- Log In/Sign Up
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Foundation of Management Innovation and a Success Model of Micro Enterprise by Increasing Entrepreneurship and Organization Relationship Analysis
Hong, Yong-Woong
Jin, Soon-Ae
Jo, Geum-Je
Abstract
After the rapidly changing business management environment and financial crisis, high prices and domestic recession in Korea posed threats to the business survival of small and medium enterprises (SMEs). This paper looks at the potential of micro business owners for sustainable development: those who have a spirit of entrepreneurship and the potential to be a hidden champion. Our study of micro business values uses structure equation modeling by LISREL. We have done so in order to understand the foundation of management innovation and success model of micro enterprise by increasing the entrepreneurship and management performance relationship analysis. A micro-enterprise is a type of small business, found only in Korea, often registered as having ten or fewer employees. We examine the successful type of hidden champions and the influence of entrepreneurship on start-ups in business. As compared to past research on the SME entrepreneurship, this study segments small businesses even further. Small business entrepreneurship was classified into three forms that are most appropriate for the Korean situation today: innovation, risk-taking, and pro-activeness. This research is meaningful as it is Korea's first empirical analysis on four business types: wholesale and retail sales, food and lodging business, service business, and manufacturing business. Thus far, research on small business entrepreneurship was carried out using small-scale investigative analysis. However, this research attempted to develop a model that can explain a cause-effect relation of the motivational level when it comes to the difference of entrepreneurship by each business type and small business start-up success factors. Various conceptual and operational definitions could be developed in a diverse and precise manner. Independent variables that are related to the success of small businesses can be developed additionally to examine the success factors related to the systematization in detailed manner. The research showed that the innovation, risk-taking and pro-activeness of the manifested difference in the degree of perception depending on the type of small businesses. Among the four business types, the ones that manifested the highest successful start-up rates were food, service, wholesale and retail sales and manufacturing. Results after conducting the regression analysis are shown on, which proves that the small business entrepreneurship exerts direct effect on the financial management performance of small businesses. In other words, small business entrepreneurship exerts a positive effect on the small business financial success and management performance. The R<sup>2</sup> value is 0.61. It is possible to know that the perception of systematization and variables on attitude explains the 61% of the success for small self-employed businesses management performance. We define start-up key factors that are helpful to achieve internal growth of firms by finding business survival strategies. The results also focus on Korean government policy for micro enterprise and small business support.
- keywords
- Entrepreneurship, Small and medium enterprises, Small businesses, Organization, Management, performance, SEDA, BEPA, SMBA
Reference
Audretsch, Thurik R. (2004), "A Model of the Entrepreneurial Economy. International," Journal of Entrepreneurship Education, 2(2), 143-166.
Baker, D. Rivers (2004), "The Entrepreneurial Economy," A White Paper. The Micro Enterprise Journal, 3(1), 1-23.
Bae, Jongtae and Cha, Seokmin (2009), "Expansion and Vitalization of Entrepreneurship," Asia Pacific Journal of Small Business, 31(1), 111-128.
Bae, Jongtae, Cha, Seokmin, Kim, Younghwan and Lee, Jungwoo(2009), "A Study on the Establishment of Korean StyleEntrepreneurship Model," Seoul: Small and Medium BusinessAdministration.
BarNir, Anat, John M. Gallaugher and Pat, Auger (2003), "Business Process Digitization, Strategy, and the Impact of Firm Age and Size: The Case of the Magazine Publishing Industry," Journal of Business Venturing, 18, 789-813.
Baumol, W.J. (1990), "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, 98(5), 893-921.
Burns, T. and Stalker, G.M. (1966), The Management of Innovation, London: Tavistok.
Blau, David M. (1987), "A Time-Series Analysis of Self-Employment," Journal of Political Economy, 95(3), 445-467.
Caruana, A., Morris, M.H. and Vella, A.J. (1998), "The Effect of Centralization and Formalization on Entrepreneurship in Export Firms," Journal of Small Business Management, 36, 16-29.
Dennis, W. (1996), "Self-employment : When Nothing Else is Available?," Journal of Labor Research, 17(4), 645-661.
Drucker, P.F. (1985), "Innovation and Entrepreneurship," New York: Harper & Row.
Folster, Stefan (2002), "Do lower taxes stimulate self-employment?," Small Business Economics, 19(2), 135-145.
Gartner, W.B. (1990), "What Are We Talking about When We Talk about Entrepreneurship?," Journal of Business Venturing, 5,15-28.
Jeon, Byungchan, Kim, Jungdae and Park, Chunyeop (2000),"Distribution of Small Businesses in Korea and CondensedMeaning," Asia Pacific Journal of Small Business, 22(1),147-168.
