BUSINESS MANAGEMENT

Business Management

Business Management

Introduction

In order to be thriving, little and intermediate enterprises (SME) need to live at diverse kinds of resources encompassing economic, technological, human and knowledge assets (Brush et al., 2001; Lichtenstein and Brush, 2001; Greene and dark, 1997). To support this argument, the government has allocated a huge allowance to invest in financial and human resources. Recently, the Korean little and medium enterprise management broadcast the “2009 SME's R&D policy plan”. This design mostly focuses on expending an earmarked SME's research and development (R&D) allowance rapidly to overcome bottlenecks in management and aspires to recover financial revitalizations in the first half of 2009. Moreover, the Korean little and medium enterprise administration expanded the allowance of R&D government allowance from about 330 million dollars in 2008 to about 375 million dollars in 2009. We effortlessly find the Korean Government concentrates its effort on SME's achievement by enlarging the R&D allowance amount. In fact, the total R&D allowance amount rises annually.

However, according to the study by the Korea organisation for developed Economics and Trade (2008), the government's R&D supporting policy has a restricted allowance of effect on a firm's performance. It is expected that the effect of R&D buying into is ambiguous. This means that the present government's R&D policy has several problems and it is not presented competently and efficiently. Much research displays that it is desires to be modified and modified founded on the empirical research.

Study of the effect of the government's R&D program to SMEs utilising regression analysis

Lee and Kim (2008) investigated the random effect form about the developed R&D investment strategy for the business result provision. The capital fund of a company was correlated positively (+) to the result of a company. It had a positive effect on the company result as there a high number of employees and the amount invested in R&D had a positive (+) effect on the company result as a whole. He asserted that customized R&D policy should be promoted in order to focus efforts on enhancing the effectiveness of an investment, and quantitative growth-centered principle could not help because it was limited. Yu et al. (2005) verified the effect of R&D buying into on the management outcome of project business and SME by using multiple regression analysis. They verified that all localities for R&D including R&D investment, R&D manpower, etc. have a affirmative and legitimate effect on the management result of an enterprise. The outcomes of this study proposed that the consequences of R&D buying into on the administration result of SME and that of project enterprise show almost a alike pattern in that the SME itself is incapable to attach intangible assets including intellectual house produced from R&D, R&D mesh, trading knowhow, and, etc. with the creative result of management. Seo (2007) used regression investigation using Almon circulation parallax model in his study about the effect of R&D investment on the administration result. In this study, he verified that the development, profitability, and productivity of a enterprise was high ...