ETRI Journal

Electronics and Telecommunications Research Institute (한국전자통신연구원)
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A New Venture Performance Model in the Korean Information and Telecommunications Industry

  • Park, Myeong-Cheol (School of Management, Information and Communications University) ;
  • Lee, Sang-Woo (School of Management, Information and Communications University)
  • Received : 2000.06.15
  • Published : 2000.12.31
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Abstract

In this paper, we investigate on the determinants of new venture performance empirically and suggest a new venture performance model in the Korean Information and Telecommunications (IT) industry. A total of seven hypotheses is established and tested using a combination of factor analysis, cluster analysis, analysis of variance, and correlation analysis. Ninety-two sample ventures in the Korean IT industry were investigated and analyzed to test hypotheses. We found that new ventures performance depends on their environment, strategy, internal resources factors, and, most importantly, two-way and three-way interactions of these factors. These findings could be interpreted as supporting the general strategy theory that when environment and internal resources and fitted, performance might be maximized and, further, strategy is the means that make internal resources and environment fit. The venture performance model presented in this paper can explain how new ventures achieve their successes. The strategic implications to the venture firms are also discussed.

Keywords

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