• Title/Summary/Keyword: Business Risks

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The Relationship among Product Risk, Perceived Satisfaction and Purchase Intentions for Online Shopping

  • TRAN, Van Dat
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.6
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    • pp.221-231
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    • 2020
  • This research investigates the relationship among product risk, financial risk, security risk, privacy risk, perceived satisfaction, and purchase intention. Validated measurements were identified from a literature review. The measurement model and the conceptual model depicting hypothesized relationships were evaluated based on responses from 306 customers using confirmatory factor analysis and structural equation modeling. The results showed that product risk, financial risk, security risk, and privacy risk impacted on perceived satisfaction. Besides, product risk, privacy risk, and perceived satisfaction influenced purchase intentions. Thus, this study focused on the influences of product risk, financial risk, security risk, and privacy risk on their cognitive attitudes toward websites. That means the more consumer perceive security, the more they avoid shopping online. The study is important to show how perceived risk affects online shopping behaviors, and it invites marketers to make necessary adjustments to prevent perceived risks to increase and online shopping to decrease. The findings of this study suggest the creation of a framework on the effect of perceived risk types on online shopping. Managers need to take perceived risks into account when designing their electronic marketing channels. In addition, shopping websites should strengthen their transaction security by appropriately using various available resources and new information technologies.

Risk Perceptions and Risk-reduction Strategies in Internet Apparel Shopping

  • Lee, Mi-Young
    • Journal of Fashion Business
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    • v.9 no.3
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    • pp.134-149
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    • 2005
  • Although Internet retailing is becoming a viable channel for apparel retailing, consumers are still reluctant to use Internet for apparel purchasing because at their concerns at Internet security and the difficulties at virtual shopping in unfamiliar shopping environment. The purpose at this study is to examine the nature at perceived risk associated with Internet apparel shopping and risk-reduction strategies used by Internet apparel shoppers. The data were collected via an online survey by a online research company. A total at 4,254 Internet users participated in this survey. Among these Internet users, 1,146 respondents had previous shopping experience in Internet shopping. Within this group, 195 were Internet apparel information seekers, and 589 were Internet apparel purchasers. Descriptive statistics, analysis of variance, and t-test were used to analyze the data. The perceived risks and risk-reduction strategies used by Internet apparel no-interest shoppers, Internet apparel information seekers (browsers), moderate Internet apparel purchasers, heavy Internet apparel purchasers were examined and compared. The results indicated that these tour groups were significantly different in apparel related risk, performance risk, and privacy risk. Internet purchasers tend to perceive more apparel-related, performance, and privacy risks than others. The results also indicated that these tour groups were significantly different in their opinions of risk-reduction strategies.

Come fly with ME: The Impact of 3PLs within the aircraft Manufacturing, Repair and Overhaul Industry in the United Arab Emirates

  • Hassan, Fatima;Annabi, Carrie Amani
    • The Journal of Industrial Distribution & Business
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    • v.10 no.4
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    • pp.13-24
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    • 2019
  • Purpose - This research explores the impacts of third-party logistics (3PLs) within the aircraft Maintenance, Repair and Overhaul (MRO) industry in the United Arab Emirates (UAE) to explore the role of collaborative relationships for improving outsourcing. Globalization and time based competition have changed business environments and challenged the conventional management strategies that are related to core competencies and operational models. Organizations are forced to devise innovative practices in which logistics outsourcing to 3PLs offers significant advantages. Research design, data, and methodology - This case study was conducted within a leading global aircraft MRO organization whose reach spans across Europe, the Middle East, Asia and the Americas. The methods used face to face semi-structured interviews, validated through further focus group discussions. Results - These findings highlight the effectiveness of collaborative relationships on their role to improve outsourcing and also demonstrated that MROs gain several advantages from 3PL arrangements. However, any gaps in outsourcing management elevates potential risks to organizations as well, which could result in reputational, operational and financial losses. Conclusions - Although generalizability is not possible due to the case study approach, generality suggests that in order to reduce reputational, operational and financial risks, enhanced collaboration with 3PLs is recommended to optimize outsourcing arrangements.

