• Title/Summary/Keyword: Economic Capital

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Empirical Research on the R&D Investment and Performance of Venture Businesses (벤처기업의 R&D 투자와 성과에 관한 실증연구)

  • Lee, Dong-Ki;Lee, Cheol-Kyu;Kim, Jung-Hwan
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.3 no.1
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    • pp.1-28
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    • 2008
  • In this research, an empirical analysis was performed to determine the correlation between management performance and Empirical Research on the R&D investment for domestic venture businesses in each industry. Specifically, an empirical analysis for each industry was attempted not only to clarify the general hypothesis on the relationship between management performance and R&D investment for venture businesses but also to demonstrate that differences exist for each industry. Empirical analysis was conducted for eight industries with respect to the $2002{\sim}2006$ panel data extracted as investigative results from the "Investigation Report on Science and Technology R&D Activities" published by the Ministry of Science and Technology. Industrial classification was limited to the middle-level classification (2-digit) in the Korea Standard Industry Code (KSIC) owing to the limited number of panels. Although this research only verified the overall positive effect of R&D activities and funds for existing research on corporate value or productivity and management performance, it was able to document the difference for each individual industry and each business size unlike existing research. Furthermore, the reliability of the research results was enhanced by targeting companies that have been continuously conducting R&D and management activities using consistent 5-year panel data in the analysis. Again, this was something that existing research did not have. Finally, through the use of recent data from 2002 after the IMF economic crisis up to 2006 in the empirical analysis, this research proposed the problems due to the prevailing circumstances at the time of entering the advanced nation stage based on an empirical analysis; the prevailing problems during the pursuit of advanced nation status before the IMF crisis broke out were not tackled. The key empirical analysis yielded several results. First, capital and size of the labor force have a positive correlation with the management performance for the entire company or the venture business. This applies to all eight industries as the subjects of the analysis. Second, although the number of years since a company has been established can have positive or negative correlation with management performance for the entire company or venture business in specific industries, a definite overall trend cannot be identified. Third, R&D investment can be said to have an overall positive effect on corporate management performance. Fourth, the size of the research staff cannot be said to be a factor unilaterally affecting the management performance of the entire company or the venture business. Fifth, the number of years a research institute has been in operation, which was assumed to have a positive effect on the management performance of a company because of the accumulated R&D know-how -- definitely acts as a positive factor contributing to the management performance of a company.

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The information of the businesses and the protection of information human rights (기업정보화와 정보인권보호)

  • 하우영
    • Proceedings of the Korea Institutes of Information Security and Cryptology Conference
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    • 2003.12a
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    • pp.543-559
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    • 2003
  • The information drive of the businesses requires new alternatives in that the promotion of business efficiency through information process technologies ends up conflicting with the protection of information human rights on laborers’side. Nevertheless, apathy on information protection has a tendency to be distorted by the efficiency of the businesses. Should the capital and mass media warn economic red lights, political circles with uneasiness would ignore the significance of information protection on the behalf of business efficiency. Therefore, the importance of information protection is considered a smaller interest than that of business efficiency with the infringements of human rights on laborers’side arising. Informatization of the businesses along with the developments of information process technologies has enabled the management to monitor and control the behaviors of laborers. This new problem needs to establish both information protection mechanism and institutional devices to regulate those labor controls. The security of business activity without human rights infringement warrants both basic rights of the public and spirit of the Constitution. The study suggests the establishment and revision of laws suitable to the period of information human rights. On top of that, the establishment of the basic law for information protection of individuals’with the common principle that integrates the related laws and rules on-off line is needed. This will warrant the active participation of labor unions and create specific alternatives for information protection.

