• Journal of Koreanology Reviews
• /
• v.2 no.2
• /
• pp.9-17
• /
• 2023

The primary objectives of this study is to examine and identify the historical factors that have significantly contributed to the growth/ expansion and prosperity of SMEs in the Republic of Korea and to evaluate and assess the impact of historical factors on the economic progress/ development, innovation, and job creation within SMEs in South Korea. To achieve the purpose of the current study, the present author has investigated the comprehensive literature investigation and figured out a total of four Key historical factors of SMEs for Economic Growth in the Republic of Korea, such as (1) Government Policies, (2) Technological Advancements, (3) Access to Finance, (4) International Trade. In conclusion, this study has undertaken a thorough investigation into the four critical historical factors that have significantly affected the development and achievements of SMEs in the Republic of Korea. By addressing a notable gap in current scholarly work, this study not only adds to the existing pool of knowledge but also provides valuable insights for various stakeholders. Practitioners/ professionals should proactively participate in government support initiatives/ programs and financial aid. SMEs can benefit from monetary incentives and donations/ grants intended to stimulate research and development, creativity, and international trade ventures.

• Korea Trade Review
• /
• v.45 no.5
• /
• pp.261-277
• /
• 2020

The purpose of this study is to analyze whether SMEs' technological capabilities and international marketing capabilities affect the export performance of the SMEs and to empirically test the moderating effect of the CEO's risk propensity on such a relationship. We obtained data from 190 SMEs located in Gwangju and Jeonnam Province in Korea through survey and performed a regression analysis for hypothesis testing based on these data. As a result of the analysis, it was found that SMEs' technological capabilities and international marketing capabilities had a significantly positive (+) effect on export performance, respectively. Also, the CEO's risk propensity was found to reinforce the relationship between technical competence and export performance, and the relationship between marketing capabilities and export performance was also found to be strengthened in the positive (+) direction. These results suggest that it is necessary for SMEs to continuously develop technological capabilities and international marketing capabilities to achieve successful export performance in overseas markets. Also, the CEO's propensity to promote these relationships may be important.

• Asia-Pacific Journal of Business
• /
• v.9 no.1
• /
• pp.39-55
• /
• 2018

Exports play an important role in Korea's economy and industry. Korea's share in world trade is also increasing. Governments and trade organizations are making great efforts to promote exports. However, since SMEs lack resources of enterprises, SMEs have a lot of difficulties in increasing exports compared to large enterprises. For this reason, in this study, we analyzed the difference of perception of export difficulties according to characteristics of small and medium export companies. As a result, four factors such as overseas market information, price and cost, competitiveness and regulation of importing country were derived. In addition, we investigated the differences in recognition of export difficulties by the stage of growth of company, period of export, products exported, export department, size of company. There was a significant difference in recognition. Especially, The companies which are the early stages of growth, short export period, finished product, the smaller the size of exports companies are more difficult in export difficulties.

• International Commerce and Information Review
• /
• v.16 no.2
• /
• pp.279-296
• /
• 2014

This study focused on the Technology export of Korea SMEs. Therefore this study made an empirical analysis for investigating the competitiveness of technology export in Korea SMEs and using panel data 2003-2011 of technology trade data between 72 Countries. In particular, the study deduced the correlation between technology export in Korea SMEs using the variables of Gross Domestic Expenditure on R&D and Per capita GDP, distance, population, free-trade index, firm R&D against industry value added of country, Patent grants by country to USA fixed effect model in panel linear regression model. It is found that the Technology export of Korea SMEs made a significant effect on the per-GDP, Gross Domestic Expenditure on R&D. The results suggest that the study should use technology gap variables and the strategy for activating the Technology export of Korea SMEs should be made for future works.

• Journal of Korea Trade
• /
• v.23 no.5
• /
• pp.87-101
• /
• 2019

Purpose - This paper examines the effectiveness of the foreign exchange risk insurance system in the promotion of SME exports in Korea. The purpose of this study is to analyze the short-term and long-term responses of SME exports to foreign exchange risk insurance support policies. Based on these empirical studies, we would like to present some operational improvements to the operation of the foreign exchange risk insurance system. Design/methodology - In order to analyze the effect of exchange risk insurance on the exports of SMEs, a VAR model consisting of foreign exchange risk insurance underwriting values, export relative price, and domestic demand pressure, including export volume, was established. The study began with tests of the stationarity of time series data. The unit root tests showed that all concerned variables were non-stationary. Accordingly, the results of the cointegration test showed that the tested variables are not cointegrated. Finally, an impulse response function and variance decomposition analysis were conducted to analyze the impulse of foreign exchange risk insurance on exports of SMEs. Findings - As a result of estimating the VAR (1) model, foreign exchange risk insurance was found to be significant at a 1% significance level for SME' export promotion. In the impulse response analysis, SMEs' export response to the impulse of foreign exchange risk insurance showed that exports gradually increased until the third quarter, and then slowed down. However, the impulse did not disappear, and appeared continuously. Originality/value - This study analyzed the effect of foreign exchange insurance on exports of SMEs by applying the VAR model. In particular, this study is the first to analyze the short-term and long-term effects of foreign exchange risk insurance on exports of SMEs. The empirical evidence in the current study have a policy implication for the policy authority to support and promote the foreign exchange risk insurance in the effect of exchange rate volatility on Korea' export SMEs.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.49
• /
• pp.461-490
• /
• 2011

The purpose of this study is to examine which factors are encouraging SMEs to participate in uTradeHub(focused on the uTrade search service) in terms of product characteristics and sourcing patterns. The three factors encouraging Trade e-Marketplaces are identified in this study. First, internal factors include the support of top management, mature of IT infrastructure. Second, external factors include the pressure of industry, industry competition, dependence of trading partners. Third perception factors are perceived Usefulness, perceived easy of use. The empirical analysis had the following results. First, it reveals that support of top management, mature of IT infrastructure, industry competition have significant influence upon uTrade Search Services. On the other hand, pressure of industry, dependence of trading partners, Perceived relative benefits are not significant variable of the participation in uTrade Search Services. Second, the factors affecting the participation in uTrade Search Services are differentiated in terms of product characteristics and sourcing patterns. And the support of top management, mature of IT infrastructure, Perceived relative benefits are emphasized very important factors affecting the participation of uTrade Search Services in SMEs. The industry competition is recognized as more important factor in horizontal market in which Spot sourcing just like Operating products is trading. On the other hands, the dependence of trading partners are significant factor in vertical market in which Systemic sourcing just like Manufacturing products is trading.

