• Title/Summary/Keyword: Entrepreneurial Firms

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Strategies for High-growth Enterprises: Implications for Policy Initiatives in East Midland, UK (지역기반의 고성장 기업육성전략: 영국 중동부 지역의 정책적 시사점)

  • Rae, David;Kim, Jun Yeup
    • Journal of Korea Technology Innovation Society
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    • v.15 no.3
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    • pp.557-585
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    • 2012
  • This paper presents on the project to design an academy for high-growth businesses which is taking place in the East Midlands of the UK, sponsored by the Regional Development Agency (RDA). The research aims to design and commission a learning organisation which will stimulate and support entrepreneurial leadership and management skills in growing companies. The paper attempts to build a policy framework for a learning organisation which is centred on a community of high-growth firms' owners and managers acting as a support network. This approach is compared with existing high growth development programmes and recommendations are made for the development, funding and implementation of high-growth support programmes.

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Technology Adoption of InnovViz 2.0 : A Study of Mixed-Reality Visualization and Simulation System for Innovation Strategy with UTAUT Model

  • Savetpanuvong, Phannaphatr;Tanlamai, Uthai;Lursinsap, Chidchanok;Leelaphattarakij, Pairote;Kunarittipol, Wisit;Choochaisri, Supasate
    • Journal of Information Technology Applications and Management
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    • v.18 no.3
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    • pp.1-30
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    • 2011
  • InnovVizwas designed and developed anew as avisualization and simulationtool to present innovation and strategy information. The InnovViz system employs two key types of technology, namely mixed reality (MR) and neural network (NN). An experiment was conducted to examine the usability, acceptance and possible adoption of this new system. Participants comprised 4 experts from 4 top performing entrepreneurial firms and 161 master degree students from 2 leading universities. The study used a modified UTAUT model and a cognition and perception model. The results revealed that when the InnovViz was introduced, the key drivers to adoption are Facilitating Conditions (FC) and Voluntary to Use (VOL). Adequate knowledge and sufficient resources were found to strongly affect FC construct. The expert's rating of a firm's innovation and performance was more congruent with senior students with a technology-background than with a finance and accounting-background. InnovViz was seen as providing complex information with an ease of use and usefulness for showing data and assessment. Among the three types of visuals depicted by InnovViz, experts rated their usefulness in descending order as follows: Cube, Tetrahedron and Saturn. Finally, experts found backward simulation to be slightly more useful for assessment than forward simulation.

Venture Capital Syndicate Diversity: Three Types and their Effects on Performance (벤처 캐피탈 신디케이트의 다양성: 세 가지 범주와 성과에 미치는 영향)

  • Shin, Sang Yoon
    • The Journal of Small Business Innovation
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    • v.21 no.1
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    • pp.43-59
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    • 2018
  • This study investigates the relationship between venture capital (hereafter, VC) syndicate diversity and the IPO performance of an entrepreneurial company backed by the syndicate. Specifically, focusing on three types of diversity within a VC syndicate, which are aligned with Harrison and Klein's seminal categorization in 2007 (i.e., separation, variety, and disparity), this study suggests their distinct effects on performance. Two stage least square analyses with 1,127 VC syndicate investments made by 6,268 VC firms strongly supported the hypotheses. The results showed that that capacity diversity decreases the performance and that expertise diversity and network diversity increase it.

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Too Big to Fail: Succession Challenge in Large Family Businesses

  • NG, Hadi Cahyadi;TAN, Jacob Donald;SUGIARTO, Sugiarto;WIDJAJA, Anton Wachidin;PRAMONO, Rudy
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.1
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    • pp.199-206
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    • 2021
  • This study investigated the main concerns and strategies in Indonesian large family businesses to undertake intergenerational succession effectively. The research data was obtained to shed light on the incumbents' mindsets, key preferences, and experiences during the succession process. Access to incumbents of large family businesses that are conglomerates is scant. The preceding survey research was conducted to sensitize with the intricacy of the intergenerational succession process in large family businesses before entailing interpretative phenomenology analysis of qualitative data from interviews, observations, and field notes by approaching family members in five conglomerate groups that have major impacts on the economy. The findings explicate the incumbents' preferred criteria in choosing their successors as well as their perceived concerns revolving around the appointment. Additionally, the incumbents' succession approaches such as apprentice learning by successors, adaptability to external forces by successors, nurturing the entrepreneurial spirit in successors, governance establishment in the firms, business interest stimulation in successors, role modeling by incumbents, and collaboration between family and key non-family members are elicited during the intergenerational succession process. This study concluded with noteworthy implications for incumbents and successors in large family businesses, especially providing explicit criteria and strategies to appoint suitable successors, and suggesting potential avenues for future research.

