• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.5
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• pp.17-30
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• 2022

It has been verified in several studies that dynamic capabilities has a very important effect on the competitive advantage of technology startups. And the network has an important influence on this dynamic capability. This is even more important for start-ups that lack the resources and knowledge. Networks that directly and significantly affect dynamic capabilities have been studied mainly the value chain internal. However, network activities of start-ups are conducted not only with the value chain internal networks but also with the value chain external networks. Therefore, it is necessary to study the effect of the value chain internal and external network activity of start-ups on the dynamic capabilities, but prior studies are lacked. In this study, We make a model that encompass the value chain internal and external network for technology startups, and a study was conducted to demonstrate the effect on dynamic capabilities and competitive advantage. As a result of the study, value chain internal network activity directly and significantly affected dynamic capabilities, and value chain external network activity did not directly significantly affect dynamic capacity. And dynamic capabilities had a significant effect on competitive advantage. As confirmed through additional research, value chain external network activity affects value chain internal network activity, and through this, dynamic capabilities are strengthened, and positively affect competitive advantage.. The intensity of value chain external network activity was not significant to dynamic capabilities and the diversity of value chain external network activity had a significant effect on the competitive advantage by double mediating the value chain internal network activity and dynamic capability. Through this study, it is confirmed that the value chain internal networks is important in order for startups to strengthen their dynamic capabilities and increase their competitive advantage, and that both strong and diversified the value chain internal networks positively affects competitive advantage by enhancing dynamic capabilities.