Purpose - Exports have long been regarded as significant drivers of sustainable competitive advantage and growth among small and medium enterprises (SMEs). The export activities of SMEs are particularly important in the context of export-oriented economies such as Korea. Although many studies have examined the determinants of exports, it is difficult to find empirical studies about the determinants of the export performance of regional SMEs. This study investigates the determinants of export performance in the regional SME context based on an integrated approach that combines the environment factor of industrial organization theory, competitive strategy theory, and the competences of the resource-based view. Research design, data, and methodology - To empirically analyze the determinants of export performance in the regional SMEs, data were collected from firms in the Daegu metropolitan area. Data were collected directly through questionnaire surveys; in addition, secondary financial data were also taken from the KIS-VALUE database. Out of the 175 responses that were received, 143 were considered to be worth examining. After testing the reliability and validity of the variables through multiple items such as environmental turbulence and competitive strategy, hypotheses were verified by using five multi-regression models. These models were: a control model with organizational size and age, an environmental model with technology and market turbulence, a competency model with R&D and foreign distribution channels, a strategy model with product and market differentiation, and an integrated model including all of these variables. Results - First, as a control variable, the organization size has significant positive effects on export performance. Second, technology turbulence based on industrial organization theory has significant positive effects on export performance, but market turbulence does not affect export performance. Third, the foreign market distribution competency of the resource-based view has strong positive effects on export performance, but the R&D competency does not affect export performance. Fourth, the product differentiation strategy from competitive strategy theory positively impacts export performance, but market differentiation does not affect export performance. Finally, in the integrated model, only the foreign distribution competency of the resource-based view has a significant effect on export performance. Conclusions - The empirical results of this study verified the usefulness of the rationales behind the three theories to explain the export performance of the regional SMEs, especially the importance of the foreign market distribution competency from the resource-based view. With regard to practical considerations, this study's implications suggest that the use of technological environmental changes by industries is better than the use of market changes. Further, the use of the product differentiation strategy is more effective than the use of the market-driving strategy, and the distribution channel competency plays a stronger role than the technology-oriented competency with regard to the export performance position of regional SMEs. Future studies should examine relational perspectives, such as trust among channel partners. Therefore, the configuration approach is more useful in enhancing pragmatism by comparing high- and low-export companies.
Globalization has fuelled the desire for simplicity and flexibility in rules and processes within nations. de Soto (2000) calls for the simplification of rules to enable people to join the formal economy. Friedman (2005) echoes the need for simpler rules, to attract business and capital. Market-based approaches to governing have been adopted in many nations due to globalization. Recent developments demonstrate that such approaches fail. Globalization may lead to impoverishment in the absence of proper forms of governance (Cooney 2000). That is why it has the tendency to become a "race to the bottom." Regulatory measures can be costly, and the costs of doing business are uneven across nations. This unevenness is being used as a comparative advantage. Others call this regulatory competition (Smith-Bozek 2007) or competitive governance (Schachtel and Sahmel 2000), which is similar to the model of Charles Tiebout. Collaborative governance is an approach that governments could use in lieu of the competitive method. Mechanisms that enable stakeholders to exchange information, harmonize activities, share resources, and enhance capacities (Himmelman 2002) are needed. Philippine public policy encourages a shift in modes of realizing labor market governance outcomes from command to collaboration (Sale and Bool 2010B; Sale 2011). Is labor market governance and regional development in the Philippines collaborative? Or is the opposite - competitive governance (Tiebout model) - more evident? What is the dominant approach? This preliminary research tackles these questions by looking at recent data on average and minimum wages, wage differentials, trade union density, collective bargaining coverage, small and bigger enterprises, employment, unemployment and underemployment, inflation, poverty incidence, labor productivity, family income, among others, across regions of the country. The issue is studied in the context of legal origins. Cultural explanations are broached.
