Browse > Article

A Study on the Effects of Entrepreneurship and Innovative Competence on Firm's Performance in Korean ICT SMEs: Focusing on Moderating Effect of Social Capital  

Roh, Doo-Hwan (ETRI, Commercialization Strategy Section)
Park, Ho-Young (ETRI, Commercialization Strategy Section)
Chang, Suk-Gwon (Hanyang Unversity, Business School)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.13, no.4, 2018 , pp. 217-231 More about this Journal
Abstract
In Korea, small and medium sized domestic enterprises(SMEs) play an pivotal role in the national economy, accounting for 99.8% of all enterprises, 87.9% of total employment, and 48.3% of production. and SMEs were driving a real force of the development of national economy in many respects such as innovation, job creation, industrial diversity, balanced regional development. Despite their crucial role in the national development, most of SMEs suffer from a lack of R&D capabilities and equipments as well as funding capacity. Government-Supported Research Institute(GRI) can provide SMEs with valuable supplementary technological knowledges and help them build technological capacities. so, In order to effectively support SMEs, government and GRI must be a priority to know about the factors influencing the performance related to technology transfer and technological collaborations. The purpose of this study is to analyze the influence of Innovative competences and CEO's entrepreneurship on Organizational performance in ICT small and medium enterprises, including the moderating effect of Social capital. This study adopted research variables such as Innovative competence, CEO's entrepreneurship as independent variables, with Organizational performance as a dependent variable, including the moderating variable of Social capital. 1,200 companies data which in the field of ICT SMEs were collected from the survey. The result of this empirical study is summarized as follows, First, CEO's entrepreneurship was confirmed to have a significant effect on organizational performance, and social capital variables were confirmed to have a moderating effect between entrepreneurship and organizational performance. Second, it was found that the company's Innovative competence was significantly affected the organizational performance. and also that social capital variables moderating effects. From these findings, it was confirmed that the Innovatibe competence plays an important role in influencing corporate performance.
Keywords
Innovative competence; CEO's entrepreneurship; Organizational performance; ICT SMEs; Social capital;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
연도 인용수 순위
1 Lumpkin, G. T., & Dess, G. G.(1996). Clarifying the Entrepreneurial Orientation Construct and Linking it to Performance, Academy of Management Review, 21(1), 135-172.   DOI
2 Inkpen, A. C. & Tsang, E. W. K.(2005). Social Capital, Networks, and Knowledge Transfer, Academy of Management Review, 30(1), 146-165   DOI
3 Middle, H.(2008). Collaborative Improvement: Action Learning in the Extended Manufacturing Enterprise. An Action Learning Approach, Ph. D. Thesis, University of Enschede.
4 Moon, H. S., & Park, J. B.(2014). R&D alliance performance Promoting Technology Commercialization in the Korean Private Sector, Issue Paper, kiet.
5 Moon, T. S., & Choi, S. M.(2009). The Influence of Core Competence on Organizational Performance of Domestic Small and Medium Enterprise and the Moderating Effect of Technology Transfer, Journal of Information System, 18(4), 1-18.   DOI
6 Morris, M. H. & G. W. Paul(1987). The relationship between entrepreneurship and marketing in established firms, Journal of Business Venturing, 2(3), 247-259.   DOI
7 Nahapiet, J., & Ghoshal, S.(1998). Social Capital, Intellectual Capital, and the Organizational Advantage, The Academy of Management Review, 23(2), 242-266.   DOI
8 Kim, S. K., Chang, B. Y., Lee, Y. J., Song, J. K., Ahn, D. H., Lee, K. H., & Choi, J. S.(2008). Open Innovation: Theory, Practices, and Policy Implications, STEPI.
9 Dess, G. G., & Lumpkin, G. T.(2005). The role of entrepreneurial orientation in stimulating effective corporate entrepreneurship, Academy of Management Executive, 19(1), 147-156.
10 Kim, M. S.(2012). Knowledge-based company's technology innovation strategy and case analysis in semiconductor IP industry, Journal of Korea Technology Innovation Society, 15(3), 500-532.
11 Yoon, H. D., & Seo, R. B.(2011). A Study of the Core Factors Affecting the Performance of Technology Management of Inno-Biz SMEs, Journal of Technology Innovation, 19(1), 111-144.
12 Roh, D. H., Hwang, K. H., & Park, H. Y.(2017). The impact of open innovation activities on performance of Korean IT SMEs.Venture: Technology Transfer Experiences and Technological Collaborations, Asia-Pacific Journal of Business and Venturing, 12(1), 33-46.
