, defending domestic market is prioritized over globalization. Such passive strategies, however, are driven by defending management mindset focusing only on short-term goals, resulting in confinements to domestic market even though firms are aware of needs to globalize. Slowdown of growth or retrogression due to the limits of domestic market is inescapable when confined. Aggressive internationalization securing global competitiveness through entrepreneurship is required to overcome these negative cycles. This research first inquires existing studies theories on entrepreneurship internationalization, analyzing current situation achievements of domestic medium-sized firms based on those inquiries. Examples of Genesis Lotteria in domestic market as well as AFP Provida Atlas Electrica in Latin America are provided. Also direct comparison between domestic foreign companies is provided by looking into Basic House Forever21, with examples of HuMax of Korea Logitech of Switzerl. This research presents strategies for management, especially for small medium-sized firms, by categorizing success factors of internationalizing into three domains; managers, core competencies, global strategies. Implications on much-needed entrepreneurship management attitudes based on business strategy theories can also be gained from this research.
On practical side, firms’ performance can be reviewed through discussing globalization needs strategic alternatives of domestic firms. Implications on policies to encourage entrepreneurship are suggested as well. Defining entrepreneurship from the view of business strategy, integration of theories in business strategy with international management will be the academic value of this research. Issues scope of further studies are provided on the final pages.

This is a case study of research-based spin-offs which are incorporated to commercialize the technologies developed in universities or research institutes. It examines their knowledge learning patterns factors to affect them. The firms ed for this study are Kael (Korea Atomic Energy Research Institute) as an example of spin-offs from public research institute, i-sens (Kwangwoon University), Viromed (Seoul National University), MarkAny (Sangmyung University) as three cases of university spin-offs. Through analyzing the cases ed, this study suggests theoretical implications on how successful research-based spin-offs are founded in Korea on what procedures they take as growing up. In particular, this study defines the growing process of research-based spin-offs as knowledge learning process; it classifies the knowledge that firms learn into five types such as basic technology knowledge, product knowledge, market knowledge, production knowledge, management knowledge; also, it divides the stages of growth into laboratory R&D stage, incorporation stage, market entry stage growth stage. By doing so, it is intensely examined that how each knowledge is learned in each stage what the internal external factors to either accelerate or hamper the process of firms' learning knowledge are.
Consequently, based on the discussions above, this study is to provide practical guidelines for entrepreneurs who attempt to start a business in a university or an institute external resource suppliers to boost research-based spin-offs.

eNtoB, an MRO e-commerce company, launched Ubinova in 2007, a unique B2B e-marketplace selling raw materials to SMEs with e-Biz guaranty insurance of Seoul Guarantee Insurance. But Ubinova got into big trouble in 2008 due mainly to the surge of customer bankruptcy. This study analysed Ubinova business to find out two most critical problems of the service, which were loss of dem aggregation adverse ion. The author analysed the causes consequences of the problems studied some ways to overcome those problems. Specifically, using a theoretical model on the development path of e-market the author searched for the long-term directions to follow to improve the business performance. Also through comparing the private company initiated Ubinova service with the public institute initiated e-commerce guarantee service of Korea Credit Guarantee Fund, the government sponsored fund, the author evaluated the value the meaning of Ubinova. The author concluded that the e-commerce guarantee service of Korea Credit Guarantee Fund had only focused on the financial support to the SMEs caused little improvement of SMEs' competitiveness by failing to save cost of purchase. The study suggests to introduce a new policy to induce the cost saving of purchase by combining the guarantee fund application registering the stardized purchase items.

SMEs as a “vital majority” play a central role in the growth engine of the national economy that leads innovation, generates jobs facilitates competitions. In case SMEs continue to grow soundly with challenge flexibility, it is possible to keep national economy society vital enhance sustainable developments.
Most of developed countries have been developing various policies to protect foster SMEs for social stability as well as free market economy. They have made commitments to amend laws for supporting small medium-sized enterprises. SMEs have been traditionally regarded as the “social weak” compared to large enterprises thought to be protected by the social policies.
Especially Korean government has established revised a number of SME-related laws for protecting fostering small medium-sized enterprises for nearly half a century. Nevertheless, the current SME laws are systematically complicated there may seem to be a lot of problems such as separation in contents between policies laws, contradictions duplications among laws, unnecessary regulations so on. It is also true that government has made lots of efforts attempts to improve SME laws legal systems. However, these measures have not reflected the perpectives of SMEs but done government's views. government has only focused on introducing laws for small medium-sized enterprises, whenever necessary, without fully making consideration for overall legal systems.
Various individual levels of SME laws should be complemented developed according to newly changing policy environments. At the same time, it is a major challenge to improve systems contents of SME laws from diverse points of view such as connection between Framework Act on Small medium Enterprises(SMEs) individual measures, policy relevance, effectiveness of a legal system, SME's accessibility, objective of laws policies, the reasonability of regulation in an overall law system. The present study tries to systemize SME laws as a whole, analyse current legal problems suggest ways of improvement from a different point of view. This study is meaningful to make SME's legal systems advanced.