Based on the resource-based view and the dynamic capabilities, we examine the effects of resources and entrepreneurship on the product innovation performance of the high-technology commercialization of SMEs(Small and Medium sized Enterprises) in the area surrounding Daejeon metropolitan city.
On basis of a literature review, we suggest that the SMEs’ resources and entrepreneurship positively influence on the dynamic capabilities, and that the SMEs’ dynamic capabilities have positive impacts on the competitive advantage of low cost and differentiation. In addition, we hypothesize a positive relationship between the SMEs’ competitive advantage and the product innovation performance.
We analyze data through questionnaire from 211 SMEs in Daejeon metropolitan city area. To investigate these hypotheses, path analysis and Sobel test were employed, and firm size, firm age, government support and the lifecycle of the firm were controlled in the model.
The results revealed that the SMEs’ resources are positively related to the dynamic capabilities. Also, the dynamic capabilities have positive impacts on the competitive advantage of low cost and differentiation. And the competitive advantage of differentiation is positively related to the product innovation performance. Furthermore, the mediation effects of the dynamic capabilities on the relationship between resources and the competitive advantage, the differentiation advantage on the relationship between dynamic capabilities and the product innovation performance were confirmed.
This study advanced our understanding of the mechanisms linking the SMEs’ resources and entrepreneurship to the product innovation performance by focusing on the mediating roles of the dynamic capabilities and the competitive advantage. We discuss the theoretical and managerial implications, and provide suggestion for future research.

In the past, it was once argued that organizational slack was regarded as waste of resources because sharing resources promptly with business partners through strategic alliance, outsourcing, SCM (Supply Chain Management) and JIT (Just In Time) was considered more beneficial than keeping resources in their own companies at that time. But business circumstances changed a lot and rapidly. After the recent economic crisis in advanced countries such as U.S.A, Europe, and Japan has lasted for a long time, the issue of organizational slack has become a big issue and seen more useful, in some cases indispensable and necessary for innovation. And especially the SMEs (Small and Medium Enterprises) should be more nimble and flexible in decision-making than the large enterprises, but they are also faced with liabilities of newness and smallness. So corporate reputation can be used by one of the new alternatives to overcome that kind of difficulties.
Accordingly, this empirical research model was designed to analyze the effects of SMEs' organizational slack on innovation focused on the moderating effect of corporate reputation. For this purpose, questionnaire surveys were administered to target SMEs in Yeongnam region including Daegu, Gyeongpbuk, Busan and Gyeongnam, and the empirical analysis was finally done with the surveys of effective 250 SMEs.
After in-depth analysis of correlation, validity, reliability and regression analysis using SPSS 21.0 and AMOS 16.0, we could successfully find two meaningful findings for SMEs.

First, SMEs’ unabsorbed slack had positive direct effects on all three types of innovation such as product innovation, process innovation and managerial innovation. On the other hand, SMEs’ absorbed slack didn't affect any kinds of innovation. So these results imply that unabsorbed slack can be linked to the innovation by strategic management in the field and can be used by resources for innovation.
Second, corporate reputation had moderating effect on the relationships between unabsorbed slack and managerial innovation. On the other hand, it didn't have any moderating effect on the relationships between absorbed slack and any kind of innovation. So these results imply that corporate reputation is a resource for SMEs to be innovation enterprises.
In conclusion, this empirical research contributes to both theories and practices in SMEs because we could find that organizational slack, specially unabsorbed slack, is not waste but rather could be important resources for innovation. Also special management of corporate reputation is necessary for SMEs.
But this research has also the limitation of generalization. As this research was analyzed by limited number and region of samples, more numbers and other regions and even other countries of samples are recommended in the future.

This study analyse whether the IFRS adoption has an effect on earnings quality of small and medium sized company (SMC) which is different from the large company. The results of hypotheses testing are as follows. First, the discretionary accruals of SMC have significantly reduced after the IFRS adoption, which means that the earnings quality of SMC has improved. Second, the discretionary accruals of SMC have reduced more than one of large company after IFRS adoption. This means the earnings quality of SMC has improved more than that of large company, which is caused by improvement of the accounting transparency due to more disclosures. Additional analyses show that earnings quality has improved significantly when controlling shareholders' ownership and foreign ownership are increased, but big4 auditor does not affect earning quality.

