• The Korean Journal of Franchise Management
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• v.12 no.2
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• pp.23-33
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• 2021

Purpose: The purpose of this study is to provide basic data such as development of sustainable support policies and performance management evaluation to support sustainable management of domestic franchises by deriving the sustainable growth cycle of domestic franchises. Research design, data, and methodology: This study is based on systematic review study. We combined search terms such as "Start-up", "Sustainability" and "Success" with four databases, RISS, KISS, e-article and DBpia and searched a total of 1,219 articles published by April 21, 2021. In the process, 35 studies were selected and analyzed after an expert review, excluding documents whose overlapping documents, gray zones (e.g., reports, conference presentations, etc.), degree papers, foreign language literature, and dependent variables were not related to the Sustainability factors. Using ERIS model, which is applied to research on the results of startup, and the franchise's growth cycle, which reflects the growth stage of franchises, we analyzed the factors behind the sustainability of franchise. Result: The results of the study are as follows. First, research on the sustainability of franchise has continued since 2009 in Korea, and has been conducted in various fields such as social welfare in addition to venture, start-up and management. Second, sustainability factors of franchise were analyzed from the ERIS performance model indicating the performance of venture, and the 68 subfactors were derived. Third, it is confirmed that there are important factors that affect the sustainable growth of franchise startups in each franchise's growth cycle. Conclusions: It is significant that through this study, we provided better understanding of the factors that sustain sustainability of franchises, policy suggestions, and presented the direction of future study. Theoretical suggestion is that the main reason for the continuous growth of franchise in each domestic franchise is based on the ERIS performance model. The practical implication is that the headquarters and Franchisor can use it to establish and evaluate performance indicators based on the business growth cycle. The results of this study are expected to be used as basic data for development and performance management evaluation of franchise start-up support policies to support the sustainable management of domestic franchises.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.5
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• pp.15-29
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• 2021

This study is based on ERIS model for start-up performance, and aims to derive the main reason for start-up sustainability centered on organizational resilience. To this end, systematic literature examination and modified Delphi method were used to investigate start-up sustainability factors based on ERIS Model focused on organizational resilience. The results showed that ERIS model-based entrepreneurial continuity factors were divided into four categories: entrepreneur, resource, industrial environment, strategy, subdivision 8 and detailed factors 54. In addition, the ERIS model-based continuity factors were structured around organizational resilience, and the continuity factors were structured according to ERIS model under five categories: leadership, culture, people, system and environment. The results of this study are as follows. First of all, the results of existing research and analysis show that the concept of successful start-up and sustainability of start-up are used in various fields. Second, it is confirmed that there are common factors of influence on start-up performance and start-up sustainability based on ERIS model. Third, Delphi method's results showed that the general characteristics of entrepreneurs, such as academic background, education level, gender, age, and business experience did not affect the sustainability of entrepreneurship. This study is significant in that it is based on ERIS model focused on organization resilience, and ERIS-R, which integrates Strategy into System and Organization resilience into R in the field of gradually expanding start-up development and support. It is expected that the results of this study will improve the sustainability of start-up that can predict, prevent, and overcome various crises at any time.

• Journal of Digital Convergence
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• v.20 no.4
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• pp.405-410
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• 2022

As the non-face-to-face economy is activated by digital innovation, the boundaries of the industry are blurred and new start-up opportunities are occurring due to convergence between industries. Therefore, this study aims to investigate the relationship between the founders' digital competence and innovation as an antecedents that affect the substanability of start-up companies. According to the analysis results, the digital competence of the founder has a significant positive (+) effect on the innovation of the founder, and the innovation of the founder has a significant positive (+) effect on the substanability of the entrepreneur. In addition, the innovation of founders has been verified to mediate the relationship between them, and this study is meaningful in that it examines the preceding factors affecting the substanability of start-up companies.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.3
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• pp.59-71
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• 2019

The domestic unemployment rate is now seriously increasing due to the impact of the international trend of incurring high costs using only a small number of manpower in a situation where the business has been being reduced in size. The nation is taking start-up promotion policies as a way to overcome the problem, but with the advent of excessive entrepreneurs and their concentration on specific areas, their survival is in an unclear situation. Thus, this study was intended to provide a useful direction for successful start-ups by identifying the impact of entrepreneurial motivation and entrepreneurship, internal characteristics of entrepreneurs, and of competency characteristics, external characteristics of them, on sustainability through business performance. Thus, the purpose of this study was to provide a useful direction for successful start-ups by identifying the impact of entrepreneurial motivation and entrepreneurship, internal characteristics of entrepreneurs, competency, and external characteristics, on sustainability through business performance. The result of verifying the hypothesis has showed that entrepreneurial motivation, entrepreneurship, and competency characteristics had a positive effect on business performance, and on the other hand, the business performance had a positive effect on sustainability. In addition, in terms of the impact of entrepreneurial motivation, entrepreneurship, and competency characteristics on sustainability, all of them had mediating effects on business performance. It is obvious that studies on the factors affecting business performance and corporate sustainability up to now have been carried out by only collecting the independent variables of this study individually or two of them. so it is judged that if the study, which has verified the practical direction in general through the verification of entrepreneurs's internal and external characteristics from various angles, is performed more comprehensively along with the addition of background characteristics of entrepreneurs, such as characteristics of start-up preparation, etc., in the future, more in-depth results will be able to be obtained.