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A Study on the Effects of Seogye Deuk-Yoon Lee on Cheongju Sarim(Forest of Scholars) (청주 사림의 학맥과 서계 이득윤과의 관계에 대한연구)

  • Lee, Jong Kawn
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.16 no.2
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    • pp.1092-1100
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    • 2015
  • This thesis is a part of a case study conducted in order to understand the trends of the 16th~17th century Cheongju region bigwigs, and has examined the life and academic stream of Seogye Deuk-Yoon LEE (1553-1630) focused on the previous study, "The Great Family Genealogy of Ikjaegong of the Gyeongju LEE Family". Seogye Deuk-Yoon LEE learned from his father Seomgye Jam LEE, and GiSEO, Ji-Hwa PARK from an early age, and based the basic orientation of his studies on one's moral and religious self one's moral and religious self'. This is how he became to emphasize "Sohak" (an introductory book of Confucianism for children), and he made an effort to realize the world of Neo-Confucianism by distributing the 'YEO's Hyangyak(Lue-shih-hsiang-yueeh : autonomic regulations of the district areas)' published on "Sohak". Furthermore, he made great effort in education of the Cheongju by regarding it as his own mission to teach young scholars, continuing on the footsteps of his father. Considering this, Seogye was not only a Confucian scholar that devoted himself to 'Sugi(moral training of himself', but was also a practical scholar that committed his sense of social responsibility in ' teaching' and 'governing the people, who greatly affected the academic world of the regional bigwigs of the Cheongju during the 17th century. Furthermore, Deuk-Yoon LEE was a member of the 'Nangseongpalhyeon(eight wise men of the Cheongju region) together with his disciple Deok-soo LEE, who performed a core role in establishing the 'Gihohakpa(Capital and Chungcheong province School)' and 'Hoseosarim(forest of scholars in Chungcheong province)' of the Cheongju region. As a main figure in establishing the Sinhang Confucian academy, he prepared the socio-economic basis for the 'Gihohakpa' to take place in the Cheongju, and by academically associating with Sagye Jang-Seng Kim without regarding their conflicting parties, he became the bridge in allowing his disciple, Deok-Soo LEE to associate with the academic stream and the 'Gihohakpa'. Through such roles, he allowed the relatively easy establishment of the 'Gihohakpa' and 'Hoseosarim', which continued to Jang-Seng KIM and Si-Yeol SONG, in order to prepare the basis and establish the strength of its basis in the Cheongju region from the late 17th century.

An Analysis of Terrorism against Korea to Overseas and its Implications - Focusing on the companies advancing to overseas - (한국을 대상으로 한 국제테러리즘의 분석과 시사점 - 해외진출기업을 중심으로 -)

  • Chang, Suk-Heon;Lee, Dae-Sung
    • Korean Security Journal
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    • no.28
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    • pp.153-179
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    • 2011
  • Korea has been a victim of State supporting terrorism by North Korea even before international society realize the terrorism threats because of 9.11 in US. However, state supporting terrorism against South Korea by North Korea went along with East/West Cold War System by US and the Soviet Union. It is because socialism that Kim Il-sung who established a separate government in North Korea with the political, economic, social and military support of the Soviet Union selected as his political ideology justifies terrorism as the tool to complete the proletariat revolution. North Korea's state supporting terrorism is being operated systematically and efficiently by military of North Korea. It gives big worries to international society not only by performing terrorism against Korea but also by dispatching terrorists and exporting terrorism strategies to the third world countries. In this situation, terrorism against Korea has met a new transition point at 9${\cdot}$11 in US. As South Korea is confronting North Korea and the war has not ended but suspended, the alliance between US and Korea is more important than anything else. Because of this Korea decided to support the anti-terrorism wars against Afghanistan and Iraq of US and other western countries and send military force there. The preface of the anti-terrorism war has begun as such. On October 7, 2001, US and UK started to attack Afghanistan and Taleban government in Afghanistan was dethroned on December 7, 2001. US and western countries started a war against Iraq on March 20, 2003. On April 9, 2003 Baghdad, the capital of Iraq fell, and Saddam Hussein al-Majid al-Awja government was expelled. During the process, the terrorism threat against South Korea has expanded to Arab terrorists and terrorism organizations as well as North Korea. Consequently, although Korean government, scholars and working level public servants made discussions and tried to seek countermeasures, the damages are extending. Accordingly, terrorism against Korean companies in overseas after 9${\cdot}$11 were analyzed focusing on Nation, Region, Victimology, and Weapons used for the attacks. Especially, the trend of terrorism against the Korean companies in overseas was discussed by classifying them chronologically such as initiation and termination of anti-terrorism wars against Afghanistan and Iraq, and from the execution of Iraqi President, Saddam Hussein al-Majid al-Awja to December 2010. Through this, possible terrorism incidents after the execution of Osama bin Laden, the leader of Al-Qaeda, on May 2, 2011 were projected and proposals were made for the countermeasures.