The Journal of Asian Finance, Economics and Business
/
v.9
no.2
/
pp.15-27
/
2022
The paper addresses the importance of redesigning strategies for resilient and sustainable regional economic development - by applying strategic approaches to free economic zones for the digital economy. The purpose of the paper is to provide a broad comparative perspective on developed versus developing country efforts to use free economic zone programs to enhance various economic and social objectives. First, the paper introduces the chronicle experiences of free economic zone programs in South Korea and mainland China - developed versus developing economies. The main results of the analysis indicate that (1) achieving the goals and objectives of free economic zones is challenging over time; (2) trying to upgrade the technical component, develop knowledge-based and eco-friendly new industries, or value-added to the economy through free economic zone policies is even challenging; and (3) incentives and other program-specific variables are highly context-specific and not structurally correlated with free economic zone performance. In addition, the paper shows that the initial conception of the role of free economic zones has undergone significant change as individual countries have tried to enhance the contributions and avoid damages from incorporating free economic zones into their development strategy respectively, over time.
Journal of the Economic Geographical Society of Korea
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v.9
no.3
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pp.459-472
/
2006
This paper examines the implication of competition and collaboration in the innovation process for regional economic development in an increasingly knowledge-based economy. While competition is an important force in securing the competitive advantage of firms, collaboration between firms and organizations should be necessary for promoting the innovative capacity of a region. This study shows that collaboration relations based on trust and stability is important for the long-term development of learning and innovation in competitive environment, and the way how spatial proximity plays an important role in interactive learning processes. It also discusses the reason why the innovative networks facilitating the exchange of tacit knowledge should be embedded in region. Finally, the paper examines the possibility of the networks based on collaboration relationship in less-favored regions such as Chonbuk, and suggests the policy implication of the result for achieving regional innovation systems in the region successfully.
There have been relatively lots of studies on the relationships beteen port and city. And, most of the recent studies on the subject shows that the relationship between the two parties is weakening. The contributions of a port to the city economy such as convenience of logistics service utilization, cost reduction, creation of job opportunities and value added production etc. are diminishing, whereas negative effects of port such as environmental effects, limitation of waterfront activities etc. have been increasing. On the other hand, port logistics service demand from city economy is decreasing. As for Busan city, the trend of major economic indicators and growth factor analysis results show that there is hardly any relationships between the development of transportation industry(including port logistics) and the regional economy. Especially, it is identified that most regional industry sectors excluding transportation industry failed to secure competitive advantage. Accordingly, it can be concluded that Busan city economy fails to take advantage of advanced transportation industry sector, which supports overall economic activities. On the other hand, it can be a problem for enhancement of port-city relationships that related and supporting industries of transportation industry such as information and communication industry, financial and insurance industry, and processing and assembling manufacture industry fail to secure competitive advantage in Busan city.
Companies do not be resolved by the FTA services of external aid should be operational by assigning dedicated personnel inside the company. FTA is a choice, not an essential trade agreement requirements. If the exporter contracts to provide a certificate of origin in trade agreements, it shall issue a certificate of origin of goods originating management is performed. When considering the future trend of spreading wide FTA, it should be extended to one year to take advantage of the FTA Certificate of Origin environments utilizing a comprehensive environment for regional countries that require proof of origin between certain countries, such as current. FTA utilization of the future is to utilize the GVC(Global Value Chain) efficiently. In other words, the expansion of the consumer market and take advantage of an efficient production base across borders. These environmental changes are needed development of the FTA utilization promotion and FTA experts. The experts studying how to procure raw materials or intermediate goods exports in a variety of regional foreign countries, to meet the rules of origin is required for a successful FTA utilization. One of the objectives of Origin managers are qualified experts in the country of origin can take advantage of the FTA plan. Therefore, managers of origin shall collect their ability to expand the understanding and information about the industry as an international business perspective beyond the Certificate of Origin. In addition, it should be in their best learning expertise for the introduction and development of country of origin control system in an effort to effectively perform its international FTA utilization. Once the FTA is more widespread in the future and build a common origin information it must not be disconnected until the export enterprises from terminal manufacturers systematically. Therefore origin management is preferred by expanding the knowledge base of teaching and learning in the common sense to the universal subject of specialization from professional schools to promote the relevant departments so that they can be opened in a college or university. An FTA hub linking East and West, also need the confidence that in order to become a center of Glabal Supply Chain Using an FTA Certificate of Origin and stable environment for importers to import products from the country offers. Certificate of Origin and all of them thoroughly exporters and companies related to the administration of origin and should create an atmosphere that can effectively respond to the origin verification. Korea shall endeavor to elicit a geopolitical value (FTA Hub), as well as securing a competitive advantage in the global industry leverage, trading at a reasonable price competitive products thereby enhancing production and economic growth through the FTA.
