Journal of Korea Planning Association (국토계획)

Korea Planning Association (대한국토도시계획학회)
권호 표지
DOI QR코드

DOI QR Code

A Study on the Survival Characteristics of the Restaurant Business in Major and Side-Street Trade Areas, Seoul

서울시 발달상권과 골목상권의 일반음식점 생존특성 연구

  • Kim, Dongjun (Department of Urban Planning & Design, University of Seoul) ;
  • Yi, Changhyo (Department of Urban Engineering, Hanbat National University) ;
  • Lee, Seungil (Department of Urban Planning & Design, University of Seoul)
  • Received : 2019.04.27
  • Accepted : 2019.09.11
  • Published : 2019.10.31
⟨ Previous Next ⟩

Abstract

The purpose of this study is to analyze the survival characteristics of the restaurant business by trade area type (major and side street). By the increase of the unemployment rate, the new foundation of selt-employment type is increasing. However, due to high competition and economic recession, the sustainability of new foundation is not high. Therefore, in this study, survival analysis was performed considering the individual and commercial characteristics focused on the ordinary restaurants. The major findings are as follow. First, the characteristics of parcel unit and adjacent area have a significant effect on the survival. This means the micro-scopic spatial characteristics should be considered for survival in the location choice. Second, the regional economic characteristics in trade area have a significant effect on survival. Furthermore, these characteristics are different by the trade area type. Third. the development characteristics have a different effect on survival by the building usage and trade area type. Finally, regional economic characteristics have a significant effect on survival. These results are expected to be used as basic data for commercial location selection and trade area analysis system in the private and public sectors.

