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Analysis of technology-related innovation characteristics affecting the survival period of SMEs: Focused on the manufacturing industry of Korea

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  • Lee, Jun-won

Abstract

The technology-related innovation characteristics that affect the survival period of SMEs were analyzed, focusing on the manufacturing industry of Korea. In this study, the survival is measured in two ways: payments that are more than 3 months overdue and default. First, it was confirmed that the better the overall technology grade (T-grade), the longer the survival period in overdue and default. Second, it was confirmed that there was a positive relationship between owner capability, management capability, profit prospect and the survival, whereas R&D capability (R&D-related infrastructure and manpower, incurring ongoing costs) and the survival had a negative relationship. In the case of R&D capability, from the point of view of optimization, it can be interpreted that excessive investment and capability compared to the size of the company hinders the survival of the company. On the other hand, considering that the technology-related innovation characteristic, which has a positive relationship with the survival, is an item (owner capability, management capability and profit prospect) that evaluates both technology and business feasibility. Therefore third, it was concluded that the survival period of SMEs should be accompanied by business feasibility, not mere technological excellence.

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  • Lee, Jun-won, 2021. "Analysis of technology-related innovation characteristics affecting the survival period of SMEs: Focused on the manufacturing industry of Korea," Technology in Society, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:teinso:v:67:y:2021:i:c:s0160791x21002177
    DOI: 10.1016/j.techsoc.2021.101742
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