• Korean Journal of Plant Resources
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• v.35 no.2
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• pp.201-241
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• 2022

This study was investigated distributed the vascular flora of around Haemyeong Mt., located in Seokmodo, Incheon, and compared invasive alien plants in the surrounding forest 14 areas. This study carried out to be established a monitoring system for the remarkable plants etc. and used as basic data for biodiversity enhancement and conservation. The survey was conducted 19 times from April 2019 to October 2020. A total of 107 families, 382 genera, 616 species, 15 sub-species, 55 varieties, 8 formas, and 694 taxa were classified in the flora around Haemyeong Mt. areas. 17 taxa for Korea endemic plants. 12 taxa were classified for rare plants, and a total of 79 taxa were identified for floristic target species I~V. Halophytes consisted of 37 taxa. The invasive alien plants were classified as 66 taxa, and also there has been 126 taxa of them in Seokmodo and surrounding 14 forests. Plants that appeared in all 14 areas out of 126 taxa were classified as 7 taxa, such as Erigeron annuus. However, 48 taxa appeared only once in some areas, but it seems inevitable that they will spread in the future. Therefore, it is necessary to prepare a long-term conservation plan for native plants.

• Korean Journal of Environment and Ecology
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• v.36 no.4
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• pp.368-380
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• 2022

Biomonitoring of an invasive alien crayfish species, Procambarus clarkii (Girard, 1852), was performed from February to October 2021, along with environmental DNA analysis, at five locations including Wanju-gun, Hampyeong-gun, Naju-si, Gurye-gun, and Cheongju-si. For the investigation, an umbrella-shaped trap for adults and a hand net for young crayfish were used, and 8 to 10L of freshwater was collected for eDNA analysis. The current status and past distributional records of crayfish in Korea were analyzed along with benthic macroinvertebrates at each survey site. As a result of the investigation, a total of 122 individuals were identified, and Hampyeong-gun recorded the largest number of populations with 59 individuals (48.36%) and the highest environmental DNA (eDNA). The frequency of appearance of P. clarkii was highest in May. The ratio of females to males was 21:5, and the body size was 72.2±21.1mm for female, 80.5±15.6mm for male, and 25.3±9.8mm for young crayfish. P. clarkii introduced into Korea is mainly spreading in the southwest region and it has not been observed in Seoul where there had been a record of appearance in the past. No external symbiosis (Branchiobdellida) of P. clarkii has been identified, and P. clarkii that has appeared in Korea was presumed to be imported from Japan. There are more than eight kinds of exotic crayfish distributed in Korea, and among them, the marbled crayfish (P. virginalis) was identified as a harmful species to the ecosystem of Korea by the Ministry of Environment in 2021. The identified species of benthic macroinvertebrates inhabiting the survey area where P. clarkii has appeared were 69 belonging to 39 families, 15 orders, five classes, and three phyla. Among them, Odonata were the most abundant (16 spp.; 24.62%), followed by Coleoptera (11 spp.; 16.92%) and Hemiptera (11 spp.; 16.92%). In the survey area, one Korean endemic species (Rhoenanthus coreanus), one species (Helophorus auriculatus) classified as Near Threatened (NT) on the Korean Red List, and six species of Crustaceans appeared. In the functional feeding group, the predators appeared predominantly while in habitat oriented group, the climbers appeared to be abundant. It was confirmed that P. clarkii in the survey area prefers an area rich in aquatic vegetation with waterside vegetation, and has high resistance to turbid water quality. The omnivore invader P. clarkii is expected to maintain a competitive relationship with carnivorous benthic macroinvertebrates that are predominant in the same species, and is expected to continue to generate ecosystem disturbance along the food chains.

