• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.571-578
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• 2021

The outbreak of the COVID-19 pandemic, which began in 2020, had a significant impact on the economy and business activities worldwide. Large companies, as well as small businesses were affected, many of them had to scale down or divert their businesses, and some even had to stop. This extraordinary situation requires business people to make innovations and adjustments to survive during a pandemic. Entering the digital era, business players are helped by the ease of internet access, which will make it easier for SME players to get data from their consumers. Business actors can use this data to innovate and create new creations to improve business performance during this pandemic. This research aims to identify how small and medium enterprises can take advantage of Big Data to improve marketing performance through innovation and value creation. The research methodology used the in this research is quantitative method. The respondents are SME producers of food and beverage, with a total of 150 respondents. The results in the study indicate that all the proposed hypotheses are accepted. The most significant influence is found on the relationship of Big Data to value creation. The lowest effect was obtained from the relationship between Big Data and marketing performance through the mediation variable and innovation capability.

• Journal of Distribution Science
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• v.12 no.10
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• pp.75-84
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• 2014

Purpose - This article aims to examine whether the stock issuance of firms in the retail industry follows Myers' (1984) pecking order theory, which is based on information asymmetry. According to the pecking order model, firms have a sequence of financing decisions, of which the first choice is to use retained earnings, the second one is to get into safe debt, the next involves risky debt, and the last involves finance with outside equity. Since the 2000s, the polarization of the LEs (Large enterprises) and SMEs (Small and Medium Enterprises) arose in the retail industry. The LEs exhibited an improvement in growth and profitability, whereas SMEs had a tendency to degenerate. This study contributes to corroborating the features of financing decisions in the retail industry distinguished from the other industries. Research design, data, and methodology - This study considers the stocks listed on the KOSPI and KOSDAQ markets from 1991 to 2013, and is more concentrated on the stocks in the retail industry. The data were collected from the financial information company, WISEfn. The empirical analysis is conducted by employing two measures of net equity issues (and), which were introduced in Fama and French (2005), and can be calculated from firms' accounting information. All variables are generated as the aggregate value of the numerator divided by aggregate assets, which, in effect, treats the entire sample as a single firm. Substantially, the financing decisions of the firms were analyzed by examining how often and under what circumstances firms issue and repurchase equity. Then, this study compares the features of the retail industry with those of the other industries. Results - The proportion of sample firms that show annual net stock issues reaching the level of the year's average was 54.33% for the 1990s, and fell to 39.93% per year for the 2000s. In detail, the fraction of the small firms actually increases from 45.08% to 51.04%, whereas that of large firms shows a dramatic decline from 58.94% to 24.76%. Considering the fact that the large firms' rapid increase in growth after the 2000s may lead to an increase in equity issues, this result is rather surprising. Meanwhile, net stock repurchases of assets are considerably disproportionate between the large (-50.11%) and the small firms (-15.66%) for the 2000s. Conclusions - Stock issuance of retail firms is not in line with the traditional seasoned equity offering based on information asymmetry. The net stock issuance of the small firms in the retail industry can be interpreted as part of an effort to reorganize business and solicit new investment to resolve degenerating business performance. For large firms, on the other hand, the net repurchase can be regarded as part of an effort to rearrange business for efficiency and amplifying synergy across business sections through spin-off. These results can help the government establish a support policy on retail industry according to size.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.3
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• pp.252-261
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• 2019

In this study, we analyzed the factors affecting the introduction of Smart Factory by domestic SMEs through AHP analysis and tried to provide implications for the introduction of Smart Factory. It was confirmed that the manufacturing and introduction group, the non-manufacturing introduction group, and the already introduced group had the highest weight in the cost reduction in the first hierarchy standard. At this time, it can be seen that the weight for cost reduction is relatively high in the manufacturing introduction group and the introduction group, and the weight for the productivity improvement is relatively high in the non-manufacturing introduction group. It can also be seen that the portion of marketing enhancement does not have a significant impact on smart factory choices. It was confirmed that image enhancement is the highest in the manufacturing introduction group and the non-manufacturing introduction group in the first hierarchy standard, and the marketing has the highest weight in the introduction group. In the two - tiered standard, customer - friendly and proper inventory maintenance weights were relatively high in all the introduced groups, except for the high rankings.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.10
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• pp.129-135
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• 2022

