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http://dx.doi.org/10.20498/eajbe.2021.9.1.17

The Effect of SMEs' Slack Resource on Internationalization: Focusing on SMEs' Subcontracting Relationship  

KIM, Jae-Jin (Department of Business Administration, Hoseo University)
Publication Information
East Asian Journal of Business Economics (EAJBE) / v.9, no.1, 2021 , pp. 17-26 More about this Journal
Abstract
Purpose-This study examines how financial slack resources and subcontracting of small and medium-sized enterprises (SMEs) affect their internationalization. To identify slack resources, subcontracting, and internationalization of SMEs, 1,062 SME samples in the electronics industry are used in the logistic regression analysis to analyze their relationship with SMEs' export. Research design, data, and methodology-This study conducted the empirical analysis on 1,062 SMEs in the electronics industry using the sample survey method. The samples were based on data selected and distributed by the Ministry SMEs and Startups. The data analysis methods were descriptive, correlation analysis, and logistics regression analysis. Result-The analysis shows that only available resources are negatively related to SMEs' internationalization. It can be interpreted as a high tendency for SMEs to avoid relatively risky choices such as entering overseas markets if they have enough financial resources. Moreover, subcontracting has a negative relationship with internationalization. Conclusion-This study broadened the scope of SME research by analyzing subcontracting and slack resources together and provides practical implications for policymakers and managers.
Keywords
SMEs; Slack resource; Internationalization; Subcontracting;
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