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A Study on Management Performance Resulting from Technology Innovation Activities of Innovation Type SMEs by Growth Stages
  • - Hyesu Park (Konkuk University)
  • - Sun Young Park (Konkuk University)
[Abstract]
With the resources on hand varying from stage to stage, from the founding of the business all the way up to the stage of maturity and rather limited, innovation-type small- and medium-sized companies are subject to limitations on technological innovation activities by stages of growth. While numerous studies on the stages of growth have been conducted from the perspectives of business as an biological organism, those on productivity of investments in technological innovation seem to be few and far between. This study analyzed empirically effects of investments of corporate resources by stages of growth based on data from the detailed survey on the current status of venture companies for 2010 in order to ultimately maximize efficiency of investments in technological innovation activities of innovation-type small- and medium-sized companies.
The analysis of this study shows that innovation-type small- and medium-sized companies varied in terms of investments in technological innovation activities, expansion in manpower resources, cooperation with external networks, benefits from governmental support and management performance depending on stages of growth. At the same time, effects of major factors on management performance varied, depending on stages of growth. The findings of this study are summarized as follows: First, while research and development manpower, sales and marketing manpower and governmental support turned out to be effective at the stage of founding compared with other stages of growth, intellectual property rights did not turn out positively effective. Second, effects of sales and marketing manpower, manufacturing manpower, research and development manpower on management performance turned out to stay high. Third, while productivity of research and development manpower stayed high at the high growth stage, production and sales and marketing manpower fell in influence, compared with that at the stage of founding and early period of growth. However, intellectual property rights, and research and development manpower rose in influence. Such findings, which make it possible to compare relative influence stage by stage of growth could help make decisions in properly allotting corporate resources. However, the findings have yet to identify significance of technology innovation activities such as investments in research and development, and equipment and facilities, thus making it necessary to conduct further studies.
Entrepreneurship Orientation, Corporate Innovation Capacity and Sales Dependency from a Technological Cooperation Perspective of SME in Korea
  • - In Sue Kim (KAIST)
  • - Taeyong Yang (KAIST)
[Abstract]
This study examines the role of entrepreneurship orientation, corporate` innovation capacity and sales dependency from a technological cooperation perspective through the multiple regression analysis and binary logistic regression analysis in the sample of 1,358 Korea SME participating in the Venture Business Survey 2010. This study demonstrates that innovativeness, risk-taking, and pro-activeness, which consisted of entrepreneurship orientation, show that the significant on technological cooperation is contrary to each other. Especially pro-activeness shows a negative significant on the technological cooperation as a dependent variable. This study, therefore, contributes to the understanding of the strategies on the technological cooperation as well as provides what characteristics of entrepreneurship orientation and what corporate` innovation capacity are required from the open-innovation and absorptive capacity perspective.
SME¡¯s New Product Development Strategy : An Empirical Study on Radical and Incremental Innovation
  • - Seunghyeon Lee (Konkuk university)
  • - Sunyoung Park (Konkuk university)
[Abstract]
According to a recent statistical research of The Organization for Economic Co-operation Development (OECD), the trends of business innovation activities fosters marketing innovation in addition to traditional product innovation, process innovation, and organizational innovation. While the importance of the marketing innovation of companies in global developed markets has been realized, empirical studies on the topic are somewhat limited in numbers.
In this study, we performed an empirical analysis in the perspective of incremental and radical innovation of products focusing on the four key elements of marketing innovation framework, i.e. price, product, positioning and promotion (a.k.a. 4P¡¯s). Adapting the data of Korean Innovation Survey 2008 (KIS-2008) done by Science and Technology Policy Institute (STEPI), incremental and radical innovation were classified considering the existence of innovation in large corporations and small to medium-sized enterprises (SME). Identified explanatory variables were the size of company, the fund size of research and development (R&D) projected including outsourced ones, the number of employees in R&D groups, the competency of technology innovation primarily determined by the existence of independent research groups, the use of government supports, and so on. We applied Logit for the statistical model and then employed marginal probability effect, and simulation analysis as the follow-up analysis. The result is as follow:
First, while statistically significant explanatory variables were not found in the cases of large corporations for incremental innovation, some were found to be significant in the cases of SME; the use of government marketing supports, the number of employees in R&D, the size of operating profit, and the life cycle of flagship products.
Second, only one explanatory variable, the total number of employees, were found to be statistically significant in the case of large corporations for radical innovation. However, many were found to be significant in the case of SME; total number of employees, the amount of gross sales, the existence of R&D groups, the amount of operating profit, and the life cycle of flagship products.
Third, the distinct differences of large corporation and SME were also confirmed in the follow-up simulation analysis.
This study is significant in that it attempts to divide product innovation into incremental and radical innovation subtypes and statistical analysis on the two subtypes of innovation is performed in the framework of marketing innovation.
