Which is Better for a Firm’s Financial Performance: An Externally Oriented or Inwardly Oriented Innovation Strategy? An Empirical Study of Korean SMEs
- Which is Better for a Firm’s Financial Performance: An Externally Oriented or Inwardly Oriented Innovation Strategy? An Empirical Study of Korean SMEs
- 이용길; 박승호; 송용일
- Financial Performance; Innovation Strategy; open innovation; SMEs; closed innovation; R&D outsourcing
- Issue Date
- Asian journal of technology innovation
- VOL 17, NO 1, 57-74
- Research in the field of innovation shows that companies today often rely on interactions with
users, suppliers, and other external sources when it comes to seeking innovative practices. Many
studies find that this “open” innovation search model contrasts favorably with the inward-oriented
model of the past, although many of these studies still rely on the traditional measures of output
such as patent applications. The authors further this research by examining how a concrete
measure of financial performance (operating profit) is related to the variables of openness and
closedness in innovation strategy.
Our approach is unique in the sense that we examine a sample comprising only of small and
medium-sized enterprises, categorize firms according to industry, and look at such unique
variables as family control of the SME (whether the CEO and/or stockholders are family
members) and the SME’s exposure in an online financial newspaper. We gather data on 215
Korean SMEs from Korea’s Data Analysis, Retrieval, and Transfer System, Worldwide Intellectual
Property Search, and the online newspaper Money Today. Findings include the rather surprising
result that a closed innovation strategy as represented by family control of the SME relates
positively to financial performance.
- Appears in Collections:
- KIST Publication > Article
- Files in This Item:
There are no files associated with this item.
- RIS (EndNote)
- XLS (Excel)
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.