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Analysis of the Factors Influencing the Management Characteristics of Tech SMEs in Determination of High-growth Firms: Focusing on Fourth Industrial Revolution Related Businesses and General SMEs  

Yoon, Sun-jung (Department, Korea Technology Finance Corporation)
Seo, Jong-hyen (Department of Business Administration, Korea Polytechnic University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.16, no.6, 2021 , pp. 157-175 More about this Journal
Abstract
This study categorized 3,214 companies out of the tech firms supported by the Korea Technology Finance Corporation's "technology guarantee scheme" through technology assessment from 2017 to 2019 into Fourth Industrial Revolution-related companies and general SMEs. The impact of the management characteristics of these 1,752 tech firms on the determination of high-growth firms was then empirically analyzed. This study used the OECD(2007) definition to define a "high-growth firm" as "an enterprise with average revenue growth greater than 20% per annum, over a two-year period." As the two sample groups showed non-normal distribution, this study conducted the Mann-Whitney U test, a nonparametric test, to analyze the mean differences and bivariate logistic regression in which the normality assumption is less stringent. The independent variables include fundamental characteristics; a regional dummy; a technological level dummy; and the capabilities of company representatives, human capital, and technological innovation. The corresponding sub-variables are representatives' level of education and experience in the same industry, full-time workers, research personnel, the extent of intellectual property rights, investment in research and development, firm age, total assets, region_metropolitan area, region_central region, technological level_high technology, and technological level_medium technology. As a result, the research hypothesis about representatives' level of experience in the same industry, full-time workers, total assets, and technological level_high technology was supported for the Fourth Industrial Revolution-related companies. For the general SMEs, the research hypothesis about representatives' level of experience in the same industry, research personnel, total assets, and region_metropolitan area was supported.
Keywords
High-growth firms; logistic regression analysis; Fourth Industrial Revolution; management characteristics; nonparametric tests;
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