• Journal of Korea Trade
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• v.25 no.7
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• pp.1-18
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• 2021

Purpose - In this study, we explore the relationship between the degree of internationalization (DOI) and firm performance (DOI-P) of small and medium-sized enterprises (SMEs) in the manufacturing sector. Specifically, we investigate whether the costs and benefits dynamics concerning the internationalization of SMEs differ between high-tech and non-high-tech industries. Design/methodology - We extend the prior literature on this relationship by employing 5-year data on 589 Korean SMEs in the manufacturing sector and examining the moderating impact of the industry characteristics. Our findings reveal a U-shaped relationship between the DOI and SME performance. High-tech SMEs demonstrate an inverted U-shaped relationship, whereas non-hightech SMEs exhibit a U-shaped relationship. Findings - Our findings illustrate the importance of the industry factor in testing the performance impact of the internationalization of Korean SMEs. By incorporating industry dynamics, our results indicate that the DOI-P relationship depends on the context of the industry in which an SME operates. High-tech SMEs also display a higher DOI but are outperformed by non-high-tech SMEs for the entire internationalization path, which implies that high-tech SMEs face more challenges than non-high-tech SMEs while seeking internationalization. Originality/value - The findings strongly validate that significant benefits exist for SMEs undertaking internationalization. We also employ the contextual framework contributing to increasing the understanding of the intrinsic value of internationalization and resolving the mixed results issue on the DOI-P relationship, by illustrating that the industry factor leads to different dynamics of costs and benefits of SME internationalization; it also determines the shape and direction of the relationship.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.6 no.1
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• pp.109-132
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• 2011

While the resource-based view suggests that a firm's competitive advantage rests on a set of valuable, rare and inimitable resources more generally (Barney, 1991), research in new firms has more specially indicated a link between initial resources and early performance and survival (Bruderl and Schussler, 1990; Fichman and Levinthal, 1991; Carroll et al., 1996). The RBV primarily focuses on the particular resources, and their characteristics, that provide the potential for advantage (Conner, 1991). Yet in order to realize this advantage, organizations must not only develop their resources, but also effectively deploy them (Admit and Shoemaker, 1993). This suggests that advantage from resources may reside in both the input (resource development) side and the output (resource deployment) side. This research looks at venture survival as a function of both the resources a firm owns, and the resources it can access from others. We focus more specifically on technology resources, which are among a technology-based firm's most critical resources (Itami, 1987). In addition, technological knowledge can contribute a large portion of the value of a firm's products (Goodman and Lawless, 1994). We look at both the input and output side: the pool of technology resources that serve as an input to a firm's activities, and the market that values and purchases the output of this activity. We take an international perspective, examining whether resources explain internationalization on the input and output side, and in turn, whether this internationalization can explain survival. We explore three sets of questions. First, can survival in entrepreneurial firms be explained as a function of the resources a firm owns, and beyond that, to those the firm can access, and still further, to those the firm can access internationally? Second, do resources explain internationalization on both the input and output side? And finally, does internationalization explain survival? Implications for theory include extending the RBV to not only include a firm's resources, but its access to the resources of other entities. In addition, examining internationalization on both the input and output side enables us to understand not just the potential advantage of resources, but the manner in which they are deployed as a source of advantage. This research also contributes to the literature on international entrepreneurship by examining whether internationalization can explain survival for early stage firms. For practitioners, this research will provide insights on the importance of building alliances and, in so doing, broadening an organization's perspective about the technology resources available to the firm on the input side. The study will also inform practitioners about the value of maximizing the market for a firm's valuable resources. In addition, this research provides an extraordinary opportunity to access a large, comprehensive, and longitudinal dataset on technology-based ventures in Korea.

• The Journal of Fisheries Business Administration
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• v.22 no.2
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• pp.19-51
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• 1991

The objectives of the study are to look into the fisheries processing industry, analyze problems the industry has, and develop strategies for the industry to take care of the problems. The study was performed in two different dimensions : industry level and firm level. Nevertheless, the study focused on the following main problem areas raw material, production, technology development, internationalization, and managerial performance. The secondary data were utilized to analyze problems at the industry level, For analyzing the firm level situation, an empirical study by using a mail survey with a questionnaire was accomplished. The main problems found were as follows : First, difficulty in procuring raw material was the most serious and main problem. It was caused, externally, by the announcement of 200 nautical miles by most of fishery abundant countries and, internally, by drying fishery resources in the nation's coastal areas ; Second, the rate of fishery processing has been continuously increased and the degree of the processing has also been sophisticated, which implies the pattern of demand for the fishery has been changing widely and deeply. The industry, however, seemed to be unable to meet the consumers' satisfaction ; Third, with the importance of technology for ensuring the changing demands in the fishery processing industry, there has been little effort in research and development both at industry level and at the firm level ; Next, the industry has mainly involved in exporting in association with internationalization. Not to mention about foreign direct investment, technology transfer was not active ; Finaliy, most of firms were densely located in a few areas. The managerical performance in terms of main financial ratios still needs to be improved. Thus, strategies, which would take care of the repective problems, were developed. At industry level, the strategies were developed by reasoning mostly based on the findings from the literature survey. A scheme for internationalization of the firms was suggested. This was made by extracting the factors which would differentiate the firms' internationalization stages. In order to achieve this analysis, discriminant approach was employed. Despite the utility of the findings, it was mostly emphasized that harmonious efforts among government, the industry supporting institutions such as banks, and firms are needed for the successful operation of the strategies. Also, a list of areas for further study was provided especially in relation to the validity threatening parts of the study.

