It is not easy to evaluate a risk of SMEs by the same criteria. Because
this approach method can be applied to calculate the risk evaluation rating and
accuracy of the prediction to the each company, this research is expected to provide
useful information to the supervisory authority as well as financial institution. Risk
Evaluation Model of this research consists of the elements such as composite rating
system, principal component analysis etc, and risk evaluation rating is calculated
by the company’s financial variables which include information about the level of
risk. As a result of an empirical analysis on SME from 2000 to 2011, firm-specific
risk evaluation rating seems to be generally increasing in 2002, but it shows decrease
during a 2003 credit card crisis period. Firm-specific risk evaluation rating generally
increases after 2003, but it starts to decrease due to the sub-prime mortgage crisis
at the end of 2007 and the global financial crisis of 2008. Thus, observing similarities
or differences on global economic trend, we need to monitor the change in risk
evaluation level of companies. Also, from a point of view on the prediction accuracy,
the bankruptcy prediction on model II measured as 0.6205 on average, is higher
than that of model I, 0.6043. The higher ratio of model II indicates that the model
including macroeconomic effects has shown a better result, and it helps to verify
whether certain companies exposure to macroeconomic risk shocks or not. This paper
has a valuable meaning because the empirical research of SMEs default frequency,
which is considering both financial and macroeconomic variables, is very rare. To
set up the risk evaluation and forecasting level, the model recommended in this
research is based on several simple assumptions, and it is able to improve the
suitability of model if we apply an appropriate ratio of finance to each industry.

In previous studies on the relationship between the outcome of technological
development and the factors that influence the technological development
of small and medium-sized enterprises (SMEs), it has not been taken into account
government support policies and variables related to technology management activities
at the same time. In many cases of the existing research, only the impact
of a particular variable has been analyzed on the basis of a simple input-output model.
Moreover, the different role and effect of influencing factors in the life cycle stages
of technology development have rarely been studied.
This study has established two sets of hypothesis to find critical factors determining
new product development success and causal path from technology development ideas
to commercial launches and sales contributions. One set has theorized that the factors
from both management of technology activities and government support policies
simultaneously influence on the technology development performance throughout
technology development stages. The other set of hypothesis has argued that the number
of technological development projects for new product has a positive relationship
with the number of successfully developed technology, and the number of successfully
developed technology influence the number of successfully commercialized product
and increased sales volume from new product along the new product development
stages.
With the technology development survey data from Korea federation of small and medium business, this study has applied generalized linear model (GLM) due to
highly skewed and dispersed data characteristics, and Hierarchical linear model (HLM)
to control industry-specific heterogeneous nature.
With the technology development survey data from Korea federation of small and
medium business, this study has applied generalized linear model (GLM) due to
highly skewed and dispersed data characteristics, and Hierarchical linear model (HLM)
to control industry-specific heterogeneous nature. The main findings are summarized
as follows. First, this study confirmed the causal links that the number of development
projects initiated increase the number of technologically successful development
projects, and the number of technologically successful development projects affects
the number of commercially successful development projects, and the number of
commercially successful development projects are associated with the ratio of sales
volume by newly developed products or improved products. Second, factors including
degree of innovativeness of technology strategy, relative period of technology
development, and formal organizational structure for technology development have
all positive impacts on innovation performance consistently throughout the process
of technology development. Third, the degree and experience of technology acquisition
and collaborative development have affected neither the success of technological
developments, nor the success of commercialization and increased sales by new and
improved product. The proportion of subsidies and government investment in R&D
expenditure of SMEs tend to give an overall negative impact on technology development
life cycle performance. Finally, Government support policy such as tax credit, public
procurement support, human resource development support, and provision of technical
information were all have not positive impacts on the technological development
performance.

The purpose of this research is to analyze if audit committee and full
time auditor have any effect on earnings management. Specifically we wanted to
find out which has more significant effect on earnings management, audit committee
or full time auditor?
The research samples were ed from New-Kisvalue. Initially we ed 2,338
samples. We analyzed 1,276 (company-year) final samples after eliminating those
which have not meet our sample ion criteria.
The multiple regression result showed that audit committee decreased accrual based
earnings management. However, audit committee does not have any effect on real
earnings management. In order to test the effect of audit committee on real earnings
management more specifically, we ed only manufacturing companies from the
final research samples. The multiple regression result suggests that audit committee
decreased real earnings management. We found the same result with the sample
data from small companies. The multiple regression result suggests that audit committee
decreased accrual based earnings management.
Overall research result indicates that audit committee decreased accrual based
earnings management. Analyzing the samples consist of manufacturing companies,
we found that audit committee significantly decreased real earnings management.
Our research suggests that we should strengthen the qualification for the full time
auditor in order to satisfy the important corporate governance participants.