• The Journal of the Korea Contents Association
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• v.18 no.9
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• pp.584-593
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• 2018

The startup, which is a common noun to start a small business, has been recently one of main targets for policymakers due to its important role for job creation and considerable potential for sustainability of an economy. However, technological entrepreneurship decreased by 5.0% p from 2013 to 2016. The revitalization of entrepreneurial investment promoted by the government is mainly supported in fruitable venture companies at grow stage or 2~3 years before IPO through venture capital firms and angel funds. It is far from an investment at start-up. It is therefore necessary to motivate private investment to be active in the private start-up sector. In addition, the start-up investment requires institutional support and government support to meet the expectations of investors about the possibility of payback and profitability of private investment invested in the founding period. As a small entrepreneur at a comparably early stage in the lifecycle of business, investments for the startup are generally made by informal investors such as family, friends and fools, and their decision making processes are relatively non-programmed compared with ones for listed corporales such as venture capital and angel fund agency. This study focuses on analyzing decision making factors in investment, and verifying an impact of such factors, specifically the possibility of investment payback and investment profitability, in a decision-making process for the startup especially at the very early stage.

• Journal of Technology Innovation
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• v.22 no.2
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• pp.185-220
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• 2014

The purpose of this study is to get a whole picture of financial conditions of the new and renewable energy sector which have been growing rapidly and predict bankruptcy risk quantitatively. There have been many researches on the methodologies for company failure prediction, such as financial ratios as predictors of failure, analysis of corporate governance, risk factors and survival analysis, and others. The research method for this study is Altman Z-score which has been widely used in the world. Data Set was composed of 121 companies with financial statements from KIS-Value. Covering period for the analysis of the data set is from the year 2006 to 2011. As a result of this study, we found that 38 percent of the data set belongs to "Distress" Zone (on alert) while 38% (on watch), summed into 76%, whose level could be interpreted to doubt about the sustainability. The average of the SMEs in wind energy sector was worse than that of SMEs in solar energy sector. And the average of the SMEs in the "Distress" Zone (on alert) was worse than that of the companies of large group in the "Distress" Zone (on alert). In conclusion, Altman Z-score was well proved to be effective for New & Renewable Energy Industry in Korea as a result of this study. The importance of this study lies on the result to demonstrate empirically that the majority of solar and wind enterprises are facing the risk of bankruptcy. And it is also meaningful to have studied the relationship between SMEs and large companies in addition to advancing research on new start-up companies.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.15 no.4
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• pp.263-275
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• 2020

In the vortex of change, commonly referred to as the Fourth Industrial Revolution, Korea has a national task of changing the paradigm of economic growth from a chase-type economic structure to a leading one. The era has come when all resources of the country, as well as the government and businesses, must join in innovation and growth in order to maintain the pace of sustained economic development, and significantly advanced countries are stimulating members' innovation activities with various policies and systems as they enter the 21st century. South Korea is also making efforts to create an open creative space referred to as Makerspace or Fab Lab, to create an innovative voluntary environment for its citizens. This study explored factors that Makerspace, which is proliferating in Korea, should consider to secure development and sustainability as an innovation (start-up) space. Through prior research, openness and expertise were derived from the characteristics of Makerspace, and expert interviews confirmed that the capabilities lacking in Makerspace and the capabilities to be secured in the future are openness and professionalism. Also, specific components of openness and professionalism were presented through prior research, and implications for each subject's Makerspace were presented, such as openness, professionalism, and commercialization.

• Asia-Pacific Journal of Business
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• v.12 no.1
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• pp.151-163
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• 2021

Purpose - The break-even point refers to the point where total profit and total cost coincide, and from this point on, the entrepreneur's decision-making takes a different route. Strategic decisions can be made for more efficient operation and eventually for more likelihood for growth and sustainability if a startup figures out when it recoups the investment and switches to a net profit. Design/methodology/approach - 748 creativity and skill-based sole proprietors in manufacturing industry were examined to demonstrate the effect of the entrepreneur's entrepreneurial experience and education level, the business launch preparation time, or the self-financing on the achievement of break-even point. Findings - While the business launch preparation time lowered the likelihood of reaching a break-even point, self-financing increased the likelihood. As a result of further analysis by subdividing into subgroups according to skill level, only the business launch preparation time was statistically significant in the highly skilled industries. In the low skilled industries, in addition to the business launch preparation time, the CEO's education level and the self-financing were statistically significant. Research implications or Originality - The longer the business launch preparation time, the higher the start-up cost, which increases the burden of initial cost recovery, and the agile response to market changes is thereby delayed, resulting in the business idea losing its appeal. Self-financing not only provides stability and strong motivation for the business operation but also promotes careful spending which contributes to the achievement of break-even point. In particular, it is found that practical experience is more useful than theoretical knowledge in low skilled industries. Due to the limitation of secondary data based on the recollection, the time required to reach a break-even point, percentage of financing sources, etc. may include cognitive errors. In addition, variables are not included that explain the characteristics of creativity and skill-based sole proprietorship, so it is necessary to exercise caution with the actual application.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.5
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• pp.241-253
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• 2023