An Empirical Study of Entrepreneurial Attitude on Business Process Outsourcing (중소벤처기업가의 BPO태도에 영향을 미치는 요인에 관한 연구)

  • Ryu, Jung Hwan;Yang, Jun Hwan
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.11 no.4
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    • pp.127-138
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    • 2016
  • Outsourcing enables firms to use external resources in efficient and effective manner by adopting the best practice of industry. It also helps firms improve their business process which may result in seizing or creating new business opportunity. Collaborating with outstanding BPO(business process outsourcing) providers offer a great deal of advantage that could access to new knowledge, technology, intellectual and material resources that firms do not own. This study was designed to provide in-dept understanding of key elements that may affect the attitude towards BPO of entrepreneurs using 99 samples comprised SME & Venture business owners. Specifically, this study aims to test and analyse the relationship between attitude towards BPO and 4 independent variables including cost reduction, core competence, specialized resources and quality improvement. The analysis results show that core competence, specialized resources and quality improvements have all positive relationships with the attitude towards BPO. However, exceptionally cost reduction is not associated positively with the attitude towards BPO which was against our expectation. Theoretical discussion and practical implication on the analysis results are provided.

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The Impact of Regulatory Approaches on Entrepreneurship and Iinnovation: In the Context of the Growth of Entrepreneurship in South Korea (규제방식이 창업기업의 진입 및 혁신에 미치는 영향: 한국 사례를 중심으로)

  • Kim, Yujin
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.17 no.4
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    • pp.1-16
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    • 2022
  • This paper studies the impact of regulatory approaches on innovation and entrepreneurship. As technological progress and environmental changes avail new business opportunities to innovative startups, many governments find it difficult to regulate new and unprecedented businesses promoted by the innovative firms. In order to provide academic and practitional implications on the regulatory design with which to support innovation and entrepreneurship, this paper aims to review classical theories on the demand and supply of regulation as well as empirical research on the impact of regulation on market entry and incentives for innovation. Based on the findings, this paper discusses the recent controversies around the regulatory approaches on new businesses pursued by startups, which are as known as the "positive regulatory approach" vs. "negative regulatory approaches" among practitioners and policy makers in Korea. This paper claims that the Korean context provides an useful opportunity to investigate how the ongoing transition of the once "fast follower" economy into a pacesetter one changes the nature of businesses pursued by firms, investors, and related market players and, accordingly, calls for the changes in the way the government intervenes in markets to regulate businesses of firms. By doing so, this paper sheds light on the role of the government in establishing an entrepreneurial ecosystem where innovative ideas of startups can be tested and nurtured.

The Concentration of Economic Power in Korea (경제력집중(經濟力集中) : 기본시각(基本視角)과 정책방향(政策方向))

