Title: Determinant of external sourcing for SMEs in Korea: analysing the effect of sub-constructs of entrepreneurial orientation on outside technological partnership from the multi-dimensional perspective

Authors: In Sue Kim; Taeyong Yang; Hyun Joon Chang

Addresses: Center for Science-based Entrepreneurship, Korea Advanced Institute of Science and Technology (KAIST), 291 Daehak-ro, Yuseong-gu, Daejeon, 305-701, South Korea ' Center for Science-based Entrepreneurship, Korea Advanced Institute of Science and Technology (KAIST), 291 Daehak-ro, Yuseong-gu, Daejeon, 305-701, South Korea; Graduate School of Innovation and Technology Management, Korea Advanced Institute of Science and Technology (KAIST), 291 Daehak-ro, Yuseong-gu, Daejeon, 305-701, South Korea ' Graduate School of Innovation and Technology Management, Korea Advanced Institute of Science and Technology (KAIST), 291 Daehak-ro, Yuseong-gu, Daejeon, 305-701, South Korea

Abstract: This research examines the effect of each entrepreneurial orientation (EO) sub-constructs on outside technological partnership (OTP) from the multi-rather than single-dimensional perspective. Our examination of 1,358 Korean SMEs reveals that each sub-constructs of EO affect on OTP in difference: EOI (innovativeness) has positive association with OTP, while EOP (pro-activeness) is negatively related to OTP and EOR (risk taking) has no significant relationship with OTP, providing different results from existing studies considering EO sub-constructs as to be positively correlated. In addition, meanwhile EOI significantly affects the upstream-partnership (basic and early technology), EOP has strong negative association with the horizontal-partnership (early commercialisation stage) due to the nature of EOP underlining the concept of 'first mover'. In summary, enterprise-level strategies designed to double a company's innovation capability through the procurement of external resources seem to be implemented according to the degree of each EO sub-constructs in difference: EOI, EOP and EOR.

Keywords: entrepreneurial orientation; external sourcing; outside partnerships; innovativeness; risk taking; proactiveness; multi-dimensional perspective; small and medium-sized enterprises; SMEs; Korea; entrepreneurship; early technology; early commercialisation; first movers; innovation capability.

DOI: 10.1504/IJEIM.2015.069949

International Journal of Entrepreneurship and Innovation Management, 2015 Vol.19 No.3/4, pp.234 - 255

Accepted: 19 Jul 2014
Published online: 16 Jun 2015 *

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