The Effects of Commercialization Capability in Small and Medium-sized Businesses on Business Performances: Focused on Moderating Effects of Open Innovation

Abstract

This study aims to set the effects of technology commercializing capabilities (Acquisition / Internalization, market-oriented innovation, and exploitational innovation) on business performances (financial performance, non-financial performance, and innovational performance) as a primary model; examine the moderating effects of open innovation; build up the foundation to promote small and medium enterprises located in industrial complexes in Daegu; and lay groundwork for regional industrial strategies and national policy projects. We examined the relations between variables by conducting correlation measurement with only those variables that went through the above process. And hierarchical regression analysis was done to confirm our research model and hypothesis test.The empirical analysis results of the research are as follows: First, we found that acquisition/internalization affected greatgly the firm's financial performance and innovation performance (the speed of commercialization, the number of new product developments). Second, technological exploitation has positive effects on on their financial performance and innovation performance (the speed of commercialization, and the number of new product developments). Third, market exploitation also influenced strongly financial and innovative performances. This is because small and medium-sized companies in Korea produce and deliver products that higher level companies order rather than they develop their own products and improve the management performance by selling them to the market. Fourth, small and medium-sized firms seek to overcome the drawbacks coming from geographic proximity by means of open innovation during the process of commercializing the goods with their transferred techniques.

Service System Innovation and Competitiveness In an Emerging Market: The Moderating Role of Managerial Competencies

“…Studies have shown that commercialization is positively correlated with competitiveness (Friedrichsen, Zarea, Tayebi, & Abad, 2017). Also, Seo, Kim and Choi (2015) observed that Korean SMEs with high commercialization capabilities continuously perform better than all their contemporaries. Hence, it was hypothesized that:…”

“…Commercialization includes all innovative activities in the marketing of ideas elicited from research and development (R&D), service development through ripened ideas, prototype processes and the development of new processes. This includes steps to improve the existing service processes using innovative technologies, and sales and marketing by developing new products and services (Li, 2012;Seo, Kim & Choi, 2015). Studies have shown that commercialization is positively correlated with competitiveness (Friedrichsen, Zarea, Tayebi, & Abad, 2017).…”

Small business strategic management practices and performance: A configurational approach

“…Small businesses in C2 substitute EO for TQM practices, while retaining goal setting and financial ratio analysis as core practices. In this scenario, organizations are more exploratory than efficiency driven (March, 1991;Seo, Kim, & Choi, 2015). These companies have goals and assess their achievement using financial ratios.…”