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http://dx.doi.org/10.13106/jafeb.2020.vol7.no9.341

Small- and Medium-sized Firms' Internationalization and Performance during a Recession  

KIM, Yong-Young (Business Administration, Konkuk University Glocal Campus)
KIM, Young Ei (Department of Business Administration, Seoul Digital University)
OH, Ka Young (Economics and Trade, Konkuk University Glocal Campus)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.9, 2020 , pp. 341-350 More about this Journal
Abstract
This study aims to verify the relationship between overseas activities and performance of Korea's SMEs during the last financial crisis. Whether overseas activity performance of enterprises differed was determined based on characteristic variables, including the degree of concentration on R&D and marketing. This study also examined how SMEs' international transactions and their performance differed based on internal variable such as the level of stock holding and firm size. This study developed a model for analyzing the relationship between the level of internationalization and performance of Koran SMEs listed in the KOSDAQ. We used firm-level data, including annual reports and various data sources such as the KISVALUE program. To smooth annual fluctuations in accounting data, we used a three-year average from 2006 to 2009 for each variable in the study. The results showed that proactive overseas activities ultimately had a positive effect on an enterprise's performance, even though it initially had a negative effect. Therefore, enterprises should focus their capacity on R&D and marketing environment. Although numerous studies have focused on the relationship between overseas activities and performance of enterprises, the present study analyzed whether enterprises should continuously engage in overseas activities and what capacities they should strengthen during a global economic recession.
Keywords
External; Global Recession; Internationalization; Small- and Medium-sized Firms;
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