We randomly chose 170 small firms which were located in two high-tech zones of Daegu City in Korea. We grouped them into family and non-family ones. This study demonstrated that family firms pursued innovative differentiation strategy and networking with external institutions more aggressively than non-family firms did. While OCE (an organization’s commitment to its employees’ well-being)significantly impact the performance in both family and non-family ones, its interaction effects with strategic variables were stronger to the performance in family firms. Such results indicate that family firms have distinctive characteristics in a high-tech industry.

This study surveyed the causal relationship between learning promotion factor and TQM implementation factor in the context of quality management process, in which the effective production control goals would be achieved through organizational learning induced by TQM implementation itself. Also this study attempted to analyze the causal relationship rather than the traditional correlation, with using structural equation modelling which could explain the direction of change instead of simple change ratio.
This study researched 101 small and medium enterprises that could be regarded as those who implemented total quality management for having achieved the authentication of ISO. So this study found that TQM implementation process influenced the organizational learning and then accomplished the production control goals, and at last made positive effects on the organizational performances. From this, this study disclosed that the SMES could get the learning effects through efficient implementation of quality management.

The paper examines the factors that contribute to the completion of the restructurings of 193 distressed companies that filed for reorganization, composition or workout during 1997～2002(146 legal restructurings and 47 workouts).
First, we find the completion of the court restructurings is significantly positively related to book-to-market, but significantly negatively related to inventory ratio. Especially, what the completion of the court restructurings is significantly negatively related to mid-term stock performance is an anomaly.
Second, the completion of the workouts is significantly positively related to coverage ratio and mid-term stock performance, but significantly negatively related to net working capital ratio.
Model accuracy is 71.23% for the court restructurings while it is 91.49% for the workouts.
This paper is significant in that it tried to support the decision-making of a court, creditors, or financial institutions in early stage of the restructurings. However, due to lack of financial information and stock price data, 57 samples were excluded during the sample ion process. Subsequently, we could not build more sophisticated model.
Further studies, which include small-and medium enterprises(SMEs) in addition to listed corporations in the sample, may allow a more meaningful interpretation.

Many researchers have tried to investigate some technical and managerial factors that are critical to the implementation of the ERP system. However, the performance differences among firms whose ERP system is successfully implemented have not been examined yet. In addition, most of ERP-related studies have attempted to delve into the ERP-related issues of large business firms rather than those of small and medium business firms. In this respect, this study intends to analyze, within small and medium firm context, if the ERP-related competences contribute substantially to the improvement of the business performance after the successful implementation of the ERP system.
Utilizing multiple regression, we have looked into how ERP-related competence affects business performance. The results of the analysis shows that such ERP competences as IT skills, project management, change readiness, business process skills have substantial performance effects but the other two competences, utive leadership and organizational learning have not meaningful effects. This result implies that small and medium business firms may be able to effectively improve their ERP performance through enhancing their IT skills, managerial and organizational competences.

This paper investigates whether the expected probability default(EPD) of small and medium firms can be used an insurance rate for the technology value insurance system. Based on data of bankrupt and non-bankrupt small and medium firms we applied logit MLE(maximum likelihood estimator) and neural network analysis to estimate expected probability default. The results imply that the forecast of failure prediction is quite accurate and stable. We can conclude that EPD can be good proxies to determine insurance rates. However, insurance rates should be determined at the lower level of EPD to promote the technology value insurance system.

Enterprise Resource Planning (ERP) system has been recognized as a strategical weapon to secure the competitive advantage and to improve the organizational performance. Recently, many small and medium sized enterprises have adopted ERP system widely.
The purpose of this study is to empirically test the influence of several factors on ERP system in the small and medium sized enterprises.
The result of the analysis shows that CEO characteristics consisting of CEO’s innovativeness and CEO’s IS(information system) knowledge has a positive impact on ERP performance. However, the experience about the information technology of the organization does not show a significant impact on ERP performance, whereas the support from the vendors have a positive impact on ERP performance. Especially, the support from the vendor has shown the strongest impact on ERP performance. This result implies that it is very important to receive the appropriate and sufficient support from vendors to implement ERP system successfully. Also, the organization scale and the users’ higher level of recognition about the information system have a positive impact on ERP performance. Finally, the competition level in the industry has a significant impact, however, the support from the government does not show the a significant impact on ERP performance.
It is hoped that this study will provide guidelines for the small and medium sized companies which are already implementing as well as those which plan to adopt and implement ERP.

