• Title/Summary/Keyword: venture companies

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The Globalization of Korean Economy and its Impact on Small and Medium-Sized Entrepreneurial Firms from 1998 to 2007 (한국 경제의 세계화가 벤처기업들에 미치는 영향에 관한 탐색적 연구: 1997년 외환위기 이후와 2008년 금융위기 이전의 기간을 중심으로)

  • Lee, Jae-Eun;Park, Jung-Min;Choe, Soonkyoo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.8 no.3
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    • pp.17-26
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    • 2013
  • This research examines the effect of globalization of Korean economy on small and medium-sized entrepreneurial firms. When Korea underwent the Asian economic crisis in 1997, it reconstructed Korean venture industry and had helped fuel venture firms' rapid growth. Therefore, this study shows the changed structure of Korean economy and the change of venture ecosystem due to the Asian financial crisis. In spite of a favorable turn of the industrial structure toward venture firms, their globalization level is reported still being low. In this study, we also examine how the Korean economy's globalization affects to the venture environments, focusing on the degree of Korea venture's globalization and role of venture capital. This study indicates that the globalization of Korean economy has played a positive role in the growth of the venture firms. However, with the growth of venture firms, small and medium venture companies have received relatively little focuses in Korean economy because the government policy of economic development has been oriented to large companies for several decades.

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Effect of Venture Capitalists on the ChiNext IPO First-Day Return in China (중국 차이넥스트 시장의 벤처캐피탈이 IPO 첫날 수익률에 미치는 영향)

  • Kang, Kai;Ahialey, Joseph Kwaku;Kang, Ho-Jung
    • Management & Information Systems Review
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    • v.36 no.4
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    • pp.117-127
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    • 2017
  • In recent times the size of the world IPO in general has skyrocketed. Specifically, China's financial market development is becoming important as both the size of China's capital market and the number of companies going public are gradually increasing. This has led to a rapid development of venture vapital(VC) institutions in China for the past couple of decades. This study focuses on one of the three markets of China's Shenzhen Stock Exchange-the Growth Enterprise Board((GEB) hereafter, ChiNext). The ChiNext is established in October, 2009 to enable hi-tech or high growth potential technology companies that find it relatively difficult to fulfil the listing requirements of either the Shenzhen Main Board or Small and Medium Size Enterprise Board(SMEB) to go public. This study covers a three-year period(2012/01/-2015/01) and analyze first day initial return of 83 venture capital-backed companies and 53 non-venture capital-backed companies using T-test. Regression analysis is used as to examine the variables affecting IPO's first-day return. The empirical results are four-fold. First, the level of first day return of venture-backed is significantly lower than non venture capital backed support in the Chinese venture capital market. Second, the level of first-day return of listed companies supported by foreign venture capital is significantly higher than that of companies receiving domestic venture capital support. Third, the firms that have a large number of venture capital firms showed a low level of first-day return. Fourth, regression result for the IPO first-day return which is as dependent variable indicates that the venture capital support(VCAP), number of venture capital(VCNum), offering size(Lnsize) and PER all affect have negative effect on the first day initial return. Also, the venture capital type(VCType), turnover ratio and the the firm type(Tech-firms) statistically affect IPO first day return positively. Finally, by shedding more light on the IPO first-day return, this paper provides meaningful information to investors about the Chinese IPO market.

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Developing the Stage Evaluation Model for e-Business Company using Analytic Hierarchy Process (분석적 계층기법을 활용한 e-Business 기업의 초기투자단계 및 성장단계별 평가모형의 개발)

  • Choi, Hye-Jin;Han, In-Goo;Oh, Kyong-Joo
    • Asia pacific journal of information systems
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    • v.15 no.1
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    • pp.45-61
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    • 2005
  • This study develops the evaluation model for e-Business company using analytic hierarchy process. As the first step of this study, we derived the appraisal standards based on the previous literature and the knowledge of experts from venture capitalists, security companies, credit evaluation companies, and consulting firms. In order to validate the evaluating factors in the models, this study was supported by analysts of top ranked venture capitalists in Korea. Through their assistance, this study can determine necessary evaluating factors that refined and deepened the models. Four expert groups, such as venture capitalists, credit analysts, analysts of security company and e-Business consultants, provide their knowledge for the determination of the weights of evaluating factors in the hierarchical model through the questionnaires and interviews. The results show that the weights of the evaluating factors differed by the maturity of e-Business company.