13 Sahin, I.(2010). Organizational Social Capital and Perceived Performance of Drug Law Enforcement Departments: A Case Study in Turkey, doctoral dissertation, University of Central Florida Orlando, Florida.
14 Sapinza, H. J., Smih, K. G., & Gannon, M. J.(1988). Using subjective evaluations of organizational performance in small business research. American Journal of Small Business, 12(3), 45-53.   DOI
15 Sung, T. K.(2002). The determinants of the firm's decision to carry out innovative activities in trems of the resource-based view(RBV) in strategic management, Journal of Technology Innovation, 10(2), 69-90.
16 Spann, M. S., Adams, M., & Souder, W. E.(1993). Improving Federal Technology Commercialization: Some Recommendations From A Field Study, Journal of Technology Transfer, 18(3), 63-74.   DOI
17 Sexton., D. R., & Bowman. N. B.(1986). Validation of Personality Index: Comparative Psychological Characteristic Analysis of Female Entrepreneurs, Managers, Entrepreneurship Student, and Business Students, Frontiers of Entrepreneurship Research, Wellesley, MA, Babson College
18 SMBA(2014). Overview of Budget and Fund in 2014, Seoul. SMBA.
19 KBIZ(2016). Yearly Report, Seoul. KBIZ.
20 KOVA(2016). Survey Report on SMEs of ICT Business, Seoul.
21 Laursen, K., & Salter, A.(2006). Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms, Strategic Management Journal, 27(1), 131-150.   DOI
22 Lee, Y. H., Kim, A. K., You, H. G., & Kim, M. R.(2007). Social Capital and Human Resource Management, Korea Research Institute for Vocational Education and Training, Seoul
23 Leiponen, A., & Helfat, C. E.(2010). Innovation Objectives, Knowledge Sources, and the Benefits of Breadth, Strategic Management Journal, 31(2), 224-236.   DOI
24 Hong, S. H.(2000). The Criteria for Selecting Appropriate Fit Indices in Structural Equation Modeling and Their Rationales, Korean Journal of Clinical Psychology, 19(1), 161-177.
25 Huh, M. G.(2011). Social Capital, Knowledge Creation, and Innovation, Korean Academy of Management, 19(1), 41-78.
26 Hwang, J. H.(2010). The conceptual study on relationship between social network, social capital, and knowledge transfer, Business Administration Research Institute, 3(1), 81-104.
27 Bagozzi, R. P., & Yi, Y.(1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94.   DOI
28 KBIZ(2016). Status of SMEs in 2016, Seoul, KBIZ.
29 Ahn, C. S., & Lee, Y. D.(2011). An Empirical Analysis of the Influence Factors on Open Innovation Activities in Korea, Journal of Korea Technology Innovation society, 14(3), 431-465.
30 Albert, S., Ashforth, B. E., & Dutton, J. E.(2000). Organizational identity and identification: Charting new waters and building new bridges, Academy of Management Review, 25(1), 13-17.   DOI
31 Oerlemans, L. A. G., Meeus, M. T. H., & Boekema, F. W. M.(1998). Do networks matter for innovation? the usefulness of the economic network appoarch in analysing innovation, Tijdschrift Voor Economishe en Sociale Geografie, 89(3), 298-309.   DOI
32 Zahra, S. A., & George, G.(1999). Manufacturing strategy and new venture performance: A comparison of independent and corporate ventures in the biotechnology industry. The Journal of High Technology Management Research, 10(2), 313-345.   DOI
33 Stam, W. & Elfring, T.(2008). Entrepreneurial Orientation and New Venture Performance: The Moderating Role of Intra- And Extraindustry Social Capital, Academy of Management Journal, 51(1), 97-111.   DOI
34 Stevenson, H. H., & J. C. Jarillo(1990). A Paradigm of Entrepreneurship : Entrepreneurial Management, Strategic Management Journal, 11(4), 17-27.