• Korean Journal of Plant Resources
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• v.35 no.5
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• pp.641-651
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• 2022

The biodiversity research of barley, a functional food, is proceeding to conserve germplasms and develop new cultivar of barley to improve its functional effects. In this study, with 25,104 barley germplasms in the National Agrobiodiversity Center, South Korea, the biodiversity index of species was much lower (1.17) than the origins (24.73) because of the presence of a biased species, Hordeum vulgare subsp. vulgare, but the species and origin of germplasms were significantly different with regard to genetic traits. In the clustering analysis based on genetic traits, we found that 97% barley germplasms could mostly be distributed between 1~7 clusters out of a total of 15 clusters; 'normal and uzu type', 'lodging', and 'loose smut' were commonly represented in the 1~7 clusters and some clusters showed specific differences in five genetic traits including 'growth habit'. In correlation of each genetic trait, the infection of 'barley yellow mosaic virus' was highly correlated to 'number of grains per spike'. '1000 grain weight' was weakly correlated with seven genetic traits including 'number of grains per spike'. Our analysis for barley's biodiversity can provide a useful guide to the species' phenotypes that need to be collected to conserve biodiversity and to breed new barley varieties.

• Journal of Appropriate Technology
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• v.7 no.2
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• pp.136-143
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• 2021

Pacific island countries, including Kiribati, are suffering from a shortage of essential resources as well as a reduction in their living space due to sea level rise and coastal erosion from climate change, groundwater pollution and vegetation changes. Global activities to solve these problems are being progressed by the UN's efforts to implement SDGs. Pacific island countries can adapt to climate change by using abundant marine resources. In other words, seawater plants can assist in achieving SDGs #2, #6 and #7 based on SDGs #14 in these Pacific island countries. Under the auspice of Korea International Cooperation Agency (KOICA), Korea Research Institute of Ships and Ocean Engineering (KRISO) established the Sustainable Seawater Utilization Academy (SSUA) in 2016, and its 30 graduates formed the SSUA Kiribati Association in 2017. The Ministry of Oceans and Fisheries (MOF) of the Republic of Korea awarded ODA fund to the Association. By taking advantage of seawater resource and related plants, it was able to provide drinking water and vegetables to the local community from 2018 to 2020. Among the various fields of education and practice provided by SSUA, the Association hope to realize hydroponic cultivation and seawater desalination as a self-support project through a pilot project. To this end, more than 140 households are benefiting from 3-stage hydroponics, and a seawater desalination system in connection with solar power generation was installed for operation. The Association grows and supplies vegetable seedlings from the provided seedling cultivation equipment, and is preparing to convert to self-support business from next year. The satisfaction survey shows that Tarawa residents have a high degree of satisfaction with the technical support and its benefits. In the future, it is hoped that SSUA and regional associations will be distributed to neighboring island countries to support their SDGs implementations.

• Korean Journal of Remote Sensing
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• v.39 no.3
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• pp.325-338
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• 2023

Korean fir (Abies koreana Wilson) is one of the most important environmental indicator tree species for assessing climate change impacts on coniferous forests in the Korean Peninsula. However, due to the nature of alpine and subalpine regions, it is difficult to conduct regular field surveys of Korean fir, which is mainly distributed in regions with altitudes greater than 1,000 m. Therefore, this study analyzed the vegetation change trend of Korean fir using regularly observed remote sensing data. Specifically, normalized difference vegetation index (NDVI) from Moderate Resolution Imaging Spectroradiometer (MODIS), land surface temperature (LST), and precipitation data from Global Precipitation Measurement (GPM) Integrated Multi-satellitE Retrievalsfor GPM from September 2003 to 2020 for Hallasan and Jirisan were used to analyze vegetation changes and their association with environmental variables. We identified a decrease in NDVI in 2020 compared to 2003 for both sites. Based on the NDVI difference maps, areas for healthy vegetation and high mortality of Korean fir were selected. Long-term NDVI time-series analysis demonstrated that both Hallasan and Jirisan had a decrease in NDVI at the high mortality areas (Hallasan: -0.46, Jirisan: -0.43). Furthermore, when analyzing the long-term fluctuations of Korean fir vegetation through the Hodrick-Prescott filter-applied NDVI, LST, and precipitation, the NDVI difference between the Korean fir healthy vegetation and high mortality sitesincreased with the increasing LST and decreasing precipitation in Hallasan. Thissuggests that the increase in LST and the decrease in precipitation contribute to the decline of Korean fir in Hallasan. In contrast, Jirisan confirmed a long-term trend of declining NDVI in the areas of Korean fir mortality but did not find a significant correlation between the changes in NDVI and environmental variables (LST and precipitation). Further analyses of environmental factors, such as soil moisture, insolation, and wind that have been identified to be related to Korean fir habitats in previous studies should be conducted. This study demonstrated the feasibility of using satellite data for long-term monitoring of Korean fir ecosystems and investigating their changes in conjunction with environmental conditions. Thisstudy provided the potential forsatellite-based monitoring to improve our understanding of the ecology of Korean fir.