We find the underpricing of collateralized bond obligations and investigate
its determinants. The main results of empirical analysis are summarized as follows:
Firstly, the collateralized bond obligation spread compared with the same level of
the corporate bond spread continues to be high and shows underpricing. Secondly,
the collateralized bond obligation spread has a very significant relationship with
maturity, credit rating and issue amount. The issue amount has a strong reverse
relationship with the collateralized bond obligation spread, and if issue amount
increases, the spread decreases. However, in the case of corporate bond spread,
the issue amount has a weak reverse relationship with the spread and the price does
not depend strongly on the market liquidity. Thirdly All the regression analyses show
that the determinants other than the credit rating of the collateralized bond obligations
ively affect the spread. In particular, among the determinants related with the
issue conditions of the collateralized bond obligations security type and priority related
with the loss given default strongly affect the spread. Finally, as we compare the
pool of collateralized bond obligations with those of other collateral ABS's, we find
that collateralized bond obligation spread is not lower than other collateral ABS
spreads. And, as we compare the determinants of collateralized bond obligation spread
with those of other ABS spreads, we find the issue amount has differential impact
on collateralized bond obligation spread. Other collateral ABS's have strong negative
relationship between issue amount and spread, but collateralized bond obligation has
weak negative relationship between issue amount and spread.

This study derives the company’s core competencies and devises a
strategy for the global market entry for SMEs in promoting the global technology
commercialization. For this, we extracted intrinsic factors by analyzing the relationship
of the core competencies through factor analysis and score capabilities of SMEs
using these standardized values. In addition, we calculate the goodness by considering
the score distribution and the frequency and grade the SMEs’ scores based on the
goodness. For grouping based on the scores of SMEs, the conceptual cluster analysis
which classifies the scores into several clusters considering the goodness was applied.
By considering a variety of capacities of SMEs grouped, we present appropriate
strategies for the global market entry. Our results are expected to help SMEs to
enter successfully in global market by minimizing the global technology commercialization
efforts, risks, and trial-error.

Although the steep growth of information and communication technology
gives us tremendous freedom to do business, where people can potentially
be reached anywhere and anytime and feel the need to be constantly connected,
there is a great deal of concern about unpredictable outcome brought out from information
and communication technology. While constant connectivity via new technologies
might have benefits for some, it also come at the cost of blurring work-home
boundaries by providing increased access to work and to individuals. Due to the
constant connectivity and fast-changing information communication technologies,
IS(Information System) users experience stress related technologies and face the
challenge of managing technostress.
Based on the context stated above, the research questions were aroused as follows :
1) What are the determinants of IS users' technostress in workplace? 2) What are
the relationships between the determinants of technostress and technostress? 3) How
technostress affect on IS strain and performance expectancy? 4) What are the perceived
levels of technostress among IS users? What is the highest perceived techno-stressors
among IS users? By providing answers to these questions, the study aimed at proposing
basic principles for technostress management of IS users in workplace. Specifically,
the purpose of this study was to examine the relationships between task-technology fit, computer self-efficacy, pace of change, technostress, IS strain and performance
expectancy among IS users in workplace. Based on the previous literature on
technostress, task-technology fit and self-efficacy theory, the research model and
six hypotheses were proposed. Total of 260 IS users were empirically analyzed using
IBM SPSS Statistics 20 and LISREL 8.54.
The findings indicated that computer self-efficacy and pace of change had significant
effects on technostress and technostress is influential to IS strain and performance
expectancy. The results suggested the empirical model on the structural relationships
between the factors explaining technostress and performance expectancy. In the practical
domain, the study proposed managerial implications for effective use of information
technology and the adverse effects of technostress.

