• Management Science and Financial Engineering
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• v.3 no.2
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• pp.1-27
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• 1997

Designing effective navigation aids for customer interfaces is critical for the success of cyber shopping malls. Navigation aids can be classified into either basic ones which are based on the structure of the malls or add-ons which are not. Add-on navigation aids provide various short-cuts to promote efficient traversal in the cyber shopping malls, but too many of them would increase the complexity of the customer interface. Metaphors have been used widely for the design of add-on navigation aids, but little research evaluates their impact on the processes and outcomes of customers behavior in cyber shopping malls. This paper presents an empirical study that investigates the navigation process of customers and the subjective evaluation of their shopping experience. This research implemented two versions of a test-bed cyber shopping mall according to different metaphors used; one based on a spatial metaphor, and the other based on a non spatial metaphor. The results of the experiment indicate that navigation aids based on the spatial metaphor were used more frequently, which resulted in better understanding about the entire structure of the cyber shopping malls, which in turn led to an increased ease of finding target items and also a more pleasant shopping experience. The benefits of navigation aids based on the spatial metaphor became more evident when customers were looking for ad-hoc category items rather than common items. This paper presents plausible explanations for the results and implications to the design of navigation aids for cyber shopping malls.

• Korean Management Science Review
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• v.12 no.2
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• pp.129-146
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• 1995

As society's relience on computerized information systems to support a wide range of activities proliferates, the long recognized importance for adequate data quality becomes imperative. Furthermore, current trends in information systems such as dispersal of the data resource together with its management have increased the difficulty of maintaining suitable levels of data integrity. Especially, the importance of adequate accounting (transaction) data quality has been long recognized and many procedures (extensive and often elaborate checks and controls) to prevent errors in accounting systems have been introduced and developed. Nevertheless, over time, even in the best maintained systems, deficiencies in stored data will develop. In order to maintain the accuracy and reliability of accounting data at certain level, periodic internal checks and error corrections (internal audits) are required as a part of internal control system. In this paper we develop a general data quality degradation (error accumulation ) and cost model for an account in which we have both error occurrences and error amounts and provide a closed form of optimal audit timing in terms of the number of transactions that should occur before an internal audit should be initiated. This paper also considers the cost- effectiveness of various audit types and different error prevention efforts and suggests how to select the most economical audit type and error prevention method.

• Korean Management Science Review
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• v.29 no.1
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• pp.73-88
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• 2012

Much of knowledge that can retain a company's competitive advantage remains within the organization. However, identifying, finding and leveraging knowledge in an organization is still problematic [17]. Although knowledge is the key to success, it is simply too valuable to be left in an organization [59]. The CoP (Community of Practice) within an organization is a practical way to manage knowledge in an organization as systematically as other critical assets in order to deploy and share it [59]. However, research related with CoP, has focused on the value of CoP. Therefore, we developed not only a holistic and systematic method for understanding and assessing the current position of CoP but also a method for extracting the core strategies and CSFs of CoP based on performance evaluation. We developed strategies, CSF (Critical Success Factor) and PM (Performance Measure)s of CoP based on BSC (Balanced Scorecard) process. Specifically, CSFs and strategies of CoP were extracted based on maturity model and type of CoP. According to the procedure from the methodology to evaluate the performance of CoP, three different industrial cases were adopted to validate the evaluation methodology.

• Korean Management Science Review
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• v.29 no.1
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• pp.15-32
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• 2012

Previous studies have examined the relationship between corporate social responsibility and corporate's business performance (especially, consumers' corporate evaluation). According to them, the corporate social responsibility influences the consumers' corporate evaluation. A small and medium sized company as well as a large company is asked to conduct socially responsible actions, however, it is not easy to find a study that focuses on whether the effect of the corporate social responsibility on the consumers' corporate evaluation is different by the size of company. In this paper, we classified the corporate social responsibility into the four dimensions (economic responsibility, legal responsibility, ethical responsibility, philanthropic responsibility), and investigate the differences between a small and medium sized company and a large company in the effects of the four dimensions on the consumers' corporate evaluation. We showed that the each dimension of the corporate social responsibility had an positive effect on the corporate image regardless of the size of company. In addition, we demonstrated that the effects of the four dimensions on the company image were different by the size of company; The legal responsibility and ethical responsibility are more influential to the corporate image of a large company than to that of a small and medium sized company, however, the effects of economic responsibility and philanthropic responsibility are not different by the size of company.

• Management Science and Financial Engineering
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• v.13 no.2
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• pp.47-77
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• 2007

This paper considers a scheduling problem where a customer orders multiple products(jobs) from a production facility. The objective is to minimize the sum of the order(batch) completion times. While a machine can process only one job at a time, multiple machines can simultaneously process jobs in a batch. Although each job has a unique processing time, we consider the case where batch processing times are identical. This simplification allows us to develop heuristics with improved performance bounds. This problem was motivated by a real world problem encountered by foreign electronics manufacturers. We first establish the complexity of the problem. For the two parallel machine case, we introduce two simple but intuitive heuristics, and find their worst case relative error bounds. One bound is tight and the other bound goes to 1 as the number of orders goes to infinity. However, neither heuristic is superior for all instances. We extend one of the heuristics to an arbitrary number of parallel machines. For a fixed number of parallel machines, we find a worst case bound which goes to 1 as the number of orders goes to infinity. Then, a tighter bound is found for the three parallel machine case. Finally, the heuristics are empirically evaluated.

