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Organizational Capabilities, Export Growth and Job Creation: An Investigation of Korean SMEs

Author

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  • Feng Liu

    (Korea University Business School, Korea University, Seoul 02841, Korea)

  • Kwangtae Park

    (Korea University Business School, Korea University, Seoul 02841, Korea)

  • Unjung Whang

    (Department of International Trade, Chonbuk National University, Jeonju-si, Jeollabuk-do 54896, Korea)

Abstract

In the new global economy, export promotion and job creation have become two central issues for economic sustainability. This study aims to raise awareness of the importance of organizational capabilities in job creation through exports. By emphasizing the role of exports in shaping a linkage between organizational capabilities and job creation, this research focuses on how to improve exports that benefit employment creation in the context of Korean small- and medium-sized enterprises (SMEs). Using survey data of 414 SMEs collected by jointly working with the Korea Federation of SMEs and the Ministry of SMEs and Startups, this study employs a structural equation model to investigate a mediation model that links organizational capabilities to job creation through export growth. The main findings of this study are that both technological and manufacturing capability positively influence export growth; export growth has a positive effect on job creation, fully mediates a positive linkage between technological capability and job creation and also plays a partial mediating role in the relationship between manufacturing capability and job creation. Finally, the present study contributes to the literature on exports and job creation and also provides useful information for SME operators and policymakers.

Suggested Citation

  • Feng Liu & Kwangtae Park & Unjung Whang, 2019. "Organizational Capabilities, Export Growth and Job Creation: An Investigation of Korean SMEs," Sustainability, MDPI, vol. 11(14), pages 1-16, July.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:14:p:3986-:d:250851
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    Cited by:

    1. GuoXiang Tang & Kwangtae Park & Anurag Agarwal & Feng Liu, 2020. "Impact of Innovation Culture, Organization Size and Technological Capability on the Performance of SMEs: The Case of China," Sustainability, MDPI, vol. 12(4), pages 1-14, February.
    2. Cao, Junwei & Liu, Feng & Shang, Meng & Zhou, Xiaotong, 2021. "Toward street vending in post COVID-19 China: Social networking services information overload and switching intention," Technology in Society, Elsevier, vol. 66(C).
    3. Manli Cheng & Zhen Shao & Changhui Yang & Xiaoan Tang, 2019. "Analysis of Coordinated Development of Energy and Environment in China’s Manufacturing Industry under Environmental Regulation: A Comparative Study of Sub-Industries," Sustainability, MDPI, vol. 11(22), pages 1-20, November.

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