• Proceedings of the Korea Society of Information Technology Applications Conference
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• 한국정보기술응용학회 2005년도 6th 2005 International Conference on Computers, Communications and System
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• pp.365-368
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• 2005

While the goal of new IT adoption in small and medium sized firms is to choose an optimal system to fit with their own environments and conditions, that of IT post-adoption usage is to fully implement new IT and maximize their benefits from it. Therefore, the decision-making environments of new IT adoption is definitely different from those of post-adoption. Also, The direct experience of IT usage can provide some learning effect and the change of users' beliefs on new IT. From this point of view, this study attempts to figure out the differences of influencing factors on IOS usage intention between adopters and non-adopters. The results show that there are clear differences of influencing factors between two groups. Non-adopter group shows that perceived financial cost and ability of use have significant influences on IOS usage intention, while relative advantage and perceived risk in adopter group have statistically significant influences on post-adoption usage of IOS.

• International Commerce and Information Review
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• 제9권4호
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• pp.41-66
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• 2007

This paper develops a model of the export timing and export performance of venture firms by drawing by resource based view and born-global firm theory. The model aims at explaining the role of internal resources of small new venture firms and environment factors in accelerating the firm's export timing and achieving export growth. Hypothesses were developed around the following factors: management characteristics in terms of CEO's foreign experience and export commitment; organizational characteristics in terms of technological competence and marketing competence, and inter-functional cooperation; and finally environmental factors in terms of domestic and market attractiveness and foreign market attractiveness influence both the export timing and export performance. Structural equation modeling analysis by using 214 small new ventures provides a partial supports for the hypotheses. The result showed that technological competence have an influence on early export timing and that CEO's foreign experience and export commitment, technological competence and foreign market attractiveness are related export performance significantly. It also showed the significant relationship between export timing and export performance.

• KDI Journal of Economic Policy
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• 제37권1호
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• pp.19-44
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• 2015

This paper examines the effect of the global financial crisis on corporate investment in Korea. Specifically, the crisis was considered to have possibly constrained firm-level investment as the negative shock to the credit supply dramatically unfolded. As Duchin et al. (2010) demonstrated, if a negative supply-side shock is evident during a crisis period, larger cash holdings before the crisis will lead to fewer constraints to corporate investment, or vice versa. In order to investigate the supply-side effect of the crisis, we use firm-level financial data, including firms listed on the Korean stock market as well as small and medium-sized enterprises. We find that corporate investment declined significantly after the crisis, even if we control for factors associated with the demand side, such as contemporaneous capital productivity and cash flow. More importantly, the decline is positively and significantly related to cash holdings before the crisis, implying the negative effect of a credit supply shock. Small and medium enterprises experienced relatively sharp investment declines compared to those of larger firms, and the relationship between pre-crisis cash amounts and the degree of investment decline is greater than that in large firms. Additionally, we examine whether the negative effect persists up to the present, finding evidence that the cash-investment relationship continues in small and medium-sized enterprises.

• Journal of the Korean association of regional geographers
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• 제15권6호
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• pp.752-762
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• 2009

This paper aims to investigate the characteristics of location and business-services networks of venture firms in Daegu region. The regional venture firms are small scale and consist of mainly R&D investment and license new-technology in the category of soft-ware. Since the mid-1990's the firms that were founded by people with higher education and career experience seek diverse growth strategies. those firms concentrate in some regions of dalseo-gu and buk-gu. There are a few difference by types of firm-business, but, on the whole, the princepal location factors of venture firms are accessibility of research institute and university, easy information availability, and use of moderate land. In regard to networks with client firms, the venture firms determine whether to transfer. The result of the characteristics of networks between regional venture firms and business-service enterprises is as follows; the regional venture firms utilize small number of business-service enterprises and use mainly information processing and other computer operation related services and professional, scientific and technical services. In business-service be used by regional venture firms, the frequency of information processing and other computer operation related services, research and development, business support services is much, while the frequency of professional, scientific and technical services is little. Business-service enterprises are distributed mostly in Daegu region and are used owing to lack of technology and knowledge.

• KDI Journal of Economic Policy
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• 제28권2호
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• pp.239-262
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• 2006

The paper suggests that there has been a shift in the allocation of bank credit from large firms to small firms before and after the economic crisis. The paper also suggests that the improved lending practices of financial institutions, at least partially, contributed to this shift of corporate loans from large firms to small firms. Comparing the periods before and after the economic crisis also suggests that some important changes occurred to the corporate bond market. The effect of firm size on the corporate bond market differs before and after the economic crisis. Before the crisis, the larger the firms, the more they could borrow in the corporate bond market. However, after the crisis, it is not the case. The following interpretation could be put forward. Before the crisis, investors in the corporate bond market expected that the government would rescue large firms if they face the risk of bankruptcies. However, the collapse of Daewoo Group in 1999 shattered the TBTF (Too Big To Fail) myth of the public. The liquidity crisis of Hyundai Group in 2000-2001 reinforced the disintegration of the TBTF myth.

