The Impact of Technological Innovation Capability on Korean SMEs’ Internationalization

This paper introduces a new conceptual approach to technological innovation capability (TIC) specialized in SMEs’ internationalization through literature research and uses this conceptual framework in the tests of a range of hypotheses covering the relationship between TIC, international performance and modes of internationalization, with special reference to Korean Small and medium sized enterprises (SMEs). It is based on a recent survey covering 282 Korean manufacturing SMEs. The analyses addressed the results that SMEs possessing superior TIC are involved in greater degrees of internationalization, whereas those with inferior TIC are struggling with fewer outcomes resulting from lower degrees such as exporting, licensing and joint venture in that order. The foundings after sub-categorization of TIC further ascertained that SMEs’ internationalization processes and international performance are positively affected by the extent to which Korean SMEs adopt particular TIC dimensions.