Jeon, Byungyoo (2003), "A Study on the Decisive Factor when it comes to the Self-employed business selection," Labor Economy Journal, 26(3), 149-179.
Jeon, Inwoo (2007), “Small Business Systematization, Presentation of Model for Co-Working and Direction for Policy,” Research on the SMEs Center Research Report, Seoul: Small and Medium Business Administration.
Kim, Young-Min, Kim, Young-Ei and Youn, Myoung-Kil (2010),“Analysis of Research Trends in Journal of DistributionScience," Journal of Distribution Science, 8(4), 7-17.
Park, Chunyeop (2000), "A Study on the Satisfaction Level of Small Business Support Center’s Users," Asia Pacific Journal of Small Business, 22(1), 164-194.
Suh, Changsoo, Yu, Yeonho, Cho, Sunghyun and Lee, Misoon(2010), "A Study on the Establishment and Operation ofEntrepreneurship Center, by the private and public sector,"Seoul: Small and Medium Business Administration.
Suh, Geun-Ha (2007), "An Empirical Study on the Critical Success of Recession- Resistant and Management Renovation in Small Retail Dealer: Korea Government Policy Suggestion," Asia Pacific Journal of Small Business, 29(4), 265-293.
Suh, Geun-Ha, Yoon, Sung-Wook and Suh, Chang-Soo (2009), “The Impacts of Entrepreneurial Proclivity and Merchandising Strategy on Conventional Market and Its Policy Implications,” Journal of Distribution Science, 7(3), 71-100.
Suh, Geunha, Seo, Miok and Yoon, Sungwook (2011), "An Analysis of the Differences in Management Performance by Business Categories from the Perspective of Small Business Systematization," Journal of Distribution Science, 9(2), 111-122.
Suh, Geunha, Hong Meeyoung, Choi, Cheongrak and Suh, Changsoo(2011), "A Study on the Differences of Performance inSmall Businesses by Gender," Journal of Distribution Science,9(3), 65-71.
Kim, Jong-Il and Lau, Lawrence J. (1994), "The Sources of Economic Growth of the East Asian Newly Industrialized Countries." Journal of the Japanese and International Economies, 8, 235-271.
Kirzner, I. M. (1997), "Entrepreneurial Discovery and the Competitive Market Process:An Austrian Approach," Journal of Economic Literature, 35, 60-85.
Krueger, N.J., Reilly, M.D. and Carsrud, A.L. (1998), "Competing Model of Enrepreneurial Intentions," Journal of Business Venturing, 15, 411-432.
Krueger, N.J. (2000), "The Cognitive Infrastructure of Opportunity Emergence," Entrepreneurship Theory and Practice, 1(1), 5-23.
Lucas, Robert (1978). "On the Size of Distribution of Business Firms," Bell Journal of Economic Journal, 9(2), 508-523.
Lumpkin, G.T. and Dess, G. (1996), "Clarifying the entrepreneurial orientation construct and linking it to performance," Academy of Management Review. 21(1), 135-172.
OECD (2009), "FACT book," each year of 2000 - 2007.
Oliver, R.L. (1999), "Whence Consumer Loyalty," Journal of Marketing. 63(Special Issue), 33-44.
Parker, Simon and Robson, M. (2004). "Explaining International Variations in Self-Employment: Evidence from a Panel of OECD Countries," Southern Economic Journal, 71(2), 287-301.
Stel, A. and Compendia, van (2003), "A Harmonized Data Set of Business Ownership Rates in 23 OECD Countries," Scales(Scientific Analysis of Entrepreneurship & SMEs Research Report H200302, 52-62.
Small and Medium Business Administration (2009), "Plan to Vitalize Traditional Market".
Stevenson, H.H. and Jarillo, J.C. (1990), "A Paradigm of Entrepreneurship, Entrepreneurial Management," Strategic Management Journal, 2, 17-27.
Tayor, M. (1996), "Earnings. Independence or Unemployment: Why become Self-employed, "Oxford Bulletin of Economics and Statistics, 58(2), 253-265.
Yoon, Sungwook and Suh, Geunha (2003), "A Study on the Entrepreneurial Culture of Small Businessmen in Korean," Journal of Consumption Culture, 6 (1), 99-117.
Yoon, Sungwook, Shin, Jingyo and Suh, Geunha (2008), "A Study on the Success Factors for the Management Innovation of Self-Employed in Korea: Effect of Structural Characteristics on Management Immersion and Performance," Journal of Consumption Culture, 11(2), 67-89.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations