Title: High-tech based ventures' survival after environmental jolts in Korea: the role of tangible versus intangible resource buffers

Authors: Sooduck Chang, Hyunsuk Lee, Donna Kelley

Addresses: Department of Business Administration, Hannam University, 133 Ojeong-dong, Daeduk-gu, Daejoen 302-715, Republic of Korea. ' Department of Business Administration, Hannam University, 133 Ojeong-dong, Daeduk-gu, Daejoen 302-715, Republic of Korea. ' Arthur M. Blank Center for Entrepreneurship, Babson College, Babson Park, MA 02457, USA

Abstract: While newer and smaller firms, compared to older ones, are seen as unable to acquire enough of the critical resources needed to survive, this research suggests that differential resource accumulation can predict survival or failure after environmental jolts. This research examines the survival or failure of 115 Korean technology-based small and medium ventures after the 1997 Asian financial crisis in Korea. Through analyses, this study found that intangible resources, which include human capital, organisational capital and social capital, were significantly associated with survival. However, tangible resources, which include physical and financial capital, were not associated with survival. These results mean that intangible resources can explain the ability to survive from environmental jolts better than tangible ones, which also imply that intangible resources can perform the role as a buffer to withstand environmental jolts.

Keywords: high-tech venture survival; environmental jolts; newness liabilities; smallness liabilities; resource-based view; RBV; resource buffers; intangible resources; Korea; new firms; small firms; resource accumulation; SMEs; small and medium-sized enterprises; human capital; organisational capital; social capital.

DOI: 10.1504/IJBPM.2008.015920

International Journal of Business Performance Management, 2008 Vol.10 No.1, pp.39 - 56

Published online: 02 Dec 2007 *

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