A Study on the Improvement of Law Analysis of Venture Preferential System on Technology-based Startups (기술기반 창업기업 중심의 벤처우대제도 법령에 관한 연구)

  • Hong, Eun-Young;An, Gi-Don;Sung, Eul-Hyun
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.15 no.2
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    • pp.111-125
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    • 2020
  • In the rapidly changing era of the Fourth Industrial Revolution, the business environment surrounding venture companies is also changing rapidly. In recent years, the government has reorganized the venture verification system, including expanding the types and scope of venture companies. This study analyzes the current status of venture preferential system from the perspective of technology-based start-up companies and in addition, this paper proposes a plan for improving the legal system. For analysis, The relevant provisions were confirmed through a search using "venture" as a keyword in the National Legal Information Center and the Korean Court of General Law. Then, meaningful texts were extracted along with relevant data to secure basic data and analyzed by benefits, by means and by content. As a result of the study, Venture preferential treatment system is focused on 'reduction of burden' by the means of benefits, and on 'financial' and 'production' by benefits. In conclusion, four suggestions for improvement are presented. First, efforts are needed to increase the practical applicability of venture-related clauses. Second, the venture preferential treatment system is mainly focused on mitigating the burden, so efforts are needed to find a balance. Third, the venture preferential treatment system is mainly focused on the 'non-research' field, so the benefits of the 'research' field should be expanded. Finally, efforts to discover and overcome blind spots in the venture preferential system should be supported.

The Effects of Dynamic Capabilities, Entrepreneurial Creativity and Ambidextrous Innovation on Firm's Competitiveness

  • SIJABAT, Eduard Alfian Syamsya;NIMRAN, Umar;UTAMI, Hamidah Nayati;PRASETYA, Arik
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.1
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    • pp.711-721
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    • 2021
  • A firm's competitive advantage generating from empowering its dynamic capabilities is very important for established companies and new business ventures in facing intense competition and in responding to unanticipated environmental changes. This study aims to investigate the relationship between dynamic capabilities of a new business venture and its competitive advantage and the effect of entrepreneurial creativity and ambidextrous innovation mediation on the relationship between dynamic capabilities and the competitive advantage of a new business venture. Data was collected using an online survey from 143 new Indonesian shipping agency companies that spread over two-thirds of Indonesia's territory and was analyzed using structural equations modeling (SEM). The results showed that the dynamic capabilities of new business ventures are positively associated with competitive advantage but not significantly. This result indicates that empowering a new business venture's dynamic capability is not sufficient to generate a competitive advantage. However, a new business venture's dynamic capability is significantly and positively associated with the competitive advantage when mediated by entrepreneurial creativity and ambidextrous innovation. The findings of this study suggest that the competitive advantage of a new business venture can be gained from empowering a firm's dynamic capabilities through mediating entrepreneurial creativity and ambidextrous innovation in facing intense competition and in responding to unanticipated environmental changes.

A Study on the Born Global Venture Corporation's Characteristics and Performance ('본글로벌(born global)전략'을 추구하는 벤처기업의 특성과 성과에 관한 연구)