Keywords

References

  1. Kim, D.J., Kim K.J., and An, Y.S., 2018. "A Study on the Spatial Characteristics of the Long-term Survival Commercial Facilities Location - Focused on Ordinary Restaurants in Gangnam-gu, Seoul", Journal of the Korea Planning Association, 53(2): 161-181. https://doi.org/10.17208/jkpa.2018.04.53.2.161
  2. Kim, D.J., Kim, K.J., and Lee, S.I., 2019. "Analysis of Spatial Characteristics of Business-Type-Changed Parcel in Hongik-University Commercial Area, Seoul: Focused on the View Point of Commercial Gentrification", Journal of the Korea Planning Association, 54(2): 5-16.
  3. Noh, H.B. and Chung, N.K., 2016. "Cross Country Comparison on Policy Support for Bankrupt Small Businesses : Cases of Korea, Germany and Japan", Ordo Economics Journal, 19(1): 69-84. https://doi.org/10.20436/OEJ.2016.19.1.069
  4. Baek, Y.M., 2018. Multi-level Modeling with R, Seoul: Hannarae Publishing Co.
  5. SEMAS (Small Enterprise and Market Service), 2013. Survey on the Status of Small Businesses in 2013, Daejeon.
  6. Lee, K.M., Ha, S.H., Jung, K.H., and Jung, C.M., 2014. "The Effect of Large-scale Commercial Facilities on Local Commercial District - Focused on the Suwon's Retail Stores and Restaurants", Journal of the Architectural Institute of Korea Planning& Design, 30(4): 49-56. https://doi.org/10.5659/JAIK_PD.2014.30.4.049
  7. Lee, S.Y., Park, B.H., and Kim M.J., 2016. "An Exploratory Study on the Franchise Industry by Comparison between Franchisee and Non-franchisee", Journal of Tourism & Leisure Research, 28(1): 347-364.
  8. Lee, S.M., Kang, J.M., and Hwang, K.Y., 2007. "A Study on Appropriate Size of Pedestrian-friendly City Blocks", Journal of the Korean Society of Civil Engineers D, 27(2D): 179-187.
  9. Yi, C.H., 2017. "An Empirical Analysis of the Relation between the Survival of Start-up Firms and Their Location Characteristics: Focused on the Characteristics of Industrial Activities in which Startups are Established", Journal of the Korea Planning Association, 52(5): 131-151. https://doi.org/10.17208/jkpa.2017.10.52.5.131
  10. Jeong, D.G. and Yoon, H.Y., 2017. "Survival Analysis of Food Business Establishments in a Major Retail District and Its Extended Area - A Case Study on Itaewon, Seoul, Korea", Journal of the Architectural Institute of Korea Planning& Design, 33(3): 57-68. https://doi.org/10.5659/JAIK_PD.2017.33.3.57
  11. Jeong S.H. and Lee, Y.J., 2003. "An Empirical Study on the Characteristics of Land Use Changes of the Surrounding Areas Due to the Location of a Large Discount Store", Journal of Korea Planning Association, 38(3): 99-116.
  12. Jung, E.A., Sung, H.G., and Rho, J.H., 2015. "Analysis on Influence Factors for Apparel Retail Sales Considering Spatial Autocorrelation", Journal of Korea Planning Association, 50(5): 215-231. https://doi.org/10.17208/jkpa.2015.08.50.5.215
  13. Hwang, H.Y., Baek, K.Y., and Byun, B.S., 2011. Urban Ecology & Urban Spatial Structure, Seoul: Boseongkag.
  14. Acs, Z.J., Armington, C. and Zhang, T., 2007. "The Determinants of New-firm Survival across Regional Economies: The Role of Human Capital Stock and Knowledge Spillover", Papers in Regional Science, 86(3): 367-391. https://doi.org/10.1111/j.1435-5957.2007.00129.x
  15. Austin, P.C., 2017. "A Tutorial on Multilevel Survival Analysis: Methods, Models and Applications", International Statistical Review, 85(2): 185-203. https://doi.org/10.1111/insr.12214
  16. Basile, R., Pittiglio, R., and Reganati, F., 2017. "Do Agglomeration Externalities Affect Firm Survival?", Regional Studies, 51(4): 548-562. https://doi.org/10.1080/00343404.2015.1114175
  17. Beaudry, C., and Schiffauerova, A., 2009. "Who's Right, Marshall or Jacobs? The Localization versus Urbanization Debate", Research Policy, 38(2): 318-337. https://doi.org/10.1016/j.respol.2008.11.010
  18. Boschma, R. and Martin, R., 2010. "The Aims and Scope of Evolutionary Economic Geography", Papers in Evolutionary Economic Geography (PEEG) 1001, Netherlands: Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2010.
  19. Cainelli, G., Montresor, S., and Marzetti, G.V., 2014. "Spatial Agglomeration and Firm Exit: A Spatial Dynamic Analysis for Italian Provinces", Small Business Economics, 43(1): 213-228. https://doi.org/10.1007/s11187-013-9532-6
  20. Cox, C. and Vos, E., 2005. "Small Business Failure Rates and the New Zealand Retail Sector: Perceptions of Shopping Mall Managers", Small Enterprise Research, 13(2): 46-59. https://doi.org/10.5172/ser.13.2.46
  21. Fotopoulos, G. and Louri, H., 2000. "Location and Survival of New Entry", Small Business Economics, 14(4): 311-321. https://doi.org/10.1023/A:1008180522759
  22. Fritsch, M., Brixy, U., and Falck, O., 2006. "The Effect of Industry, Region, and Time on New Business Survival: A Multi-Dimensional Analysis", Review of Industrial Organization, 28: 285-306. https://doi.org/10.1007/s11151-006-0018-4
  23. Glaeser, E.L., Kallal, H.D., Scheinkman, J.A., and Shleifer, A., 1992. "Growth in Cities", Journal of Political Economy, 100(6): 1126-1152. https://doi.org/10.1086/261856
  24. Goodliffe, J., 2003. "The Hazards of Time-Varying Covariates", UT, USA: Brigham Young University, Mimeo.
  25. Henderson, J.V., 2003. "Marshall's Scale Economies", Journal of Urban Economics, 53(1): 1-28. https://doi.org/10.1016/S0094-1190(02)00505-3