• Korean Management Science Review
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• v.25 no.2
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• pp.43-55
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• 2008

Contingent valuation method(hereafter CVM) is generally believed to be one of the most popular methods used for quantifying the value of non-market goods or services particularly by asking respondents of willingness to pay. This study deals with how to use CVM in calculating the value of mobile telephone service by suggesting methodology of estimation and eliminating biases. This study represents an attempt to estimate the WTP(Willingness To Pay) of the mobile telephone service using the face-to-face interview which is the qualitative technique is used. In this study, by using the single bound dichotomous choice model(SBDC) in order to analyze the valuation of mobile telephone service, WTP was estimated. Also we analyze the factors to pay for mobile service in which it becomes the important factor of demanding services. We used logit model. In order to provide robust estimates of WTP, we have used the Method of Montecarlo Simulation. Consequently, consumers showed that WTP about the mobile communications service is generally high. And it could know that the WTP will fell down as the specialized knowledge about the mobile communications frequency was high. It will be able to become the important part to not only the business carrier but also the policy maker to estimate the economic value of mobile telephone service.

• Korean Management Science Review
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• v.13 no.1
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• pp.135-156
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• 1996

The purpose of this paper is to study the links between manufacturing strategy and change programs of manufacturing firms in Korea. The nature of our analysis is more descriptive than normative or confirmative. First, we investigate the linkage between manufacturing strategy, manufacturing capability, change programs and performance measurement systems. Secondly, we intend to explore an empirical typology of manufacturing strategy and change programs. The initial findings of the study are as follows: Linkage between manufacturing strategy and change programs of manufacturing firms was not apparent. Flexibility as a strategic priority is positively related to the innovative change programs. There are two distinctive strategies of manufacturing firms in Korea, namely, quality strategy and balanced strategy. We identified three types of change programs, which are incremental change, administrative innovation, and process innovation. Incremental change group has represented low factor score in the change program dimensions. The firms in administrative innovation group mainly depend on information systems and business reengineering. Korean manufacturing firms seem to pursue process improvement by trying simultaneously incremental change in the process, managerial process improvement, and a little bit of innovative change. Performance variable utilization of the firms are not significantly different along with manufacturing strategies and change programs. We found, however, learning and improvement performance dimension is significantly related to flexibility variables. Process innovation group marked high score in usage of learning and improvement indices. The findings of this study seem to have various implications on realigning the manufacturing strategy, change programs, and performance systems in Korean firms.

• Management Science and Financial Engineering
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• v.21 no.2
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• pp.13-23
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• 2015

This study addresses the question as to whether the option prices have useful predictive information on the direction of stock markets by investigating a forecasting power of volatility curvatures and skewness premiums implicit in S&P 500 index option prices traded in Chicago Board Options Exchange. We begin by estimating implied volatility functions and risk neutral price densities every minute based on non-parametric method and then calculate volatility curvature and skewness premium using them. The rationale is that high volatility curvature or high skewness premium often leads to strong bullish sentiment among market participants. We found that the rate of return on the signal following trading strategy was significantly higher than that on the intraday buy-and-hold strategy, which indicates that the S&P500 index option prices have a strong forecasting power on the direction of stock index market. Another major finding is that the information contents of S&P 500 index option prices disappear within one minute, and so one minute-delayed signal following trading strategy would not lead to any excess return compared to a simple buy-and-hold strategy.

• Korean Management Science Review
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• v.31 no.4
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• pp.151-163
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• 2014

The sports industry is expected to develop into a huge business through convergence with existing industries such as the broadcasting/information communications, health/medicine, and entertainment/leisure. This paper aims to extract and analyse the candidated promising sports industries at the national level in order to promote them in the long term, and adopts a policy-based approach to such efforts. To extract promising sports industries at the national level, a methodology that considers economic effects such as global competitiveness, technological characteristics, and the creation of jobs, as well as technical development projects, should be adopted. In this study, It was extracted 59 candidated promising sports industries using literature review and expert opinions. As a result of in-depth survey, we found some critical implications each area as follows; health club operation in the lifetime and participation sports area, female sports dance in the welfare sports area, new material sports shoes in the lifetime and welfare sports area, and dynamic training system in the professional sports area.

• Korean Management Science Review
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• v.31 no.4
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• pp.93-106
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• 2014

This paper investigated customers' willingness to pay (WTP) for the integrated news platform, which is a paid digital news service provided by Korean newspapers. The integrated news platform has been widely employed and regarded as an alternative to recover dramatically decreasing sales of newspapers since N-Screen era began. This study employed a conjoint analysis to examine WTP for the integrated news platform and its attributes. According to the results, WPT for the integrated news platform was estimated as 4543.6 won, which is only 30.3% of the real price. Digitalized newspaper and premium news were found to be significant attributes explaining customers' WTP. The results of this paper implies that present marketing strategies for the integrated news platform of Korean newspapers should be reconsidered and revised.