• Title/Summary/Keyword: SMEs Policy

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The Effect of Technology and Open Innovation on Women-Owned Small and Medium Enterprises in Pakistan

  • MEHTA, Ahmed Muneeb;ALI, Asad;SALEEM, Hina;QAMRUZZAMAN, Md.;KHALID, Rimsha
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.3
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    • pp.411-422
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    • 2021
  • Technological adaption and innovative activities foster small and medium enterprises (SMEs) growth, especially women-owned SMEs in Pakistan, However, the impact of technological adaption and innovative activities on SMEs growth in the context of Pakistan has been examined by very researchers. This study aims to identify the effect of technology and open innovation policies on the growth of women-owned SMEs and the present trends and management challenges for successful full implementation of open innovation. The study considered a sample of 693 women enterprises located in different cities in Pakistan. Open innovation is measured through eight innovative practices, reflecting the exploration and exploitation of technology in SMEs. Study findings revealed that women enterprises were involved in several open innovation policies during the last five years. Moreover, the study indicated no significant differences between manufacturing and service SMEs regarding open innovation practices; however, women enterprises are more impressively engaged in open innovation practices. Findings also reveal that women-owned SMEs follow open innovation, mainly for market-related intentions, to compete with competitors and meet customers' demands. Thus, it is suggested that government policy relating to thriving SMEs owned by women should be innovation-oriented. The study contributes to the theoretical and practical implications. Further, the study is helpful for SMEs, researchers, practitioners, and decision-makers.

A Study on the Government's Support Policy of SMEs (국내 중소기업의 정부지원정책에 관한 연구)

  • Chung, Young-Woo;Kim, Pan-Jin
    • Journal of Distribution Science
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    • v.8 no.2
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    • pp.33-44
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    • 2010
  • This paper is to give Korean small and medium enterprises the direction for strengthening the competitiveness through looking the problems and improvements about the government policy that domestic small and medium enterprises is essential for the growth anc development. To derive these results, the theoretical background was established through considering the existing research literature. This paper has drawn the final policy alternatives through collecting field data and analysing the practical support after meeting with executives that are operating a small business related to research purposes. In this paper in order to strengthen the competitiveness of small and medium enterprises of the government's support policy, it is critical for the financial support policy and the tax support policiest policy. The conclusions in this study are following. SMEs in Korean economic growth contribute greatly to advance industrial structure, regional balanced development, employment opportunities and to alleviate the concentration of economic power. However, there are these positive, and the negative such as the absence of entrepreneurial spirit and passive participation in society. Therefore, SMEs now should have your own a lot of effort to improve their competitiveness. In addition, government believe that SMEs directly impact on the national economy, especially the people, but they still need systematic and aggressive policy support in the future because of the lack of the result. Finally, if they try strategic approach for several issues and improvement of government's support policy that this study suggested for SMEs, the entrance toward developed countries can be through jumping of Korean economy.

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Study on the Cooperation Model for Fusion-Technology Development in SMEs (융합기술 개발을 위한 중소기업 간 협업모형 제안)

  • Cho, Chanwoo;Lee, Sungjoo
    • Journal of Korean Institute of Industrial Engineers
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    • v.39 no.3
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    • pp.198-203
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    • 2013
  • Industry convergence is the inexorable trend, which has become a fundamental concept to understand the industrial dynamics and to develop business strategies. However, most of the previous studies on convergence have dealt with the issues at the macro-level (technology- or industry-level), little attention has been paid to the analysis of convergence at the micro level (firm-level). Recognizing that firms are the principal agents that develop fusion technologies, it is encouraged to help firms to work together for technology convergence. Therefore, this research proposes a collaboration model for SMEs, since SMEs tend to have novel ideas and are flexible enough to make fusion-technology. To do this, we conducted a survey for Korean SMEs and analyzed their successful cases of collaboration, which was used as a basis to develop the model. The research results will help develop strategy or policy to promote the collaboration between SMEs and ultimately to make a fusion-technology.

A Study on the Efficiency of VSP(Venture Support Policy) from the Concept of 'Ease of Use' and 'Experience' Perspective, Using Integrated Model with TRA and TAM (TAM 및 TRA을 기반으로 한 '용이성'과 '경험'의 관점에서 벤처지원 정책의 효율성 연구)

  • Kim, In Sue
    • Industry Promotion Research
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    • v.1 no.1
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    • pp.41-49
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    • 2016
  • This study is to examine constructs influencing the acceptance of SMEs for VSPs and the efficiency of VSPs, based on the two theories theory of reasoned action (TRA) and technology acceptance model (TAM) in the context of venture support program in Korea. This study concentrates on the government's venture support policy (VSP), namely the examination of the efficiency of current government VSPs in terms of preferential treatment for SMEs experiencing many other venture support programs (the EXP policy), and the reduction of documents/processes related to venture support programs for SMEs so that they are easily accessible and implementable (the EASE policy). Additionally, this paper will suggest an effective way to encourage SMEs to succeed by analyzing the fundamental reasons for their acceptance of VSPs to attain their long-term goals.

