• Journal of the Korean Operations Research and Management Science Society
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• v.40 no.4
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• pp.19-33
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• 2015

Recently, interest in research and development (R&D) investment decisions have increased among Korean domestic enterprises. However, existing R&D investment studies only focused on government R&D investment policies while only a few studies investigated firm level R&D investment. Prior literatures also overlooked the feedback loop between R&D investment and firm performance. Therefore, this paper identifies a system dynamics model for R&D investment decision making in domestic electronics firms. The conceptual model is derived from R&D investment-related theories found in bodies of literature on company performance, enterprise activity, and market maturity. This study investigates the dynamic feedback between R&D activities and sales using the system dynamics model. In other words, the system dynamics model is used to explain the change in the closed feedback circulation structure in R&D investment activities including technology development, production process, and marketing that subsequently result in sales increase and re-investment into R&D from the generated revenues. There are two major results. First, a similar ratio of investment on technology development and production process derives the higher company sales. Second, regardless of market maturity, marketing investment ratio positively affects sales and R&D budget growth. This study provides a system dynamics model to find the optimal ratio for R&D investment and suggests managerial strategic implications on electronic firm R&D investment decision making under market maturity condition.

• Journal of the Korea Society of Computer and Information
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• v.14 no.6
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• pp.135-142
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• 2009

Data mining is an emerging area of computational intelligence that offers new theories, techniques, and tools for analysis of large data sets. The major techniques used in data mining are mining association rules, classification and clustering. Since these techniques are used individually, it is necessary to develop the methodology for rule extraction using a process of integrating these techniques. Rule extraction techniques assist humans in analyzing of large data sets and to turn the meaningful information contained in the data sets into successful decision making. This paper proposes an autonomous method of rule extraction using clustering and rough set theory. The experiments are carried out on data sets of UCI KDD archive and present decision rules from the proposed method. These rules can be successfully used for making decisions.

• Journal of Global Scholars of Marketing Science
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• v.19 no.3
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• pp.49-61
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• 2009

This article provides training exercises for executives into interpreting subroutine maps of executives' thinking in processing business and industrial marketing problems and opportunities. This study builds on premises that Schank proposes about learning and teaching including (1) learning occurs by experiencing and the best instruction offers learners opportunities to distill their knowledge and skills from interactive stories in the form of goal.based scenarios, team projects, and understanding stories from experts. Also, (2) telling does not lead to learning because learning requires action-training environments should emphasize active engagement with stories, cases, and projects. Each training case study includes executive exposure to decision system analysis (DSA). The training case requires the executive to write a "Briefing Report" of a DSA map. Instructions to the executive trainee in writing the briefing report include coverage in the briefing report of (1) details of the essence of the DSA map and (2) a statement of warnings and opportunities that the executive map reader interprets within the DSA map. The length maximum for a briefing report is 500 words-an arbitrary rule that works well in executive training programs. Following this introduction, section two of the article briefly summarizes relevant literature on how humans think within contexts in response to problems and opportunities. Section three illustrates the creation and interpreting of DSA maps using a training exercise in pricing a chemical product to different OEM (original equipment manufacturer) customers. Section four presents a training exercise in pricing decisions by a petroleum manufacturing firm. Section five presents a training exercise in marketing strategies by an office furniture distributer along with buying strategies by business customers. Each of the three training exercises is based on research into information processing and decision making of executives operating in marketing contexts. Section six concludes the article with suggestions for use of this training case and for developing additional training cases for honing executives' decision-making skills. Todd and Gigerenzer propose that humans use simple heuristics because they enable adaptive behavior by exploiting the structure of information in natural decision environments. "Simplicity is a virtue, rather than a curse". Bounded rationality theorists emphasize the centrality of Simon's proposition, "Human rational behavior is shaped by a scissors whose blades are the structure of the task environments and the computational capabilities of the actor". Gigerenzer's view is relevant to Simon's environmental blade and to the environmental structures in the three cases in this article, "The term environment, here, does not refer to a description of the total physical and biological environment, but only to that part important to an organism, given its needs and goals." The present article directs attention to research that combines reports on the structure of task environments with the use of adaptive toolbox heuristics of actors. The DSA mapping approach here concerns the match between strategy and an environment-the development and understanding of ecological rationality theory. Aspiration adaptation theory is central to this approach. Aspiration adaptation theory models decision making as a multi-goal problem without aggregation of the goals into a complete preference order over all decision alternatives. The three case studies in this article permit the learner to apply propositions in aspiration level rules in reaching a decision. Aspiration adaptation takes the form of a sequence of adjustment steps. An adjustment step shifts the current aspiration level to a neighboring point on an aspiration grid by a change in only one goal variable. An upward adjustment step is an increase and a downward adjustment step is a decrease of a goal variable. Creating and using aspiration adaptation levels is integral to bounded rationality theory. The present article increases understanding and expertise of both aspiration adaptation and bounded rationality theories by providing learner experiences and practice in using propositions in both theories. Practice in ranking CTSs and writing TOP gists from DSA maps serves to clarify and deepen Selten's view, "Clearly, aspiration adaptation must enter the picture as an integrated part of the search for a solution." The body of "direct research" by Mintzberg, Gladwin's ethnographic decision tree modeling, and Huff's work on mapping strategic thought are suggestions on where to look for research that considers both the structure of the environment and the computational capabilities of the actors making decisions in these environments. Such research on bounded rationality permits both further development of theory in how and why decisions are made in real life and the development of learning exercises in the use of heuristics occurring in natural environments. The exercises in the present article encourage learning skills and principles of using fast and frugal heuristics in contexts of their intended use. The exercises respond to Schank's wisdom, "In a deep sense, education isn't about knowledge or getting students to know what has happened. It is about getting them to feel what has happened. This is not easy to do. Education, as it is in schools today, is emotionless. This is a huge problem." The three cases and accompanying set of exercise questions adhere to Schank's view, "Processes are best taught by actually engaging in them, which can often mean, for mental processing, active discussion."

