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The Effects of the Government Funding on Venture Firms' Management Performance: Focusing on the Mediation Effect of Firms' Internal Competencies and the Moderation Effect of Firm's Growth Stage  

Lee, Younghun (Department of Management Consulting at Hanyang University)
Song, Eugene (Department of Management Consulting at Hanyang University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.14, no.2, 2019 , pp. 31-46 More about this Journal
Abstract
As the importance of venture firms has increased as a new growth engine, the South Korea government makes various efforts to establish healthy ecosystems for ventures and start-ups. Especially in order to foster the competitiveness of venture firms, various support policies such as financial and R&D expenses are being expanded and promoted. In this study, the author analyzed the impact of government funding on venture firms' internal competencies and management performance by using the resource-based theory. Moreover, this study tested the moderation effect of firm's growth stages. Unlike previous studies, this study focused on qualitative rather than quantitative aspects of internal competencies and the financial and non-financial performance are used to measure the management performance of the ventures to examine the effects of government funding for venture firms in more details. For the purpose of verifying the hypothesis of this research, "The Research On The Precision Status Of Venture Firms" in 2017 from the Ministry of Small and Medium Business was utilized, which has been compiled since 1999. According to the results of this study, the government funding experience did not significantly affect the company's internal competencies and financial performance, but had a significant impact on the non-financial performance, which in turn seemed to have a significant effect on the financial performance. In addition, it was found that the technology, price, design, and quality competencies affected non-financial performance, while the organizational management and marketing competencies did not. However, the price, design, organizational management, and marketing competencies affected financial performance, while the technology competency was not. Finally, there were no differences in the effectiveness of government funding, depending on the growth stages.
Keywords
Venture Firms; Internal Competencies; Growth Stages; Financial Performance; Non-financial Performance; Management Performance; Government Funding;
Citations & Related Records
Times Cited By KSCI : 5  (Citation Analysis)
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