  26. Howell, A., He, C., Yang, R. and Fan, C.C., 2016. "Agglomeration, (Un)-Related Variety and New Firm Survival in China: Do Local Subsidies Matter?", Papers in Regional Science, 97(3): 485-500. https://doi.org/10.1111/pirs.12269
  27. Iwasaki, I., Maurel, M., and Meunier B., 2016. "Firm Entry and Exit During a Crisis Period: Evidence from Russian Regions", Russian Journal of Economics, 2(2): 162-191. https://doi.org/10.1016/j.ruje.2016.06.005
  28. Kang, C.D., 2016. "Spatial Access to Pedestrians and Retail Sales in Seoul, Korea", Habitat International, 57: 110-120. https://doi.org/10.1016/j.habitatint.2016.07.006
  29. Kato, H., Igo, T., and Furuhashi, M., 2013. "How Much Does Land Use Mix Impact on Travel Frequency?: Evidence from the Jakarta Metropolitan Area, Indonesia", Journal of the Eastern Asia Society for Transportation Studies, 10: 454-467.
  30. Koch, A. and Strotmann, H., 2006. "Impact of Functional Integration and Spatial Proximity on the Post-entry Performance of Knowledge Intensive Business Service Firms". International Small Business Journal, 24(6), 610-634. https://doi.org/10.1177/0266242606069269
  31. Konon, A., Fritsch, M., and Kritikos, A.S., 2018. "Business Cycles and Start-ups across Industries: An Empirical Analysis of German Regions", Journal of Business Venturing, 33(6): 742-761. https://doi.org/10.1016/j.jbusvent.2018.04.006
  32. Kosová R. and Lafontaine F., 2010. "Survival and Growth in Retail and Service Industries: Evidence from Franchised Chains", The Journal of Industrial Economics, 58(3): 542-578. https://doi.org/10.1111/j.1467-6451.2010.00431.x
  33. Lee, E.T. and Wang, J.W,. 2003. Statistical Methods for Survival Data Analysis, 3th ed., New Jersey: John Wiley and Sons.
  34. Lobos, K. and Szewczyk, M., 2013. "Survival Analysis: A Case Study of Micro and Small Enterprises in Dolnoslaskie and Opolskie Voivodship (Poland)", Central and Eastern European Journal of Management and Economics, 1(2): 123-140.
  35. Low, S.A. and Brown, J.P., 2016. "Manufacturing Plant Survival in a Period of Decline", Growth and Change, 48(3): 297-312. https://doi.org/10.1111/grow.12171
  36. McDowell, W.C., Harris, M.L., and Geho, P.R., 2016. "Longevity in Small Business: The Effect of Maturity on Strategic Focus and Business Performance", Journal of Business Research, 69(5): 1904-1908. https://doi.org/10.1016/j.jbusres.2015.10.077
  37. Mills, M., 2011. Introducing Survival and Event History Analysis, London: SAGE Publications Ltd.
  38. Nagendra, H., 2002. "Opposite Trends in Response for the Shannon and Simpson Indices of Landscape Diversity", Applied Geography, 22(2): 175-186. https://doi.org/10.1016/S0143-6228(02)00002-4
  39. Neffke, F.M.H., Henning, M., and Boschma, R., 2012. "The Impact of Aging and Technological Relatedness on Agglomeration Externalities: A Survival Analysis", Journal of Economic Geography, 12(2): 485-517. https://doi.org/10.1093/jeg/lbr001
  40. Nilson, P., 2016. "The Influence of Related and Unrelated Industry Diversity on Retail Firm Failure", Journal of Retailing and Consumer Service, 28(C): 219-277. https://doi.org/10.1016/j.jretconser.2015.09.006
  41. OECD, 2018. OECD Employment Outlook 2018, Paris: OECD Publishing.
  42. Oppewal, H. and Holyoake, B., 2004. "Bundling and Retail Agglomeration Effects on Shopping Behaviour", Journal of Retailing and Consumer Services, 11(2): 61-74. https://doi.org/10.1016/S0969-6989(02)00079-6
  43. Patel, P.C. and Pearce, J.A., 2018. "The Survival Consequences of Intellectual Property for Retail Ventures", Journal of Retailing and Consumer Services, 43(C): 77-84. https://doi.org/10.1016/j.jretconser.2018.03.005
  44. Partridge, M. and Rickman, D., 1999. "Static and Dynamic Externalities, Industry Composition, and State Labor Productivity: A Panel Study of States", Southern Economic Journal, 66(2): 319-335. https://doi.org/10.2307/1061145
  45. Renski, H., 2011. "External Economies of Localization, Urbanization and Industrial Diversity and New Firm Survival", Papers in Regional Science, 90(3): 473-502. https://doi.org/10.1111/j.1435-5957.2010.00325.x
  46. Rondeau, V., Filleul, L., and Joly, P., 2006. "Nested Frailty Models Using Maximum Penalized Likelihood Estimation", Statistics in Medicine, 25(23): 4036-4052. https://doi.org/10.1002/sim.2510
  47. Salguerio, T.B. and Erkip, F., 2014, "Retail Planning and Urban Resilience -An Introduction to the Special Issue", Cities, 36: 107-111. https://doi.org/10.1016/j.cities.2013.01.007
  48. Sevtsuk, A., 2014. "Location and Agglomeration the Distribution of Retail and Food Businesses in Dense Urban Environments", Journal of Planning Education and Research, 34(4): 374-393. https://doi.org/10.1177/0739456X14550401
  49. Teller, C. and Elms, J.R., 2010. "Managing the Attractiveness of Evolved and Created Retail Agglomeration Formats", Marketing Intelligence and Planning, 28(1): 25-45. https://doi.org/10.1108/02634501011014598
  50. Wicker, A.W. and King, J.C., 1989. "Employment, Ownership, and Survival in Microbusiness: A Study of New Retail and Service Establishments", Small Business Economics, 1(2): 137-152. https://doi.org/10.1007/BF00398632

Cited by

  1. The Effect of Density by Type of Commercial Facilities on Closure of Restaurant : Targeting Major and Side-Street Trade Areas, Seoul vol.56, pp.1, 2019, https://doi.org/10.17208/jkpa.2021.02.56.1.108