An Investigation on the Efficiency of Research Collaborations: Data Envelopment Analysis and Stochastic Frontier Analysis on Bio-technology R&D Projects

  • Og, Joo-Young;Hwang, Jung-Tae
    • Asia-Pacific Journal of Business
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    • v.10 no.2
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    • pp.1-12
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    • 2019
  • Collaborative research and development (R&D) has been encouraged based on the belief that knowledge spill-over is mutually beneficial for partners. Although the benefits are supported by science and technology policy research, the risk of R&D collaboration has not been extensively discussed. Two independent studies suggest that there are risks associated with the overuse of collaborative research frameworks. Two sets of R&D collaboration data were analyzed: between the national bio-technology research program and 1) Data Envelop Analysis (DEA), and 2) between Stochastic Frontier Analysis (SFA). In the case of SFA, output measures were integrated into a single output, with weights extracted from research programme managers' responses to the questionnaire. While the DEA result demonstrated the inefficiency of collaborative research, SFA did not. Unlike previous research highlighting risks associated with disclosing proprietary R&D and potential conflict of interest, our study indicates that the transaction's social cost affects collaborative research efficiency. Therefore, governments promoting R&D collaborations should be carefully managed, and policy makers must reconsider the strict conditions governing compulsory collaborative R&D programs.

Testing an Irrational Model of Information Privacy Based on Competence Needs Satisfaction

  • Kim, Gimun;Yoon, Jongsoo
    • Journal of the Korea Society of Computer and Information
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    • v.23 no.12
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    • pp.241-248
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    • 2018
  • Recently, there have been calls for approaching from the irrationality point of view to better explain the privacy paradox phenomenon. This study is a kind of response to them. The aim of the study is to investigate how satisfying competence needs, one of basic psychological needs suggested in self-determination theory, affects irrational information disclosure decision (i.e., risk-benefit assessment). To do this, the study builds an irrationality-based model in which competence needs satisfaction affects both perceived risks negatively and perceived benefits (i.e., relationship building and maintenance), which in turn determine a level of self-disclosure. Based on the data from Facebook users which is collected by a large sample survey (N=1050), the study analyzes it using Mplus, a powerful structure equation modeling tool. The study results reveal that while the relationship between competence needs satisfaction and perceived relationship building and maintenance is statistically significant, the relationship between competence needs satisfaction and perceived risks insignificant. These findings imply that people who is in a high level of competence needs satisfaction is more likely to respond to some opportunities for social benefits and in turn disclose more information about self.

Public's Travel Intention Following COVID-19 Pandemic Constrained: A Case Study in Vietnam

  • NGUYEN, Ngoc Mai;PHAM, Minh Quyen;PHAM, Minh
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.8
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    • pp.181-189
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    • 2021
  • The COVID-19 pandemic has impacted the tourism industry due to the resulting travel restrictions as well as a slump in demand among travelers. The tourism industry has been massively affected by the spread of coronavirus, as many countries have introduced travel restrictions in an attempt to contain its spread. In Vietnam, the government has largely been credited for the country's success in keeping COVID-19 transmission rates under control. Early awareness of the pandemic, appropriate, drastic, and people-centric measures, as well as public support, are the main factors behind the success of Vietnam. In that context, it is observed that people's travel demand has bounced back and this research will examine factors driving the public's travel intention in the post-crisis (pandemic) period. The survey was conducted on the Internet using questionnaires designed in the Google platform. Data was collected from April 16 to May 31, 2020, from 154 Vietnamese participants. Research findings demonstrate 4 direct and indirect determinants of travel intention. The strongest effects come from perceived behavioral control which is influenced by subjective well-being. Perceived risk negatively correlates with Self-efficacy and subjective well-being. Conducted in the context of post-COVID-19, the research implies that once the pandemic has been controlled, perceived risks, although still exist, insignificantly influence the public's travel intention.

