• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.4
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• pp.73-86
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• 2022

Interest and investment in agri-food ventures is increasing worldwide. Agri-food venture startups are also increasing in Korea, but there are constraint factors due to industrial characteristics, and infrastructure and investment for growth are insufficient. This study confirmed the effect of technology commercialization capability and competitive strategy on the growth prospects of agri-food venture companies and the mediating effect of business model innovation. And, through comparison with previous studies, the industrial characteristics were identified by confirming the difference between all venture companies and agri-food ventures. For this, only agri-food ventures data were extracted from the original data of the Research on the Precision Status of Venture Firms 2021. And empirical analysis was conducted. As a result, manufacturing capability, cost leadership and product differentiation had a positive(+) effect on growth prospects. The mediating effect of business model innovation between manufacturing capacity, product differentiation and growth prospects was verified. Through the research results, factors affecting the long-term growth prospects of agri-food ventures were identified in consideration of industrial characteristics. In addition, practical implications in connection with business model innovation of agri-food ventures were presented. In future research, it is necessary to develop an objective measurement tool and to conduct a detailed analysis according to business history and company size.

• Korea Trade Review
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• v.42 no.1
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• pp.165-188
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• 2017

Foreign direct investment is the means for companies to enter the overseas market and strengthen their competitiveness. The holding of intellectual properties, representing advantages of firms, may affect foreign direct investment. By expanding previous studies, we define intellectual properties as including trademarks and design as well as patents. Using a random-effect panel data model, we examine the effects of both intellectual properties of Korea and host countries on Korea's foreign direct investment in 128 countries from 1981 to 2014. The results are as follow. First, the coefficients of Korea's intellectual properties, patent, trademark, and design are significantly positive. This implies that Korean firms may invest abroad to take their advantages of technologies, brand value, and the capability of product differentiation. Second, except for patents, intellectual properties of host countries have a positive impact on foreign direct investment. In other words, foreign direct investment to acquire the ability of branding or product design from host countries may occur. Third, the coefficients of Korea's intellectual properties are significantly greater than those of host countries' properties. Foreign direct investment to take advantages of the firms' capabilities overseas is greater than one to acquire knowledge of host countries. Finally, Korea's intellectual properties have a greater positive impact on foreign direct investment in high growth countries than in low growth countries. It is interpreted that Korean firms are more motivated to exploit their intellectual properties in developing countries with a high growth than developed countries. Overall, it is confirmed that Korea's foreign direct investment not only to utilize some advantages but also to seek the brand value or product differentiation ability from host countries can occur. Our findings provide the contribution that some innovative activities in firms and R&D investments policies which encourage the possession of intellectual properties can improve foreign direct investment.

• Journal of Industrial Convergence
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• v.20 no.8
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• pp.1-13
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• 2022

Although the number of venture start-ups has increased significantly, it is difficult to judge the success or failure based on short-term performance alone. The survival of a company cannot be guaranteed if it does not show sustainable growth prospects. As a growth factor for venture companies, the level of technology commercialization capability and competitive strategies are considered important. Recently, the emergence of innovative business models is creating new opportunities and driving the growth of numerous venture start-ups. This study tried to investigate the mediating effect of business model innovation in the relationship between technology commercialization capability, competitive strategy and the growth prospects of venture companies. For this, empirical analysis was conducted using the original data of the Research on the Precision Status of Venture Firms 2021. As a result, production, manufacturing, marketing capability, cost leadership and product differentiation had a positive(+) effect on growth prospects. The mediating effect of business model innovation between all factors except for manufacturing capacity and growth prospects was verified. This study expanded the scope of research by shedding new light on the factors influencing the long-term growth prospects of venture companies and revealing business model innovation as a new mediating variable. In future research, it is necessary to develop an objective measurement tool and to identify differences according to industrial characteristics.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.5
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• pp.25-42
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• 2019

