Seungwha (Andy) Chung

Complementarity, status similarity and social capital as drivers of alliance formation

Using data on U.S. investment banking firms’ syndication in underwriting corporate stock offerings during the 1980s, this study explores the factors that drive alliance formation between two specific firms. We compare resource complementarity, status similarity, and social capital as a basis of alliance formation. The findings indicate that the likelihood of investment banks’ alliance formation is positively related to the complementarity of their capabilities, as well as their status similarity. Social capital arising from banks’ direct and indirect collaborative experiences also plays a very important role in alliance formation. The number of deals given by a lead bank to a potential partner over the past three years has an inverted U-shaped relationship to the probability that the lead bank will invite the potential partner to form an alliance. Our findings indicate that status similarity and social capital have a stronger effect on alliance formation in initial public offering deals than in secondary offering deals, as the former are more uncertain than the latter. Using these findings, we discuss the role of complementarity, status similarity, and social capital in alliance formation. Copyright

Performance effects of partnership between manufacturers and suppliers for new product development: the supplier's standpoint

Abstract This study analyzes the effects of supplier involvement in a manufacturer’s new product development on the supplier’s financial performance, innovation, and product quality with data from 128 suppliers in the Korean automobile and electronics industries. The results indicate that a higher level of supplier’s involvement positively influences innovation and financial performance. The results generally indicate that a higher level of supplier involvement, especially in the form of involvement in the design stage significantly increases suppliers’ innovation and cash-flow rate. However, the positive effect of supplier involvement on quality was observed only in the electronics industry.

Market Orientation, Social Responsibility, and Performance in Korea`s Healthcare Industry

ABSTRACT Background: As non-profit organizations, Korean hospitals face significant challenges conducting business activities to maintain their status while meeting demands for social responsibility. In addition, Korea has extremely strict medical advertising laws, so hospitals need to keep searching for creative ways of engaging with the public and local community to sustain their reputation. Purpose: This study examines the dynamics of the three most fundamental elements in healthcare management: market orientation, social responsibility, and hospital performance. Methodology/approach: The three categories of market orientation were examined to verify the effect of hospital social responsibility (HSR) on the relationship between market orientation and hospital performance. The data were collected from a structured survey of 248 hospital managers in Korea using a purposive sampling method. Results: The results show the positive association between market orientation and both HSR and hospital performance. Conclusion: This study shows that the interaction between market orientation and HSR can increase a hospitals long-term sustainability. Practice implications: The results provide new guidance for hospital managers and highlight the importance of a strategic use of HSR in a highly competitive and resource-constrained healthcare industry.

Human and Relational Capital as a Growth Factor: The Case of Korean New Technology-Based Venture

Developing countries need to strengthen their research capabilities in order to catch up with advanced countries. For this, a country’s activities to develop, adapt, and harness its innovative capacity are critical for its economic performance in the long run (Ernst & Naughton, 2008). As new technology-based ventures (NTBVs) introduce disruptive technologies and perform the role of Schumpeterian entrepreneurship, or “creative destruction,” in the economy, they are an especially important source of new jobs and provide a crucial stimulus to national economies (Audretsch, 1995). So the factors that drive their performances have increasingly attracted the attention of entrepreneur-ship scholars as well as policy makers. While there is considerable literature on factors affecting the survival of new firms, relatively few of these focus on NTBVs, and there are even fewer studies on the individual founders of such ventures (Colombo & Grilli, 2009). Previous studies on the effect of human capital on new firm survival have often employed an insufficient range of human capital types or inappropriate proxies (Gimmon & Levie, 2009).