The need for close cooperation between large firm and small-medium firm is reflected in the government policies. However, the actual implementation of such inter-firm business cooperation requires careful planning. There is no one-size-fits-all application for any and all firms. Each firm should determine its level of competence in order to the right type of cooperation; be it fairness-oriented type or value-creation type. This study identifies the need to specify and segment the inter-firm business cooperation into three types: L, A and J type. The study presents specific cooperation methods and development models for each type. The core competence and its relationship characteristics, provided in the conceptual analysis, are applied to real small-medium firms in an empirical study in order to confirm the small-medium firm classification model presented in the current paper. Theoretical and empirical results are combined to suggest implications and further research needs in the area.

This paper examines the effect of growing global outsourcing trends on win-win cooperation between large and small and medium enterprises, and analyzes various obstacles which can be encountered on the way of its developmental stages and processes through business cases. Especially, this paper examines four types of win-win cooperation; supporting overseas training, supporting overseas marketing, supporting technical development, and supporting the construction of overseas manufacturing facilities. Throughout the examining of the four types, this paper proposes strategic operation plans for efficient global outsourcing by switching buyer-supplier competitions(zero-sum) to mutually beneficial (positive-sum) buyer-supplier relationship. In conclusion, this paper suggested the needs of cooperation for strengthening the core abilities and the strategic plans of supporting small & medium enterprises.

Seemingly, a labor shortage in Korea may to a large degree be attributable to mistaken diagnoses, and consequently wrong treatment, in the imbalance between the supply and demand for skilled labor, albeit it is in essence owing to the fragility of SMEs’ competitiveness.
This research focuses on the high-tech labor shortage occurring in innovative SMEs in Korea and portrays a mismatch between the supply and demand for labor from three aspects-the reward system, the skill level of labor, and information-discussing the problems identified in existing literature. It also proposes the role of businesses, educational and vocational training institutions, and the government with regard to the notion of the ‘human-capital-fostering firm’ which mean to ameliorate the imbalance.

The financial access barriers to Korean small and medium enterprises(SME’S) has been getting lower since the year 2000, but sales depression and inventory increase which cause financial barriers are structural problems. Under this situation, the bank always requires SME’S to prepare for physical or real estate collateral or guarantees for the loan.
SME'S can’t blame the bank for the demand for collateral or guarantee, and instead focus on the increase of sales and the decrease of inventory. With their own efforts, this paper suggests a set of policies to reduce the financial access barriers: Mezzanine finance for the improvement for capital structure, the resturcturing through M&A, the upgrading of bank’s capability on th evalution of firms, the strong incentives to maintain the fixed ratio for SME’s loan, Small Business Agency’s reform in the implementation of government-fund or government-guarantee assistance, guarantee increase for both Basle II and the backward sector to catch up the advanced countries, local-based financial institutions to participate in government-fund allocation, the appropriate risk sharing of local governmen-local-based financial institutions-local credit guarantee to assist, aid push and promote the local SME’s.

The purpose of this study is to examine the degree of earnings management and the factors effecting on it in unlisted small and medium enterprises. I design the model based on prospect theory to perform the first objective and use the ratio of debt to capital, ownership structure, external audit, the consistency of financial statements for taxing and financing, the ability preparing financial statements as the factors effecting on earnings management. The discretionary accrual, earnings management index is measured by Jones model. The sample consists on about sixty thousand unlisted manufacturing companies meeting the requirements of SME' act.
The results confirm that sample companies manage reported earning widely without level to transfer the reported performance form deficit to profit condition. The degree of earnings management is stronger than that of large companies. Also, The ratio of debt to capital is significantly negative and ownership structure is significantly positive with the earnings management. The external audit and the consistency of financial statements for taxing and financing play the efficient role in controlling earnings management. These results are consistent in different year and different industry.
On the basis of empirical results, I propose the co-ownership of accounting information between tax authorities and financial institutions, taking advantage for audited company, the differentiation of accounting standard by firm size, strengthening supervision for a licensed tax accountant as improvements of accounting transparency of unlisted small and medium enterprises.

Management succession has emerged as the key issue among SMEs with the rapid aging of the SME founders. The management succession, however, has not performed well due to excessive estate taxes and donation taxes, lack of successor fostering programs, and negative public attitude.
The failure of appropriate management succession will eliminate such intangible properties as know-how, accumulated technologies, etc., thereby causing the severe loss to our national economy.
A long time ago, developed countries recognized that a smooth management succession would be inevitable for the sustainable growth of their economy and competitiveness of SMEs as well as job security. So, they have made a dramatic change of policies toward estate tax and the training programs for successors.The Korea government, however, has not yet established systematic supporting rules for the management succession of SMEs because of its negative views on transferring of wealth inheritance to their offspring.
Given the roles SMEs play in our economy, we need to look at the management succession in a new approach in that they are driving force for the continued economic growth. It is necessary to lessen succession costs through the revision of estate tax and gift tax system against the productive SMEs assets. One of the priorities is to minimize the negative public sentiment toward wealth heritance. Education programs for nursing their successors should be established along with total informationand consulting service about management succession. In some cases, such alternatives as merger and acquisition (M&A) etc. should be sought to last for the long run.