  • Lee, Kyu-uck
    • KDI Journal of Economic Policy
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    • v.12 no.1
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    • pp.31-68
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    • 1990
  • The concentration of economic power takes the form of one or a few firms controlling a substantial portion of the economic resources and means in a certain economic area. At the same time, to the extent that these firms are owned by a few individuals, resource allocation can be manipulated by them rather than by the impersonal market mechanism. This will impair allocative efficiency, run counter to a decentralized market system and hamper the equitable distribution of wealth. Viewed from the historical evolution of Western capitalism in general, the concentration of economic power is a paradox in that it is a product of the free market system itself. The economic principle of natural discrimination works so that a few big firms preempt scarce resources and market opportunities. Prominent historical examples include trusts in America, Konzern in Germany and Zaibatsu in Japan in the early twentieth century. In other words, the concentration of economic power is the outcome as well as the antithesis of free competition. As long as judgment of the economic system at large depends upon the value systems of individuals, therefore, the issue of how to evaluate the concentration of economic power will inevitably be tinged with ideology. We have witnessed several different approaches to this problem such as communism, fascism and revised capitalism, and the last one seems to be the only surviving alternative. The concentration of economic power in Korea can be summarily represented by the "jaebol," namely, the conglomerate business group, the majority of whose member firms are monopolistic or oligopolistic in their respective markets and are owned by particular individuals. The jaebol has many dimensions in its size, but to sketch its magnitude, the share of the jaebol in the manufacturing sector reached 37.3% in shipment and 17.6% in employment as of 1989. The concentration of economic power can be ascribed to a number of causes. In the early stages of economic development, when the market system is immature, entrepreneurship must fill the gap inherent in the market in addition to performing its customary managerial function. Entrepreneurship of this sort is a scarce resource and becomes even more valuable as the target rate of economic growth gets higher. Entrepreneurship can neither be readily obtained in the market nor exhausted despite repeated use. Because of these peculiarities, economic power is bound to be concentrated in the hands of a few entrepreneurs and their business groups. It goes without saying, however, that the issue of whether the full exercise of money-making entrepreneurship is compatible with social mores is a different matter entirely. The rapidity of the concentration of economic power can also be traced to the diversification of business groups. The transplantation of advanced technology oriented toward mass production tends to saturate the small domestic market quite early and allows a firm to expand into new markets by making use of excess capacity and of monopoly profits. One of the reasons why the jaebol issue has become so acute in Korea lies in the nature of the government-business relationship. The Korean government has set economic development as its foremost national goal and, since then, has intervened profoundly in the private sector. Since most strategic industries promoted by the government required a huge capacity in technology, capital and manpower, big firms were favored over smaller firms, and the benefits of industrial policy naturally accrued to large business groups. The concentration of economic power which occured along the way was, therefore, not necessarily a product of the market system. At the same time, the concentration of ownership in business groups has been left largely intact as they have customarily met capital requirements by means of debt. The real advantage enjoyed by large business groups lies in synergy due to multiplant and multiproduct production. Even these effects, however, cannot always be considered socially optimal, as they offer disadvantages to other independent firms-for example, by foreclosing their markets. Moreover their fictitious or artificial advantages only aggravate the popular perception that most business groups have accumulated their wealth at the expense of the general public and under the behest of the government. Since Korea stands now at the threshold of establishing a full-fledged market economy along with political democracy, the phenomenon called the concentration of economic power must be correctly understood and the roles of business groups must be accordingly redefined. In doing so, we would do better to take a closer look at Japan which has experienced a demise of family-controlled Zaibatsu and a success with business groups(Kigyoshudan) whose ownership is dispersed among many firms and ultimately among the general public. The Japanese case cannot be an ideal model, but at least it gives us a good point of departure in that the issue of ownership is at the heart of the matter. In setting the basic direction of public policy aimed at controlling the concentration of economic power, one must harmonize efficiency and equity. Firm size in itself is not a problem, if it is dictated by efficiency considerations and if the firm behaves competitively in the market. As long as entrepreneurship is required for continuous economic growth and there is a discrepancy in entrepreneurial capacity among individuals, a concentration of economic power is bound to take place to some degree. Hence, the most effective way of reducing the inefficiency of business groups may be to impose competitive pressure on their activities. Concurrently, unless the concentration of ownership in business groups is scaled down, the seed of social discontent will still remain. Nevertheless, the dispersion of ownership requires a number of preconditions and, consequently, we must make consistent, long-term efforts on many fronts. We can suggest a long list of policy measures specifically designed to control the concentration of economic power. Whatever the policy may be, however, its intended effects will not be fully realized unless business groups abide by the moral code expected of socially responsible entrepreneurs. This is especially true, since the root of the problem of the excessive concentration of economic power lies outside the issue of efficiency, in problems concerning distribution, equity, and social justice.

