The Effect of Self-Efficacy of Small Business Start-ups in Korea and China on Startup Performance: Focusing on the Mediating Effect of Startup Intention and the Moderating Effect of Digital Transformation

Purpose - This study is aimed at small business start-ups in Korea and China, and examines the effect of “self-efficacy,” an individual factor that affects the start-up performance of small business owners on “startup intention” and “start-up performance”. In addition, we will also consider the mediating effect of start-up intention and the moderating effect of digital transformation. At present, due to the proliferation of digital technologies and the prolongation of COVID-19, it is difficult for small business start-ups to operate with their existing business models. Therefore, we have focused on “digital transformation” as one of the capabilities they need. We also wanted to know whether digital transformation has a positive moderating effect between start-up intention and start-up performance in small businesses of Korea and China. Design/Methodology/Approach - In existing research, various factors explaining the start-up performance in small business were reviewed. In this study, the self-efficacy of small business start-ups was set as the independent variable and the start-up performance as the dependent variable. In addition, the mediating effect of the start-up intention was examined. As mentioned above, we also tried to look at the moderating effect of digital transformation. After establishing a research model based on the existing research, a survey was conducted for small business start-ups in Korea and China for empirical test, and the results were analyzed. Findings - In the case of small business start-ups in both Koreas and China, most of the relationships among self-efficacy, start-up intention, and start-up performance showed the same results. On the other hand, in the case of the moderating effect of digital transformation, positive moderating effect was found in Korea. However, there was no moderating effect in China. Research Implications - In both samples from Korea and China, self-efficacy had a positive effect on startup performance through start-up intention. It is inferred that the difference in the moderating effect is due to various factors such as culture, institutions, and policies between Korea and China. Finally, academic, economic, and policy implications were suggested.