Recently, the core business change has been an important issue of the
innovation and/or entrepreneurship literature. There has been strong evidence in the
literature to indicate the fact that core business change is one of radical alternatives
for SMEs (Small and Medium sized Enterprises) who want to develop and maintain
a competitive advantage for its continuous survival and growth.
However, research on the relationship between the SME CEO and its core business
change has met with virtually no empirical support even though CEOs consistently
play a critical role in decision making. Hence, this article attempts to understand
how managerial background characteristics affect the adaptive challenge in terms
of the upper echelons theory. Specifically, the purpose of this study is to analyze
the effects of SME CEO’s characteristics(age, education, and former experience)
on making decision to change its core business. In addition, we also examine the
moderating effect of industry on the relationship between CEO and core business
change because the need to understand the effect of the industry by promoting or
diminishing managers’ power.
Using a sample of more than 140 small firms listed on the KOSDAQ, we find
strong support for our argument. The data indicate that managers who are younger,
high-educated, and have related business experience have a strong tendency to make
core business change decision. It is also found that the relationship between CEO
and core business change decision can be moderated by management discretion.

This study began from an interest about how much small and midium
business employees are aware of transferring what they have learned and to what
extent learning transfer contribute to their jobs and attainments. The purpose of this
study was to have an overall understanding about the relationships among learning
transfer, individual performance and other variables when a certain amount of time
has past since receiving a small and medium business job performance improvement
educational training, and thereby provide basic data that will help educational training
designed for employees at small and midium businesses contribute to the
advancement of learning transfer and individual performance. To this end, the present
study utilized research models proposed by Baldwin and Ford(1998), Holton(2005),
and Holton and Baldwin(2003). These studies were employed since the proposed
models have been frequently cited as exemplary models explaining the learning
transfer process of educational training within an organization, and also because they
have been received well as preceding studies helpful for an overall understanding
of learning transfer process of business education due to their specific ion of
subfactors. In order to verify these models, this study measured the mediation effect
of learning transfer in terms of the effects the validity, transfer design, and
instructor's ability of small and medium business job performance improvement
educational programs and work environment have on individual performance.
The subjects of this study included 210 employees employed at a small and
medium-sized business with less than 300 employees and who participated in a small and medium business job performance improvement course. Out of the 210 course
participants, a total of 79 subjects responded to the research survey; survey respondents
were composed of 93.7% male employees, 6.3% female employees, 67.1% of employees
in administrative posts or higher class, and 32.9% of employees in worker level
positions.
For empirical verification, the present study conducted the survey related to the
educational program immediately after the completion of the small and medium business
job performance improvement program, and then, collected the questionnaires related
to work environment, learning transfer, and individual performance six months later.
Data from these two surveys were analyzed using SPSS 19.0. In order to raise the
empirical validity of the study outcomes and to carry out feasibility assessment of
questionnaire items, factor analysis was conducted using the principal component
analysis(PCA). In doing so, nine questions that indicated factor loading of less than
0.6 were eliminated. Cronbach's α was confirmed to verify the reliability of measurement
tools. As a result, Cronbach's α values on the research variables ranged between
0.834 and 0.984, indicating good reliability. In addition, the three-step regression
analysis for mediation analysis proposed by Baron and Kenny(1986) was employed
to verify the mediation effect of learning transfer in the effects small and medium
job performance improvement program and work environment have on individual
performance.
According to the study results, it was found that learning transfer played some
mediating role toward the effects small and medium job performance improvement
program and work environment have on small and medium business sales workers'
individual performance when demographic characteristics are held constant as control
variables. Study results showed that learning transfer partially mediated the relationship
between transfer design and job competency and that there is full mediation by learning
transfer in the relationship between transfer design and individual sales. On the other
hand, after regulating the demographic characteristics as control variables in the same
manner, it was found that learning transfer played no mediating role in the effects
small and medium business work environment have on small and medium business
sales workers' individual performance. With respect to the study by Baldwin and
Ford(1998) that suggests that learning transfer mediates the effects on performance
by educational training design and work environment that serve as factors of educational
input, the present study results support the part about educational training design.
However, the present study differs from existing studies in that its results do not
support the part about work environment such as organizational support, supervisor
support, and restrictions by supervisors, which were identified as major influencing
factors in most preceding international and domestic studies. Holton(1998) states
that self-efficiency which affects learning transfer has to do with the learner's conviction
that he/she has the ability to apply the contents learned from training to one's job.
Kim Youngmin(2005) views that there is a greater need for advises from surrounding
people and support from the organization and supervisors in order to have employees
experience learning transfer in their jobs. Kim also shows that, in the case of employees with positions higher than managers, their experiences and awareness for their job
performing abilities are more strongly related to learning transfer than the support
from the organization and supervisors. With these points taken into consideration,
it is surmised in this study that learning transfer has no mediating effect in how
work environment influences job performance, since the subjects, with 67.1% of
them having managerial positions or higher, were less influenced by factors such
as organizational support, supervisor support, and restrictions by supervisors, but
rather by the factor of personal volition.
Considering that each learner is the person in charge of a given job at a small
and medium business who can be the representative of that relevant job given the
nature of small and medium business, this study has the following implications that
will positively influence future learning transfer and job performance improvement
at small and medium business.
First, as shown in the present study, considering that learning transfer serves as
a mediator in the transfer design of educational programs among the effects of small
and medium business job performance improvement program have on individual
performance, it is necessary to include practical training, case studies, and experience
sharing that are appropriate for the small and medium business environment when
designing small and medium business job performance improvement programs. This
study suggests that for small and medium business employees who have to immediately
apply what they have learned on the field, educational training programs should be
designed in order to cultivate their abilities to apply the learned contents to on-site
duties as quickly as possible. It also implies that, viewed from a long-term perspective,
it is necessary to nurture internal design specialists who work within small and medium
business and are well informed of the situations of small and medium business in
order to provide designs that are customized for small and medium business. Second,
since the duties of sales employees who represent the small and medium business
can have a direct effect on the company's performance, the government and relevant
agencies should pay more attention to developing programs that will transfer learning
directly to performance improvement of sales workers at small and medium business
in the future.
Third, due to the nature of small and medium business, the business proprieter
holds the rights and the keys to developing human resources of the company. Without
the business owner's will, it is impossible to have the employees either actively
participate in the educational training or apply what they have learned into practice
after the training. Hence, studies covering various fields and ranges and efforts to
verify the effectiveness of more educational programs should be carried out in the
future in order to have business owners recognize that educational training have
a positive effect on the performance of an organization and of each member of that
organization.