This study aims to identify the factors supporting and inhibiting the digitalization of blue economy MSMEs in Bitung, Indonesia. The literature shows little research on digitalization related to the blue economy in Southeast Asia, especially in Indonesia. This indicates that there is a large research gap related to digitalization and the blue economy in the Indonesian context. Data was collected through the distribution of questionnaires with open-ended questions to blue economy MSMEs. Data was also obtained from in-depth interviews with representatives of Aruna, an Indonesian company that focuses on simplifying the supply chain of fishery products by connecting small-scale fishers to the global market through technology. According to the study's findings, two primary factors-motivation to develop their business and efforts to maintain seller-buyer interaction-support SMEs' use of technology in the blue economy. However, digital literacy and technological infrastructure, such as the internet network, are the two main factors that become obstacles in the effort to digitize MSMEs in the blue economy. The role of the government is also a contingent factor that can strengthen the relationship between factors that support digitization and weaken the relationship between factors that hinder digitalization.

• Korean small business review
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• v.31 no.4
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• pp.67-93
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• 2009

The purpose of this paper is to explore the relations between financial constraints and dividend smoothing of innovative small and medium sized enterprises(SMEs) listed on Korea Securities Market and Kosdaq Market of Korea Exchange. The innovative SMEs is defined as the firms with high level of R&D intensity which is measured by (R&D investment/total sales) ratio, according to Chauvin and Hirschey (1993). The R&D investment plays an important role as the innovative driver that can increase the future growth opportunity and profitability of the firms. Therefore, the R&D investment have large, positive, and consistent influences on the market value of the firm. In this point of view, we expect that the innovative SMEs can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. And also, we expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Aivazian et al.(2006) exert that the financial unconstrained firms with the high accessibility to capital market can adjust dividend payment faster than the financial constrained firms. We collect the sample firms among the total SMEs listed on Korea Securities Market and Kosdaq Market of Korea Exchange during the periods from January 1999 to December 2007 from the KIS Value Library database. The total number of firm-year observations of the total sample firms throughout the entire period is 5,544, the number of firm-year observations of the dividend firms is 2,919, and the number of firm-year observations of the non-dividend firms is 2,625. About 53%(or 2,919) of these total 5,544 observations involve firms that make a dividend payment. The dividend firms are divided into two groups according to the R&D intensity, such as the innovative SMEs with larger than median of R&D intensity and the noninnovative SMEs with smaller than median of R&D intensity. The number of firm-year observations of the innovative SMEs is 1,506, and the number of firm-year observations of the noninnovative SMEs is 1,413. Furthermore, the innovative SMEs are divided into two groups according to level of financial constraints, such as the financial unconstrained firms and the financial constrained firms. The number of firm-year observations of the former is 894, and the number of firm-year observations of the latter is 612. Although all available firm-year observations of the dividend firms are collected, deletions are made in the case of financial industries such as banks, securities company, insurance company, and other financial services company, because their capital structure and business style are widely different from the general manufacturing firms. The stock repurchase was involved in dividend payment because Grullon and Michaely (2002) examined the substitution hypothesis between dividends and stock repurchases. However, our data structure is an unbalanced panel data since there is no requirement that the firm-year observations data are all available for each firms during the entire periods from January 1999 to December 2007 from the KIS Value Library database. We firstly estimate the classic Lintner(1956) dividend adjustment model, where the decision to smooth dividend or to adopt a residual dividend policy depends on financial constraints measured by market accessibility. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between current payout rato and target payout ratio each year. In the Lintner model, dependent variable is the current dividend per share(DPS_t), and independent variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t). We hypothesized that firms adjust partially the gap between the current dividend per share(DPS_t) and the target payout ratio(Ω) each year, when the past dividend per share(DPS_t-1) deviate from the target payout ratio(Ω). We secondly estimate the expansion model that extend the Lintner model by including the determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory. In the expansion model, dependent variable is the current dividend per share(DPS_t), explanatory variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t), and control variables are the current capital expenditure ratio(CEA_t), the current leverage ratio(LEV_t), the current operating return on assets(ROA_t), the current business risk(RISK_t), the current trading volume turnover ratio(TURN_t), and the current dividend premium(DPREM_t). In these control variables, CEA_t, LEV_t, and ROA_t are the determinants suggested by the residual dividend theory and the agency theory, ROA_t and RISK_t are the determinants suggested by the dividend signaling theory, TURN_t is the determinant suggested by the transactions cost theory, and DPREM_t is the determinant suggested by the catering theory. Furthermore, we thirdly estimate the Lintner model and the expansion model by using the panel data of the financial unconstrained firms and the financial constrained firms, that are divided into two groups according to level of financial constraints. We expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, because the former can finance more easily the investment funds through the market accessibility than the latter. We analyzed descriptive statistics such as mean, standard deviation, and median to delete the outliers from the panel data, conducted one way analysis of variance to check up the industry-specfic effects, and conducted difference test of firms characteristic variables between innovative SMEs and noninnovative SMEs as well as difference test of firms characteristic variables between financial unconstrained firms and financial constrained firms. We also conducted the correlation analysis and the variance inflation factors analysis to detect any multicollinearity among the independent variables. Both of the correlation coefficients and the variance inflation factors are roughly low to the extent that may be ignored the multicollinearity among the independent variables. Furthermore, we estimate both of the Lintner model and the expansion model using the panel regression analysis. We firstly test the time-specific effects and the firm-specific effects may be involved in our panel data through the Lagrange multiplier test that was proposed by Breusch and Pagan(1980), and secondly conduct Hausman test to prove that fixed effect model is fitter with our panel data than the random effect model. The main results of this study can be summarized as follows. The determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory explain significantly the dividend policy of the innovative SMEs. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between the current payout ratio and the target payout ratio each year. In the core variables of Lintner model, the past dividend per share has more effects to dividend smoothing than the current earnings per share. These results suggest that the innovative SMEs maintain stable and long run dividend policy which sustains the past dividend per share level without corporate special reasons. The main results show that dividend adjustment speed of the innovative SMEs is faster than that of the noninnovative SMEs. This means that the innovative SMEs with high level of R&D intensity can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. The other main results show that dividend adjustment speed of the financial unconstrained SMEs is faster than that of the financial constrained SMEs. This means that the financial unconstrained firms with high accessibility to capital market can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Futhermore, the other additional results show that dividend adjustment speed of the innovative SMEs classified by the Small and Medium Business Administration is faster than that of the unclassified SMEs. They are linked with various financial policies and services such as credit guaranteed service, policy fund for SMEs, venture investment fund, insurance program, and so on. In conclusion, the past dividend per share and the current earnings per share suggested by the Lintner model explain mainly dividend adjustment speed of the innovative SMEs, and also the financial constraints explain partially. Therefore, if managers can properly understand of the relations between financial constraints and dividend smoothing of innovative SMEs, they can maintain stable and long run dividend policy of the innovative SMEs through dividend smoothing. These are encouraging results for Korea government, that is, the Small and Medium Business Administration as it has implemented many policies to commit to the innovative SMEs. This paper may have a few limitations because it may be only early study about the relations between financial constraints and dividend smoothing of the innovative SMEs. Specifically, this paper may not adequately capture all of the subtle features of the innovative SMEs and the financial unconstrained SMEs. Therefore, we think that it is necessary to expand sample firms and control variables, and use more elaborate analysis methods in the future studies.