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The Impact of Social Enterprises on the Financial and Social Performance: An Empirical Analysis in Korea (재무적·사회적 성과를 결정하는 사회적기업의 특성)

  • Hwang, Soo-Young;Kim, Yong-Deok;Koo, Inhyouk
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.14 no.2
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    • pp.61-72
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    • 2019
  • Since the financial crisis in 1997, large scale unemployment and poverty have become serious, but there has been a surge in public and social job creation projects. However, with the limitations of low-wage and short-term jobs, the need for long-term, high quality jobs gradually began to garner attention. In recent years, social enterprises have grown both quantitatively and qualitatively and interest in social enterprises has increased; more specifically, scholars are interested in the determinants of success and failure of social enterprises in the academic field. In this study, we examined the effects of social enterprise characteristics on financial and social performance. In particular, we empirically analyzed social enterprises registered in the Korea Social Enterprise Agency. The financial performance of the social enterprise was measured using the net income ratio, operating income ratio, and the return on asset. The social performance of the social enterprise was measured by the total number of workers and the employment rate of vulnerable social groups. The characteristics of the social enterprise included CEO characteristics (gender, age, experience in operating the social enterprise), firm size, and the elapsed time of authentication. The results of the empirical analysis are as follows. First, as a result of analysis for the effect on financial performance, we found that the financial performance has a statistically significant, positive relationship with firm size, organizational form, government subsidies, and capital adequacy ratio. And we found that the social performance has a statistically significant, negative relationship with CEO age and credit debt dependence. Second, as a result of analysis for the effect on social performance, we found that the total number of workers had a significant, positive relationship with CEO gender and CEO age, as well as firm size, government subsidies; whereas the total number of workers had a significant, negative relationship with certification type and industry dummy. Comparatively, the employment rate of the vulnerable social groups had a significant, positive relationship with CEO gender and certification type, but there was no statistically significant relationship with the government subsidies or firm size.

Management of Naturalized Citizens from Yeozin and Its Limitation Through the Event of Guilsang(吉尙) in the Early 17th Century - Centering on 『Naturalization Registration』 (길상사건(吉尙事件)을 통해 본 17세기 초 향화호인(向化胡人) 관리 실태와 한계 - 『향화인등록(向化人謄錄)』을 중심으로 -)

  • Yi, Sun Hui
    • (The)Study of the Eastern Classic
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    • no.37
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    • pp.93-126
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    • 2009
  • This study is about a event, which happened on January of 1603 in Hamheung. It has covered from the beginning through the conclusion of the event. The event was ignited by a naturalized citizen, Guilsang's coming to the capital city without permission from the government. With this study I've wished to find the situations of specific management of naturalized citizens as well as popular attitudes towards them at the time. Concerning with the event of Guilsang, I could find more detailed situations from "Naturalization Registration". The reason why Guilsang came to Seoul was that he wanted to ask for living together with his son-in-law's family in Yang-Ju. Before his coming, Bie-Byun-Sa had sent a official letter to the governor of Hamkyung-Do so that he had had to move somewhere between Anbyun and Yung-heung. But Guilsang had wanted to live with his whole family in Seoul. The place he visited first was Sa-Yuk-Won. He presented his petition through Yeozin language translator there. Sa-Yuk-Won then informed Ye-Jo to have him investigated. After its investigation, Ye-Jo reported to the king. There were arguments about Guilsang family in the government. Guilsang had wanted to live with his whole family, including his relatives and son-in-law. Guilsang's request had more pros than cons in terms of humanism. But letting him live in Seoul was a difficult decision for the government. but his family strenuously insisted on living in Seoul, trying to kill itself. Finally Government selected Yong-In which was a compromise between the naturalized citizens' wish and difficult position of Government. Yong-In Miejo-Hyun was a poor region where naturalized citizens had lived before but now empty after the wars. In the process of the event of Guilsang, Government differentiated naturalized citizens from general citizens and regarded them foreign. A man from Yeozin was naturalized due to economic reason. But, he couldn't accept to live somewhere except Seoul, separating from his family. Government concerned with dangers of naturalized citizen becoming into foreign agents and stabilization of borders. These concerns caused the policy of residential control and decentralization of naturalized citizens failed.

