This study explored the effects of the innovation system of start-ups and community support and resources on business performance of start-up companies using a survey of 213 start-ups across the different industry sectors in South Korea. In this article, we adopt the partial least square of structural equation model for analyzing the structural relationships of venture creation activities. First, the findings show that both the local community support and external partnership have significant impacts on the social norms and performance-based culture, but the path coefficient of local community support is somewhat greater than external partnership. Second, the test results also indicate that discovery and exploitation, which can be recognized as the major factors of innovation system in the start-up companies, are highly associated with their dynamic capabilities. Moreover, the dynamic capabilities can be also affected by the social norms and performance-based culture due to the paradigm of open innovation. Third, with regard to the total effect, the combination of discovery and local community support plays a central role for improving business performance of start-ups amid a rapidly changing market and economic environment.
This study explores strategies for sustainable business development via the process and performance of business consulting by using 200 samples of different industry sectors in South Korea. The main purposes of this paper are to build the consulting model framework and to analyze the relationships between consulting factors and consulting performance for establishing strategies for sustainable business development. First, the findings show that the support of CEOs for consulting projects and the innovation activities via exploration and exploitation (and ambidexterity) have higher impacts on the contribution to business performance than other consulting factors. Similarly, according to the results of IPMA, these variables are placed in a group of high importance and performance, so the findings indicate that the support of CEO and innovation activities play a central role in the consulting model. Second, the competency of CEOs for recognizing the awareness of newly changing market conditions and the importance of utilizing business consulting can serve as an engine to reach their sustainable business development. Moreover, the firms’ innovation activities via business consulting can increase their ability to utilize and absorb the external resources and knowledge for establishing strategies for sustainable business development. These abilities are used not only to induce their business innovation internally but also to pioneer new market opportunities amid a rapidly changing market environment.
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