• Journal of Industrial Convergence
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• v.15 no.2
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• pp.17-26
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• 2017

In light of the fact that the effect of intellectual property rights like patent on enterprise competitiveness is growing, rational valuation of patent rights, which are own by enterprises, is required because accurate patent valuation can bring about the activation of the technology exchange market and enhancing the values of enterprises as well as the security of funds through technology security. However, in reality, interest in the value of patent rights is not great due to many variables, affecting patent rights, and diverse attributes, and non-generalized methods of valuation. Therefore, studies on patent valuation for patent management of Small and Medium Enterprises is required. This thesis examined patent valuation for the patent management of Small and Medium Enterprises based on literature studies, and attempted to find factors, affecting patent valuation by finding patent valuation factors through experts, organizing, and analyzing these factors. 10 essential factors, which are demonstrated in this research, are the commercialization possibilities of technology, market competitiveness, the possibility of technology commercialization, market size, the originality of acquired technology, the stability of the right(the possibility of invalidating), the level of technology, technology competitiveness, the ripple effect of technology, and the characteristics of technology(original technology/application technology).

• Journal of Digital Convergence
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• v.19 no.12
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• pp.183-192
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• 2021

Along with the changing times, organizational culture is also rapidly changing, and such organizational culture enables companies to secure discriminatory competitive advantage in the mid-to long-term perspective. This study aims to examine the impact of organizational culture on improving competitive advantage of enterprises by dividing organizational culture into three dimensions: development culture, rational culture, and consensus culture. To this end, a survey was conducted on small and medium-sized companies. As a whole, the rational culture, which is task-oriented and puts competition as a motivating factor, was more strongly prevalent than other organizational cultures, and in order of development culture, rational culture, and consensus culture, it affects the improvement of competitive advantage. This means that development culture and rational culture, which emphasize high-tech and productivity, are more important to improve the competitive advantage of small and medium-sized companies. In addition, the analysis of differences according to the size of employees showed that rational culture was important when the size of employees was small, but the larger the size of employees, the more important the development culture was to improve the competitive advantage of companies. Through this study, we were able to understand what organizational culture should be emphasized according to the size of small and medium enterprises.

• Korean small business review
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• v.43 no.3
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• pp.1-20
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• 2021

The survival period according to technological capability was analyzed for about 22,500 innovative SMEs in the service industry. The survival period was defined as the occurrence of overdue and default, and the technological capability was divided into two clusters. As a result of estimating the survival period according to technological capability through Kaplan-Meier analysis, it was confirmed that the estimated survival period of T1-T4 grade service innovative SMEs was significantly greater in both overdue and default. As a result of the analysis of the Cox proportional hazard model applying the control variable, it was confirmed that the higher technological capability, the lower the risk in the group of start-up companies. However, in the group of non-start-up companies the technological capability did not significantly affect the survival period, and the influence of the variables related to the size of the company was found to increase. Therefore, the technological capability is meaningful as additional information that has a significant effect on the survival period of innovative SMEs in the start-up companies group of service industry. In addition, it was concluded that it is necessary to reflect the technological capability when establishing the SME support and promotion policy of the start-up companies group in the service industry.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.4
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• pp.61-72
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• 2017

Although small and medium-size enterprises are facing the significant trends in the Fourth Industrial Revolution and Open Innovation which are increasingly in need, the subjects of absorptive capacity and entrepreneurship has not been studied sufficiently in order to enhance the competitiveness of SMEs' products and cope with the current trend. The purpose of this study is to investigate the effects of absorptive capacity of SMEs on product competitiveness and the moderating role of CEO's entrepreneurship between the absorptive capacity and the product competitiveness. The data were collected from 313 employees of 22 SMEs in the Seoul metropolitan area, Kyunggi-do and Chung-cheong province, and analyzed using hierarchical regression analysis. As a result of the hypothesis test, both the absorptive capacity of SMEs and CEO's entrepreneurship had a positive effect on the product competitiveness. In addition, also found out the innovativeness and the proactivness out of the three entrepreneurship had the moderate roles between the potential absorptive capacity out of the absorptive capacity and the product competitiveness. On the other hand, the risk-taking out of the three entrepreneurship had the moderate roles between the realized absorptive capacity out of the two absorptive capacity and the product competitiveness. These results suggest that open innovation and technological entrepreneurship are needed to help SMEs learn external resources and information to create performance. After discussing this conclusions and implications of the study, the direction for future study was presented.

• The Journal of the Korea Contents Association
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• v.19 no.5
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• pp.217-232
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• 2019

As the role of entrepreneurship has become more important for continuous business growth in a rapidly changing economic environment, numerous studies dealing with entrepreneurship are taking place. However, recent studies has concentrated mainly on business-oriented entrepreneurship which emphasizes corporate efficiency only. While in the era of fourth industrial revolution human resources are more important than corporate efficiency, the existing literature is largely focused on traditional entrepreneurship. Research on humane entrepreneurship has not been rigorous, and there are few studies involving small and medium-size enterprises (SMEs) in particular. The purpose of this study is to fill in this void by investigating the effect of humane entrepreneurship on core competencies of SMEs and the effect of these core competencies on corporate performance. To examine SMEs core competencies and their performance from the perspective of humane entrepreneurship, this study set up traditional entrepreneurship and humane entrepreneurship as variables, and develop research model based on these variables. This study tests 5 different hypothesis using this model. A survey was conducted among CEOs and executives at SMEs in Seoul and Gyeonggido, South Korea from, June 26 to August 1, 2018. A total of 310 questionnaires were analyzed. The results show that both traditional and human entrepreneurship have a positive effect on the core competencies of SMEs, which are core competency factors, and that core competencies positively affect both non-financial performance and financial performance. Moreover, non-financial performance is found to have positive effect on financial performance. Given these findings, this study suggests that humane entrepreneurship is critical to SMEs and their performance, no less than traditional entrepreneurship. This study provides profound implications of necessity of raising humane entrepreneurship in environment of companies.