• International Commerce and Information Review
• /
• v.13 no.3
• /
• pp.31-53
• /
• 2011

The purpose of this study is to find out the factors affecting the usage and performance of e-Trade in Chinese Small and Medium-sized Enterprises(SMEs). To achieve the purpose of the study, the research model and hypotheses, depicting the relationship among external factors, internal factors, relationship characteristics, e-Trade usage level, and performance were developed based on the existing literature on e-Trade. To test the significance of the research model and hypotheses, an empirical survey were conducted to the Chinese SMEs in Yangtze River Delta area, which are actively using the e-Trade in their trade processes. According to the result of the statistical analyses on the 85 effective questionnaires from the sample firms, support of the government related institutions(one of the external factors) and CEO's support(one of the internal factors) had significant relationship with e-Trade usage level, but no significant relationship was found between the relationship characteristics and e-Trade usage level. Like the results of the most of the existing literature, e-Trade usage level were formed to significantly affected the e-Trade performance. Finally, based on results of the empirical survey, several implications on the Chinese SME's e-Trade strategies and policy alternatives were proposed as a concluding remark.

• Journal of Korea Trade
• /
• v.23 no.7
• /
• pp.156-172
• /
• 2019

Purpose - Without question, globalization has presented different opportunities to entrepreneurs seeking to expand their companies in foreign markets. The aim of this study is to examine the relationship between entrepreneurial orientation, entrepreneurial activity, information internalization, and product differentiation in export oriented firms. As such, entrepreneurial activities are divided into exploitative and exploratory opportunities. These opportunities are crucial in improving firms' performance. Design/methodology - A structural questionnaire was developed using 21 factors/indicators from previous researches. The subjects of this study were recruited using convenience sampling in export SMEs in the Seoul Metropolitan Area. Data were collected through visits or e-mails from the export managers, executives, and CEOs of export SMEs in advance. 321 questionnaires were collected over a period of one month. 316 questionnaires were used in the final analysis. Findings - First, International Entrepreneurial-orientation (IE) has a positive effect on the exploration and exploitation of business opportunities. Second, the exploration and exploitation of business opportunities have a positive impact on information internalization. Third, information internalization has a significant effect on product differentiation and plays a mediating role in seeking opportunities, utilizing opportunities, and differentiating products. Originality/value - This study contributes to the development of academic discussions by explaining existing research gaps. First, there is currently a lack of research focusing precisely on the product differentiation capability of SMEs in manufacturing field in terms of IE. To bridge these gaps, we examined the entrepreneurial factors impact on product differentiation and tries to expand the discussion about the internationalization of SMEs, which were mainly focused on IT companies, and manufacturing companies. Second, there is no intuitive explanation regarding international entrepreneurial activity in terms of exploration and exploitation within existing. In this study, international entrepreneurship activities were classified in terms of exploration and exploitation.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.8
• /
• pp.473-483
• /
• 2020

Internationalization of SMEs has gathered pace in recent times with falling trade barriers and rising world trade encouraging small firms to seek profits and growth in foreign markets. This has attracted the attention of researchers, and several studies have been conducted in Western nations on the factors influencing the process of SME internationalization. However, hardly any study has been done on SME internationalization in the Gulf Cooperative Council (GCC) region, thus leaving a gap in the literature. This study investigates the influence of four factors, namely, human capital, network competency, entrepreneurial orientation, and market volatility on the degree of internationalization of SMEs in Oman. The study employs survey data collected from 150 SME owners and managers using a structured questionnaire having 27 items, and has been analyzed using correlation and logistic regression, as the dependent variable is binary in nature. The results reveal the impact of the chosen variables on the degree of internationalization of SMEs. The findings of the study suggest that network competency has the highest impact on degree of internationalization of Omani SMEs, followed by human capital and entrepreneurial orientation, while market volatility, though insignificant, moderated the relationship between entrepreneurial orientation and degree of internationalization of Omani SMEs.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.12
• /
• pp.345-352
• /
• 2021

Guided by a resource-based theory, this study is the first one that takes a quantitative approach to identify determinants of competitiveness of women-owned small and medium enterprises (SMEs) in Vietnam. The study employs time series data of Vietnamese SMEs extracted from the Vietnam Small and Medium Enterprises Survey conducted biennially from 2005 to 2015 in ten Vietnamese provinces. Firm competitiveness hereby is indicated by revenue, market share, profitability, and export volume. The research reveals a number of determining factors, of all, research and development, labor skills, business environment, technology investment are the most important factors, followed by capital and headcount. It is indicated that the determining factors have different influences on competitiveness obtained by different measurements. Therefore, it is based on specific targets and situations to make wise business decisions. The authors also make comparisons among groups of women-owned enterprises divided by their firm age, location, ownership, export, age, and educational background of business owners. The findings serve as critical empirical evidence and provide policy recommendations for improving the competitiveness of women-owned SMEs in Vietnam. The recommendations range from technology support, education and professional support for female entrepreneurs, access to capital and human resources to business environment improvement.