• Journal of Digital Convergence
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• v.14 no.6
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• pp.109-118
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• 2016

The purpose of this study was to examine the relationship between corporate social responsibility and internationalization. The companies executed the CSR activity using the published index of economic justice (KEJI index) surveyed from 2013 to 2014. A total of 286 companies were included in the study. Results are as follows. First, the degree of internationalization groups showed significant differences. It found that the higher the proportion of international companies showed positively CSR activities. Especially, It found that environmental management and customer protection showed positively performed. Second, environmental management and customer protection showed positive effect on firm internationalization. It found that the higher the proportion of international companies thought environmental management and customer protection activity were more important. This study proposed that CSR activity are very important in firm performance. It showed CSR activities and strategy are presented for sustainable management.

• International Commerce and Information Review
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• v.15 no.4
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• pp.509-532
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• 2013

This paper analyzed the functional global entry process of firms by real business cases. We reviewed the global firm Zara and Uniqlo's functional global entry process by Malnight (1995) four-step model which is composed of appendage, participation, contribution, integration stages. We found that both Zara and Uniqlo made successful internationalization using integrated global value chain. However, Zara maintained the home-initiated internationalization strategy on whole value chain, Uniqlo operated subsidiary-initiated functional strategy in specific value chain activities. This study suggests that internationalization occurs at the level of the function, rather than the firm. In addition, this study suggests practical implication to Korean fashion firms that global firms should maintain the functional global entry strategy basing on firm's internationalization steps.

• East Asian Journal of Business Economics (EAJBE)
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• v.6 no.4
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• pp.13-24
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• 2018

Purpose - This study investigates the moderation effect of internal factor, a firms size, on the external knowledge sourcing strategy and its effectiveness in generating radical innovation. We incorporate concepts of breadth and depth as two measures to gauge the degree of openness in firms external search Research design and methodology - The dependent variable in the regression model is the percentage of innovative sales and therefore, Tobit regression is employed for estimating significant factors affecting on the ratio of first-to-market by breadth and depth in external knowledge, internationalization, and size. Results - The results show that the external knowledge, in terms of both breadth and depth, has a positive relationship with radical innovation. However internationalization as external knowledge resources is not statistically accepted. Firm size has moderating effect on innovation negatively only in case of using external knowledge resources to a high degree. Conclusions - Firms obtain external information mostly from customers, competitors, and suppliers etc. empirical knowledge in terms of scope and intensity is an important contributor to innovation. And intensity use of external knowledge and information resources can work in favor of smaller firms rather than larger ones. Internationalization seems to have little effect on innovation but it requires further researches with clear criteria and more data.

• International Commerce and Information Review
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• v.14 no.2
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• pp.55-79
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• 2012

The previous studies based on a resource-based view of firm highlighted the role of resources within a firm in creating and sustaining competitive advantage. Recent research, however, the relational view points to the importance of inter-firm sources(or relational capital) in creating firm competitiveness. In international business field, the studies on born-global firms also states that when firms are lack of ownership-specific advantages in their internationalization process, they resort to the external partners and social networks to complement their resource scarcity. By adopting the relational view and born-global firms concept, a network-based approach needs to be applied to explain the international strategy of Korean service firms. This is because most of Korean service firms own less ownership-specific advantages than global competitors. This study proposes Korean firms' global network building and exploiting strategy to enhance their international stages of development. The network, for example, Global Korean Tourism Network, enables network members access to the valuable resources and capabilities they are lack of when undergoing internationalization process. This study's contribution is along two dimension. First, even global Korean network is emerging as a major issue in recent years, we could not figure out how to build global Korean network for service firms. This studies gives an answer. Second, we derived what benefits can be gained from the network if Global Korean Tourism Network is developed for hotel, tourism, convention firms' internationalization.

• Fourth Industrial Review
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• v.1 no.2
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• pp.21-32
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• 2021

Purpose - International diversification, a critical issue in research and practice, undoubtedly represents a growth strategy with great potential impact on firm performance. Although the literature has widely examined the relationship between international diversification and firm performance in international business and strategic management research, it remains unconfirmed. This study, therefore, aims to clarify the relationship as it relates to information service firms. Research design, data and methodology - To examine the international diversification-performance relationship, this study uses a sample of major Korean service firms spread over four industries spanning a period of five years between 2005 and 2009. In this study. generalized least square was used to analyze the relationship between international diversification and performance of service firms. Result - The result showed the U-shaped curvilinear form between international diversification and performance in service firms. Especially, IT service firms may differ from other service firms that the negative effect of internationality may have weaker than other types of service firm. Conclusion - Based on the empirical results, the U-shape relationship between international diversification and performance is confirmed in Korea service firms. Furthermore, information service firm may reduce the initial internationalization cost by transferring codified and digitized information using information and communication technology, so that gain benefit from early international expansion.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.341-350
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• 2020

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.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.47-61
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• 2020

Purpose - This study investigates the relationship between firm-specific, general human capital and corporate innovation performance. Also, we examine when this relationship is more salient. Design/methodology/approach - We collected 1,195 survey data related to a sample of corporate innovation performance and human capital from 1) Korea Research for Vocational Education and Training and 2) NICE information service in Korea. In order to examine the corporate innovation performance, we use the ordered logit model. Findings - First, we find robust supports for our hypothesis that firm-specific and general human capital increase corporate innovation performance. Second, the effect of general human capital on corporate innovation performance is stronger when this relationship is combined with the firm international experience. Research implications or Originality - By integrating the human capital theory and corporate innovation literature, we propose that firm-specific and general human capital are the important determinant of innovation performance. The firm-specific human capital may increase innovation efficiencies. Also, retaining higher-quality general human capital is considered as an important innovation strategy since firms with higher-quality general human capital make greater innovation performance. Further, we show that the firm international experience is the crucial boundary condition. As a firm's experience in internationalization increases, firms can enhance the opportunities to develop new products by combining the skills and knowledge derived from general human capital with the experience gained through internationalization.