  • Kim, Hyung-Jun;Jung, Duk-Hwa
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.3
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    • pp.39-59
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    • 2007
  • The international involvement of a firm has been described as a gradual development process "a process in which the enterprise gradually increases its international involvement in many studies. This process evolves in the interplay between the development of knowledge about foreign markets and operations on one hand and increasing commitment of resources to foreign markets on the other." On the basis of Uppsala internationalization model, many studies strengthen strong theoretical and empirical support. According to the predictions of the classic stages theory, the internationalization process of firms have been recognized and characterized gradual evolution to foreign markets, so called stage theory: indirect & direct export, strategic alliance and foreign direct investment. However, termed "international new ventures" (McDougall, Shane, and Oviatt 1994), "born globals" (Knight 1997; Knight and Cavusgil 1996; Madsen and Servais 1997), "instant internationals" (Preece, Miles, and Baetz 1999), or "global startups" (Oviatt and McDougall 1994) have been used and come into spotlight in internationalization study of technology intensity venture companies. Recent researches focused on venture company have suggested the phenomenons of 'born global' firms as a contradiction to the stages theory. Especially the article by Oviatt and McDougall threw the spotlight on international entrepreneurs, on international new ventures, and on their importance in the globalising world economy. Since venture companies have, by definition. lack of economies of scale, lack of resources (financial and knowledge), and aversion to risk taking, they have a difficulty in expanding their market to abroad and pursue internalization gradually and step by step. However many venture companies have pursued 'Born Global Strategy', which is different from process strategy, because corporate's environment has been rapidly changing to globalization. The existing studies investigate that (1) why the ventures enter into overseas market in those early stage, even in infancy, (2) what make the different international strategy among ventures and the born global strategy is better to the infant ventures. However, as for venture's performance(growth and profitability), the existing results do not correspond each other. They also, don't include marketing strategy (differentiation, low price, market breadth and market pioneer) that is important factors in studying of BGV's performance. In this paper I aim to delineate the appearance of international new ventures and the phenomenons of venture companies' internationalization strategy. In order to verify research problems, I develop a resource-based model and marketing strategies for analyzing the effects of the born global venture firms. In this paper, I suggested 3 research problems. First, do the korean venture companies take some advantages in the aspects of corporate's performances (growth, profitability and overall market performances) when they pursue internationalization from inception? Second, do the korean BGV have firm specific assets (foreign experiences, foreign orientation, organizational absorptive capacity)? Third, What are the marketing strategies of korean BGV and is it different from others? Under these problems, I test then (1) whether the BGV that a firm started its internationalization activity almost from inception, has more intangible resources(foreign experience of corporate members, foreign orientation, technological competences and absorptive capacity) than any other venture firms(Non_BGV) and (2) also whether the BGV's marketing strategies-differentiation, low price, market diversification and preemption strategy are different from Non_BGV. Above all, the main purpose of this research is that results achieved by BGV are indeed better than those obtained by Non_BGV firms with respect to firm's growth rate and efficiency. To do this research, I surveyed venture companies located in Seoul and Deajeon in Korea during November to December, 2005. I gather the data from 200 venture companies and then selected 84 samples, which have been founded during 1999${\sim}$2000. To compare BGV's characteristics with those of Non_BGV, I also had to classify BGV by export intensity over 50% among five or six aged venture firms. Many other researches tried to classify BGV and Non_BGV, but there were various criterion as many as researchers studied on this topic. Some of them use time gap, which is time difference of establishment and it's first internationalization experience and others use export intensity, ration of export sales amount divided by total sales amount. Although using a mixed criterion of prior research in my case, I do think this kinds of criterion is subjective and arbitrary rather than objective, so I do mention my research has some critical limitation in the classification of BGV and Non_BGV. The first purpose of research is the test of difference of performance between BGV and Non_BGV. As a result of t-test, the research show that there are statistically efficient difference not only in the growth rate (sales growth rate compared to competitors and 3 years averaged sales growth rate) but also in general market performance of BGV. But in case of profitability performance, the hypothesis that is BGV is more profit (return on investment(ROI) compared to competitors and 3 years averaged ROI) than Non-BGV was not supported. From these results, this paper concludes that BGV grows rapidly and gets a high market performance (in aspect of market share and customer loyalty) but there is no profitability difference between BGV and Non_BGV. The second result is that BGV have more absorptive capacity especially, knowledge competence, and entrepreneur's international experience than Non_BGV. And this paper also found BGV search for product differentiation, exemption strategy and market diversification strategy while Non_BGV search for low price strategy. These results have never been dealt with other existing studies. This research has some limitations. First limitation is concerned about the definition of BGV, as I mentioned above. Conceptually speaking, BGV is defined as company pursue internationalization from inception, but in empirical study, it's very difficult to classify between BGV and Non_BGV. I tried to classify on the basis of time difference and export intensity, this criterions are so subjective and arbitrary that the results are not robust if the criterion were changed. Second limitation is concerned about sample used in this research. I surveyed venture companies just located in Seoul and Daejeon and also use only 84 samples which more or less provoke sample bias problem and generalization of results. I think the more following studies that focus on ventures located in other region, the better to verify the results of this paper.

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Legal Aspects of International Joint Ventures (합작투자계약(合作投資契約)에 관한 법적(法的) 문제(問題))

  • Park, Whon-Il
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.18
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    • pp.159-188
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    • 2002
  • International joint ventures are usually formed and managed by domestic companies and foreign investors for the common objectives. They offer an opportunity for each partner to benefit significantly from the comparative advantages of the other. Local partners bring knowledge of the domestic market; familiarity with government bureaucracies and regulations; understanding of local labor markets; and existing manufacturing facilities. Foreign partners can offer advanced process and product technologies, management know-how, and access to export markets. In Korea, joint ventures have been encouraged to usher in foreign investors with foreign currency capital badly needed during the IMF financial crisis. In the meantime, Korean laws and regulations with respect to joint ventures have been largely overhauled to promote foreign direct investment (FDI) both inbound and outbound. They include four types of FDI, i.e., acquisition of foreign stocks, provision of long-term loans, participation in joint operations like resources development, and establishment of foreign offices. From the legal point of view, the formal joint venture agreement must be an offspring of a series of tough negotiations between domestic and foreign partners. They usually stress the long-term relationship with the good will and dedication to each other, and restrict the free transfer of stocks. Both partners are earnestly interested in the ownership and management of the joint venture. So they keep a close eye on the articles of incorporation, changes of business environment, conflict resolution methods, transparency of accounting and other financial matters. When a multinational corporation (MNC) is involved in the joint venture, conflicts over management strategies, marketing and other issues take place more often than not between the MNC and local partners. We have to pay attention to joint ventures, particularly, in China and North Korea. As witnessed in other transition economies, China is eagerly bringing in foreign direct investments for the development of nation's economy. China encourages foreign investors to establish ordinary joint ventures, contractual joint ventures, solely invested foreign capital companies and jointly operated development companies with local partners. In North Korea, however, joint ventures have a different meaning like contractual joint ventures in China, in which North Korean partners have an initiative in the management. Rather, jointly operated companies or simply processing-for-wage companies are recommended in view of the unpredictable legal infrastructure in North Korea.

