• Management & Information Systems Review
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• v.33 no.1
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• pp.191-217
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• 2014

The Purpose of this study is to find the effect factors of R&D investment in SMEs which plays an important role in the national economy, and the differences of the effect factors by the type of SMEs. The subject of this study is about 3,400 SMEs mentioned in "The survey of technical statistics on SMEs in 2007" by Korea Federation of Small and Medium Business. The effect factors are related with the size of business, the infrastructure of R&D and the activities of R&D which have been studied by many researchers. The methods of analysis are regression analysis, moderating effect analysis and the software package used is SPSS 12.0. The results of the study are as fallow. First, it was found that unlike in previous studies which show the effect of the elements of business's size, research infrastructure, research activities on R&D investment, one element alone can't be considered for meaningful result but the various elements have effect on R&D investment at the same time. In other words, the number of employees and the sales as the elements of business's size, the ratio of researchers, the technical ability, the ratio of equipment possession and the intellectual properties as the elements of R&D infrastructure, the activity of ideas and joint research as the elements of R&D activities have positive(+) effect, whereas the participation of CEO in the activity of R&D as the elements of R&D activities activity has negative(-) one. The number of employees, the ratio of researchers, and the sales had relatively high influence whereas equipment possession, technical ability, intellectual properties, the participation of CEO in the research, the activity of idea, joint research had relatively low influence. Next, it was also found that there are differences of the effect factors over the types of SMEs. SMEs were classified into 19 types by eight criteria such as start-ups and existing business by business age; small business and medium business by size; manufacturing business and service business by product type;independent business and subcontractor business by dealing type; businesses in the entering, growing, maturing and restructuring stage by growth stage; businesses with low, medium and high technology by technological level; pioneering business and non-pioneering business by industrial type; and businesses with state-of-the-art technology and non-advanced business by the level of business activities. The meaning of this study lies in the fact that it found the various effect factors should be considered at the same time when conducting study on SMEs' R&D investment, and the differences by the type should be acknowledged. This study surpassed the limitations of the previous studies which focused on a couple of factors and types. This study result can also be considered for other studies on achievement, organization, marketing and others. Moreover, it shows that a differential policy by business type is needed when formulating SME policy.

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

• Korean small business review
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• v.42 no.3
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• pp.173-193
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• 2020

This study analyzes the effects of KOSDAQ-listed firms' convertible bonds, which have recently increased rapidly in number and size. Although KOSDAQ companies are called mid-size companies, KOSDAQ companies belong to SMEs. Furthermore, convertible bonds have traditionally been a critical capital raising tool for SMEs in the US and Europe. In Korea, KOSDAQ companies actively employ convertible bonds. Convertible bonds provide investment incentives for hesitant investors, allowing companies to raise capital at low interest rates. This study analyzes whether capital raising through issuance of convertible bonds by KOSDAQ companies affects their financial constraints. Financial constraints result from incomplete capital markets, which are embedded in most companies and countries.. In particular, financial constraints have a significant impact on the growth and survival of SMEs. The seminal study FHP(1988) is the most important and effective study of firm's financial constraints. We find that FHP's financial constraint measures show that convertible bond issuance would mitigate the financial constraints of KOSDAQ companies. However, the significance of the evidence is not strong.

• Journal of Intelligence and Information Systems
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• v.24 no.3
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• pp.89-117
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• 2018

The Korean companies are intensifying competition with not only domestic companies but also foreign companies in globalization. In this environment, it is essential activities not only for large companies but also Small and Medium Enterprises (SMEs) to get and develop the core competency. Particularly, SMEs that are inferior to resources of various aspects, such as financial resources etc., can make innovation through effective R&D investment. And then, SMEs can occupy a competency and can be survive at the environment. Conventionally, the method of "self-development" by using only the internal resources of the company has been dominant. Recently, however, R&D method through cooperation, also called "Open Innovation", is emerging. Especially SMEs are relatively short of available internal resources. Therefore, it is necessary to utilize technology and resources through cooperation with external companies(such as joint development or contract development etc.) rather than self-development R&D. In this context, we confirmed the effect of SMEs' factors on sales in Korea. Specifically, the factors that SMEs hold are classified as 'Technical characteristic', 'Company competency', and 'R&D activity' and analyzed how they influence the sales achieved as a result of R&D. The analysis was based on a two-year statistical survey conducted by the Korean government. In addition, we confirmed the influence of the factors on the sales according to the R&D method(Self-Development vs. Open Innovation), and also observed the influence change in 29 industrial categories. The results of the study are summarized as follows: First, regression analysis shows that twelve factors of SMEs have a significant effect on sales. Specifically, 15 factors included in the analysis, 12 factors excluding 3 factors were found to have significant influence. In the technical characteristic, 'imitation period' and 'product life cycle' of the technology were confirmed. In the company competency, 'R&D led person', 'researcher number', 'intellectual property registration status', 'number of R&D attempts', and 'ratio of success to trial' were confirmed. The R&D activity was found to have a significant impact on all included factors. Second, the influence of factors on the R&D method was confirmed, and the change was confirmed in four factors. In addition, these factors were found that have different effects on sales according to the R&D method. Specifically, 'researcher number', 'number of R&D attempts', 'performance compensation system', and 'R&D investment' were found to have significant moderate effects. In other words, the moderating effect of open innovation was confirmed for four factors. Third, on the industrial classification, it is confirmed that different factors have a significant influence on each industrial classification. At this point, it was confirmed that at least one factor, up to nine factors had a significant effect on the sales according to the industrial classification. Furthermore, different moderate effects have been confirmed in the industrial classification and R&D method. In the moderate effect, up to eight significant moderate effects were confirmed according to the industrial classification. In particular, 'R&D investment' and 'performance compensation system' were confirmed to be the most common moderating effect by each 12 times and 11 times in all industrial classification. This study provides the following suggestions: First, it is necessary for SMEs to determine the R&D method in consideration of the characteristics of the technology to be R&D as well as the enterprise competency and the R&D activity. In addition, there is a need to identify and concentrate on the factors that increase sales in R&D decisions, which are mainly affected by the industry classification to which the company belongs. Second, governments that support SMEs' R&D need to provide guidelines that are fit to their situation. It is necessary to differentiate the support for the company considering various factors such as technology and R&D purpose for their effective budget execution. Finally, based on the results of this study, we urge the need to reconsider the effectiveness of existing SME support policies.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.40 no.5
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• pp.892-902
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• 2015