Chinese Socialism and Nationalism (중국식 사회주의와 민족주의)

  • Cho, Bonglae
    • The Journal of Korean Philosophical History
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    • no.27
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    • pp.223-254
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    • 2009
  • This thesis is aimed at researching the formation of democracy in socialist China. Due to a sense of cultural superiority on the basis of their developed civilization, they already formed a strong cultural nationalism, which has come to firm up into "Sinocentrism" through long periods of time. However, there arose a sense of crisis due to the Western invasion after the Opium War and the intellectuals in China happened to seek the solution to rescuing their mother land from ruin; in the midst of this process, the theory of social evolution of the West was introduced and accepted. The acceptance of this theory of social evolution gradually transformed in confrontation with a logical limit that China defeated in international competition could not but be plundered by imperialism after all, but it contributed to Chinese intellectuals' forming the concept of the modern state nationalism of the West deviating from cultural Sinocentrism. After the Russian Revolution, a large number of Chinese progressive intellectuals developed their socialist movement with the recognition that Marxism was a practicable alternative to rescue China from its crisis. The Chinese Communist Party was under guidance of the Comintern from the early process of its formation, in which they emphasized the fact the national liberation struggle in colonialized countries was an indispensable element in the world communist movement under the condition of the control of the world by imperialist capital at that time and subsequently, Marxism characterized by resistant nationalism in China gained its cause. Afterwards, the People's Republic of China was established by the Chinese Communists which came to get widespread support from the Chinese through anti-imperialism &feudalism in the process of the Sino-Japanese War, and thus China equipped with a full-blown socialism system set sails. However, with the relations with the Soviet Union getting worse under the international conditions of a cold war, the development of the Chinese socialism couldn't but resort to the concentrated power of its people, which was linked to the boost of continuous patriotism of the Chinese Communists. Particularly, due to the newly-emerging contradictions after reform & opening [gig kifng], China underwent disruption; thus, as an ideology to integrate such disruptive elements, Sinocentrism based on China's cultural pride re-appeared. Recently, a very strong form of Sinocentrism has come to the fore as their superiority of traditional cultures is emphasized in China whose international position as an economic power has been raised.

International Comparative Analysis of Technical efficiency in Korean Manufacturing Industry (한국 제조업의 기술적 효율성 국제 비교 분석)

  • Lee, Dong-Joo
    • Korea Trade Review
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    • v.42 no.5
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    • pp.137-159
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    • 2017
  • This study divides manufacturing in 18 countries including Korea, China, Japan and OECD countries into 11 areas and estimates and compares the technological efficiency of each industry. The traditional view of productivity is to increase production capacity through technological innovation or process innovation, but it is also influenced by the technological efficiency of production process. A Stochastic Frontier Production Model (SFM) is a representative method for estimating the technical efficiency of such production. First, as a result of estimating the production function by setting the output variable as total output or value-added, in both cases, the output increased significantly in all manufacturing sectors as inputs of labor, capital, and intermediate increased. On the other hand, R&D investment has a large impact on output in chemical, electronics, and machinery industries. Next, as a result of estimating the technological efficiency through the production function, when the total output is set as the output variable, the overall average of each sector is 0.8 or more, showing mostly high efficiency. However, when value-added was set, Japan had the highest level in most manufacturing sectors, while other countries were lower than the efficiency of the total output. Comparing the three countries of Korea, China and Japan, Japan showed the highest efficiency in most manufacturing sectors, and Korea was about half or one third of Japan and China was lower than Korea. However, in the food and electronics sectors, China is higher than Korea, indicating that China's production efficiency has greatly improved. As such, Korea is not able to narrow its gap with Japan relatively faster than China's rapid growth. Therefore, various policy supports are needed to promote technology development. In addition, in order to improve manufacturing productivity, it is necessary to shift to an economic structure that can raise technological efficiency as well as technology development.