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A Study on the Purpose of Patent Application by Companies: Focus on Chinese Companies (기업의 특허출원 목적에 관한 연구: 중국기업을 대상으로 21)

  • Eun-Mi Park;Seong-Taek Park
    • Journal of Industrial Convergence
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    • v.20 no.12
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    • pp.227-233
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    • 2022
  • The purpose of this research is to grasp the purpose of patent applications by companies. Based on this, we grasped the purpose of the patent application through consideration of previous research, selected 10 factors through expert Delphi, and conducted a questionnaire survey on these factors among practitioners in charge of patents in Chinese companies. Analysis results, Improve the technological image of your company, For use in negotiation: cross licensing, joint venture, Improve the situation in R&D cooperations, Enhance Reputation, Measure performance, Aacquire venture capital, Prevent patent infringement suits, Licensing Revenue, competitors' patenting and application activities, prevent copying or protect own technology from imitation. We hope that the results of this research will be useful as practical guidelines for understanding and applying factors that companies should prioritize when filing patent applications.

An Exploratory Study of a Chinese IT Unicorn Company (유니콘 기업의 성공에 영향을 미치는 요인에 관한 탐색적 연구: 중국 IT 기업을 중심으로)

  • Jin, Yuan-Jing;Huh, Moon-Goo
    • Asia-Pacific Journal of Business
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    • v.12 no.1
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    • pp.101-120
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    • 2021
  • Purpose - As the research of Chinese unicorn companies is still in early stages, this paper aims to investigate the factors that influence the success of Chinese IT unicorns. Design/methodology/approach - This study is conducted as a single case study and used various sources such as interviews, internal data, press releases, IR data, etc. to enhance the reliability and validity. Findings - First, the characteristics of the start-up team, social capital, and strategies as internal factors affect the success of unicorns. Among them, the more Guanxi in social capital factors, the greater the possibility of growing into an IT unicorn company. Second, the role of venture capital and geographical location have been identified that two factors affect the success of unicorns. In the role of venture capital, it has been confirmed that the world's top-level venture capital company or a company that has been invested by "BATJ" is more likely to grow into a unicorn company in China. Research implications or Originality - This paper distinguishes between internal and external factors to explain the factors that affect the growth of unicorn companies, which lays the foundation for future research, such as the exploration of the unicorns and the development of new variables.

A Study on the Impact of Venture Capital Investment Experience and Job Fit on Fund Formation and Investment Rate of Return (벤처캐피탈의 투자경험과 직무적합도가 펀드결성과 투자수익률에 미치는 영향력에 관한 연구)

  • Kim Dae-Hee;Ha Kyu-So
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.18 no.4
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    • pp.37-50
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    • 2023
  • Venture capital invests the necessary capital and supports management and technology in promising small and medium-sized venture companies in the early stages of start-up with promising technology and excellent manpower. It plays a role as a key player in the venture ecosystem that realizes profits by collecting the investment through various means after growth. Venture capital's job is to recruit various investors(LPs) to invest in small and medium-sized venture companies with growth potential through the formation of venture investment funds, and to collect investment as companies grow, distribute and reinvest. The main tasks of venture capitalists, which play the most important role in venture investment, are finding promising companies, corporate analysis and evaluation, investment screening, follow-up management, and investment recovery. Venture capital's success indicators are fund formation and return on investment, and venture capitalists are rewarded with annual salary, performance-based incentive, and promotion with work performance such as investment, exit, and fund formation. Compared to the recent rapidly growing venture investment market, investment manpower is insufficient, and venture capital is making great efforts to foster manpower and establish infrastructure and systems for long-term service, but research has been conducted mainly from a quantitative perspective. Accordingly, this study aims to empirically analyzed the impact of investment experience, delegation of authority, job fit, and peer relationships on fund formation and return on investment according to the characteristics of the venture capital industry. The results of these empirical studies suggested that future venture capital needs a job environment and manpower operation strategy so that venture capitalists with high job fit and investment experience can work for a long time.

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