The purpose of this study is to analyze the effect of internal competence of small business on the competitive advantage and start-up intention. Through this, which key competence of small business can be proposed for market growth against of large companies that have a great capital power. Also, implications for development direction can be suggested. For this purpose, technology capability, financing capability, marketing capability, and product/service differentiation capability factors were set as independent variables, as well as competitive advantage as a mediating factor, and startup intention to be franchiser as a dependent variable. For the analysis, a structured questionnaires survey was conducted to 276 domestic small business in capital area. The main results are as follows. First, in relation to the internal competency and the competitive advantage of small businesses, it was found that technological capabilities, financing capabilities and product (service) differentiation have a positive effect on competitive advantage. Second, the relationship between the internal capacity of a small entity and startup intention to commercialize a franchiser business indicates that its financing capacity and marketing capabilities have a positive effect on startup intention to commercialize the business, and that competitive advantage has a significant effect on startup intention to commercialize the franchise. Third, competitive advantage was found to mediate the relationship between internal competency and startup intention. Finally, it was shown that the internal capacity of a small business has a regulating effect in relation to its financing capacity, marketing capabilities and startup intention to commercialize the franchise, and that it also had a regulating effect in relation to its relationship with its competitive advantage and franchise suitability. Based on the above results, if small business can take competitive advantage in the market, they also consider startup intention to commercialize a franchiser, in addition, it is expected that one suggestion can be made from an internal capacity perspective required more emphasis on operations and management as an alternative to expanding small businesses' business, including market access measures that can be linked to internal capacity factors of small businesses.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.13 no.6
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• pp.1-14
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• 2018

As interest and consumption of luxury goods have become more popular, luxury goods market is growing rapidly. Consumers can acquire psychological satisfaction with material abundance by purchasing and using luxury goods. Also, from the view of corporations, luxury goods have price inelastic characteristics, so they can enjoy price premium and it is good to produce good performance. That is the reason why they should pay much attention to securing luxuriousness. This study examined the establishment of brands luxuriousness in Korean SMEs. First, it examined the world market of luxury goods industry and the present condition of Korean market. Then it identified the constituents of luxuriousness by examining the prior studies and related literatures, and designed a research model based on the theoretical grounds to suggest the methods of brand luxuriousness building of Korean SMEs. Luxuriousness can be defined as the attribute of product that distinguishes luxury goods from other products by consumers' perceptions, and the factor that provides situational benefits that motivate consumers' purchasing behavior. In this study, I identified the sub-dimensions of luxuriousness according to whether there are product related attributes and consumers' benefit in consideration of the problems of existing studies. Product related luxuriousness are classified into superiority(functional benefit) and scarcity(experiential benefit), while non-product related luxuriousness are classified into differentiation(symbolic benefit) and traditionality(exclusive benefit). The following are the ways to build brand luxuriousness. First, company can use product factors. High quality, excellent design, high recognized brand with strong, favorable and unique images can enhance the luxuriousness of brand. Second, company can use price factors. Consumers tend to perceive luxury goods as high-priced items, so lowering the price of product can undermine the luxuriousness of product. Third, company can use distribution factors. It is effective for making consumers to perceive the differentiation and scarcity of luxuriousness through limited distribution channel. In addition, store atmosphere suitable for luxury brands should be created. Fourth, company can use promotion factors. The more consumers are exposed to advertisements, the more positive attitudes toward luxury brands are made, and consumers recognize luxuriousness higher. Price promotion negatively affects consumers' perception of luxuriousness. Fifth, company can use corporate factors. Consumer evaluations of products are influenced not only by the product attributes but also by the corporate association and corporate image surrounding the product. Considering the existing researches, it is possible to enhance the brand luxuriousness through high corporate competence and good corporate reputation. In order to increase the competence of the enterprise, it is useful to approach multidimensionally in relation with the knowledge creation capability. In corporate reputation, the external stakeholders' reputation is important, but the internal members' reputation is also important. Korean SMEs will be able to build brand luxuriousness by establishing marketing strategies as above and/or mix(integrate) them according to the situation.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.5
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• pp.61-78
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• 2019

