The Internationalization Strategies of E-commerce SMEs and Start-Ups in Korea: Case Studies of Four E-Commerce Start-Ups: Cconma, Coupang, Memebox, TicketMonster

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Volume Title

School of Business | Bachelor's thesis

Date

2018

Department

Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

65

Series

Abstract

Objectives The main objective of this study is to investigate the internationalization patterns of Korean SMEs and start-ups operating in the e-commerce industry. In order to do that, the author researches the characteristics of the Korean domestic market, and thus contemplating the extent to which the dominance of family-owned conglomerates in Korea affects the decision to internationalize of small businesses. In addition, the role of business networks in building organizational capabilities to prepare for foreign expansions as well as the explanation of Korean’s e-commerce firms in terms of market selection are also provided. Summary Because the methodology used in this research is case study, the findings are withdrawn from secondary data. Based on the empirical data of four case studies, the thesis seeks to understand the performance of four Korean firms in the domestic market and their utilization of the business networks that contain customers, employees, suppliers, and partners. Moreover, an in-depth content analysis of those companies’ penetration into the foreign markets is conducted to examine their market selection. Following the findings, the linkages of domestic market conditions, business networks, and psychic distance to firm’s performance are then discussed. Conclusions The domestic market environment, which includes the chaebols’ dominance, has both negative and positive effects on the internationalization of the e-commerce start-ups. Besides, Korean companies consider strengthening their business networks as a way to improve organizational capabilities, thus this factor has a positive relationship with firm’s performance. Lastly, when it comes to choosing new foreign markets, Korean e-commerce SMEs tend to take into account the psychic closeness of that market to their home country, though the link of psychic distance to their performance could be both negative and positive.

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Thesis advisor

Almor, Tamar

Keywords

e-commerce, SMEs, South Korea, internationalization, start-up, chaebol, business networks, psychic distance

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