35 Cohen, W. M., & Levinthal, D. A.(1990). Absorptive capacity: a new perspective on learning and innovation, Administrative Science Quarterly, 35(1), 128-152.   DOI
36 Coleman, J. S.(1998). Foundations of Social Theory, Harvard University Press. Cambridge. MA.
37 Oke, A., Burke, G., & Myers, A.(2007). Innovation types and performance in growing UK SMEs, International Journal of Operations & Production Management, 27(7), 735-753.   DOI
38 Covin, J. G., & Slevin, D. P.(1989). Strategic Management of Small Firms in Hostile and Benign Environments, Strategic Management Journal, 10(1), 75-87.   DOI
39 Covin, J. G., & Slevin, D. P.(1991). A Conceptual Model of Entrepreneurship as Firm Behavior, Entrepreneurship: Theory and Practice, 16(1), 7-25.   DOI
40 De Clercq, D., Thingpapanl, N., & Dimov, D.(2009). When good conflict gets better and bad conflict becomes worse: The role of social capital in the conflict-innovation relationship, Journal of the Academy of Marketing Science, 37(3), 283-297.   DOI
41 Barney, J. B.(1991). Firm resources and sustainable competitive advantage, Journal of Management, 17(1), 99-120.   DOI
42 Burgelman, R., Christensen, C., & Wheelwright, S.(2009). Strategic Management of Technology and Innovation, New York: McGraw Hill Irwin.
43 Burns, T., & Stalker, G. M.(1961). The Management of Innovation, London: Tavistock Publishing.
44 Camison, C., & Lopez, A. V.(2010). An examination of the relationship between manufacturing flexibility and firm performance, International Journal of Operations & Production Management, 30(8), 853-878.   DOI
45 Chandler, G. N., & Hanks, S. H.(1993). Measuring the performance of emerging busiesses: A validation study, Journal of Business Venturing, 8(5), 391-408.   DOI
46 Chesbrough, H. W.(2003). OPEN INNOVATION: The New Imperative for Creating and Profiting from Technology, Harvard Business School Press.
47 Tsai, W.(2001). Knowledge transfer in intraorganizational networks: Effects of network position and absorptive capacity on business unit innovation and performance, Academy of Management Journal, 44(5), 996-1004.   DOI
48 Cho, B. K & Kim, S. H.(2016). The Impact of Social Capital on Open Innovation and New Product Development Performance, Journal of the Korean Production and Operations Management Society, 27(3), 383-405.
49 Yun, H. J., Lee, K. M., & Lee, C. W.(2012). Entrepreneurial Orientation and Firm Performance of Korean Business Ventures: Moderating Effects of Industry Dynamism and Alliance Diversity, The Journal of Small Business Innovation, 15(2), 23-44.
50 Tsai, W,. & Ghoshal, S.(1998). Social capital and value creation: The role of intra-firm networks. Academy of Management Journal, 41(4), 464-476   DOI
51 Park, J. K., & Lee, S. B.(2017). A Study on Effect of Technological Innovation Activities on Innovation Performance in Firms : Focused on the Moderating Effect of Innovation Resistance and Performance, Asia-Pacific Journal of Business and Venturing, 12(5), 89-99.
52 Park, W., Kim, E. J., & Park, H. Y.(2016). An Empirical Analysis of the Influence Factors on Private-Public R&D Collaboration of Small and Medium-Sized Enterprises in ICT Sector, Asia Pacific Journal of Small Business, 38(2), 25-44.
53 Park, H. B., Kang., J. S., & Kim, S. M.(2003). The Creation of Social Capital and Intellectual Capital, and their Effects on Organizational Performance Management, The Korea Public Administration Journal, 12(1), 3-35.
54 Putnam, R. D.(1995). Bowling alone: America's declining social capital, Journal of Democracy, 6(1), 65-78.   DOI
55 Frenz, M., & Ietto-Gillies, G.(2009). The Impact on Innovation Performance of Different Sources of Knowledge: Evidince from the UK Community Innovation Survey, Research Policy, 38(7), 1125-1135.   DOI
56 Robert, L.(2009). Social Capital and Business and Management: Setting a Research Agenda, International Journal of Management Reviews, 11(3), 247-273.   DOI
57 Rogers, M.(2004). Networks, Firm Size and Innovation, Small Business Economics, 22(1), 141-153.   DOI
58 Choi, J. Y.(2015). Relationship Analysis among Entrepreneurship, Innovation Capability, External Cooperation, and Technological Innovation Performance for Venture Companies, Asia-Pacific Journal of Business and Venturing, 10(5), 219-231.
