• Knowledge Management Research
• /
• v.23 no.4
• /
• pp.177-205
• /
• 2022

Small- and medium-sized enterprises (SMEs) have strong incentives to engage in open innovation to enhance innovation efficiency and effectiveness due to their 'liability of smallness.' Previous research examined the performance effects of various open innovation practices, but whether coupled open innovation practices positively affect SMEs' firm performance is somewhat controversial. To resolve the issue, this study examined the effects of coupled open innovation activities on SMEs' firm performance using Heckman's two stage model to control endogeneity of the firms' self-selection bias in open innovation engagement. This study used the Korean Innovation Survey (KIS) 2020 collected by the Science and Technology Policy Institute (STEPI), and tested the effects of SMEs' coupled open innovation activities, R&D and non-R&D cooperation, on their innovative and financial performance indicators. The results showed that SMEs' R&D cooperation positively affects the new-to-market (NTM) product innovation only. Moreover, SMEs' non-R&D cooperation has positive effects on the product innovation, business process innovation, new-to-the-market product innovation, and new-to-firm (NTF) product innovation. However, the results showed that both R&D and non-R&D innovation cooperation activities have no significant effects on SMEs' financial performance indicators. This study contributes to research on SMEs' open innovation and provides insights for SMEs' managers and policymakers.

• Asia pacific journal of information systems
• /
• v.17 no.4
• /
• pp.61-95
• /
• 2007

Small-and-medium sized enterprises(SMEs) represent quite a large proportion of the industry as a whole in terms of the number of enterprises or employees. However researches on information system so far have focused on large companies, probably because SMEs were not so active in introducing information systems as larger enterprises. SMEs are now increasingly bringing in information systems such as ERP(Enterprise Resource Planning Systems) and some of the companies already entered the stage of ongoing use. Accordingly, researches should deal with the use of information systems by SME s operating under different conditions from large companies. This study examined factors and mechanism inducing faithful appropriation of information systems, in particular integrative systems such as ERP, in view of individuals` active feedback-seeking behavior. There are three factors expected to affect end users` feedback-seeking behavior for faithful appropriation of information systems. They are management support, peer IT champ support, and IT staff support. The main focus of the study is on how these factors affect feedback-seeking behavior and whether the feedback-seeking behavior plays the role of mediator for realizing faithful appropriation of information systems by end users. To examine the research model and the hypotheses, this study employed an empirical method based on a field survey. The survey used measurements mostly employed and verified by previous researches, while some of the measurements had gone through minor modifications for the purpose of the study. The survey respondents are individual employees of SMEs that have been using ERP for one year or longer. To prevent common method bias, Task-Technology Fit items used as the control variable were made to be answered by different respondents. In total, 127 pairs of valid questionnaires were collected and used for the analysis. The PLS(Partial Least Squares) approach to structural equation modeling(PLS-Graph v.3.0) was used as our data analysis strategy because of its ability to model both formative and reflective latent constructs under small-and medium-size samples. The analysis shows Reliability, Construct Validity and Discriminant Validity are appropriate. The path analysis results are as follows; first, the more there is peer IT champ support, the more the end user is likely to show feedback-seeking behavior(path-coefficient=0.230, t=2.28, p<0.05). In other words, if colleagues proficient in information system use recognize the importance of their help, pass on what they have found to be an effective way of using the system or correct others' misuse, ordinary end users will be able to seek feedback on the faithfulness of their appropriation of information system without hesitation, because they know the convenience of getting help. Second, management support encourages ordinary end users to seek more feedback(path-coefficient=0.271, t=3.06, p<0.01) by affecting the end users' perceived value of feedback(path-coefficient=0.401, t=6.01, p<0.01). Management support is far more influential than other factors that when the management of an SME well understands the benefit of ERP, promotes its faithful appropriation and pays attention to employees' satisfaction with the system, employees will make deliberate efforts for faithful appropriation of the system. However, the third factor, IT staff support was found not to be conducive to feedback-seeking behavior from end users(path-coefficient=0.174, t=1.83). This is partly attributable to the fundamental reason that there is little support for end users from IT staff in SMEs. Even when IT staff provides support, end users may find it less important than that from coworkers more familiar with the end users' job. Meanwhile, the more end users seek feedback and attempt to find ways of faithful appropriation of information systems, the more likely the users will be able to deploy the system according to the purpose the system was originally meant for(path-coefficient=0.35, t=2.88, p<0.01). Finally, the mediation effect analysis confirmed the mediation effect of feedback-seeking behavior. By confirming the mediation effect of feedback-seeking behavior, this study draws attention to the importance of feedback-seeking behavior that has long been overlooked in research about information system use. This study also explores the factors that promote feedback-seeking behavior which in result could affect end user`s faithful appropriation of information systems. In addition, this study provides insight about which inducements or resources SMEs should offer to promote individual users' feedback-seeking behavior when formal and sufficient support from IT staff or an outside information system provider is hardly expected. As the study results show, under the business environment of SMEs, help from skilled colleagues and the management plays a critical role. Therefore, SMEs should seriously consider how to utilize skilled peer information system users, while the management should pay keen attention to end users and support them to make the most of information systems.

