The lack of collaborative partnership between large and small to medium size companies causes many problems in businesses. The lack of collaborative partnership weakens the relationships among companies in a supply chain, which disturbs the business ecosystem.
This study explores a theoretical framework of better cooperation between large and small to medium size companies for co-prosperity. The framework views the relationships between large and small to medium size companies from a long-term and dyadic point of view, rather than from a short-term and uni-directional one.
The three dimensions of a firm's competence are product, process, and supply chain. The supply chain is the theoretical basis for the relationships between large and small to medium size companies. The determinants of competence of a supply chain are 1) the competence of the parts by suppliers, 2) the competence of the trust-based relationships between the players in the supply chain, and 3) the capability of innovation in the supply chain.
The framework in this study consists of three components - "the way of capability building", "the way of trust building", and "the way of open innovation". The key message of our framework for collaborative partnership is that large companies can achieve sustainable growth by helping their small to medium size partners build capabilities. The way of capability building addresses how to improve partners' part competence, the way of trust building addresses how to strengthen partnerships, and the way of open innovation addresses continuous evolutions in the business ecosystem. These three ways will enable large and small to mid size companies to develop collaborative partnerships and to build a sound and sustainable business ecosystem through co-evolutions.
Building collaborative partnerships between large and small to mid size companies will transform the closed and "working alone" paradigm to an open and "working together" one. This study also discusses how the framework should be adapted based on the type of partners and their own strategies.

SMEs in Korea occupy high ratio of the nation's economy and play an important role in Korea society and economy. Because of this reasons, SMEs is widely seen as an important challenge. The changes of environment such as accelerating economic globalization, networking, knowledge-based economy will increase SMEs's role and importance in the near future. Owing to the prediction that SMEs will play a major role as backbone of the Korea economy in the 21 century. It is a view that SME's role will significantly increase in the future.
But, SMEs in Korea confront numerous other difficulties for management. Because their present problems occur regardless of types of business, enterprise size and region, many problems facing Korea's SMEs appeared the significant constraints on improving the goal of nation's policy. Judging from the enterprise's level, a manager is responsible for SME problems but the responsibility for solution and prevention of total SME problem have political officers. Considering this point, it is necessary to consider and improve the efficiency of SME policy through the comparison between our SME policy and other countries.
Accordingly, the purpose of study is to examine the idea, the role, the development process and the direction of SME policy in relation to an economic development process in USA and Japan. This study is also to present Korea SME policy's improvement, complement and political implication by comparing and analyzing the USA and Japan's policy.

This paper examines how to evolve firm's strategic network due to external or internal factors. Through the in-depth case analysis, I propose that firm's strategic network evolve into three dimensions such as degree of hierarchy, centralization, and hierarchical level. Also this paper finds, as a consequence of network, the social capital affects the evolution of strategic network as well as the members of network. Thus we have to analyze not only a network structure but also a social capital in order to understand the evolution of strategic network. In particular, some social relations in network evolution can have the negative effect on network members. When network structure prohibits and obstructs members' action, it produces social liability.

The importance of cooperative R&D activities among the actors in National Innovation System has been emphasized over decades in Korea. However, the efficiency of cooperation in innovation system is still under the expectation, compared with the number of programs or the size of R&D investment. This study aims to evaluate 'Cooperative consortium R&D program' managed by Small and medium business administration for promoting cooperative R&D especially on technology innovation of small and medium size business, and to suggest some future directions for evolving cooperative R&D system in the Korean NIS.
Based on the investigations, this study presents the following recommendations : (a) Scope of 'Cooperative consortium R&D program' should be widen to long term based activities so that synergy effects can be accumulated within the organization ; (b) Consortium should pursue establishing a fully phased technology innovation networking system from R&D to business ; (c) consortium center should be developed to stronghold basement for fostering those networking system.

This study investigates how the cooperation with large firms influences technological innovation of Small and Medium-sized Enterprises. Empirical results of the study indicate that technological or financial cooperation with large enterprises has a positive effect on technological innovation of SMEs. It also shows that innovative attitude of CEO has an important effect on technological innovation of SMEs. This study observes that such relationships differ according to stages of growth and subcontract relationship.

This paper empirically investigates the effects of the government's R&D subsidy policy for small and medium sized firms on their economic performances. The empirical evidence points to the finding that this subsidy policy generates different effects for different industries. Based on this evidence, we offer a differentiated subsidy policy package for different industries.

As the size and scope of informatization projects become larger, the guarantee of the project quality is getting more important. The purpose of this research is to derive the success factors influencing on the project performance and the organizational performance variables through comprehensive review of related literature and the logical reasoning. Also, the relationship between the success factors and the project performance was empirically validated to provide the guideline for the success of informatization project. For the empirical analyses of this study, the informatization programs for small and medium enterprises which has been promoted by the government were targeted. The results of this research are as follows. First, PEO(Project Execution Optimization) and ROC(Recipient Organization Cooperation) significantly influence on Project Performance. Second, the degree of relationship between PEO and SC(Strategic Contribution) of Project Performance is different according to the project type.

