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Capabilities, External Linkages and Performance: A Study on Technology-based
Korean Ventures (with C. Lee and K. Lee), Strategic Management Journal,
This study examined the influence of internal capabilities and organizational linkages to external entities on firm performance by using data from 143 Korean business ventures. Internal capabilities were operationalized by entrepreneurial orientation, technological capabilities and financial resources invested. External linkages were captured by partnership-based linkages and sponsorship-based ones. Partnership-based linkages were measured by strategic alliance with other firms including venture capitalists, participation in venture associations, and collaboration with universities or research institutes. Sponsorship-based linkages consisted of financial and non-financial support from commercial banks and the Korean government. The competitiveness of products/services indicated organizational performance. Regression results showed that technological capabilities and financial resources are important predictors of organizational performance. Among external linkages, alliance with other firms and venture capital companies significantly enhances organizational performance. Several interaction terms have very significant influence on performance. Implications and directions for future research were discussed.