A Study on the Technology Commercialization Policy for Technology-based SMEs: Case on Daedeok Innopolis (기술집약형 중소기업의 기술사업화 지원정책 연구: 대덕연구개발특구의 사례)

  • Hwang, Hye-Ran;Kim, Kyung-Keun;Jeong, Hyung-Kwon
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.8 no.3
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    • pp.39-52
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    • 2013
  • The main characteristic of technology commercialization by technology-intensive SMEs is that its success is highly uncertain due to the low maturities of their technology and market. Therefore, in order to find out more effective policy, it is essential to understand the technology commercialization in terms of the institutional support system including innovation policy, rather than an individual firm's strategy. Focusing on the Daeduk Innopolis, where many technology-intensive firms agglomerate, this paper explores SMEs' behavior for technology commercialization and the innovation system in the regional level. Then it points out the limitations and problems of the technology commercialization system in Daeduk innopolis, which might be closely related to the 'system failure' in the transition period. Based on the results of this innovation system approach, this paper also suggests some policy directions and agendas for overcoming those system failures in technology commercialization.

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Exports of SMEs against Risk? Theory and Evidence from Foreign Exchange Risk Insurance Schemes in Korea

  • Lee, Seo-Young
    • Journal of Korea Trade
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    • v.23 no.5
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    • pp.87-101
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    • 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 Policy of Win-Win Growth between Large and Small Enterprises : A South Korean Model (한국형 동반성장 정책의 방향과 과제)

  • Lee, Jang-Woo
    • Korean small business review
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    • v.33 no.4
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    • pp.77-93
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    • 2011
  • Since 2000, the employment rate of small and medium enterprises (SMEs) has dwindled while the creation of new jobs and the emergence of healthy SMEs have been stagnant. The fundamental reason for these symptoms is that the economic structure is disadvantageous to SMEs. In particular, the greater gap between SMEs and large enterprises has resulted in polarization, and the resulting imbalance has become the largest obstacle to improving SMEs' competitiveness. For example, the total productivity has continued to drop, and the average productivity of SMEs is now merely 30% of that of large enterprises, and the average wage of SMEs' employees is only 53% of that of large enterprises. Along with polarization, rapid industrialization has also caused anti-enterprise consensus, the collapse of the middle class, hostility towards establishments, and other aftereffects. The general consensus is that unless these problems are solved, South Korea will not become an advanced country. Especially, South Korea is now facing issues that need urgent measures, such as the decline of its economic growth, the worsening distribution of profits, and the increased external volatility. Recognizing such negative trends, the MB administration proposed a win-win growth policy and recently introduced a new national value called "ecosystemic development." As the terms in such policy agenda are similar, however, the conceptual differences among such terms must first be fully understood. Therefore, in this study, the concepts of win-win growth policy and ecosystemic development, and the need for them, were surveyed, and their differences from and similarities with other policy concepts like win-win cooperation and symbiotic development were examined. Based on the results of the survey and examination, the study introduced a South Korean model of win-win growth, targeting the promotion of a sound balance between large enterprises and SMEs and an innovative ecosystem, and finally, proposing future policy tasks. Win-win growth is not an academic term but a policy term. Thus, it is less advisable to give a theoretical definition of it than to understand its concept based on its objective and method as a policy. The core of the MB administration's win-win growth policy is the creation of a partnership between key economic subjects such as large enterprises and SMEs based on each subject's differentiated capacity, and such economic subjects' joint promotion of growth opportunities. Its objective is to contribute to the establishment of an advanced capitalistic system by securing the sustainability of the South Korean economy. Such win-win growth policy includes three core concepts. The first concept, ecosystem, is that win-win growth should be understood from the viewpoint of an industrial ecosystem and should be pursued by overcoming the issues of specific enterprises. An enterprise is not an independent entity but a social entity, meaning it exists in relationship with the society (Drucker, 2011). The second concept, balance, points to the fact that an effort should be made to establish a systemic and social infrastructure for a healthy balance in the industry. The social system and infrastructure should be established in such a way as to create a balance between short- term needs and long-term sustainability, between freedom and responsibility, and between profitability and social obligations. Finally, the third concept is the behavioral change of economic entities. The win-win growth policy is not merely about simple transactional relationships or determining reasonable prices but more about the need for a behavior change on the part of economic entities, without which the objectives of the policy cannot be achieved. Various advanced countries have developed different win-win growth models based on their respective cultures and economic-development stages. Japan, whose culture is characterized by a relatively high level of group-centered trust, has developed a productivity improvement model based on such culture, whereas the U.S., which has a highly developed system of market capitalism, has developed a system that instigates or promotes market-oriented technological innovation. Unlike Japan or the U.S., Europe, a late starter, has not fully developed a trust-based culture or market capitalism and thus often uses a policy-led model based on which the government leads the improvement of productivity and promotes technological innovation. By modeling successful cases from these advanced countries, South Korea can establish its unique win-win growth system. For this, it needs to determine the method and tasks that suit its circumstances by examining the prerequisites for its success as well as the strengths and weaknesses of each advanced country. This paper proposes a South Korean model of win-win growth, whose objective is to upgrade the country's low-trust-level-based industrial structure, in which large enterprises and SMEs depend only on independent survival strategies, to a high-trust-level-based social ecosystem, in which large enterprises and SMEs develop a cooperative relationship as partners. Based on this objective, the model proposes the establishment of a sound balance of systems and infrastructure between large enterprises and SMEs, and to form a crenovative social ecosystem. The South Korean model of win-win growth consists of three axes: utilization of the South Koreans' potential, which creates community-oriented energy; fusion-style improvement of various control and self-regulated systems for establishing a high-trust-level-oriented social infrastructure; and behavioral change on the part of enterprises in terms of putting an end to their unfair business activities and promoting future-oriented cooperative relationships. This system will establish a dynamic industrial ecosystem that will generate creative energy and will thus contribute to the realization of a sustainable economy in the 21st century. The South Korean model of win-win growth should pursue community-based self-regulation, which promotes the power of efficiency and competition that is fundamentally being pursued by capitalism while at the same time seeking the value of society and community. Already existing in Korea's traditional roots, such objectives have become the bases of the Shinbaram culture, characterized by the South Koreans' spontaneity, creativity, and optimism. In the process of a community's gradual improvement of its rules and procedures, the trust among the community members increases, and the "social capital" that guarantees the successful control of shared resources can be established (Ostrom, 2010). This basic ideal can help reduce the gap between large enterprises and SMEs, alleviating the South Koreans' victim mentality in the face of competition and the open-door policy, and creating crenovative corporate competitiveness. The win-win growth policy emerged for the purpose of addressing the polarization and imbalance structure resulting from the evolution of 21st-century capitalism. It simultaneously pursues efficiency and fairness on one hand and economic and community values on the other, and aims to foster efficient interaction between the market and the government. This policy, however, is also evolving. The win-win growth policy can be considered an extension of the win-win cooperation that the past 'Participatory Government' promoted at the enterprise management level to the level of systems and culture. Also, the ecosystemic development agendum that has recently emerged is a further extension that has been presented as a national ideal of "a new development model that promotes the co-advancement of environmental conservation, growth, economic development, social integration, and national and individual development."