This study is to review the differences and to suggest some policy measures for SMEs by analysing the determinants to lend SMEs as to the SMEs loan amount and the ratio of SMEs loan to the total loan by bank type-large commercial bank, small regional bank, and special government bank. To investigate SMEs loan amount and the ratio of SMEs loan to the total loan, We use bank data set based on from 2001 to 2012. The study was conducted for the all banks except foreign banks, which have very small loan amount to SMEs. This article use a regression method, to know the relationship between SMEs loan amount and the SMEs loan ratio to the total loan portfolio, and the earning and profit from SMES loans, non-performing loan ratio, compulsory SMEs loan ratio to the total loan in banks as explanary factors. As a result of analysis, we get some conclusions as follows : First, the most influential factor for banks to make loans to SMEs is a compulsory SMEs loan ratio because the central bank gives some charges and reputation damages if not to satisfy it. Second, Industrial Bank of Korea, which is a specilized bank for SMEs established by government, made the largest loans to SMEs as much as 80% of total loan portfolio over than 70% ratio guide line by central bank. Third, this specialized bank must be exist as the last resort of SMEs financing and SMEs information should be concentrate to some banks not to deepen the information asymmetry. Fourth, small non-bank institutions should conduct SMEs loan more actively for the SMEs to survive through recession and may be to set compulsory SMEs loan ratio to the total loan with some benefits by government.

We compare the degree of tax avoidance between small and medium enterprises (SMEs) and non-SMEs. We also examine whether tax avoidance of SMEs change when they list on a stock exchange.
SMEs are subject to various support programs under government policy and receive tax benefits such as tax credit and tax exemption under tax laws. Thus, SMEs and non-SMEs would likely differ in their degree of tax avoidance. Because SMEs have less motivation to avoid taxes, SMEs are likely to have less degree of tax avoidance compared to non-SMEs. Especially, SMEs are not likely to have the resources to hire tax engineers and tax consultants to avoid taxes.
For non-listed SMEs planning to list on a stock exchange, external scrutiny on the manager will become greater and these firms would have less incentive for tax avoidance which may have negative implications to firm reputation or stock prices. Thus, tax avoidance is likely lower around the IPO process.
We find that SMEs exhibit less tax avoidance compared to non-SMEs. Also, SMEs show low levels of tax avoidance after listing.
The contribution of this study is three-fold. First, this study extends the field of tax research related to SMEs. Second, we examine how exchange listing for SMEs affects tax avoidance. Third, we provide important insights to tax authorities about tax avoidance of SMEs thereby pointing out what factors to consider in policy making.

Unlike in other countries, German SMEs have shown steady growth during the recent global financial crisis in 2009 and 2010. This remarkable performance is attributable to the uniqueness of German financial system which is well known as so-called relationship banking. Savings banks and cooperative banks play a key role in relationship banking by providing undisrupted liquidity to SMEs regardless of the economic cycle. Through its on-lending program, KfW also provides promotional loans to SMEs so as to particularly support young start-ups and innovation companies, which do not have access to bank loans otherwise.
On the contrary, SMEs in Korea are reported to be suffering from chronic difficulties in their financing. In addition, things are getting worse when economy is in its downturn as banks tend to conduct pro-cyclical lending. Now, much attention is given to ‘relationship banking’ as a solution to resolve these problems. During the course of this study, we have interviewed many different types of German banks and tried to figure out the way to introduce ‘relationship banking’ to Korean financial market.



* Assistant Professor of Soongsil University, Dept. of Entrepreneurship and Small Business(agape@ssu.ac.kr, First Author)
** Lecturer of Soongsil University, Dept. of Entrepreneurship and Small Business(hldong9@hanmail.net, Corresponding Author)
Through the interview with German banks, we have found a few points worth to notice. First, local financial institutions which place more weight on public interest than on private profit are playing major roles in SME lending. Second, under German house banking system, SMEs spontaneously render various proprietary information to their banks and in return the banks provide sufficient liquidity to SMEs when needed. Third, competition among banks in SME lending market is constrained. Savings banks and cooperative banks are supposed to do business within their area of establishment, so-called ‘principle of locality.’ Lastly, KfW risk-sharing program allows start-ups or innovation companies to build up long term relationship with banks since credit risk of those companies are too high to be absorbed by banks alone.
Keeping in mind our findings from German banking industry, we suggest a few items to be considerable in order to successfully introduce relationship banking to Korean financial market, and thus support SMEs suffering from difficulties in their funding. First, relationship banking is supposed to be pursued by the banks which have comparative advantages in that area. The other banks can also promote SMEs by sharpening their financial product and services of their own competitiveness. Secondly, role of policy agencies such as KOFC and SBC is very crucial. They need to be more aggressive in sharing the credit risk of SMEs with lending banks in order for small start-ups and innovation companies to have access to banks and establish long term relationship. Thirdly, regional banking needs to be reinforced either by establishing new regional banks or by enhancing their capacity. Lastly, sound practice of competing fairly among banks and confidence between banks and SMEs need to be established.

This study is an empirical research on the relationships between entrepreneur's HEXACO personality, entrepreneurship and the firm performance.
The results from this study are as follows: First of all, the hypothesis regarding the influence of entrepreneur's extraversion, conscientiousness and openness to experience on entrepreneurship has turned out to be adopted. Secondly, the hypothesis regarding the influence of entrepreneur's honesty-humility, emotionality and agreeableness on entrepreneurship has turned out to be rejected. Thirdly, the hypothesis regarding the influence of entrepreneurship on firm performance turned out to be adopted. Finally, we find that entrepreneurship plays a mediation role between conscientiousness and the firm performance, and between openness to experience and the firm performance.