• Economic and Environmental Geology
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• v.57 no.2
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• pp.205-217
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• 2024

This study evaluated the physical characteristics and quality of volcanic rocks distributed in the Jeju Island-Ulleung Island area as aggregate resources. The main rocks in the Jeju Island area include conglomerate, volcanic rock, and volcanic rock. Conglomerate is composed of yellow-red or gray heterogeneous sedimentary rock, conglomerate, and encapsulated conglomerate in a state between lavas. Volcanic rocks are classified according to their chemical composition into basalt, trachybasalt, basaltic trachytic andesite, trachytic andesite, and trachyte. By stratigraphy, from bottom to top, Seogwipo Formation, trachyte andesite, trachybasalt (I), basalt (I), trachybasalt (II), basalt (II), trachybasalt (III, IV), trachyte, trachybasalt (V, VI), basalt (III), and trachybasalt (VII, VIII). The bedrock of the Ulleung Island is composed of basalt, trachyte, trachytic basalt, and trachytic andesite, and some phonolite and tuffaceous clastic volcanic sedimentary rock. Aggregate quality evaluation factors of these rocks included soundness, resistance to abrasion, absorption rate, absolute dry density and alkali aggregate reactivity. Most volcanic rock quality results in the study area were found to satisfy aggregate quality standards, and differences in physical properties and quality were observed depending on the area. Resistance to abrasion and absolute dry density have similar distribution ranges, but Ulleung Island showed better soundness and Jeju Island showed better absorption rate. Overall, Jeju Island showed better quality as aggregate. In addition, the alkaline aggregate reactivity test results showed that harmless aggregates existed in both area, but Ulleungdo volcanic rock was found to be more advantageous than Jeju Island volcanic rock. Aggregate quality testing is typically performed simply for each gravel, but even similar rocks can vary depending on their geological origin and mineral composition. Therefore, when evaluating and analyzing aggregate resources, it will be possible to use them more efficiently if the petrological-mineralological research is performed together.

• Journal of Korea Water Resources Association
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• v.57 no.6
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• pp.421-435
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• 2024