This study aims to examine the effects of technological innovativenesstype
small businesses’ technological innovation capability on their R&D performances.
To achieve the goal, the study has considered not only the major themes
of corporate management environment characteristics that have been examined in
advanced research such as environmental uncertainty and decentralization but also
a company’s tangible and intangible assets, characteristics, or governmental support
from the aspects of its resource ground as well, and it also has investigated the
effects of technological innovativeness-type small businesses’ technological innovativeness
on their R&D performances. For this, the paper formulates its hypotheses
as well as its study model including study variables affecting technological innovativeness-
type small businesses’ R&D performances. In consideration of the theoretical
ground and study subjects to be analyzed in this study, the article measures
each of the study variables through a survey targeting INNOBIZ small businesses
located in Gyeongsangnam-do. And the study figures out correlation among the study
variables suggested here in this paper, and to measure variables affecting corporate
R&D performances, it applies the structural equation analysis method for positive
analysis. The study will discuss its results drawn through the above study method
and analysis procedures as follows: first, according to the result of verifying hypothesis 1, 2, 3, and 4 that exogenous variables including environmental uncertainty
of the external structure, the degree of decentralization of the internal structure,
governmental support of the external resource, and the scale and cooperation of
internal resources as corporate management environment characteristics will influence
technological innovativeness, there exists greater influence in internal resources
(.299), environmental uncertainty (.158), and decentralization (.101) in order. The
result that the factor of internal resources has the greatest influence implies that
tangible and intangible assets accumulated through a company’s long-term management
activity, that is, corporate capabilities we can generally think of, work positively
on technological innovativeness. Second, according to the result of verifying
hypothesis 5, 6, 7, and 8 that technological innovativeness-type small businesses’
factors of environmental uncertainty, decentralization, external resources, and internal
resources will influence their R&D performances, these four factors do not have
any direct influence on R&D performances.
This means that technological innovativeness-type small businesses’ management
environment characteristics may affect their general management performances, but
from a preceding perspective, they do not show direct influence on R&D performances
associated with technological innovativeness performances. In particular, this implies
that it is needed to make further efforts for competitive advantage strategies through
technological innovativeness-type small businesses’ own original technological innovativeness.
Third, according to the result of verifying hypothesis 9 that technological
innovativeness-type small businesses’ technological innovativeness will affect their
R&D performances, technological innovativeness does have significant effects on
R&D performances. To sum up the above study findings, the factors affecting R&D
performances, that is, primary performances in connection with new products or patents
still lack to be any management environment characteristics or structural and resource
factors. Thus, when a company’s technological innovativeness is enhanced practically
and its organizational culture supporting it is built, it will be possible to elevate
its R&D performances. This study deals with technological innovativeness-type small
businesses’ R&D performances that have not been investigated yet in advanced research.
This article is significant in that it focuses on technological innovativeness-type small
businesses’ own unique characteristics and figures out determinants to improve their
R&D performances through empirical research.