• Journal of Korean Society of Transportation
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• v.21 no.1
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• pp.77-90
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• 2003

This paper explores the way and the extent to which drivers' route choice was influenced by uncertain information. In particular, this paper investigates the effect of qualitative information on route choice when drivers face a choice with different degrees of uncertain information. The SP survey was conducted and route choice legit models were estimated. We also applied Prospect Theory to the analysis of drivers' decision making under uncertain information. The main findings are firstly, drivers tend to prefer a route with information than(to) one without information. This indicated that providing charge information encouraged drivers to choose the routes for which information is provided in preference to those for which it is not provided. Secondly, drivers also prefer a route with a certain and precise information over one with uncertain and imprecise information. Thirdly, when the information is given as a range, the size of the range of the information influenced route choice slightly and as the range of the charge increases, the route becomes slightly less unattractive. Fourthly, when the information is given as a range, drivers' route choices are influenced more by the median value of the ranges than by the size of the overall ranges of the information. Application of Prospect Theory to the results explains the way drivers may be interpreting the choice situation and how they make a route choice in response to uncertain information. The results of this paper implicate that drivers' decision making under uncertainty seem to be very complicated and flexible, depending on the way drivers interpret the choice situation. Therefore, it is recommended to apply wider related theories to the analysis of the drivers' behaviour.

• The Korean Journal of Franchise Management
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• v.14 no.4
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• pp.35-50
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• 2023

Purpose: This study aims to uncover the mechanism of how initial fees are determined in the restaurant franchise business. Since the initial fees can be considered as a price of utilizing business models and operational knowledge of a certain franchise brand, it is critical to understand the fee decision-making process based on the strategic pricing theories. Therefore, this study investigates the influence of operational value on the determination of initial franchise fees grounded on a value-based pricing strategy. The Operational value is specifically categorized into profitability, growth, and stability of the franchise system. Research design, data, and methodology: The data used were collected through franchise disclosure documents and brand equity index provided by Korea Management Association Consulting. Data from 44 franchise restaurants during 2018 to 2021 are included in the sample. The panel dataset was analyzed by using generalized least squares estimation with R-Studio. Results: Profitability and stability positively influence initial franchise fees. However, growth did not influence initial franchise fees. Conclusions: The results of the study demonstrate that the operational value plays a critical role in determining the franchise fees. Specifically, franchisees recognize how much revenue a franchise system generates for them (i.e., profitability) and how stable the entire system is for operating business (i.e., stability) when they make purchasing decisions for franchise. The findings extend the pricing literature by applying pricing theories in the franchise fee context. Also, the study contributes to franchising and restaurant management literature by providing knowledge of how franchise fees are determined.