In April 2023, a wildfire broke out in Gangneung located in the east coast region due to the influence of the Yanggang-local wind. In this study, GIS-based RUSLE(Revised Universal Soil Loss Equation) and SEMMA (Soil Erosion Model for Mountain Areas) were used to evaluate the erosion rate due to vegetation recovery in a small watershed of the Gangneung WUI(Wildland-Urban Interface) fire. The small watershed of WUI fire has a low altitude range of 10-30 m and the average slope of 10.0±7.4° which corresponds to a gentle slope. The soil texture was loamy sand with a high organic content and the deep soil depth. As herbaceous layer regenerated profusely in the gully after the wildfire, the NDVI (Normalized Difference Vegetation Index) reached a maximum of 0.55. Simulation results of erosion rates showed that RUSLE ranged from 0.07-94.9 t/ha/storm and SEMMA ranged from 0.24-83.6 t/ha/storm. RUSLE overestimated the average erosion rate by 1.19-1.48 times compared to SEMMA. The erosion rates were estimated to be high in the middle slope where burned pine trees were widely distributed and the slope was steep and to be relatively low in the hollow below the gully where herbaceous layer recovers rapidly. SEMMA showed a rapid increase in erosion sensitivity under at certain vegetation covers with NDVI below 0.25 (Ic = 0.35) on post-fire hillslopes. Gentle slopes with high organic content and rapid recovery of natural vegetation had relatively low erosion rate compared to steep slopes. As subsequent infrastructure and human damages due to sediment disaster by heavy rain is anticipated in WUI fire areas, the research results may be used as basic data for targeted management and decision making on the implementation of emergency treatment after the wildfire.

• Asia pacific journal of information systems
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• v.20 no.3
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• pp.139-166
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• 2010

The supply chain management (SCM) systems have emerged as strong managerial tools for manufacturing firms in enhancing competitive strength. Despite of large investments in the SCM systems, many companies are not fully realizing the promised benefits from the systems. A review of literature on adoption, implementation and success factor of IOS (inter-organization systems), EDI (electronic data interchange) systems, shows that this issue has been examined from multiple theoretic perspectives. And many researchers have attempted to identify the factors which influence the success of system implementation. However, the existing studies have two drawbacks in revealing the determinants of systems implementation success. First, previous researches raise questions as to the appropriateness of research subjects selected. Most SCM systems are operating in the form of private industrial networks, where the participants of the systems consist of two distinct groups: focus companies and vendors. The focus companies are the primary actors in developing and operating the systems, while vendors are passive participants which are connected to the system in order to supply raw materials and parts to the focus companies. Under the circumstance, there are three ways in selecting the research subjects; focus companies only, vendors only, or two parties grouped together. It is hard to find researches that use the focus companies exclusively as the subjects probably due to the insufficient sample size for statistic analysis. Most researches have been conducted using the data collected from both groups. We argue that the SCM success factors cannot be correctly indentified in this case. The focus companies and the vendors are in different positions in many areas regarding the system implementation: firm size, managerial resources, bargaining power, organizational maturity, and etc. There are no obvious reasons to believe that the success factors of the two groups are identical. Grouping the two groups also raises questions on measuring the system success. The benefits from utilizing the systems may not be commonly distributed to the two groups. One group's benefits might be realized at the expenses of the other group considering the situation where vendors participating in SCM systems are under continuous pressures from the focus companies with respect to prices, quality, and delivery time. Therefore, by combining the system outcomes of both groups we cannot measure the system benefits obtained by each group correctly. Second, the measures of system success adopted in the previous researches have shortcoming in measuring the SCM success. User