After the global financial crisis, advanced countries have highlighted
the revitalization of entrepreneurship as their survival strategy. Such emphasis on
entrepreneurship comes from the expectation that it will solve well-educated unemployment
problems and contribute to the creation of new driving forces for national
economic growth. With regard to such positive roles of entrepreneurship, this study
empirically analyzed its impact on national economic growth using GEM data.
Through panel data models, we identified important variables by estimating impacts
of capital stock and entrepreneurship variables such as fear of failure rate, total early
stage opportunity-driven entrepreneurial activity, growth expectation, finance support,
government policy, and education training on gross domestic product. Especially,
given that impacts of entrepreneurship on national economic growth are different
according to national economic development stages, we implemented additional
analysis based on innovation-driven economies. Analysis results revealed that fear
of failure rate, total early stage opportunity-driven entrepreneurial activity, government
policy, and education training affected national economic growth positively. In sum,
the revitalization of entrepreneurship is necessarily required for sustainable economic
growth of Korea, and the government should carry out business startup policies for
increasing early stage opportunity-driven entrepreneurial activity. Finally, this study
is expected to provide policy-makers with useful information for formulating policies
relating to entrepreneurship.

By integrating the capabilities of suppliers into the operations of supply-
networks, large manufacturers can enhance their competitive advantages. In particular,
large manufacturers can accomplish more innovative tasks they could not achieve
individually by sharing innovative ideas with their suppliers.
In recent years, large manufacturers in Korea have adopted a new incentive practice
known as benefit-sharing(hereafter BS) to motivate the participation of suppliers in
joint innovation. By systematically sharing beneficial outcomes of joint innovation,
manufacturers aim to enhance cost competitiveness, new product development
outcomes, quality, delivery performance, and flexibility.
Even though the suppliers are well aware of the advantages of BS, they are reluctant
to participate in the BS. Suppliers are concerned about the opportunistic behavior
of manufacturers. For suppliers, an improper sharing of ideas can result in victimization
by opportunistic manufacturers that leaves suppliers worse off than if they had not
participated in the BS. Therefore, manufacturers that want to adopt BS must assure
suppliers that they will not behave opportunistically due to built-in reluctance among
suppliers to hand over innovative ideas.
Few studies go into any detail in examining conflict and conflict resolution techniques
for implementing BS and providing recommendations to practitioners with regard
to facilitating BS. This research aims to draw details of conflict and conflict resolution techniques for implementing BS. Based on the observations from the case study,
POSCO's BS is analyzed and its featured characteristics are extracted accordingly.
The results show that there are some conditions for success of BS. First, not only
the manufacturer's CEO but also the supplier's CEO should be involved deeply and
should appoint dedicated teams, assign accountability to functional division leaders
regarding BS, set up reward systems for employees, and empower dedicated team
members with decision-making authorities and compensation for efforts. Second, the
parties should reach contractual BS agreements prior to the implementation of BS
processes. Third, the parties should build systems to protect proprietary information
such as detailed cost table, technology specifications, and new product/process concepts.
Fourth, the parties should incentivize staffs that are working to implement BS projects.
This in-depth case study helps not only for the practitioners that want to adopt
BS practice but also for the government authorities seeking targeted interventions,
to gain insight into the actual BS practice in a rapidly changing business

We try to suggest the way to improve efficiency of the public financial
supporting program for micro-business. At first, we classify the loan purpose as
complement of market failure and policy-purpose, and then divide the target group
as innovation and general firm considering young and old firm.
Firstly, according to the result of the references, we suggest that if the loan purpose
is a complement of market failure, direct financing of the government could be more
effective. And innovative and start-ups micro-business would be better getting supported
with higher credit guarantee rate and larger loan, and innovative and existing microbusiness
be better getting supported with higher loan with lower guarantee ratio for
maximization of the effects. Also, in case of general and start-ups micro- business,
lower loan and higher guarantee ratio could be effective.
Next, if a purpose of support is policy-purpose, then instead of the central government,
each local government be better carrying forward indirect loans(on-lending)
in its own local area. Under this purpose, innovative and startups micro-business
need to be supported with larger loan and higher guarantee ratio, and innovative
and existing micro-business had better getting supported by larger loan and lower
guarantee ratio. Also, for general and start-up micro-business, higher guarantee ratio(or
secondary conservation of interest) and lower loan could be better.