Analysis of the Effectiveness of Project Risk Management (PRM) on the Project Success: Focused on the Implementation Phase of Overseas Construction Projects (프로젝트 리스크 관리(PRM)가 프로젝트 성공에 미치는 효과성 분석: 해외건설사업 수행단계 전반을 중심으로)

  • Sullim Jung;Dae-Cheol Kim
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.46 no.3
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    • pp.221-230
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    • 2023
  • Under increased complexity and uncertainty of overseas construction projects, it is important for construction companies to improve their own project risk management capabilities instead of risk-taking strategies to secure competitiveness in the overseas construction market. Although most of the risks occur in project execution stage, many previous studies focused on planning stage including risk identification and analysis among PRM process. Therefore, this study aims to verify the effectiveness of whole PRM process during project execution stage through empirical study on participants of overseas construction projects. As the result it was found that first, the factor directly affects the project success is the execution process of PRM. It implies that appropriate actions such as appointing charged manager for risks, timely implementation of responding plan, continuous risk monitoring and updating established plan are the key for contribution to the project success. Second, the importance of communication in PRM is also found, which is not conducted at a specific but throughout the entire PRM process and need to be managed as essential factor for successful PRM..

Hazard Assessment on Chlorine Distribution Use of Chemical Transportation Risk Index (화학물질 운송위험지수를 활용한 염소(Chlorine) 유통 위해성 평가)

  • Kim, Jeong Gon;Byun, Hun Soo
    • Korean Chemical Engineering Research
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    • v.52 no.6
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    • pp.755-767
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    • 2014
  • Chlorine is one of the most produced and most used non-flammable chemical substances in the world even though its toxicity and high reactivity cause the ozone layer depletion. However, in modern life, it is impossible to live a good life without using Chlorine and its derivatives since they are being used as an typical ingredient in more than 40 percent of the manufactured goods including medicines, detergents, deodorant, fungicides, herbicides, insecticides, and plastic, etc. Even if Chlorine has been handled and distributed in various business (small and medium-sized businesses, water purification plants, distribution company, etc.), there have been few researches about its possible health hazard and transportation risks. Accordingly, the purpose of this paper is to make a detailed assessment of Chlorine-related risks and to model an index of chemicals transportation risks that is adequate for domestic circumstances. The assessment of possible health hazard and transportation risks was made on 13 kinds of hazardous chemicals, including liquid chlorine. This research may be contributed to standardizing the risk assessment of Chlorine and other hazardous chemicals by using an index of transportation risks.

Impact of Outsourcing Risk on Corporate Performance (아웃소싱의 리스크가 기업성과에 미치는 영향)

  • Kim, Lark Sang
    • Journal of Digital Convergence
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    • v.19 no.2
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    • pp.175-182
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    • 2021
  • In this study, small and medium-sized manufacturing and distribution businesses were asked to demonstrate how the risks that could arise from implementing ITOs affect their performance. Small and medium-sized enterprises that want to reduce costs or secure competitiveness through outsourcing ITO conducted research to identify and analyze risks of ITO and improve corporate performance. Strategic, technical, and financial risks were selected as independent variables for analysis by the survey method. In addition, relationship risk was selected as a parameter and corporate performance was selected as a dependent variable to conduct a path analysis. The analysis showed that the variables injected as independent variables had indirect and total effects on corporate performance. This can be interpreted as the higher the level of awareness of strategic and technological risks and financial risks, the higher the level of relational risk, and thus the positive impact on corporate performance. We expect to improve corporate performance through analysis of more and more risk factors in the future.

An Ex Ante Evaluation Method for Assessing a Government Enforced Security Measure (정부의 정보 보안 대책 법제화의 사전 효과성 분석 방법)

  • Shim, Woohyun
    • The Journal of Society for e-Business Studies
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    • v.20 no.4
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    • pp.241-256
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    • 2015
  • In order to ensure that all firms are cyber-secure, many governments have started to enforce the implementation of various security measures on firms. Prior to the implementation, however, it is vague whether government enforced security measures will be effective for mitigating cyber-security risks. By applying a method for estimating the effectiveness of a mandatory seatbelt law in reducing fatalities from motor vehicle accidents, this study develops an ex ante evaluation method that can approximate the effectiveness of a government enforced security measure in reducing country-wide or industry-wide cyber-security risks. Using data obtained from the Korean Internet and Security Agency, this study then explores how to employ the developed method to assess the effectiveness of a specific security measure in mitigating cyber-security risks, if enforced by the government, and compares the effectiveness of various security measures. The comparison shows that compulsory security training has the highest effectiveness.