satisfaction, system utilization, and user attitudes toward the systems are most commonly used success measures in the existing studies. These measures have been developed as proxy variables in the studies of decision support systems (DSS) where the contribution of the systems to the organization performance is very difficult to measure. Unlike the DSS, the SCM systems have more specific goals, such as cost saving, inventory reduction, quality improvement, rapid time, and higher customer service. We maintain that more specific measures can be developed instead of proxy variables in order to measure the system benefits correctly. The purpose of this study is to find the determinants of SCM systems success in the perspective of vendor companies. In developing the research model, we have focused on selecting the success factors appropriate for the vendors through reviewing past researches and on developing more accurate success measures. The variables can be classified into following: technological, organizational, and environmental factors on the basis of TOE (Technology-Organization-Environment) framework. The model consists of three independent variables (competition intensity, top management support, and information system maturity), one mediating variable (collaboration), one moderating variable (government support), and a dependent variable (system success). The systems success measures have been developed to reflect the operational benefits of the SCM systems; improvement in planning and analysis capabilities, faster throughput, cost reduction, task integration, and improved product and customer service. The model has been validated using the survey data collected from 122 vendors participating in the SCM systems in Korea. To test for mediation, one should estimate the hierarchical regression analysis on the collaboration. And moderating effect analysis should estimate the moderated multiple regression, examines the effect of the government support. The result shows that information system maturity and top management support are the most important determinants of SCM system success. Supply chain technologies that standardize data formats and enhance information sharing may be adopted by supply chain leader organization because of the influence of focal company in the private industrial networks in order to streamline transactions and improve inter-organization communication. Specially, the need to develop and sustain an information system maturity will provide the focus and purpose to successfully overcome information system obstacles and resistance to innovation diffusion within the supply chain network organization. The support of top management will help focus efforts toward the realization of inter-organizational benefits and lend credibility to functional managers responsible for its implementation. The active involvement, vision, and direction of high level executives provide the impetus needed to sustain the implementation of SCM. The quality of collaboration relationships also is positively related to outcome variable. Collaboration variable is found to have a mediation effect between on influencing factors and implementation success. Higher levels of inter-organizational collaboration behaviors such as shared planning and flexibility in coordinating activities were found to be strongly linked to the vendors trust in the supply chain network. Government support moderates the effect of the IS maturity, competitive intensity, top management support on collaboration and implementation success of SCM. In general, the vendor companies face substantially greater risks in SCM implementation than the larger companies do because of severe constraints on financial and human resources and limited education on SCM systems. Besides resources, Vendors generally lack computer experience and do not have sufficient internal SCM expertise. For these reasons, government supports may establish requirements for firms doing business with the government or provide incentives to adopt, implementation SCM or practices. Government support provides significant improvements in implementation success of SCM when IS maturity, competitive intensity, top management support and collaboration are low. The environmental characteristic of competition intensity has no direct effect on vendor perspective of SCM system success. But, vendors facing above average competition intensity will have a greater need for changing technology. This suggests that companies trying to implement SCM systems should set up compatible supply chain networks and a high-quality collaboration relationship for implementation and performance.

