Dr. Sussan's Research with Colleagues from Catholic University of South Korea to Appear in Journal of the Asian Pacific Economy

Dr. Sussan's Research with Colleagues from Catholic University of South Korea to Appear in Journal of the Asian Pacific Economy

Since establishing research relationship with Catholic University of South Korea in 2014, Dr. Sussan has collaborated with scholars in South Korea studying their entrepreneurial ecosystem (Sussan, Daily, and Kim 2015), k-entrepreneurship (Kim, Enriquez, and Sussan 2015), global healthiness of entrepreneurship index (HeBex report 2015), and other related topics.. Dr. Sussan was a keynote speaker for an ASEAN-SOUTH KOREA Economic forum in 2015 in Seoul, Korea. Her article titled 'Tradeoff between Creativity and Productivity in Technology-based SMEs Performance: Policy Implications in South Korea" will soon appear in Journal of the Asian Pacific Economy. The article addresses an important topic of organizational ambidexterity in which organizations often face difficult decisions to either allocate resources toward innovation or continue funding areas that generate continuous profits.  This phenomenon as a tradeoff was examined in more than 2800 small and medium sized enterprises (SMEs) in South Korea validating the difficulty faced by businesses. Many firms do not engage in optimal explorative and exploitative strategies resulting in sub-optimal profitablity or creativity. The article has important policy implications for economic agencies on their various strategies in developing SMEs. 

 

Tradeoff between Creativity and Productivity in Technology-based SMEs Performance: Policy Implications in South Korea

Abstract

The digital revolution has impacted the study of innovation in organizations in such a way that research on organizational ambidexterity needs a more phenomenon- driven approach. In light of this identified need, this article examines the performance of SMEs in South Korea based on their balance in exploration and exploitation activities. A 2 (Explorative: Hi, Low) x 2 (Exploitative: Hi, Low) conceptual framework is introduced to depict four types of combined ambidexterity in firms and hypothesize that short- and long- term performances vary among these types of firms. Data from more than 2,800 hi-tech manufacturing SMEs in South Korea were collected to empirically test the conceptual framework. The results confirmed the hypothesized difference in performance. Firms indeed vary in degrees of explorative and exploitative innovation and thus have positive but imbalanced impact on their performance. Firms that are high (low) in both explorative and exploitative innovation perform best (worst) in longer-term growth. Firms that tilt toward exploitative innovation perform best in short-term profit. The article concludes with important managerial and policy implications.

Keywords: combined ambidexterity, hi-tech manufacturing, R&D, success trap, failure trap, small business economic policy, Korean management

 

 

 

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