This study is about the effect of the founder's self-efficacy on the sales of the founding company by focusing on the factors that are currently emphasized in the founding education. In particular, this paper starts from the consciousness of the problem that the education that is being implemented to achieve the purpose of successful start-up among various government-based start-up support projects is failing to produce many start-up failures. Entrepreneurs cannot be assessed by objective financial data, but there is a high degree of uncertainty that should be determined based on their personal and learning abilities. In addition, many previous studies, which are likely to be successful when there is a high self-efficacy in a specific field due to the influence of factors such as personal experience or learning, will answer the direction of support for start-up companies. This study focuses on the impact of the founder's self-efficacy on the sales of the founding firms, especially the sales that are the key to the survival of the founding firms. This study has six major studies. First, to analyze whether the self-efficacy of entrepreneurs with respect to entrepreneurship affects the sales of entrepreneurs. Second, to analyze whether the self-efficacy of entrepreneurs with respect to market orientation affects the sales of entrepreneurs. Analysis of whether the founder's self-efficacy affects the sales of the founding firms. Fourth, analysis of whether the founder's self-efficiency affects the sales of the founding firms' understanding of management environment changes. An analysis of whether efficacy affects the sales of a start-up company, and sixth, an analysis of whether the founder's self-efficacy of business model building ability affects the sales of a start-up company. As a result of the empirical analysis, this study found that the self-efficacy of entrepreneurs on product differentiation capability and business model building capacity had a positive influence on the sales of entrepreneurs. The self-efficacy had a positive effect on self-efficacy, and the customer orientation had a positive effect on self-efficacy on business model building capacity. Also, it was confirmed that a path exists between the components of self-efficacy and that self-efficacy through the path has a positive effect on the sales of the start-up company. Therefore, the results of this study suggest the implications of establishing such a path and strengthening self-efficacy to create the survival and start-up performance of a start-up company if the goal of the start-up company is to survive when implementing various support projects for the start-up company.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.5
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• pp.77-90
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• 2016

This study is to examine the importance of site selection and service quality in franchise business as food service franchise became one of the fastest-growing service industries today. The chief finding of this study is as follows: First, a survey in locational and service quality factors affecting food service franchise shows that responders are more concerned with hygiene and visibility of the store than proximity and transportation advantages which reflects low statistical significance, thus the distance did not seem to be a big problem for the responders in the context that they mostly visit nearby food franchise. Second, the examination of the influence by the service quality factors and customer satisfaction shows significant positive relation with customer response, speed and accuracy, and accuracy factors which reveals that the responders prefer prompt response and swift judgment toward the customer's needs and expectations, professional knowledge services to the credibility factors in which little correlation with the customer satisfaction were found. Third, the examination of the influence by the service quality factors, locational factors, and re-visit reveals that customer response and specialty showed statistically significant correlation with intention of WOM (Word of Mouth) and revisit, which suggests that swift judgment and response toward the customer's needs and expectations, professional knowledge services is of great importance to both customer satisfaction and revisit. The study on the aspects of locational and service quality factors affecting franchise industry's customer satisfaction was conducted as above, an investigation in both factors' influence on the customer satisfaction was made, and based on the results of the analysis, this research seeks an optimal operation strategy of a franchise business. Food service franchise are relatively very competent to business adminstration and reaction capability to consumption changes due to the already established market, and there are stores springing up everywhere inspired by the founders who are too confident of their success in the franchise business. However, it is necessary for the franchise beginners to figure out a zone oriented, regular customer oriented business strategy than just complying with the head office manual. Owing to an increasing trend of opening medium to large sized stores and investments in the wake of converting to multiple business type Korean food franchise, there is growing need to set up new concept of store development and operational management strategy in order to overcome the excessive competition and limited sales volume of the old-fashioned small sized, small capital franchise stores. Furthermore, as most business category of food service franchise serve very similar menus, from a product differentiation point of view, it is required to map out flexible sales concept including the adoption of competitive and low-price strategy. In conclusion, as is shown in the analytical research, the customers' optimal choice fluctuate over their preferences like customer convenience and circumstances rather than insisting on specific brand, thus it will be necessary for the franchise stores to draw up aggressive strategy and planning in running food service franchise to maximize their profits.