• Journal of Distribution Science
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• v.8 no.3
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• pp.17-26
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• 2010

Recently concerns have been raised due to the unbalanced supply of crops: the price of crops has been unstable and at one point the price went up so high that the word Agflation(agriculture+ inflation) was coined. Korea, in particular, is a small-sized country and needs to secure the stable supply of crops by investing in the produce importation at a national level. Investment in foreign produce importation is becoming more important as a measure for sufficient supply of crops, limited supply of domestic crops, weakened farming conditions worldwide, as well as recent changes in the use of crops due to the development of bio-fuels, influence of carbon emission on crops, the price increase in crops, and influx of foreign hot money. However, there are many problems with investing in foreign produce importation: lack of support from the government; lack of farming information and technology; difficulty in securing the capital; no immediate pay-off from the investment and insufficient management. Although foreign produce is originally more price-competitive than domestic produce, it loses its competiveness in the process of importation (due to high tariffs) and poor distribution system, which makes it difficult to sell in Korea. Therefore, investment in foreign produce importation is being questioned for feasibility; to make it possible, foreign produce must maintain the price-competitiveness. Especially, harvest of agricultural products depends on natural and geographical conditions of each country and those products have indigenous properties, so distribution system according to import and export of agricultural products should be treated more carefully than that of other industries. Distribution costs are differentiated into each item and include cost of sorting and wrapping, cost of wrapping materials, cost of domestic transport, cost of international transport and cost of clearing customs for import and export. So transporting and storing agricultural products generates considerable costs compared with other products. Also, due to upgrade of dietary life, needs for stability, taste and visible quality toward food including agricultural products are being raised and wrong way of storage causes decomposition of food and loss of freshness, making the storage more difficult than that in room temperature, so storage and transport in distribution of agricultural products needs specialty. In addition, because lack of specialty in distribution and circulation such as storage and wrapping does not solve limit factors in distance, the distribution and circulation has been limited to a form of import and export within short-distant region. Therefore, need for distribution out-sourcing which can satisfy specialty in managing distribution and circulation and it is needed to establish more effective distribution system. However, existing distribution system of agricultural products is exposed to various problems including problems in distribution channel, making distribution and strategy for distribution and those problems are as follows. First, in case of investment in overseas agricultural industry, stable supply of the products is difficult because areas of production are dispersed widely and influenced by outer factors due to including overseas distribution channels. Also, at the aspect of quality, standardization of products is difficult, distribution system is quite complicated and unreasonable due to long distribution channels according to international trade and financial and institutional support is not enough. Especially, there are quite a lot of ineffective factors including multi level distribution process, dramatic gap between production cost and customer's cost, lack of physical distribution facilities and difficulties in storage and transport due to lack of wrapping containers. Besides, because import and export of agricultural products has been manages under the company's own distribution according to transaction contract between manufacturers and exporting company, efficiency is low due to excessive investment in fixed costs and lack of specialty in dealing with agricultural products causes fall of value of products, showing the limit to lose price-competitiveness. Especially, because lack of specialty in distribution and circulation such as storage and wrapping does not solve limit factors in distance, the distribution and circulation has been limited to a form of import and export within short-distant region. Therefore, need for distribution out-sourcing which can satisfy specialty in managing distribution and circulation and it is needed to establish more effective distribution system. Second, among tangible and intangible services which promote the efficiency of the whole distribution, a function building distribution environment which includes distribution information, system for standard and inspection, distribution finance, system for diversification of risks, education and training, distribution administration and tax system is wanted. In general, such a function building distribution environment is difficult to be changed and supplement innovatively because its effect compared with investment does not appear immediately despite of its necessity. Especially, in case of distribution of agricultural products, as a function of collecting and distributing is performed individually through various channels, the importance of distribution information and standardization is getting more focus due to the problem of repetition of work and lack of specialty. Also, efficient management of distribution is quite difficult due to lack of professionals in distribution, so support to professional education is needed. Third, though effort to keep self-sufficiency ratio of staple food, rice is regarded as important at the government level, level of dependency on overseas of others crops is high. Therefore, plan for stable securing food resources aside from staple food is also necessary. Especially, governmental organizations of agricultural products distribution in Korea are production-centered and have unreasonable structure whose function at the aspect of distribution and consumption is quite insufficient. And development of new distribution channels which can deal with changes in distribution environment and they do not achieve actual results of strategy for distribution due to non-positive strategy for price distribution. That is, it implies the possibility that base for supply will become vulnerable because it does not mediate appropriate interests on total distribution channels such as manufacturers, wholesale dealers and vendors by emphasizing consumer protection excessively in the distribution of agricultural products. Therefore, this study examined fundamental concept and actual situation for our investment to overseas agriculture, drew necessities, considerations, problems, etc. of overseas agricultural investment and suggested improvements at the level of distribution for price competitiveness of agricultural products cultivated in overseas under five aspects; government's indirect support, distribution's modernization and distribution information function's strengthening, government's political support for distribution facility, transportation route, load and unloading works' improvement, price competitiveness' securing, professional manpower's cultivation by education and training, etc. Here are some suggestions for foreign produce importation. First, the government should conduct a survey on the current distribution channels and analyze the situation to establish a measure for long-term development plans. By providing each agricultural area with a guideline for planning appropriate production of crops, the government can help farmers be ready for importation, and prevent them from producing same crops all at the same time. Government can sign an MOU with the foreign government and promote the importation so that the development of agricultural resources can be stable and steady. Second, the government can establish a strategy for an effective distribution system by providing farmers and agriculture-related workers with the distribution information such as price, production, demand, market structure and location, feature of each crop, and etc. In order for such distribution system to become feasible, the government needs to reconstruct the current distribution system, designate a public organization for providing distribution information and set the criteria for level of produce quality, trade units, and package units. Third, the government should provide financial support and a policy to seek an efficient distribution channel for foreign produce to be delivered fresh: the government should expand distribution facilities (for selecting, packaging, storing, and processing) and transportation vehicles while modernizing old facilities. There should be another policy to improve the efficiency of unloading, and to lower the cost of distribution. Fourth, it is necessary to enact a new law covering exceptional cases for importing produce in order to maintain the price competitiveness; currently the high tariffs is keeping the imported produce from being distributed domestically. However, the new adjustment should be made carefully within the WTO regulations since it can create a problem from giving preferential tariffs. The government can also simplify the distribution channels in order to reduce the cost in the distribution process. Fifth, the government should educate distributors to raise the efficiency and to modernize the distribution system. It is necessary to develop human resources by educating people regarding the foreign agricultural environment, the produce quality, management skills, and by introducing some successful cases in advanced countries.