SME Informatization Attributes Based Analysis for their Criticalness, Status and Policy Implications (중소기업 정보화 요인별 중요성, 현황 및 정책적 시사점)

  • Han, Hyun-Soo;Kim, Kiho;Yang, Hee-Dong
    • Journal of Information Technology Applications and Management
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    • v.20 no.4
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    • pp.97-110
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    • 2013
  • In this paper, we propose policy implications for Korean SMEs to enhance informatization level, which thereby leads to better competitiveness. Our approach begins with organizing the firm's informatization attributes from SME perspective. Next, we adopted AHP method to quantify the relative importance of each informatization attributes. Then, we assess the criticalness of each informatization attributes with reference to the empirical statistics for the current status of informatization level of Korean SMEs. The analysis distinguishes manufacturing versus service industries, and informatization attributes importance versus as-is informatization level, each respectively. Based on empirical analysis, policy implications are proposed for more effective government SME informatization support policy.

The Financial Support of Regional Bank for SMEs and Regional Financial Policy (지방은행의 지역중소벤처기업지원과 지역금융정책)

  • Ryu, Duk Wi
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.8 no.4
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    • pp.37-47
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    • 2013
  • This study investigates regional financial markets and proposes some policy measures for boosting up the regional financial system. Financial supports for start-ups, small and medium sized enterprises(SMEs) in early stage growth have been constrained due to expanded financial gaps among regions during financial restructuring period. The bank consolidation through M&A is associated with widening financial gaps between Seoul area and others, and between regions where regional banks survives or not. Loans to small firms are associated with relationship lending techniques that may be better supported by smaller regional banks. The loan rate to SMEs in locals where regional banks are activated has tended to be 10%point higher than the locals where regional banks closed, and also drive the greater contribution for preventing local capital outflow and promoting local capital investment by local penetrating strategy. Government should develop regional financial policies to boost up regional financial system, and expand the business area of regional financial institutions for supporting start-ups and SMEs.

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A Study on the Introduction of Mutual Aid Project for the Long-term Employment of SME's Core Employees (중소기업 핵심인력 장기재직 공제사업 도입방안 연구)

  • Noh, Meansun;Lee, Jongmin;Chung, Sunyang
    • Journal of Korea Technology Innovation Society
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    • v.17 no.1
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    • pp.68-94
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    • 2014
  • SMEs in Korea are suffering from severe manpower shortage due to poor incentive system and employees' frequent change of jobs. So far, the government has made continuous efforts to solve these problems, but SMEs still have the same problem. It is critical for SMEs to maintain core employees for long term who can directly contribute to the business performance. However, Korean manpower policies for SMEs has mainly focused on hiring new recruits and attracting experienced high caliber employees to SMEs. Relatively, policies for attracting in-house employees to work for longer term were insufficient. This paper focuses on providing strategic policy options to make core employees stay in the company for longer term. For this, it identifies the concept and features of core employees and reviews the necessity of introducing the Mutual Aid Project. Also, it suggests the way to enhance the effectiveness of policy by analyzing current Mutual Aid Fund programs in Korea.