• Journal of Korea Technology Innovation Society
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• 제10권4호
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• pp.706-726
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• 2007

This study attempts to empirically investigate the effects of government R&D subsidies on private firm's R&D investment in Korean industry. The R&D subsidy effect is defined as the average percentage change in firm's R&D expenditures between what was actually observed among firms that received a subsidy and what these firms would have spent had the subsidy not been received. To measure the effect we use Difference-in-Differences (DID) model which sign as to whether the relationship between government subsidies and private R&D investments is on stimulating or displacing private R&D expenditures. The differences between this study and previous studies are that we tries to measure the effect of Government R&D across various sited firm groups such as large, small & medium, and venture firms and we add one lag of the subsidy indicator in order to capture the effect of the subsidies on private R&D during 2 consecutive period. Empirically, a firm with government R&D subsidy increases its own R&D investment by 13.9%. Also on average, 1% of government R&D subsidy leads to 0.031% of private R&D increase. The main results of this study are as follows : First, Government R&D subsidies stimulate private firm's R&D expenditures. Second, Government R&D subsidies greatly increase (statistically significant) company financed R&D expenditures only for large firms but had no effect on the R&D expenditures of small & medium sized firms and venture firms.

• Korean Management Science Review
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• 제32권1호
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• pp.83-100
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• 2015

We analyze a duopoly competition when two firms face input cost increases. The objective of this study is to determine the firms' optimal strategy between a price increase and downsizing under conditions of a spatially differentiated market and consumers' diminishing utility on the product size. We develop a theoretical model of two competing firms offering homogenous products using the standard Hotelling model to determine how firms' optimal strategies change when facing input cost increases. In this paper, there are two types of duopoly competitions: symmetric and asymmetric. In the symmetric case, the two firms have the same marginal cost and are producing and selling identical products. In the asymmetric case, the two firms have different marginal costs. The results show that the optimal strategy decision depends on the size of the input cost increase and the cost differences between the two firms. We find that when two firms are asymmetric (i.e., they have different marginal costs), the two firms might choose asymmetric pairs of strategies in equilibrium under certain conditions. When the cost differences between the two firms are sufficiently large and the cost increase is sufficiently small, the cost leader chooses price increase, and the cost-disadvantaged firm chooses downsizing in equilibrium. This asymmetric strategy reduces price competition between two firms, and consumers are better off. When the cost differences between the two firms are sufficiently large, downsizing is the dominant strategy for the cost-disadvantaged firm. The cost-disadvantaged firm finds it more profitable to reduce the product size than to increase its price to reduce price competition, because consumers prefer downsizing to price increases. This paper might be a good starting point for further analytical research in this area.

• Journal of Korea Technology Innovation Society
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• 제21권4호
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• pp.1474-1492
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• 2018

This study empirically analyzes the direct effects of government support for SMEs (project success) and indirect effects (sales growth) focusing on the differences between financially difficult firms (so-called 'zombie' firms) and 'normal' firms. If the zombie firm has a problem in technology development (success of the project) and the economic resilience capability (sales growth), then excluding them from the government's R&D support programs would enhance the overall efficiency of the programs. If not, government R&D could complement the market failure and play a positive role in revitalizing marginal firms. In this study, we collected data about 7,575 firms who participated in seven government R&D programs in 2013 and 2014. As a result of the logistic regression analysis, we did not find evidence that the likelihood of success for zombie firms was lower than that for the normal firms. However, the tendency of sales growth after the project was smaller for the zombie firms than for the normal firms. For zombie firms, we also found that firms that succeeded in the project were more likely to increase sales than those that failed.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.289-306
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• 2021

This paper aims to investigate how and to what extent FDI impacts the relative demand for skilled labor within firms in the case of developing countries. The analysis uses a sizeable micro-level dataset for Malaysian manufacturing industries using the System-GMM estimators to control the estimations' endogeneity problems. For this purpose, the study uses foreign equity share at the firm level to investigate foreign ownership effects at the firm level and the Horizontal FDI index by Smarzynska Javorcik (2004) to analyze FDI intra-industry linkages influence on the structure of labor demand for Malaysian domestic firms. Our findings indicate that foreign ownership increases the skilled demand within Malaysian manufacturing through the learning process, exclusively for small- and medium-sized firms (SMEs). Conversely for foreign-owned firms, changes in their skilled-labor share do not associate with changes in firm-level foreign equity share. We conclude that foreign ownership per se is not the major contributing factor for skill upgrading in Malaysian manufacturing firms. Furthermore, the competitive pressures caused by foreign firms' presence within the same industry - namely horizontal FDI - has a significant negative spillover effect on the level of skilled-labor share for domestic firms in the Malaysian manufacturing sector within periods of the understudies.

• Korea Trade Review
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• 제44권3호
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• pp.227-252
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• 2019

This study explores the effects of exports on the innovation of Korean firms listed on two Korean stock markets, the Korean Stock Exchange and the Korean Securities Dealers Quotations, between 1999 and 2016. By matching exporting firms to non-exporting ones with propensity score matching, this study accounts for a problem from sample selection bias that may arise from differences in firm-characteristics between the two groups. From the study results, first, both export participation and export volume significantly increase subsequent innovation performance, as measured by the number of patent applications. This result seems to support the "learning by exporting" hypothesis for Korean listed firms. Second, both export participation and export volume narrow innovation scope, proxied as the number of unique International Patent Classification (IPC) codes of the patent applied, the degree to which patents are concentrated in a particular class, and the degree of proximity in the patents. The findings of innovation scope suggest a possible explanation that the learning effect appears in familiar technology fields that firms have previously held, rather than in unfamiliar ones. Third, these results are robust using alternative proxies in the innovation scope, Tobit regressions to consider the non-trivial portion of sample firms with patent applications equal to zeros, and generalized method of moments (GMM) to control for the persistence of innovation measures hearing over years. Finally, the two main results are more pronounced in large firms than in small and medium-sized ones. As for Chaebol firms, however, these results do not appear.