In this study, we examined the relationship between industrial cluster system in Daegu region and technological innovation including the mediating effect of R&D capability and the moderating effect of environmental uncertainty. According to the results, first, the system of science and technology (industrial cluster system) had a positive impact on R&D capability. Second, R&D capability had a positive impact on technological innovation. Third, we found the mediating effect of R&D capability for the relationship between the system of science and technology (industrial cluster system) and technological innovation. Fourth, we found the moderating effect of environmental uncertainty for the relationship between the system of science and technology (industrial cluster system) and R&D capability. Also, it was found that interaction of between the system of science and technology (industrial cluster system) and environmental uncertainty exerted partially a positive impact on technological innovation mediated by R&D capability.

The role of regional universities has been increased as the partners for SMEs to overcome the limit of innovation. SMEs have been trying to collaborate with universities by participating in the IUC council in which SMEs with similar business area share their information coordinated by professors. As prior studies have focused on the importance and the output of IUC councils, they have little information about the effectiveness of the process. This study proposes the IUC council model with which collaborations between universities and SMEs could be tightened. We identified two types of IUC councils according to their purposes-technology-counselling and problem-solving with a facilitator and tried to find the differences on the process and the output. This study suggests that problem-solving IUC council may provide more effective ways for universities to collaborate with SMEs than technology-counselling ones. Therefore, this result highlights the possibility of improving the process and the output of IUC councils by adopting a facilitator with a problem-solving process.

Recently, information security causes the economic and social losses. The accidents of information security, therefore, debases the stability of enterprise such as reputation, economic achievements, and reputations. Especially, the role of top management has increasingly to be considered important in information security, the effects of top manager’s perceptions on information security could not been studied due to the difficulty of accessing top managers. This study tries to find the effects of top manager’s information security awareness on the performances of organization and business competitive advantages. The authors surveyed 33 top managers from enterprises, and then analyzed the perceptions of top manager’s information security on the performances of their organizations and business competitiveness. The results show that the perceptions of top managers effect the competitive advantage through the business process. Based on the results of the study, the top managers are able to draw the implications on the strategy and information security area.

Information and Communication Network Law and Personal Information Protection Law are being enforced. But over the years the leakage of personal information and privacy issues are constantly occurred. Several research shows that there are difference between awareness of individual consumers and enterprises about personal information protection and especially emphasized corporate accountability. This paper analyzed the effect of understanding about personal information protection law on information security countermeasures in SMEs. Additionally we compared the difference of understanding about personal information protection law and countermeasure by characteristics of small and medium-sized enterprises like the amount of personal information, revenue, and leadership of top management.

The rapid growth of IT business environment incurs the issues of information security recently. Especially, today's attack on information security progresses on a specific target for a long period of time and this may result in serious outcomes such as damage on company's reputation or financial loss. Therefore, to prevent and respond to different kinds of security risks, the government reinforces various security risk regulations on such areas as finance, communication, or medicine. In this regard, companies are forming information security organizations, establishing company-wide security policies, and introducing information security systems. However, the reality still struggles with unceasing security accidents of different kinds, like computer network paralysis or customer/important information spills, due to DDoS (Distributed Denial of Service) or APT (Advanced Persistent Threat) and information spills by the insiders.
The purpose of the study is to figure out major factors that influence the information security behaviors of Korean companies and empirically verify the effects of these factors on companies' information security behaviors. A research model is proposed based on Health Belief Model, which is expected to influence the companies' information security behaviors and emphasizes the promotion of company information security behaviors. The total of 107 samples are collected through the questionnaires which are conducted on the Korean companies' information security staff. The path analysis is performed to analyze the relationships among the factors and find that the perceived severity, probability, and barriers of Health Belief Model significantly affect the behaviors of corporate information security via the parameter of responsiveness. Based on the results, companies should establish rules and guidelines on information security and adopt information security solutions for the prevention of and coping with the information security risks and also make efforts to improve the employees' information security awareness.

In work organizations dealing with task-related secret and sensitive information, employees are required to behave in a manner to keep information and knowledge security. A type of employee discretionary work behavior to protect information and knowledge security is prosocial silence. In investigating the factors and processes to promote prosocial silence, the present study examined how charismatic leader behaviors would influence follower prosocial silence, if this influence process would be moderated by follower maturity level, and whether leader charisma perceived by a follower would mediate the effect of charismatic leader behaviors interacting with the follower’s maturity level on the follower’s prosocial silence. As expected, charismatic leader behaviors were positively related to follower prosocial silence. This positive relationship was stronger when follower maturity was lower. Finally, follower-perceived leader charisma was found to mediate the interactive effect of charismatic leader behaviors and follower maturity level on follower prosocial silence.