Determinants for the Mass Production of a Prototype : The Case of The Hardware Start-up



Sooyoung PARK




Department of International Trade, Graduate School
Chungnam National University
Daejeon, Korea
(Supervised by Professor Hyuksoo CHO)


‘Performance’ of companies has been a classic and important topic in the area of business. Most previous studies have discussed determinants of performance in small and medium-sized enterprises (SMEs) and multinational enterprises(MNEs). Few studies focus on such determinants in start-ups.
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* A thesis submitted to the committee of Graduate School, Chungnam National University in a partial fulfillment of the requirements for the degree of Master of Arts in International Trade conferred in February 2018.


This study is designed to analyze the determinants of how hardware start-ups progress to the mass production of a prototype. For this study, variables were manipulated and the model was designed based on success factors identified in previous studies on R&D and new product development. Government support utilization was set as a moderating variable that regulates the relationship between independent variables and dependent variables. Satisfaction factors were analyzed using more than 100 samples, that included only medium and small size hardware start-up companies. Survey data were analyzed using structural equations. The main findings from empirical results are as follows. First, level of communication is identified as the most important determinants in mass production of a prototype. and in the following order start- up readiness level(degree of preparation), degree of product quality are very important determinants in new product performance. and Government support utilization is identified as a moderating variable that positively regulates the relationship between level of communication and mass production of a prototype.
The results of this study are that, among success factors, the most meaningful is the level of collaboration between the start-up and the prototype company. This result shows that the effect of Partner-Relationship characteristics on External Collaboration and Knowledge Sharing Behavior are extremely important.
This study would be a useful resource for enhancing the competitiveness of firms. It demonstrates that start-ups can improve the quality of prototypes by fostering a high level of cooperation and communication in the start-up environment.

Keyword : Start-up, Hardware Start-up, Prototype, Mass Production.