Agri-food ICT(Information and Communications Technologies) convergence has been raised as an important issue for agricultural industry competence. In this situation, this study is to enhance agricultural competitiveness and seek to development plan for agricultural corporation by diagnosing informatization level. For this purpose, this study conducted survey on informatization level of 3,019 agricultural corporations and calculated level score. And result is compared with SMEs(Small and Medium Enterprise) informatization survey, including manufacturing and service industries, conducted by Korea Technology & Information Promotion Agency for SMEs in recent agricultural corporations' growing with automation of agricultural production and improving service to customer satisfaction. Evaluation system is established to calculate informatization level score and AHP(Analytic Hierarchy Process) method was used by the experts to investigate weighting of assessment area, assessment indicators, assessment items. As a result, agricultural corporation informatization level score was 40.16 points which is lower than the benefitted organization of agri-food IT convergence modeling(43.44 points). By assessment area, the informatization level of promotional environment area was low and investment and training items were analyzed low especially so need to improve urgently. In the analysis result by organization type, agricultural company corporation's informatization level was higher than the agricultural association corporation and 'Processing and distribution' was higher than others by business type. Informatization level of agricultural corporation is 80 percent of 2013 SMEs' level(50.18 points) and 59.4 percent of a large corporation(67.64 points). In particular, big difference is occurred in investment feasibility analysis, informatization investment and education which will be need to improve.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.10
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• pp.76-91
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• 2019

There have been many studies to examine the patterns in innovations reflecting industry-specific characteristics from an evolutionary economics perspective. The purpose of this study is to identify industry-specific differences in product innovation patterns and determinants of innovation performance. For this, Korean manufacturing is classified into high-tech industries and low-tech industries according to technology intensity. It is also pointed out that existing research does not reflect the decision-making process of firms' R&D implementations. In order to solve this problem, this study presents a Heckman sample selection model and a double-hurdle model as alternatives, and analyzes data from 1,637 firms in the 2014 Survey on Technology of SMEs. As a result, it was confirmed that the determinants and patterns of manufacturing in small and medium-size enterprise (SME) product innovation are significantly different between high-tech and low-tech industries. Also, through an extended empirical model, we found that there exist a sample selection bias and a hurdle-like threshold in the decision-making process. In this study, the industry-specific features and patterns of product innovation are examined from a multi-sided perspective, and it is meaningful that the decision-making process for manufacturing SMEs' R&D performance can be better understood.

• International Commerce and Information Review
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• v.16 no.1
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• pp.91-116
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• 2014

This study reviews the methodology for utilizing information technology by which even non-professionalists in FTAs and commodity classification area can perform the determination of commodity classification, with ease and by themselves, by means of easy utilization of the information on commodity classification and FTAs, of importing and exporting goods. This article examines the technological elements and logics, etc. which simulate the commodity classification for utilizing FTAs. To achieve this, the author has developed the technology to support the determination of commodity classification numbers by accumulating the database of examples for classification after analyzing the classification factors by each commodity item. Utilizing this Commodity Classification Determination Supporting System, users can enjoy effects of education as well as consulting. In this regards, the advantages of this system can be enumerated as followings : Firstly, self-checking on commodity classification can be performed. Secondly, time and cost for classification can be saved. Thirdly, comprehensive competitiveness will be enhanced by allowing traders to achieve the benefit of FTA preferential tariff, for they will be able to issue the Certificate of Origins on a more accurate and precise basis of commodity classification.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.4
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• pp.145-157
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• 2017

SMEs play an important role in the domestic economy. Regarding competency to respond flexibly to unpredictable changes, agility of SMEs is more emphasized. Entrepreneurship orientation is an important factor in the source of SMEs that enable such competency. Entrepreneurial orientation refers to the tendency of a CEO or a member of a corporation to be innovative, risk-taking, and active in the face of various market opportunities. In other words, it refers to the tendency to be expressed in the activities of the entire company without regard to specific technologies or industries. Entrepreneurial orientation has a direct or indirect effect on business performance. Therefore, in this study, we conducted theoretical and empirical studies on the effect of entrepreneurial orientation of SME managers on business performance. Research hypotheses were derived through theoretical research. We focused on the mediating effect of innovation activity and tried to identify the mechanism that entrepreneurial orientation leads to business performance through product innovation and service innovation activity. We investigated whether innovativeness, proactiveness, and risk-taking, which are sub-variables of entrepreneurial orientation, affect business performance through product innovation and service innovation. We conducted a survey of SMEs in Busan and Kyungnam regions to examine the research hypotheses. The results show that product innovation and service innovation have mediating effects. The results of the study are as follows. Product innovation has mediating effect of innovativeness and risk-taking on business performance. Service innovation has been found to mediate innovativeness, proactiveness, and risk-taking on business performance. There was a difference in the mediation effect between the two innovations. Product innovation showed a low mediating effect and a large direct effect. On the other hands, service innovation is relatively more mediating than product innovation. The implications of the research results are derived in relation to the essential differences between product innovation and service innovation. Limitations of the study and directions for future research are presented.