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Changing Asian Business SystemsGlobalization, Socio-Political Change, and Economic Organization$
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Richard Whitley and Xiaoke Zhang

Print publication date: 2016

Print ISBN-13: 9780198729167

Published to Oxford Scholarship Online: April 2016

DOI: 10.1093/acprof:oso/9780198729167.001.0001

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Entrepreneurial Communities and the State

Entrepreneurial Communities and the State

The Emergence of Korea’s On-Line Gaming Industry

Chapter:
(p.306) 12 Entrepreneurial Communities and the State
Source:
Changing Asian Business Systems
Author(s):

Steve Casper

Cornelia Storz

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198729167.003.0013

South Korean firms have been pioneers within the on-line computer games sector, creating an industry that ranks second internationally behind the United States. This industry is comprised almost entirely of entrepreneurial new entrants that grew to become leading on-line game developers. From the perspective of comparative institutional research, this pattern is surprising, as the Korean business system has not traditionally been conducive to the formation of entrepreneurial new technology start-ups. The key causal factors behind the emergence of the Korean on-line games industry are the withdrawal of the large conglomerates from the wider video game industry, the formation of a highly capable community of entrepreneurs, and government policies, particularly surrounding broadband Internet access. We also highlight the role of the 1997–1998 financial crisis, which opened up a ‘window of opportunity’ for new forms of entrepreneurship.

Keywords:   structure and change of business systems, innovation, online games, entrepreneurship, governmental strategy

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