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A Study on the Development of Industrial Clusters in the International Science and Business Belt through the Industrial Clustering Analysis (산업 클러스터링 분석을 통한 국제과학비즈니스벨트의 클러스터 발전 방향 연구)

  • Jung, Hye-Jin;Og, Joo-Young;Kim, Byung-Keun;Ji, Il-Yong
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.19 no.2
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    • pp.370-379
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    • 2018
  • The Korean government announced plans for the International Science Business Belt as a spatial area for promoting the linkage between scientific knowledge and commercialization in 2009. R&D and entrepreneurial activities are essential for the success of the International Science Business Belt. In particular, prioritizing the types of businesses is critical at the cluster establishment stage in that this largely affects the features and development of clusters comprising the International Science Business Belt. This research aims to predict the entry and growth of firms that specialize in four industrial clusters, including Big Science Cluster, Frontier Cluster, ICT Cluster, and Bio-Healthcare Cluster. For this purpose, we employ the Swann & Prevezer's industrial clustering model to identify sectors that affect the establishment and growth of industrial clusters in the International Science Business Belt, focusing on ICT, Bio-Healthcare and Frontier clusters. Data was collected from the 2014 Korean Innovation Survey (KIS) and University Alimi for the ICT cluster, 2014 National Bio Industry Survey and University Alimi for the Bio-Healthcare Cluster, and the 2015 National Nano Convergent Industry Survey and Annual Report of Nano Technology for the Frontier cluster. Empirical results show that the ICT service sector, bio process/equipment sector, and Nano electronic sector promote clustering in other sectors. Based on the analysis results, we discuss several policy implications and strategies that can attract relevant firms for the development of industrial clusters.

A Comparative Study on Organizational Climate and Corporate Entrepreneurship between Korean and Chinese SMEs (조직환경과 사내 기업가정신 간의 관계: 한국과 중국 중소기업의 비교연구)

  • Chang, Soo-Duck
    • Korean small business review
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    • v.39 no.2
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    • pp.139-160
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    • 2017
  • Today, changes in the environments surrounding companies are so uncertain that corporate entrepreneurship should be activated to enhance the competitiveness of firms and to improve their profitability. In particular, The practice of entrepreneurship by small and medium sized enterprises (hereafter SMEs) is suggested as an important factor for the enhancement of competitiveness of firms. In this context, this study examined the effects of the organizational climates on the entrepreneurship activities of SMEs in Korea and China. The data obtained from 300 SMEs in Korea and China through questionnaire surveys were analyzed. The results demonstrate that the organizational climates have significant positive effects on SMEs in the countries belonging to emerging markets such as Korea and China. However, the practice of corporate entrepreneurship could be manifested in diverse forms, such as innovation or strategic renewal, and the effects of organizational climates were shown to sightly different effects on the corporate entrepreneurship activities. In addition, SMEs in Korea and China, which belong to common cultural areas, did not show any statistically significant difference in organizational climates in general. Furthermore, the effects of these factors did not show significant differences in general. However, SMEs in Korea with more flexible organizational structures and higher job autonomy were shown to be more advantageous in practicing corporate entrepreneurship than those in China. The results of the study provide meaningful implications for SMEs in Korea in terms of the efforts that should be made to enhance their competitiveness, implement innovation, and achieve comparative advantages over China.

Location Decisions of Startups and Dynamics of Cluster Growth (기업가의 창업위치선택과 클러스터의 성장동력: 바이오벤처의 창업을 중심으로)

  • Sohn, Dong-Won
    • Journal of Technology Innovation
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    • v.17 no.1
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    • pp.69-95
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    • 2009
  • This paper examines the motives for location decisions of startups and dynamics of cluster growth. Because the location decision is intrinsically strategic choice by entrepreneurs, it is an interplay of three critical forces; cost-benefit of the choice, R&D ability of new entrants, and R&D capability of incumbents in clusters. The effect of knowledge spillovers influences the cluster growth like a double-edge sword; both a positive effect of technology learning and a negative effect of knowledge de-learning. Using data on 710 bio-tech venture firms in Korea, this paper tests the hypotheses about the factors influencing the growth of the cluster. The empirical analyses suggested that early entrepreneurial activity in the clustered regions were important, however other factors such as the organizational legacy, internal dynamics inside a cluster, and the existence of cooperation norm in the cluster, affected long term viability of the cluster.

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