This study analyzes the economic impacts of the retirement age extension
to 60 on firms. Using the data from KLIPS from 1997 to 2009, experience-earnings
profiles and tenure-earnings profiles are estimated for simulations, and experienceearnings
profiles of the self-employed are also estimated to calculate workers’
productivity contributed by the general human capital. If the current wage profiles
of the firm are not revised, then the labor cost increase due to the retirement age
extension is significantly large, especially in the SMEs. To minimize the labor cost
increase, various measures should be adopted including phased retirement system,
wage peak system, rehiring, and/or extension of the contract period. In addition,
job training program should be reinforced to raise the productivity using the reduced
working hours for the aged.

The basic purpose of this research is to discuss the development of
intermediate recovery market for vitalizing start-ups. In order to activate a start-up
ecosystem, a positive feedback system with a virtuous cycle of start-up, growth,
exit, and re-investment in start-ups could be established. It is necessary to transfer
towards an investment-based support system rather than a loan-based system at the
start-up stage. As investment in seed, start-up, and early stage companies is done
mainly by angel investors, angel investments should be expanded. To activate angel
investment, intermediate recovery market in which investment can be recovered
before going to the IPO stage should be developed. This research suggests that new
alternative policies for changes in the promotion of start-ups and developing
intermediate recovery markets should be developed.
First, in order to boost start-ups, revisions of the joint surety system and Article
250 of the Unified Bankruptcy Act are needed. To facilitate the launching of new
ventures, the emphasis should be placed on the revitalization of the so-called ‘lean
start-up.’ Also, a new venture boom needs to be created through the support of various
social enterprises and one-person enterprises. In addition, to invigorate the establishment
of new businesses, more than anything else, investment in these new ventures needs
to be expanded.
Second, the expansion of investment requires policy that enhances the attractiveness
of investment. For example, the scope of income tax deductions ought to be broadened
for angel investors. Concerning income tax deductions, the mandatory holding period
for equity interests should be reduced and, to expand investments, an integrated system that incorporates investment losses and gains warrants a second look. A deferred
tax plan that defers taxation, which would encourage reinvestment by angels, should
also be considered. As an idea to increase the volume of investments, angel investment
funds, angel investment matching funds, angel support type secondary funds, etc.
should be formed and expanded.
Third, in order to expand investments it is necessary to vitalize intermediate recovery
markets that allow for pre-IPO exit of investments. Although intermediate recovery
markets vary widely, in the case of the United States, mergers and acquisitions
(M&A) offer the most dynamic solution. Unlike in the past, recently, M&As have
been utilized to maximize the capacity for innovation. As such, the fostering of M&As
and the revitalization of transactions can be considered the core policies for the boosting
of start-ups in a creative economy.

Internationalization of Korean enterprises has been driven mostly by
large enterprises. Most small-medium enterprises (SMEs) have not been successful
in overseas markets. Furthermore, in software industry, even large enterprises don't
have control over their market position in overseas markets. It is because large
SI(System Integration) enterprises have monopolized domestic SI and SM(Systems
Management) service market and ignored the development of package software and
solutions. Therefore, it is emphasized that more innovative business model development
is required in order for software industry to be able to succeed in overseas
market. Over the last few decades, the Korean government has instituted policies
to support the growth of SMEs. Under the heavy foreign trade dependent economic
structure of Korea, growth by foreign market penetration is imperative. Business
cooperation between large and SMEs for co-prosperity has been suggested as a
strategic initiative to solve such a national-level issue. This would create a more
effective competitive advantage in global markets. However, this strategy is not
effective for the industries in which large firms do not have global competitiveness.
A recent business cooperation between SMEs in the software industry received much
attention for making an innovative attempt at penetrating the global market. This
paper suggests a framework for implementing a cooperation model of SMEs which
creates a new software market while overcoming the institutional voids in the
emerging market through a case study on KOSIGN (KOrea Software Innovation
Global Network). The case study on KOSIGN, which was recently established in
Cambodia, suggests a strategy for attaining global competitiveness through cooperation
between SMEs, as well as an innovative business model for penetrating the
emerging market, especially in the software industry.