A study on the support plan for open innovation to vitalize business incubator
  • - Kyung Hwa Bae (Small and medium Business Corporation)
[Abstract]
Business incubation center in our country began to appear entering into 1990s and as a result of much development and various supports for short time for preliminary founders, many Business incubation centers, in quantitative aspect, are under activity. But though quantitative development, in qualitative aspect, differentiated strategy or open innovation policy are not been arranged yet to efficiently support companies in incubator centers. That is, service or support system stay at the level of providing cheap rent or basic management and technology consulting which have been provided until now. Accordingly, this study, for activation of Business incubation centers in Gyeongnam areas, tried to suggest specialized operation strategy and support program for Business incubation center necessary in technology business stage so that preliminary founders and technology business can be activated through open innovation from closed innovation in the past. As the words means, Open innovation means to receive existing technology or human resources from regional civil consultant or technology licensing office(TLO) rather than to develop technology by oneself or directly cultivate human resources. Compared to other regions, as mentioned before, key industries focusing on hardware are cultivated and there are some excellent human resources with technology centered on advanced industries in Gyeongnam. Especially, there are some human resources with technology who were retired from large size companies or human resources in public research centers. If the human resources and technology can be provided to companies in Business incubation centers in Gyeongnam areas, risks in the initial stage of foundation can be easily overcome. Accordingly, by exploring and providing technologies which can be commercialized by regional companies, R&BD business by technology outsourcing is proceeded. This base of industries focusing on software is not simply subordinate to industries focusing on hardware. By forming industry base focusing on software under open innovation system, internal and external technology transfer and change etc. can be accepted. In conclusion, for differentiation in operation of Business incubation center in Gyeongnam areas, it is necessary to shed existing operation of Business incubation center focused on the manufacturing industry. Differentiation is necessary towards support focused on various industries under open innovation system. Especially, recent creation industry with various forms would create synergy effects according to fusion of soft industrial structure along with industrial structure centered on existing large size facilities in Gyeongnam areas. Accordingly, centered on existing Business incubation centers in Gyeongnam areas, it is suggested to lure business companies in various business types entering into centers and to arrange effective support system for them.
A Typology of Entrepreneurship Education
  • - Byoungyoon Kim (Sogang University)
  • - Chulwoo Jeong (Sogang University)
  • - Sanghyun Lee (Sogang University)
  • - Kilsun Kim (Sogang University)
[Abstract]
As it is widely accepted that new start-ups can play an important role in regional development and employment, more universities and organizations offer entrepreneurial education. In order to accommodate in colleges the new education, which is offered as one of regular courses, they should go beyond teaching practical skills and know-hows on creating a venture and adjust the philosophy and operating principles of traditional higher education to the different needs and conditions of it. This study tries to figure out what changes are necessary in both higher education and entrepreneurial education for establishing entrepreneurial education in Korea, by analyzing US universities with more than the long experience of entrepreneurial education. Specifically, on top of desktop research on published materials, we suggest a typology of entrepreneurial education through interviews with professors in four entrepreneurial education programs of Silicon Valley. In addition, we look into conditions under which each type of the education has been shaped. Finally, we argue that a university which has been or would be operating an entrepreneurial education program, should take a strategic choice to its conditions and needs among entrepreneurial educations rather than model after the US entrepreneurial education.
A Study on the Impact of Consultant's Competencies on Service Quality and Performance of Consulting
  • - Dong ju Shin (Hansung University)
  • - Yen Yoo You (Hansung University)
[Abstract]
This research recognized the indispensable competitive intensification of middle and small consulting companies for national consulting industry's balanced development in a continuous growth, and judged systematic consultant training system and consultant retraining as an important issue for solving consulting quality problem, clarified if it is having effect upon consultant's competencies for the largest effect upon consulting performance, and upon among service quality and consulting performance and become useful for some researches developing future consultant's competencies and looking for service quality improvement plan.
This research with its targeted area uted variable examination through questionnaire for national companies with consulting experience, and concluded as following. First, it was identified that the consultant's competencies had positive effect upon consulting service quality. Second, it was verified for service quality to have positive effect upon consulting performance. It was appeared that all service quality of service reliability, service assurance, service tangibility, service empathy, service responsiveness has significant effect upon consulting performance. Third, consultant's competencies proved that it has positive effect upon consulting performance. Also, the most important consultant's competencies element for consulting performance proved to be consultant's competencies.
Likewise the result of this research proved the direct and indirect effect relationship among consultant's competencies, service quality and consulting performance not treated by the existing previous researches. It was identified that consultant's competencies elements such as ability, knowledge and attitude have the different effect upon service quality, consulting performance.