The size distribution in a national economy is represented by a spectrum composed of variable sizes spanning from large corporations to single person firms. Firms located at each size group operate with merits and demerits resulting from characteristics of their size. Recently serious discussion has been going on, regarding whether the proportion of self-employment sector is inappropriately large, what are the determinants of the proportion, if it is too large, which policy measures may be taken to correct it.
This study examines the influence of various factors, such as national income level, unemployment, and income tax burden, on the proportion of self-employment sector. Several hypotheses are tested by use of the regression analysis on the panel data of OECD economies during 1985-2003 period. National income level shows U-type relationship with the proportion of self-employment sector, which means the proportion increase as the an economy grows and turn to the decreasing trend at some stage. The positive relationship of unemployment level with the self-employment proportion implies unemployment push hypothesis is adequate for explaining the choice of self-employment. The income tax burden reduces the proportion of self-employment sector. Workers are likely to choose to be employee rather than to start his or her own business as the welfare system for the unemployed or the aged develops based on the tax revenue.

A firm's capacity in domestic markets requires an important degree of competitiveness, which fundamentally resides in its intangible resources. Thus in the resource-based view perspective, we analyse the relationship between productive efficiency and technological capacity in Korea's agricultural processing industry using a non-parametric technique(DEA:data envelopment analysis) and non-linear regression model(logistic regression model). To test the model, a survey of 47 small firms is conducted. Our findings show that R&D innovations, product innovations, process innovations, and marketing innovations positively and significantly affect firm's competitiveness and performance. Economic and political implications of the study and further research issues are discussed.

Competitive small firms are important elements to build a strong national economy and a competitive supply chain to which both large firms and small firms belong. In many cases, management research tends to focus on large firms only. This study compares small firms with large firms to find out whether there are differences in manufacturing practices employed by the firms and the firm performance. Samples used include the overseas Korean manufacturing firms, and the impact of country factor on the firm performance is also investigated. The results show that there are differences in the manufacturing practices and the firm performance between small firms and large firms.

In this paper, I analyze the effects of vertical integration on prices, quality and the degree of product differentiation. I compare the market where two vertically integrated firms compete with one where only a vertically integrated firm competes with a firm which is doing only downstream activity. First, the price is lower in the former market because there is no double marginalization and a vertically integrated firm takes the strategic effect on the supply charge from the competitor into consideration when it decides its price. Second, the quality of relatively better service is higher under the former. Finally, the degree of product differentiation depends on market coverage. When market is covered in the sense that every customer purchases a product, the degree of service differentiation is maximized on both markets. When the market is not covered, however, it is ambiguous.

Under the condition that Sme is keeping the past production system, Sme must has now a necessity to meet the needs of environment improvement. As this paradigm of environ management, EMS(environmental management) was proposed. This concept propose that Sme must reestablish the final objective of management activity.
Thus, this study analyzed that corporates established EMS and preparing EMS have relation to management outcome focusing on Sme of the Jeju region

This study reviewed the competitiveness of domestic auto parts industry against China that is achieving rapid economic development and Japan that is causing chronic deficit trade to Korea and the dependency on China and Japan and the import-export scenario of high possibility to be materialized.
The study result indicates that in the back of the black of auto parts trade, the export has been mainly to the developing countries including China, India and ASEAN for mainly low and medium priced components not so much contributing to added value creation for domestic auto parts industry and in addition, has been depending too much on China for export thus the import export composition may be dramatically reversed based on the success of China to substitute imported goods.
In future, if the developing countries including China succeed to substitute imported items while we are still depending on Japan for high added value core components, domestic auto parts industry may seriously suffer. The best strategy to be pursued by auto parts industry should be continuous enhancement of competitiveness against and maintaining competitiveness against China at current level. The competitiveness against advanced countries and developing countries will be naturally enhanced by the spin-offs of such strategy.

The objective of this study is to examine the validity of changes in accounting for goodwill by analyzing relative explanatory powers of accounting information based on current and new accounting standards(exposure draft) in case of small firms.
Long-standing debates on goodwill have continued for a long time. However, accounting standards on goodwill have been drastically revised in US and International Accounting Standard, which is reflecting changing economic and social environment. Recently, Korean Accounting Standards revision on goodwill under review also reflect those changes on the basis of International Accounting Standards.
Therefore, We try to examine the validity of those accounting changes in goodwill by examining and comparing explanatory power of stock prices between current and new accounting standards through Ohlson model(1995).
The research period is 5 years from 1999 to 2003 and final samples to be examined are 282 small firms and 70 non-small firms in KOSDAQ that report goodwill, goodwill amortization during sample period. Main empirical results of this study are as follows;
The significant differences in explanatory power of stock prices based on goodwill accounting changes are not found between current and new accounting standards, which are to be explained partially by small portion of goodwill and goodwill amortization. However, small firms whose relative amount of goodwill amortization in comparison with excess income show larger significantly higher explanatory power of stock prices in current accounting standards than new accounting standards in Korea. Therefore, there is a possibility that the new accounting standards revision may not have validity of accounting policy in case of small firms and further investigation on goodwill accounting is required to support the validity of new accounting standards revision.in Korea.