• Asia pacific journal of information systems
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• v.23 no.1
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• pp.87-106
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• 2013

In the service-oriented economy, knowledge and skills are considered core resources to secure competitive advantages and service innovation. Knowledge management capability, which facilitates to produce, share, accumulate and reuse knowledge, becomes as important as knowledge itself to create service value. Along with knowledge management capability, dynamic capability and operational capability are the key capabilities related to managing service delivery processes. Previous studies indicated that these three capabilities are related to service innovation. Although separately investigate the relationship between the three capabilities. The purpose of this study is 1) to define variables that have effects on service innovation including knowledge management capability, dynamic capability and operational capability, and 2) to empirically test to identify relationship among variables. In this study, knowledge management capability is defined as the capability to manage knowledge process. Dynamic capability is regarded as the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. Operational capability refers to a high-level routine that, together with its implementing input flows, confers upon an organization's management a set of decision options for producing significant outputs of a particular type. The proposed research model was tested against the data collected through the survey method. The survey questionnaire was distributed to the managers who participated in an educational program for management consulting. Each individual who answered the questionnaire represented a knowledge based service firm. About 212 surveys questionnaires were sent via e-mail or directly delivered to respondents. The number of useable responses was 93. Measurement items were adapted from previous studies to reflect the characteristics of the industry each informant worked in. All measurement items were in, 5 point Likert scale with anchors ranging from strongly disagree (1) to strongly agree (5). Out of 93 respondents, about 81% were male, 82% of respondents were in their 30s. In terms of jobs, managers were 39.78%, professions/technicians were 24.73%, researchers were 12.90%, and sales people were 10.75%. Most of respondents worked for medium size enterprises (47,31%) in their, less than 30 employees (46.24%) in their number of employees, and less than 10 million USD (65.59%) in terms of sales volume. To test the proposed research model, structural equation modeling (SEM) technique (SPSS 16.0 and AMOS version 5) was used. We found that the three organizational capabilities have influence on service innovation directly or indirectly. Knowledge management capability directly affects dynamic capability and service innovation but indirectly affect operational capability through dynamic capability. Dynamic capability has no direct impact on service innovation, but influence service innovation indirectly through operational capability. Operational capability was found to positively affect service innovation. In sum, three organizational capabilities (knowledge management capability, dynamic capability and operational capability) need to be strategically managed at firm level, because organizational capabilities are significantly related to service innovation. An interesting result is that dynamic capability has a positive effect on service innovation only indirectly through operational capability. This result indicates that service innovation might have a characteristics similar to process innovation rather than product orientation. The results also show that organizational capabilities are inter-correlated to influence each other. Dynamic capability enables effective resource management, arrangement, and integration. Through these dynamic capability affected activities, strategic agility and responsibility get strength. Knowledge management capability intensify dynamic capability and service innovation. Knowledge management capability is the basis of dynamic capability as well. The theoretical and practical implications are discussed further in the conclusion section.