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Policy Agendas on Globalization of Korean Venture Firm

Author Lee, Youngjoo et al. Date 2018.12.10 Page
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The global low growth trend has stabilized and new protectionism has spread all over the world since the global financial crisis. It is deteriorating not only the business environment of venture firms but also export-oriented growth strategies of Korean economy. The government is looking forward to the strategic role of venture companies as part of its efforts to prepare measures.

 

The strategic importance of venture firms has been well known in both academy and policy. It is expected that venture firms are likely to survive the global competition, and play a core role in job creation as well as industry development, but the feasibility is unknown in case of Korean venture firms. The purpose of this study is to analyze the possibilities and devise promotion policy for them.

 

The Korean government has been fostering the growth of venture companies for a long time and has achieved some quantitative results. It is necessary to confirm the qualitative aspects of the company through globalization competence diagnosis.

 

Based on the existing research, this study designed a theoretical research model with both global marker oriented competence and global innovation competence. These two competencies are being considered to be factors affecting globalization performance. We also conducted an quantitative analysis to confirm theoretical hypothesis. We conducted a survey to determine the globalization factors of venture companies. Data for empirical analysis were prepared through questionnaires for small and medium venture companies.

 

The results of the empirical analysis showed some support for the theoretical hypothesis. As supported by the existing theory, venture companies with global market oriented capabilities and global product innovation capabilities found to be favorable to achieving global business performance. However, the effectiveness of the global market innovation capability is not supported. According to the survey results, venture companies do not have enough capacities to grow in the global market alone. If this situation can not be solved, there is a concern that the government’s expectation to achieve innovative growth through fostering venture companies will not be realized.

 

Above all, the government should strive to support policies to strengthen the two capabilities that have been found to have a positive impact on global management performance.

 

The government should try to provide indirect support rather than direct support, and the government needs to consider using global open innovation system as part of indirect support. Global players who can participate in open innovation have a lot of important innovation resources for venture companies. It is desirable for the government to make efforts to build a platform where contact and cooperation with open innovation players scattered around the world can be activated.

 

It is necessary to create an global ecosystem that can cross-support the globalization of venture companies through cooperation between global accelerators.

 

The government should strengthen the linkage between technology development policy and globalization policy so that venture companies can strengthen both capabilities necessary for global growth at the same time.

 

Global customers are highly interested in Korean venture companies with competitiveness related to the theme of the Fourth Industrial Revolution. Korean venture companies should use the theme of the Fourth Industrial Revolution to achieve global market entry, and the government's customized globalization support should be strengthened.?