IDEAS home Printed from https://ideas.repec.org/a/spr/ijogbc/v14y2019i1d10.1007_s42943-019-00003-2.html
   My bibliography  Save this article

The Success Factors of Korean Global Start-Ups in the Digital Sectors Through Internationalization

Author

Listed:
  • Wenyan Yin

    (Seoul School of Integrated Sciences and Technologies (aSSIST))

  • Hwy-Chang Moon

    (Seoul School of Integrated Sciences and Technologies (aSSIST)
    Seoul National University)

  • Yeon W. Lee

    (Seoul School of Integrated Sciences and Technologies (aSSIST))

Abstract

With the growing importance of start-ups in building a sustainable national economy, both the Korean government and scholars are demonstrating growing interest in strengthening the competitiveness of start-ups. The Korean government has promoted a number of initiatives, but there are also a growing number of critics who argue that government regulations are obstacles to the efficient operation of start-ups and their competitiveness enhancement. Many of the preceding studies on Korean start-ups have emphasized the critical factors of survival and growth, including entrepreneurship, innovation, and technology. However, these factors do not guarantee market success. In addition to technological capabilities, a good set of strategies are needed. This paper investigates how Korean global start-ups scale-up their businesses and gain success through global strategy. Specifically, this paper adopts the ABCD model and global value chain strategy to analyze the success factors of fast-growing Korean start-ups that operate in the ASEAN digital sectors. This paper argues that the growth of Korean digital start-ups through internationalization has not been directly accelerated by government support but rather to avoid government regulations. Moreover, the four strategic factors of the ABCD model facilitated their entry and success in the ASEAN market by developing a cooperative relationship with local firms for efficient operations on a cross-border network.

