The Role of the Entrepreneur and Government in the Development of Korean Information Technology Firms

Abstract

This chapter examines how an entrepreneur’s strategic choice influences corporate development leading to the initial public offering. The data comes from Korean startups in the information technology industry. The authors consider the dynamic interplay between an entrepreneur’s attributes and government's institutional support as key factors. An empirical analysis of 615 listed companies shows that an entrepreneur’s attributes play a significant role in market entry, especially in the information technology industry, which tends to have shorter lead time to the initial public offering. Government certification and venture capital investment also facilitate corporate growth toward the public company status.