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

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.