The purpose of this study is to find improved Korea government policy suggestion for overcoming recession and renovating management during restructuring period in the korean small businessmen of the Critical Success factors.
To achieve such objectives, previous studies on the analysis of korea small businessmen entrepreneurial proclivity and organizational structure, management commitment were studied and put together. Research model was developed on the basis of this model research hypotheses and conversion for empirical government policies and finally new government policies are suggested on the Critical Success factors of Recession-Resistant and Management Renovation.
Korean Small Retail Dealer programs and policies are suggested as an alternative solution to this problem of small business enterprises. As used successfully by korea government recognized Small Business Development Center (hereafter, SBDC) and Market Management Support Center (hereafter, MMSC) in the SMBA.
Under the Auspices of SMBA, SBDC and MMSC are integrated organization one institution and established new corporation as for Small Petit Business Corporation(hereafter, SPBC) for the Korean Small Petit business. SPBC works as the mayor institutions for Small Petit in Recession-Resistant and Management Renovation, success or not success.
The adoption of SPBC approach by the existent or new service institutions can cater the long-ignored needs of these small businessmen related with their financial and managerial crisis.

This study focuses on the collaborative new product development (NPD) process between large firms and small and medium-sized enterprises (SMEs). It identifies two types of the collaborative NPD processes, and suggests key success factors for each type. Recent research shows that the importance of collaborative NPD becomes higher because it can integrate and utilize the other firms' innovation capabilities efficiently and effectively. Collaboration in NPD and strategic alliances are very crucial in the open innovation paradigm.
This study conducts in-depth case analysis on 8 collaborative NPD cases between large firms and SMEs. The result of this study identify two types of NPD processes, i) collaborative NPD for supply and procurement (vertical collaborative NPD) and ii) collaborative NPD among partners with mutually complementary capabilities and resources for new business development (horizontal collaborative NPD). The process of vertical NPD follows three stages: i) relationship building, ii) capability verification, and iii) product development stages. The process of horizontal NPD follows two stages: i) relationship building and ii) co-development stages.
Major activities and key success factors (KSFs) of SMEs for vertical collaborative NPD are business opportunity identification, partner’s needs identification, continuous relationship development, trust building, and technological development capability. Specifically, major activities and KSFs of large firms for vertical collaborative NPD are potential needs identification, technological assesment capability for supplier firms, providing information/people/resources to supplier firms, providing product test environment, and strategic intent. In horizontal collaborative NPD, major activities and KSFs are strategic/resources fits between partners, clear division of roles, active communication, and the sharing scheme for the business results obtained through partnership. This study concludes that NPD processes and key success factors are different depending upon the types of partnership: vertical and horizontal NPD.
Furthermore, this study suggests government policy guidelines to promote vertical and horizontal NPD and to foster the benefits of mutual cooperation. Large firms and SMEs should utilize the opportunities of these collaborative NPD alliances. Government should provide policies for connecting demand and supply between large firms and SMEs, increasing SMEs’ capabilities, supporting trust building between large firms and SMEs, and creating cooperative culture and environment.

Transaction cost theory asserts that contracts should be tailored to fit the characteristics of transactions. Japan and US business case studies are consistent with transaction cost theory. More specifically, US and Japanese firms have tailored contract mechanisms to reflect the characteristics of transactions, including the benefit sharing program, a formal incentive contract which committed the buyer to encouraging, reviewing, and acting on suppliers’ innovative ideas quickly and fairly, and to sharing the benefits of those ideas with suppliers.
US public institutions also have tailored contract mechanisms to reflect the characteristics of transactions. The contract mechanisms varied from fixed price contracts through formulaic adjust mechanisms to incentive contracts providing a strong incentive for suppliers to continuously make their internal processes more efficient and innovative through splitting the benefits of innovation with suppliers.
I find that the incentive contracts are associated with greater innovation from suppliers, lower potential for suppliers opportunism for both private firms and public institutions.
Korean supply-networks have undergone dramatic changes during the last decade. However, the common practice for many Korean firms today is not to motivate the suppliers for innovation. Furthermore, almost all Korean public institutions do innovations without input from suppliers. The relationship between Korean public institutions and their suppliers can be characterized by competitive, arm’s length relationships. If the Korean firms and public institutions want to stay ahead of the globally-competitive organizations through innovation, they can no longer afford to ignore the existing contracts’ incentive problem. The most compelling implication of this study is that Korean organizations should tailor contract mechanisms to reflect the characteristics of transactions, and adopt various incentive contracts to encourage the suppliers’ innovations.