Differential effects of collaborative partners on financial and growth outcomes in ventures in South Korea

Abstract

ABSTRACT In the rapidly evolving landscape of venture businesses, understanding the impact of collaborations is crucial. This study examines how different types of organizational collaborations influence the financial performance and long-term growth prospects of venture enterprises. Drawing on data from the 2022 Detailed Venture Business Survey in South Korea, which encompassed 1,202 Korean ventures with prior collaboration experience, the research aims to provide a comprehensive understanding of collaborative dynamics. Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) as the methodological approach, the study offers an in-depth analysis of how partnerships with various entities such as universities, research institutes, and small to large enterprises distinctly affect venture outcomes. Findings reveal that while collaborations with universities and small enterprises significantly boost immediate financial performance, they do not necessarily contribute to sustainable long-term growth. In contrast, partnerships with medium and large enterprises, though less impactful in the short term, show a positive correlation with long-term growth prospects. These results provide valuable insights for venture managers, policymakers, and investors, highlighting the need for strategic alignment of collaboration choices with business goals. This study thus contributes to the broader discourse on the strategic management of collaborations in the entrepreneurial ecosystem.