Journal of the Korean association of regional geographers
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v.23
no.1
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pp.227-238
/
2017
Under the knowledge-based economy, the function of university as an institution to create and diffuse new knowledge and technology is emphasized than ever before. Today, universities around the world find themselves going beyond the traditional roles of research and teaching to drive the development of local economies through collaborations with industry. This study aims to examine the university-industry collaboration and identify the aspects of knowledge transfer and exchange between university and external agencies and intends to explain in particular how the knowledge transfer of the university affects the innovation and competitive advantage of regional businesses. The analysis on the case study of Chonnam National University focusing on the knowledge transfer, in particular examined through the contracted or commissioned researches suggests that only a small portion of the knowledge generated by the university is transferred to Gwangju and Jeonnam region, thus it can be seen that knowledge transfer of Chonnam National University partially affects the development of the regional economy. However, it is analyzed that this knowledge transfer differs somewhat depending on the client's sectors and the contents of research contracts.
Journal of the Korea Academia-Industrial cooperation Society
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v.19
no.11
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pp.191-204
/
2018
In the era of diversity and creativity, autonomous regional regeneration is being emphasized. Local regeneration effects through local heritage utilization and the value of regional properties are rising. It is very meaningful to find a way to revitalize the urban regeneration system that can transform the facilities, spaces and industries in underdeveloped regions into opportune properties. This study explores the possibility of self-sustaining development by establishing an endogenous self-reliance system through the localization of industrial heritage. Competitive advantage strategies of regional properties are more important than regional comparative advantages. In the future, more attention should be paid to the intangible value of the city. A genuine city revival should be created as a place with cultural identity through artistic ecology, tradition, community, and aesthetics centering on people.
Recently, the environment has been recognized as an important factor in increasing competitiveness in the industry. In agriculture and rural areas, the environment is becoming important in terms of the competitive advantage of agricultural products and continued regional development. This study intended to provide farmers with basic data for the continuous development of local agriculture through exploratory studies of environmental behaviors and regional development. In this study, 107 questionnaires were used for analysis of farmers in Jinan County to analyze the impact of farmers' environmental consciousness on regional development, and the research model was verified using a structural equation model. As a result of the analysis, it was analyzed that among the components of the environmental consciousness of farmers, environmental health has a statistically significant positive effect on environmental behaviors, while environmental interest and soil environment do not have an impact. The environmental behaviors of farmers have not been shown to be statistically significant to regional development. As a result of the analysis of this research, first, it is necessary to foster at the local level by establishing a customized fostering system for each village and region, such as education and technical support to vitalize the participation of young farmers and small and medium-sized farmers through the establishment of an Eco-friendly agricultural organization support system. It is necessary to raise public awareness of the public good function of agriculture and expand opportunities for sharing the value of Eco-friendly agriculture.
As globalization is making rapid progress, place of international trade based on seaports is changing to airports, which make logistic function in airport getting more important. Airports are required to serve as social overhead capital representing economies of scale as well as a logistic hub for integrating production, sales and transport for multinational corporations. In order to keep regional airport hub, many strategies are required such as development of hinterland and competitive advantage strategies. This paper tried to find determining factors to be a hub airport and competitiveness for hubbing, using the data from Incheon, Narita, Kansai, Nagoya, Singapore-Changi and Taipei airports. As the result of making an analysis of competitiveness of airports and competitive ranking excluding hinterland factors.
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