Determinants for the success of regional ICT ventures: a close examination of South Korea

Abstract

BackgroundThis study identifies the key motivational factors in enhancing economic performance and increasing new job opportunities for information and communication technology ventures (ICTVs) in South Korea and examines their potential causal relationships through structural equation modeling analysis on data collected from over 200 ICTVs located in Daedeok Innopolis.ResultsThe results indicate that the economic performance of ICTVs is determined mainly by government support, innovation effort, and private equity and support. Government support and innovation effort are also positively associated with new job opportunities.ConclusionsThe theoretical, industrial implications of the key findings, and recommendations for the Korean government are discussed.

Enhancing firm performance through innovation: the roles of intellectual capital, government support, knowledge sharing and knowledge management success

“…Fourth, GSFI has a significant positive effect on firm innovation, confirming the relationship reported in the literature (Alguezaui and Filieri, 2010;Chapman and Hewitt-Dundas, 2018;Dumont, 2017;Kang and Park, 2012;Mustar and Lar edo, 2002;Wei and Liu, 2015;Yes ¸il and Do gan, 2019). Furthermore, GSFI significantly positively affects firm performance, consistent with prior studies (Alkahtani et al, 2020;Fajnzylber et al, 2009;Park et al, 2016). These previous studies proved that government incentives not only enhance sustainable competitive performance in emerging economies but also greatly improve innovation capacity in both developed and developing countries.…”

“…Governments encourage innovative activities through tax breaks, loans, social assistance, and financial assistance, among other measures. On the basis of a systematic review, Jugend et al (2020) identified four types of government support for innovation: (1) financial support for R&D activities, with 38 articles, two of which used primary data (Spanos et al, 2015;Wanzenb€ ock et al, 2013); (2) development through innovation, with 39 articles, four of which used primary data (Joo and Suh, 2017;Park et al, 2016;S a and Pinho, 2019;Songling et al, 2018); (3) support for sectorial programs, with 14 articles, one of which used primary data (Zailani et al, 2019); and (4) university-industry-government collaboration, with 12 articles, three of which used primary data (Hewitt-Dundas and Roper, 2018;Jugend et al, 2018;Kang and Park, 2012).…”

“…Governments can derive numerous benefits from assisting manufacturers in their endeavor to innovate. This support has the potential to result in positive results such as economic growth (Park et al, 2016;S a and Pinho, 2019), the generation of employment opportunities (Park et al, 2016), and improved competitiveness (Barney, 1991;Curado, 2008;Kogut and Zander, 1992;Songling et al, 2018). Using innovative methodologies in the manufacturing industry has promise for facilitating the development of original items, techniques, and technology, hence promoting economic growth.…”

“…GSFI comprises various policy tools that governments use to help organizations innovate (Chapman and Hewitt-Dundas, 2018;Dumont, 2017). Empirical studies have shown that government incentives not only facilitate sustainable competitive performance (Alkahtani et al, 2020), sustainable development (Fajnzylber et al, 2009), economic performance (Park et al, 2016), and innovation performance (Kang and Park, 2012) in emerging economies but also significantly stimulate innovation capacity in both developed and developing countries (Wei and Liu, 2015).…”

“…Prior studies have used primary data to test the interaction between IC and either firm innovation or performance (Alrowwad et al, 2020;Asiaei et al, 2018Asiaei et al, , 2020Rehman et al, 2022a, b;Yes ¸il and Do gan, 2019); between knowledge management and either innovation or performance (Darroch, 2005;Ode and Ayavoo, 2020;Qandah et al, 2021); between knowledge sharing and innovation (Ganguly et al, 2019); or between knowledge transfer, innovativeness and performance (Ali et al, 2018;Muhammed and Zaim, 2020;Zubielqui et al, 2019). In addition, many studies of the connection between government funding and firm innovation or performance have employed secondary data, but some empirical investigations of similar correlations have used primary data with multidimensional constructs (Alkahtani et al, 2020;Kang and Park, 2012;Park et al, 2016). Therefore, this study designed multidimensional measures to conduct the survey and test the proposed hypotheses.…”