• Journal of Technology Innovation
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• v.18 no.1
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• pp.21-51
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• 2010

This paper examines the knowledge transfer effect in Korean venture systems. Existing literature has provided rich evidence of the effect of knowledge transfer, but we do not have micro mechanisms inherent in the process of knowledge transfer. This paper argues that knowledge transfer effects vary depending on the knowledge types, sources, and legacy. This paper also tests role of the two important pillars in knowledge transfer of Korean venture startups; venture capital and government. This paper also examines the role of absorptive capacity in the knowledge transfer process. With 1,862 sample of Korean venture firms, this study employed three methods depending on 3 different types of dependent variables: hierarchical regression, logistic regression, and survival analysis. Main findings include that 1) knowledge characteristic itself and its alignment with industry influence the knowledge transfer effects, 2) government support has a negative effect on financial performance of venture firms, but does not have significant interaction effect on knowledge transfer, and 3) the absorptive capacity of each firm moderates the knowledge transfer effects. The theoretical and practical implications are discussed.

• Management & Information Systems Review
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• v.30 no.4
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• pp.339-358
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• 2011

This study analyzes whether there are differences in the level of compensation and pay-performance sensitivity between venture firms and non-venture firms listed on KOSDAQ. To test the above mentioned purpose, this study uses 726 firm-year data listed on KOSDAQ from 2006 to 2009. The results are as follow: First, we find that managers' compensation level of venture firms are higher than non-venture firms. Second, pay-stock performance sensitivity is higher than pay-accounting performance sensitivity in venture firms. Overall, because venture firms give a lot of stock-option to managers, compensation level of venture firms is higher than other firms. Also, venture firms set higher pay-stock performance sensitivity than pay-accounting performance sensitivity to mitigate short-sighted decision.

• 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.1
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• pp.1-15
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• 2020

This study analyzes the innovation performance of venture firms according to existence of venture capital investment, and according to type and ownership of venture capital. Venture firms are IPO firms that are registered on KOSDAQ between the year 2000 and 2016. They are categorized as corporate venture capital-backed firms (CVC) and independent venture capital-backed firms (IVC). Using patent data from KIPO (Korean Intellectual Property Office), we employ the number of patents and the citations per patent as the measurement of the innovation output. We find the positive association between the venture capital-backed firms and the number of patents before going public. Corporate venture capital-backed firms are positively associated with the number of patents before and after IPO. However, we do not find strong evidence between the number of citations and the existence of venture capital investment or the type of venture capital. Lastly, we provide an inverse U-shaped relationship between the innovation performance and venture capital's ownership. In other words, the innovation output, both the number of patents and the number of citations, gradually increases as the venture capitalist's ownership increases, but also shows a decrease pattern, suggesting that the venture capitalist's ownership does not only spur the innovation but also gives a negative effect on venture firm's innovation output such as excessive intervention. Overall, we reveal that the most important factor for the innovation performance is not the existence of venture capital investment or the type of venture capital, but the ownership of the venture capitalist.

• Journal of Korea Multimedia Society
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• v.18 no.11
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• pp.1408-1418
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• 2015

As the CEO`s of game companies should be ready for the rapid change of technical environment of game industry, highly skilled employees and the social capital become very important factors in doing game business. 2013 Korea Game White Paper shows that many game companies prefer employees with job experience. The social capital and network help game companies get industrial information easily. This study empirically examines the relationship among CEO`s related business experience, corporate performance and social capital based on 134 Korean game companies. CEO`s characteristics are measured by using demographic characteristics including age, amount of education, and prior job experience and psychological characteristics, but this study focuses on related business experience. The results of this study show some significant relationship between the related business experience of CEO and nonfinancial performance of the firm. Secondly, this study verifies the moderating effect of the social capital between the related business experience of CEO and non-financial performance of the firm. The results of the moderating effect of the social capital show that social capital increases the non-financial performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.267-275
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• 2021

This study investigates the relationship between cultural distance and entry mode choice, where the foreign investor firm and the host country are both from emergent economies. Within this framework, research is limited and the issue is whether companies, regardless of their specific situations, have the same strategy when they meet a high degree of uncertainty in the host environment. In this study, we focused on the influence of informal institutional factors: cultural distance, that has been extensively analyzed in international business, measured by Kogut and Singh index and defined according to Hofstede, Globe Project and Schwartz approaches. The general trend derived from prior research proves that when a company from a developed country is involved; overall more enthusiasm is shown for wholly-owned subsidiaries rather than joint venture. This result still stands validated for corporations from this emergent economy area. Our analysis of a sample of 163 FDI in the Kingdom of Saudi Arabia (KSA) using logistic binary regression model reveals that the foreign firms prefer to establish wholly-owned subsidiaries in the host country over entering into a joint venture with a local firm, taking into consideration the large cultural distance.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.4
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• pp.615-621
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• 2016

This study examines whether there is agency cost in a public R&D subsidy program by applying agency theory. If there is agency cost, the composition ratio of the government subsidy and the firm's own R&D fund would have a significant (-) effect on technological performance. Companies that received a public R&D subsidy in Korea from 2000 to 2009 were selected as a sample. Frequency analysis and multiple regression analysis were used. The independent variables was the ratio of public R&D subsidy cost to the Firm's own R&D cost, and the dependent variables were the number of patent applications and the number of patents registered. The control variables were firm size and R&D cost. The results show that there are agency problems in the government-sponsored R&D system. A future study is needed to examine how much agency problems deteriorate the efficiency of the system.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.4
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• pp.87-100
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• 2012

This study is to determine the key factors of internal situational characteristics, affecting the motivation and performance for overseas expansion of Korean venture business in global markets and to investigate the moderating effect of them on the relationship between entrepreneurship and overseas expansion. To meet the research purpose, by reviewing previous researches, we categorized internal factors into four situational factors of firm size with sales growth, firm age with main product's life cycle, overseas experience and organizational structure and into three entrepreneurship sub-categories of innovativeness, pro-activeness and risk-taking. As result of the statistical analysis of 289 small and medium-sized enterprises with Korean Venture Certificate, it is verified that the motivation for globalization has been influenced by firm size, entrepreneurship, and overseas experience. On the other hand, all factors excepting firm size have positive effects on globalization performance overseas. And, it also verified that there are positive moderating effects of internal situational factors on the relationship of entrepreneurship and the performance of globalization, wheres overseas experience only plays positive moderating effects on the relationship between entrepreneurship and the motivation of globalization. On the basis of these results, we discussed and suggested practical and political issues and implications in order to vitalize globalization of Korean SMEs in the conclusion.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.4
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• pp.101-113
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• 2021

This paper inquires the macro-economic factors that may affect the corporate venture capital (CVC) from an industrial organization theory perspective. Unlike existing studies focusing CVC investments related to parent corporates' strategic intention, we identified CVC firm as an independent financial investor affected by macro environment and industrial structure. Specifically, we empirically investigate whether and how industry's boom, exogenous crisis, economic growth, and competition intensity affect the CVC investment for a data set of investment in the U.S. based corporate venture capital industry, 1996-2017. The empirical data analyzed in the study contained a total of 84 U.S. based CVC firms and their 2,306 investments from 1996 until 2017. After conducting a time-series negative binomial analysis, our empirical analyses suggest that the CVC investments are affected negatively by exogenous crisis and competition intensity, and positively by industrial boom and economic growth. we found the significance and direction of our independent variables strongly supported all of our four hypotheses in a highly robust manner. The results of this study are expected to contribute the literatures of corporate venture capital and venture investment by illustrating which macro-economic and industrial structure factors affect CVC investment decision to adapt to dynamic environmental change beside strategic intention of CVC firm's parent corporates.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.1
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• pp.45-61
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• 2022

Despite of the consensus on the critical role of CEO and slack resources for strategic decision making, how they affect in the selection of strategic alliance type is limited. This study investigated the effect of CEO's experiential attributes and the venture firms' slack resource on the selection of strategic alliance type. To this end, this study used multi-variate logistic regression analysis with 1,813 Korean venture firms. The findings indicated that higher education level and large firm experience of CEO positively contributed to form an explorative alliance. And these two experiential attributes has negative effects on the probability of exploitative alliance formation. On the other hand, the entrepreneurial experience has no effect on the selection of strategic alliance type. This study also investigated the effect of slack resource - available slack, recoverable slack, and potential slack-. The more venture firms have available and potential slack, the higher probability of pursuing an explorative alliance. In addition, recoverable slack of venture firms has negative effect only on the selection of explorative alliance. The results of this study are expected to contribute the literatures of strategic management and venture firms by illustrating which CEO and firm-level factors affect the selection of strategic alliance type. This study also extends recent effort to better understand the selection of strategic alliance type with upper echelons theory and slack resource. And this study suggests implications that can increase the probability of successful decision making by venture firms in selection of strategic alliance type.