Suggested Citation

  • Wenyan Yin & Hwy-Chang Moon & Yeon W. Lee, 2019. "The Success Factors of Korean Global Start-Ups in the Digital Sectors Through Internationalization," International Journal of Global Business and Competitiveness, Springer, vol. 14(1), pages 42-53, December.
  • Handle: RePEc:spr:ijogbc:v:14:y:2019:i:1:d:10.1007_s42943-019-00003-2
    DOI: 10.1007/s42943-019-00003-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s42943-019-00003-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s42943-019-00003-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2008. "Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 39-58.
    2. Moon, Hwy-Chang, 2016. "The Strategy for Korea's Economic Success," OUP Catalogue, Oxford University Press, number 9780190228798.
    3. Thomas Hellmann & Manju Puri, 2002. "Venture Capital and the Professionalization of Start‐Up Firms: Empirical Evidence," Journal of Finance, American Finance Association, vol. 57(1), pages 169-197, February.
    4. Baron, Robert A. & Markman, Gideon D., 2003. "Beyond social capital: the role of entrepreneurs' social competence in their financial success," Journal of Business Venturing, Elsevier, vol. 18(1), pages 41-60, January.
    5. Roberta Tresca, 2013. "Global Business Networks and the Competitiveness of SMEs," Symphonya. Emerging Issues in Management, Niccolò Cusano University, issue 2 Global .
    6. Pauline Debanes, 2018. "Layering the developmental state away?," Working Papers halshs-01800489, HAL.
    7. Yim, Hyung Rok, 2008. "Quality shock vs. market shock: Lessons from recently established rapidly growing U.S. startups," Journal of Business Venturing, Elsevier, vol. 23(2), pages 141-164, March.
    8. Pauline Debanes, 2017. "Layering the developmental state away? The knock-on effect of startup promotion policies on the innovation bureaucracy in South Korea," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 78, TUT Ragnar Nurkse Department of Innovation and Governance.
    9. Randall S. Jones & Myungkyoo Kim, 2014. "Promoting the Financing of SMEs and Start-ups in Korea," OECD Economics Department Working Papers 1162, OECD Publishing.
    10. Kohler, Thomas, 2016. "Corporate accelerators: Building bridges between corporations and startups," Business Horizons, Elsevier, vol. 59(3), pages 347-357.
    11. Nitin Pangarkar & Jie Wu, 2013. "Alliance formation, partner diversity, and performance of Singapore startups," Asia Pacific Journal of Management, Springer, vol. 30(3), pages 791-807, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. H. Kiran Kumar & B. R. Naveen & J. Savitha, 2022. "Business Factors Challenging SMEs for Adopting Cloud-Based Solutions," International Journal of Global Business and Competitiveness, Springer, vol. 17(2), pages 203-214, December.
    2. Wipada Thaothampitak & Sippavit Wongsuwatt & Therdchai Choibamroong, 2023. "The influence of key success factors on business growth for tourism business along Thailand’s Andaman coast: moderating role of location," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 29(2), pages 195-206.
    3. Kirankumar S. Momaya, 2020. "Return from COVID-19: Thinking Differently About Export Competitiveness and Sustainability," International Journal of Global Business and Competitiveness, Springer, vol. 15(1), pages 1-9, June.
    4. Amit Kumar & Bala Krishnamoorthy, 2020. "Business Analytics Adoption in Firms: A Qualitative Study Elaborating TOE Framework in India," International Journal of Global Business and Competitiveness, Springer, vol. 15(2), pages 80-93, December.
    5. Nam, Jinyoung & Kim, Junghwan & Jung, Yoonhyuk, 2023. "Understandings of the AI business ecosystem in South Korea: AI startups' perspective," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 278005, International Telecommunications Society (ITS).
    6. Krishna Satyanarayana & Deepak Chandrashekar & Bala Subrahmanya Mungila Hillemane, 2021. "An Assessment of Competitiveness of Technology-Based Startups in India," International Journal of Global Business and Competitiveness, Springer, vol. 16(1), pages 28-38, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jing Zhang & Vangelis Souitaris & Pek–hooi Soh & Poh–kam Wong, 2008. "A Contingent Model of Network Utilization in Early Financing of Technology Ventures," Entrepreneurship Theory and Practice, , vol. 32(4), pages 593-613, July.
    2. Ștefan Cristian Gherghina & Mihai Alexandru Botezatu & Alexandra Hosszu & Liliana Nicoleta Simionescu, 2020. "Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation," Sustainability, MDPI, vol. 12(1), pages 1-22, January.
    3. Tom Vanacker & Sophie Manigart & Miguel Meuleman, 2014. "Path–Dependent Evolution versus Intentional Management of Investment Ties in Science–Based Entrepreneurial Firms," Entrepreneurship Theory and Practice, , vol. 38(3), pages 671-690, May.
    4. Townsend, David M. & Busenitz, Lowell W., 2015. "Turning water into wine? Exploring the role of dynamic capabilities in early-stage capitalization processes," Journal of Business Venturing, Elsevier, vol. 30(2), pages 292-306.
    5. Moritz, Alexandra & Naulin, Tamara & Lutz, Eva, 2022. "Accelerators as drivers of coopetition among early-stage startups," Technovation, Elsevier, vol. 111(C).
    6. Uwe Cantner & Martin Kalthaus & Matthias Menter & Pierre Mohnen, 2023. "Global knowledge flows: characteristics, determinants, and impacts," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(5), pages 1063-1076.
    7. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    8. Yuegang Song & Songlin Jin & Zhenhui Li, 2022. "Venture Capital and Chinese Firms’ Technological Innovation Capability: Effective Evaluation and Mechanism Verification," Sustainability, MDPI, vol. 14(16), pages 1-20, August.
    9. Yin He & Bin Li & Yunhua Tian & Lijun Wang, 2016. "Does Foreign Venture Capital Provide More Value-added Services to Initial Public Offering Companies in China?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(2), pages 90-106, March.
    10. Oasis Kodila-Tedika & Julius Agbor, 2016. "Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries," Economies, MDPI, vol. 4(1), pages 1-17, March.
    11. Ning Jia, 2017. "Diversification of pre-IPO ownership and foreign IPO performance," Review of Quantitative Finance and Accounting, Springer, vol. 48(4), pages 1031-1061, May.
    12. Braguinsky, Serguey & Honjo, Yuji & 本庄, 裕司 & Nagaoka, Sadao & 長岡, 貞男 & Nakamura, Kenta & 中村, 健太, 2010. "Science-Based Business : Knowledge Capital or Entrepreneurial Ability? : Theory and Evidence from a Survey of Biotechnology Start-ups," IIR Working Paper 10-05, Institute of Innovation Research, Hitotsubashi University.
    13. Patzelt, Holger & zu Knyphausen-Aufseß, Dodo & Fischer, Heiko T., 2009. "Upper echelons and portfolio strategies of venture capital firms," Journal of Business Venturing, Elsevier, vol. 24(6), pages 558-572, November.
    14. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2022. "Trajectories to high income: Comparing the growth dynamics in China, South Korea, and Japan with cointegrated VAR models," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 492-511.
    15. Josh Lerner & Ramana Nanda, 2020. "Venture Capital's Role in Financing Innovation: What We Know and How Much We Still Need to Learn," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 237-261, Summer.
    16. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    17. Nanda, Ramana & Samila, Sampsa & Sorenson, Olav, 2020. "The persistent effect of initial success: Evidence from venture capital," Journal of Financial Economics, Elsevier, vol. 137(1), pages 231-248.
    18. Da Rin, Marco & Hellmann, Thomas, 2002. "Banks as Catalysts for Industrialization," Journal of Financial Intermediation, Elsevier, vol. 11(4), pages 366-397, October.
    19. Zhang, Yeqing & Zhang, Xueyong, 2020. "Patent growth and the long-run performance of VC-backed IPOs," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 33-47.
    20. Demougin, Dominique M. & Fabel, Oliver, 2006. "The division of ownership in new ventures," SFB 649 Discussion Papers 2006-047, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijogbc:v:14:y:2019:i:1:d:10.1007_s42943-019-00003-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.