• Journal of Distribution Science
• /
• v.13 no.6
• /
• pp.105-118
• /
• 2015

Purpose - Currently, strengthening small and medium-sized enterprises (SME) in terms of competitiveness is a key economic issue. However, the problem is that many SMEs lack the internal competence required to cope with a rapidly changing market structure. Such problems can act as an obstacle to economic development, yet most SMEs in Korea are dealing with this problem today. A company's source of competitive advantage is changing from quantity to quality, facility to knowledge, and hardwork to creativity. Under such circumstances, a company should place learning and sharing of knowledge and continuously creating new knowledge as its priority. This study aims to identify the effect of a chief executive officer's (CEO) compassion and forgiveness - positive factors in organizational emotion - on learning organization activities and organizational performance, through a theoretical comparison. Research design, data, and methodology - For this study, SMEs based in Daejeon and Chungcheong area were selected. To secure credibility of the data, the subjects were selected among those who have been working at the business for six months or longer. The survey was conducted for 30 days from March 5, 2015 to April 5, 2015. Both offline and online surveys were conducted. Fifty companies were chosen and 700 questionnaires were distributed, with 506 used for analysis. Fifty subject companies (25 from Daejeon, 10 from Chungnam, 10 from Chungbuk, and five from Sejong) were selected and the objective, target, and survey content were explained to a manager at each company either face-to-face or on the phone. Of the total of 700 questionnaires distributed via mail or e-mail, 78.6% or 550 copies were returned. Excluding 44 insufficient questionnaires, the remainder, 506 questionnaires, were used for analysis. Results - This study analyzed how the CEO's compassion and forgiveness affects learning organization activities and organizational performance. First, compassion of the CEO at the SMEs directly affected the learning organization activities and indirectly affected the organizational performance. Second, forgiveness of the CEO at the SMEs did not affect the learning organization activities and organizational performance directly or indirectly. Conclusions - The study conclusions are as follows. First, CEO compassionate behavior at the SMEs was a significant variable that directly and indirectly affected learning organization activities and organizational performance. Therefore, the CEO of an SME can create a positive organizational atmosphere through compassionate behaviors in the organization. Second, the forgiving behavior of the CEO did not have direct or indirect effects on learning organization activities and organizational performance. However, the reason for a CEO to continue his or her forgiving behavior is because it strengthens employee resilience, commitment, and self-efficacy to protect the organization from negative influences such as layoffs, risks, and wrongdoings. The action of forgiveness does not have direct or indirect effects. However, the CEO shall continue such behavior to strengthen members' physiological resilience, commitment, and self - effectiveness, and to protect the organization from risks including layoff and external negative factors.

• Korean small business review
• /
• v.42 no.2
• /
• pp.1-22
• /
• 2020

This paper examines the effect of the adoption of international financial reporting standards(IFRS) on the financial reporting of SMEs. As IFRS is principle-based, management's discretion is needed to reflect the economic substance of transactions, and a sound internal accounting infrastructure is needed to support the judgment process. In the case of SMEs, the internal accounting infrastructure is not well established, which makes it difficult to apply principle-based accounting. The survey analysis of 132 small and medium-sized business accounting managers listed in the domestic stock market showed that the reliability of financial statements has increased due to the introduction of IFRS. In particular, SMEs perceived their financial statements as being more reliable after the adoption of IFRS than midsize companies. However, it was found that the costs and risks from the preparation of financial statements have increased significantly, and conflicts between auditors and supervisory authorities related to the application of the principles have increased. In particular, midsize companies felt the increase in conflict with auditors and supervisory authorities bigger than small companies. As for the practical difficulties in applying IFRS, both small and medium-sized companies have difficulty in interpreting the standards and lacked guidelines. In order to resolve these difficulties, it is necessary to enhance the function of Q&A by the Korea Accounting standard board(KASB) or Financial Supervisory Service(FSS). In conclusion, the reliability of the financial statements of SMEs has improved with the introduction of IFRS. However, we believe that policy and institutional support is needed in order to have better financial reporting for SMEs.

• Journal of Technology Innovation
• /
• v.19 no.1
• /
• pp.145-175
• /
• 2011

The purpose of this research investigates the determinant factors of the joint technology development project performance between SMEs and universities. Reviewing existing papers we could categorize independent variables into three groups of partner characteristics, process management variables and relationship characteristics between partners. Three measures of satisfaction with the cooperation result, the intention of continuing relationship and the utilization of developed technology and product were used as dependent variable considering that we studied the joint projects of SMEs' involvement, short period and small scale. The data was collected by questionnaire survey mailed to the 1082 SMEs and university professors which executed the joint projects sponsored by Small Business Administration in 2009. We received 200 responses from SMEs, and 305 cases from professors among which 55 responses of each partner were on the same project. We analyzed the data sets individually, data of SMEs and that of universities with multiple regression analysis technique and also analyzed the common responses of 55 projects. Analysis results of the data from SMEs indicated that partners' expertise, facilities and equipment, communications, strategic importance, and trust were significant variables for the project performance. Analysis results of the data from universities showed that previous links, definition of objectives, strategic importance, trust and commitment were significant variables. Analysis results of combined data of 55 projects from SMEs and universities indicated that facilities and equipment, project management proficiency and commitment were significant variables.

• The Journal of the Korea Contents Association
• /
• v.10 no.9
• /
• pp.387-398
• /
• 2010

Recently SMEs(small and medium enterprises) in Korea have experienced severe labor shortages. In particular, college graduates avoiding SMEs are widely spotted. According to previous studies, the main causes of the evasion by college graduates are the inferior working environment and low wages. Some studies also state that SME workers experience discrimination. However, most studies have focused only on unemployment issues of the young graduates. In this research, the results of follow-up surveys on the employment status and job conditions of recent college graduates was linked as a panel data, and the performance of the graduates was analyzed. Based on the analysis, we found college graduates who are employed SMEs are likely to have their initial career fixed to the SMEs. Second, the job separation records of the young SME workers does not show positive labor market performances such as upward movements or wage increases, and the process itself turned out to be entailed frequent separation. Third, the inferior wage level at SMEs and the fact that this effect is cumulatively amplified has been a key factor for evading SMEs. Thus, it is difficult to say that the early-stage careers in SMEs are constructive in future career development. On the contrary, the early careers at SMEs result in lower labor market outcomes, and frequent job separation.

• Korea Trade Review
• /
• v.42 no.2
• /
• pp.251-276
• /
• 2017

The utilization of Digital and Social Network has become be a key success factor in business operations as information technologies evolve rapidly. This study is to identity the relationship between ICT & digital utilization, global orientation and export marketing capability in Korean SMEs. Survey data of Korean SMEs in south regional areas was collected and analyzed for empirical hypothesis test by PLS structural equation method. The key findings are as follows. First, ICT utilization such as SNS, homepage and online portal does not impact directly on export marketing capability. It means that SMEs would not still take advantage of utilization of social network availability. Second, ICT utilization has positive influences on global market orientation and global network orientation. Finally, both global market orientation and network have significant impacts on export marketing capability. In conclusion, global orientation has full-mediation effects on relationship between ICT capability and global marketing. This study provides evidences and some practical insights that digital utilization have indirect influences on global marketing through global markets and network orientation in Korean SMEs. In information technology era, ICT utilization will play an important role in the process of SMEs' internationalization. Therefore, for sustainable growth and survival SMEs should manage and intensify ICT capability more strategically as one of core competence. The value of ICT capability in SMEs would be depended on their strategic perspectives toward digitalization. Additional empirical research about digital capability based on larger sample will be needed.

• Journal of Technology Innovation
• /
• v.20 no.1
• /
• pp.169-198
• /
• 2012

The rapidity at which industrial and business management environment has become globalized, including the FTA, has provided valuable opportunities for domestic small and medium enterprises (SMEs) to obtain global technological business. However, it is unclear whether or not the SMEs' attempt to advance global technological business is producing fruitful results. This study begins with defining global technological business and the efforts of SMEs to develop them and proceeds to discuss survey results that asked the reasoning behind SMEs that entered or wish to enter foreign spheres (China, Japan, Southeast Asia, and Europe) of businesses, and also perform factorial analysis to obtain substantiation. The study classified the relevant SMEs using clustering method. Based on the results, the study makes recommendations to executives in instilling global-minded strategies, on customized support strategies depending on the SME's capability and its intended foreign entry sphere, and on strengthening the SME's competence on the global scale.

• International Commerce and Information Review
• /
• v.15 no.1
• /
• pp.333-356
• /
• 2013

The main purpose of this article is to find out the determinants of usage and performance of the uTradeHub system in Korean SMEs. To achieve the purpose of the study, the research model and the hypotheses were developed based on the previous research on uTradeHub and e-Trade. And to test the research hypotheses, empirical survey was conducted to Korean SMEs which were using uTradeHub services. The results of the empirical analyses are as follows. First, among the external factors, intra-industry competition and transaction intensity were significant determinants of uTradeHub usage level. Secondly, among the internal factors, only CEO's support was found to be a significant determinant. Thirdly, among the IT related factors, IT infrastructure and IT training were positively related to uTradeHub usage level. Finally, the uTradeHub usage level was found to have positive effect both on financial and non-financial export performance of the Korean SMEs.

• Proceedings of the Korea Contents Association Conference
• /
• 2008.05a
• /
• pp.409-418
• /
• 2008

This study analyzed the effect of degree of using online trade process services provided by e-Trade companies on the degree of user satisfaction and the online export performance in Korean small and medium-sized exporting firms(SMEs). According to the empirical survey results based on 130 sample firms, there were positive relationship among the frequency of using e-Trade companys' service, the degree of user satisfaction and the online export performance. Furthermore, the results of the moderated regression analysis showed that there were significant moderation effect of the organizational characteristics on the relationships between the degree of user satisfaction and the SMEs' online export performances. This study provides several useful implications to Korean SMEs and e-Trade companies and government policy makers.