59 Dess, G. G., & Robison, R. B.(1984). Measuring organizational performance in the absences of objective measures: The case of the privately-held firm and conglomerate business unit, Strategy Management Journal, 5(1), 265-273.   DOI
60 Fornell, C., & D. F. Larcker.(1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error, Journal of Marketing Research, 18(2), 39-50.   DOI
61 Frishammar, J., & S. A. Horte.(2007). The role of market orientation and entrepreneurial orientation for new product development performance in manufacturing firms, Technology Analysis & Strategic Management, 19(6), 765-788.   DOI
62 Gonzalez-Benito, O., Gonzalez-Benito, J., & Munoz-Gallego. P. A.(2009). Role of entrepreneurship and market orientation in firms' success, European Journal of Marketing, 43(3/4), 500-522.   DOI
63 Guan, J., Yam, R. Mok, C. K., & Ma, N.(2006). A study of the relationship between competitiveness and technological innovation capability based on DEA models, European Journal of Operational Research, 170(1), 971-986.   DOI
64 Granovetter, M.(1992). Problems of Explanation in Economic Sociology, In N. Nohria & R.Eccles (Eds.), Networks and Organizations: Structure, Form, and Action: 25-56. Boston, MA: Harvard Business School Press.
65 Grimpe, C., & Sofka, W.(2009). Search Patterns and Absorptive Capacity: Low and High Technology sectors in European Countries, Research Policy, 38(3), 495-506.   DOI
66 Guan, J., & Ma, N.(2003). Innovative capability and export performance of Chinese firms, Technovation, 23(9), 737-747.   DOI
67 Gupta, A. K., & Govindarajan, V.(1984). Business unit strategy, managerial characteristics, and business unit effectiveness at strategy implementation, Academy of Management Journal, 27(1), 25-41.   DOI
68 Hayduk(1987). L. A., Structural Equation Modeling with LISREL, Johns Hopkins University Press, Baltimore, MD.
69 Li, Y., Y. Zhao, J. Tan, & Y. Liu(2008). Moderating effects of entrepreneurial orientation on market orientation-performance linkage: Evidence from chinese small firms, Journal of Business Management, 46(1), 113-133.
70 Li, Y., H. Chen, Y. Liu & M. W. Peng(2014). Managerial Ties, Organizational Learning, and Opportunity Capture: A Social Capital Perspective, Asia Pacipic Journal of Management, 31(1), 271-291.   DOI
71 Van de Vrande, V., De Jong, J. P., Vanhaverbeke, W., & De Rochemont, M. (2009). Open innovation in SMEs: Trends, motives and management challenges. Technovation, 29(6-7), 423-437.   DOI
72 Lipparini, A., & Sobrero, M.(1994). The glue and the pieces: Entrepreneurship and innovation in small-firm networks, Journal of Business Venturing, 9(2), 125-140.   DOI
73 Lowe, J. & Taylor, P.(1998). R&D and technology purchase through licence agreements: complementary strategies and complementary assets, R&D Management, 28(4), 263-278.   DOI
74 Van Zyl, H. J. C., & B. Mathur-Helm.(2007). Exploring a conceptual model, based on the combined effects of entrepreneurial leadership, market orientation and relationship marketing orientation on south Africa's small tourism business performance, South African Journal of Business Management, 38(2), 17-24.   DOI
75 Wang, C., Lu, I., & Chen, C.(2008). Evaluating firm technological innovation capability under uncertainty, Technovation, 28(6), 349-363.   DOI
76 Wang, X., & Jessup L.(2014), A review and synthesis of entrepreneurship research: Towards an integrative model of dependent variables, Journal of Entrepreneurship, 23(2), 163-199.   DOI
77 Wiklund, J.(1999). The Sustainability of the Entrepreneurial Orientation-performance Relationship, Entrepreneurship: Theory and Practice, 24(1), 37-48.   DOI
78 Yam, R. C., Guan, J. C., Pun, K. F., & Tang, E. P. (2004). An audit of technological innovation capabilities in Chinese firms: some empirical findings in Beijing, China. Research Policy, 33(8), 1123-1140.   DOI
79 You, Y. Y., & Roh, J. W.(2010). The Analysis for the determinant Factors on the Outcome of Technology Innovation Among Small and Medium Manufacturers, The Journal of Society for e-Business Studies, 15(1), 61-87.
80 Yoo, H. L., & Park, S. J.(2007). A Study on the Performance Analysis of Supporting Policy for SMEs R&D: Focused on the Industry-University-Institute Consortium Program, Korean Public Administration Quarterly, 19(1), 171-196.
81 You, J. E.(2015). The Mediating Effect of Collective-Efficacy on the Relationship Between Social Capital and Organizational Commitment in Business Enterprises, BA, Hanyang University, 2015