• Communications for Statistical Applications and Methods
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• v.17 no.5
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• pp.713-724
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• 2010

Calculating or estimating the proper insurance premium is very important decision making process for both the policyholder and the insurance company. The credibility theory is one of the most important theories in actuarial science to get the proper premium. In this research, we introduce the rule of relative exposure volume, the square root rule and the B$\ddot{u}$hlmann credibility, and estimate the new premiums based on these methods. By real data analysis, the accuracy of these credibility methods are compared.

• Journal of the Korean Operations Research and Management Science Society
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• v.21 no.3
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• pp.109-125
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• 1996

Biases and errors in the human being's reasoning process have been studied continuously by the researchers, especially psychlogists and social scientists. These bias phenomenon is classified on the basis of the origin, i. e. motivation and cognition. Furthermore the necessity of research on the bias in the management and management information system areas in increased more and more recently, which have their academic backgrounds in the psychology and social science. The biased information stream is transformed into the systematic error due to the motivation and cognitive bias of human-being, then its resulting phenomena are as follows; 1. the availability of salient information 2. preconceived ideas or theories about peoples and event 3. anchoring and perseverence phenomena. In order to reduce the information errors, Satty suggested the Analytic Hierarchy Process (AHP) that is the subject of this paper and that is widely used for evaluation of complex decision making alternatives. THerefore this paper studies AHP's effects and its limitations in applying to the management area. Thus this paper compared the performances of the 3 models : 1 the traditional additive regression model. 2 regression model using the factor score, and 3 the regression model with AHP. As a result, 3 models produce the different outcomes.

• Journal of Korean Academy of Nursing Administration
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• v.23 no.2
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• pp.111-117
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• 2017

Getting evidence in to practice tends to focus on strategies, theories and studies that aim to close the gap between research knowledge and clinical practice. The evidence to practice gap is more about systems than individual clinician decision making. The absence of evidence for administration and management in the organization of healthcare is persistent. Teaching nurses and providing evidence as the solution to evidence-based healthcare is no longer axiomatic. Previous studies have concluded that unit level strategies integrate multi-professional teams with organizational needs and priorities. This 'best fit' approach that characterizes how healthcare is structured and delivered. The published literature shows that increased readiness for change is aligned with integrated approaches informed by conceptual models. The Joanna Briggs Collaboration is the largest global collaboration to integrate evidence within a theory informed model that brings together academic centres, hospitals and health systems for evidence synthesis, transfer and implementation. The best approaches to implementation are tailored to local culture and context, benchmark against international evidence, combine a theory informed model and stakeholder perspectives to improve the structure and processes of health care policy and practice.

• Culinary science and hospitality research
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• v.12 no.3 s.30
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• pp.91-107
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• 2006

This thesis aims to consider theories of job information on foodstylist, conduct a survey among culinary arts science high school students who are in the most critical period of decision-making for the future career, and analyse the survey results on foodstylist by using SPSS10.0. The analysis shows that culinary high school students mainly get their job information on foodstylist through mass media. Thus, it can be deduced that use of mass media and the Internet can be the most effective to promote the awareness level of foodstylist. Culinary high schoolers' parents were positive about female students' being foodstylists, and those going to college showed more interest than job seekers about being foodstylists. In addition, the result of Bonferroni post-hoc test according to parents' monthly income showed that those with higher monthly income were positive about their children's being foodstylists. However, given that culinary high schoolers' overall satisfaction is low, provision of the information through a variety of information channels is necessary. It is expected that promotion of the information provision will serve a turning point in awareness.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.519-522
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• 2006

This study aims to provide useful information when making a decision for the environmental assessment of infrastructure, based on Life Cycle Assessment(LCA). It estimates environmental load on environmental pollutants that are possible to occur by locations and by types of emergency spillway for Korean multipurpose dam, which is selected as a study case. For this purpose, this study examines the theories of LCA and calculates environmental load on environmental pollutants that generate during life cycle, to apply the suggested infrastructure to the case study of emergency spillway at the multipurpose dam. It also evaluates environmental load of emergency spillway by the estimated result, and draws the optimum alternative that is environmental friendly.