Trade Creation & Trade Diversion in Automobile Industry of SMEs under Korea-India CEPA
  • - Maeng Chul Gue (Korea Customs Service)
[Abstract]
Since the launch of WTO in 1995, the world's multilateral economic cooperation has been snagged by stakeholder's conflicting profits. In the meantime, regional economic cooperation has spread out so fast and wide through regional economic integration such as Customs or Free Trade Agreement. Beginning Korea-Chile FTA in 2004, Korea also got on the trend of regional integration, pursuing for an aggressive policy to create simultaneous and multilateral regional integration in short period of time, for which the trade dependency ratio of Korea is over 85% as of 2011. It is generally accepted that when tariff rate is eliminated or downed among member nations of FTA, the trade volume among the nations goes up, which is called trade creation effect. However, the existing trade volume with a third non-member nation might go down because of the increased trades within the economic integration with decreased or eliminated tariff rate, which is called trade diversion effect. This study is to see if there was trade creation or trade diversion effect in Automobile Industry of SMEs after the Korea-India FTA. In addition, it also measures the changes in Korean SMEs' comparative advantage in automobile industry through Revealed Comparative Advantage Index and Trade Specialization Index respectively.
An Exploratory Study on the Effects of Market Concentration in Retail and Distribution Market
  • - Jung Hee Lee (Chung Ang University)
  • - Seong Huyk Hwang (Chung Ang University)
[Abstract]
The purpose of this study is to examine the market concentration by large-scale retail companies with statistical data and to draw implications for effects of market concentration on Korean retail market. Korean retail and distribution industry has composed of small retailers and large-scale retail companies. small retailers are the majority of Korean market, while small number of large-scale retail companies carry on their business. Thus, the issue of market concentration by large-scale retailers would result in polarization problems between small & medium size retailers and large-scale retailers. In 2009, the proportion of large-scale retailers was not only 0.12% in Korea's retail market, while based on the sales amounts, large-scale retailers occupied 26.5%. This proportion was increased in 6.3%p, compared to 2001. And based on the operating profit, the labor productivity of large-scale retailers in 2009 increased by 115% compared to 2001, while that of small & medium size retailers decreased. The productivity of large scale retailers by store size also increased, while that of small & medium size retailers declined like a case of the labor productivity. For this reason, the large-scale retailers with buying power seize the initiative for price when opening negotiation with manufacturers. Such a oligopolistic structure of retail and distribution market in Korea might bring about fierce marketing-driven competition among retailers rather than sound competition. As a result, the possibility of over-consumption or impulse buying, which finally give consumers disadvantage, would be increased. Therefore, it will be needed to appropriately intervene in retail and distribution market by government to establish a fair stage competing with all participants in a retail market and to seek balanced development in terms of society.
Typology and Promotion Policies of Intellectual Property-based SMEs
  • - Yoo Jin Han (Sookmyung Women's University)
  • - Sung Sang Lee (Mokwon University)
[Abstract]
Nowadays, since SMEs can attain high value-added revenue by making good use of intellectual property(IP) with no big capital investment, a great deal of attention has been paid to the development of IP-based business models. However, as yet, they are not very active in Korea. Therefore, in this research, we categorize the representative IP-based services and draw policy implications based on the precedented examples. The IP-based services are divided into three, which are further subdivided into seven – patent troll, incubation, defense patent aggregation, IP holding company, litigation & negotiation agency, intermediation and transaction of IPs, and development and operation of IP derivatives. Then, the corporate cases of InterDigital, Intellectual Ventures, RPX, 3M IPC, Sisvel, Ocean Tomo, Royalty Pharma are shown. As major policy implications, the promotion of private IP trust businesses, the expansion of invention capital for IP-based services, the encouragement of companies and research institutions regarding the incubation model, and the capacity building of intermediaries with respect to the protection of IPs are proposed.
The research plan to secure the rights of local and traditional foods through New Intellectual Property Rights
  • - Kyo Young Ku ()
  • - Seo Yoen Bang ()
  • - Tae Seon Kim ()
  • - Sun Eung Kim ()
  • - Sung Woo Son ()
  • - Jong Hwan Hwang ()
[Abstract]
There are many legal restrictions on securing rights of traditional food. These restrictions are barriers of industrial development from traditional food to traditional industry. Fundamental reason for these barriers is that traditional food rights don't include intellectual rights, and granting rights is usually against reciprocity. In order to find out solutions to the problem, the study analyzes current system about traditional food and looks at case studies how some traditional food gained intellectual rights while some couldn't. After reviewing local and international trends on traditional food rights, the study tries to show the legal basis on intellectual rights of traditional food.
The Case of Lotte Mart' Shared Advance to China Market
  • - Sang Gil Jeon (Hanyang University)
[Abstract]
Recently, Lotte Mart has been successful to make SME's shared advance possible in China market. Through the in-depth interview with some of top managers and key members of the shared growth team, this case study initially tried to identify phased bottleneck problems as well as discussion agenda for the policy-making. The phases are divided into 4 steps such as document application and ion, licensing procedure, export clearing, Test-Marketing and acquiring stable market channel.