Effect of KOREA SMEs' technological innovation on transaction dependence: Focused on moderating effect of resource competency

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As the real economy contracts due to interest rate fluctuations in the U.S. and changes in the international situation, competition among companies surrounding the rapidly shrinking domestic and international markets is becoming more intense. In particular, with the growth of the online market and the breakdown of domestic and international boundaries, it is more important than ever for domestic small and medium-sized enterprises to proactively enhance their technological competitiveness in order to overcome the current difficulties and emerge as strong companies. This study aimed to examine the factors influencing technological innovation in small and medium-sized enterprises (SMEs) within the context of cooperative relationships between large corporations and SMEs. The factors affecting SMEs' technological innovation were identified as internal capabilities and dependence on parent companies. The study analyzed the impact of each factor individually as well as their interaction effects. First, the causal relationship between internal capabilities and technological innovation in SMEs, the CEO's capabilities were found to have a positive impact on both process and product innovation. Second, the relationship between transaction dependency and technological innovation found that transaction dependency has a significant positive impact on process innovation in small and medium-sized enterprises (SMEs). In contrast, it was found to have a significant negative impact on product innovation. Final, the interaction effect between employee capabilities and transaction dependency has a positive impact on process innovation. This study was conducted with a focus on companies, including inter-company relationships, technological innovation, and internal capabilities. Therefore, in future research, we plan to expand the scope of the study to include research on the impact of corporate technological innovation on the external environment.