In the current rapidly changing environment, each country continues to make efforts to create jobs and strengthen technological competitiveness. In particular, support and revitalization policies for venture companies and start-ups are known to play a role in increasing national competitiveness. Companies should make appropriate replacements amid growing uncertainties in the environment in which business life is shortened and customer needs are diversified due to intensifying competition. First of all, it is important for companies to make efforts to strengthen their internal capabilities on their own. However, venture companies lack internal resources and capabilities, so support from the external environment is important enough to lead to the survival of the company(Timmons, 1994). Financial support and certification systems are being operated at the national level to strengthen the competitiveness of companies. However, financial support can lower a company's self-sustainability depending on the situation, so non-financial support such as R&D support and start-up education is considered to be helpful in the long term for venture growth(Aghion et al., 2012; Jeon & Ko, 2021). Non-financial support is divided into commercialization, facilities, space, childcare, manpower, and certification systems, and this study confirmed the benefits of the venture company confirmation system, which is a certification system. To this end, the 2021 venture company precision survey data and venture company sales data were used, and analyzed using the SPSS 26.0 package and SPSS PROCESS MACRO. As a result of the analysis, it was confirmed that the level of the management environment of venture companies has a positive effect on the benefits of the venture confirmation system or increasing the level of venture company capabilities, but it is difficult to lead to actual management performance. In addition, it was confirmed that the level of venture company competency mediates the relationship between the level of the venture company's business environment and management performance. As a result, even if the level of the venture company's business environment is positive or venture-friendly, it can be said that companies with internal capabilities to digest support from the external environment increase management performance.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.15 no.4
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• pp.193-216
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• 2020

Due to the recent mid- to long-term slump and falling growth rates in the global economy, interest in organizational structures that create new products or services as a new alternative to survive and develop in an opaque environment both internally and externally, and enhance organizational sustainability through changes in production methods and business innovation is increasing day by day. In this atmosphere, we agree that the growth of small and medium-sized venture companies has a significant impact on the national economy, and various efforts are being made to enhance the technological innovation capabilities of the members so that these small and medium-sized venture companies can enhance and sustain their performance. The purpose of this study is also to investigate how the technological innovation capabilities of small and medium-sized venture companies correlate with the performance of knowledge management and to analyze the role of network capabilities to organize the strategic activities of enterprise to obtain the resources and organizational capabilities to be used for value creation from external networks. In other words, research was conducted on the impact of technological innovation capabilities of small and medium venture companies on knowledge management performance by using network capabilities as parameters. Therefore, in this study, we would like to verify the hypothesis that innovation capabilities will have a positive impact on knowledge management performance by using network capabilities of small and medium venture companies. Economic activities based on technological innovation capabilities should respond quickly to new changes in an environment where uncertainty has increased, and lead to macro-economic growth and development as well as overcoming long-term economic downturns so that they can become the nation's new growth engine as well as sustainable growth and survival of the organization. In addition, this study was conducted by setting the most important knowledge management performance within the organization as a dependent variable. As a result, R&D and learning capabilities among technological innovation capabilities have no impact on financial performance. In contrast, it was shown that corporate innovation activities have a positive impact on both financial and non-financial performance. The fact that non-financial factors such as quality and productivity improvement are identified in the management of small and medium-sized venture companies utilizing their technological innovation capabilities is contrary to a number of studies by those corporate innovation activities affect financial performance during prior research. The reason for this result is that research companies have been out of start-up companies for more than seven years, but sales are less than 10 billion won, and unlike start-up companies, R&D and learning capabilities have more positive effects on intangible non-financial performance than financial performance. Corporate innovation activities have been shown to have a positive (+) impact on both financial and non-financial performance, while R&D and learning capabilities have a positive (+) impact on financial performance by parameters of network capability. Corporate innovation activities have been shown to have no impact on both financial and non-financial performance, and R&D and learning capabilities have no impact on non-financial performance. It could be seen that the parameter effects of network competency are limited to when R&D and learning competencies are derived from quantitative financial performance. It could be seen that the parameter effects of network competency are limited to when R&D and learning competencies are derived from quantitative financial performance.