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Territorial Expansion the King Võ (Võ Vương, 1738-1765) in the Mekong Delta: Variation of Tám Thực Chi Kế (strategy of silkworm nibbling) and Dĩ Man Công Man (to strike barbarians by barbarians) in the Way to Build a New World Order (무왕(武王, 1738-1765) 시기 메콩 델타에서의 영토 확장 추이: 제국으로 가는 길, '잠식지계(蠶食之計)'와 '이만공만(以蠻攻蠻)'의 변주)

  • CHOI, Byung Wook
    • The Southeast Asian review
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    • v.27 no.2
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    • pp.37-76
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    • 2017
  • $Nguy{\tilde{\hat{e}}}n$ Cư Trinh has two faces in the history of territorial expansion of Vietnam into the Mekong delta. One is his heroic contribution to the $Nguy{\tilde{\hat{e}}}n$ family gaining control over the large part of the Mekong delta. The other is his role to make the eyes of readers of Vietnamese history be fixed only to the present territory of Vietnam. To the readers, $Nguy{\tilde{\hat{e}}}n$ Cư Trinh's achievement of territorial expansion was the final stage of the nam $ti{\acute{\hat{e}}n$ of Vietnam. In fact, however, his achievement was partial. This study pays attention to the King $V{\tilde{o}}$ instead of $Nguy{\tilde{\hat{e}}}n$ Cư Trinh in the history of the territorial expansion in the Mekong delta. King's goal was more ambitious. And the ambition was propelled by his dream to build a new world, and its order, in which his new capital, $Ph{\acute{u}}$ $Xu{\hat{a}}n$ was to be the center with his status as an emperor. To improve my assertion, three elements were examined in this article. First is the nature of $V{\tilde{o}}$ Vương's new kingship. Second is the preparation and the background of the military operation in the Mekong Delta. The nature of the new territory is the third element of the discussion. In 1744, six years after this ascending to the throne, $V{\tilde{o}}$ Vương declared he was a king. Author points out this event as the departure of the southern kingdom from the traditional dynasties based on the Red River delta. Besides, the government system, northern custom and way of dressings were abandoned and new southern modes were adopted. $V{\tilde{o}}$ Vương had enough tributary kingdoms such as Cambodia, Champa, Thủy $X{\tilde{a}}$, Hoả $X{\tilde{a}}$, Vạn Tượng, and Nam Chưởng. Compared with the $L{\hat{e}}$ empire, the number of the tributary kingdoms was higher and the number was equivalent to that of the Đại Nam empire of the 19th century. In reality, author claims, the King $V{\tilde{o}}^{\prime}s$ real intention was to become an emperor. Though he failed in using the title of emperor, he distinguished himself by claiming himself as the Heaven King, $Thi{\hat{e}}n$ Vương. Cambodian king's attack on the thousands of Cham ethnics in Cambodian territory was an enough reason to the King $V{\tilde{o}}^{\prime}s$ military intervention. He considered these Cham men and women as his amicable subjects, and he saw them a branch of the Cham communities in his realm. He declared war against Cambodia in 1750. At the same time he sent a lengthy letter to the Siamese king claiming that the Cambodia was his exclusive tributary kingdom. Before he launched a fatal strike on the Mekong delta which had been the southern part of Cambodia, $V{\tilde{o}}$ Vương renovated his capital $Ph{\acute{u}}$ $Xu{\hat{a}}n$ to the level of the new center of power equivalent to that of empire for his sake. Inflation, famine, economic distortion were also the features of this time. But this study pays attention more to the active policy of the King $V{\tilde{o}}$ as an empire builder than to the economic situation that has been told as the main reason for King $V{\tilde{o}}^{\prime}s$ annexation of the large part of the Mekong delta. From the year of 1754, by the initiative of $Nguy{\tilde{\hat{e}}}n$ Cư Trinh, almost whole region of the Mekong delta within the current border line was incorporated into the territory of $V{\tilde{o}}$ Vương within three years, though the intention of the king was to extend his land to the right side of the Mekong Basin beyond the current border such as Kampong Cham, Prey Vieng, and Svai Rieng. The main reason was $V{\tilde{o}}$ Vương's need to expand his territory to be matched with that of his potential empire with the large number of the tributary kingdoms. King $V{\tilde{o}}^{\prime}s$ strategy was the variation of 'silkworm nibbling' and 'to strike barbarians by barbarians.' He ate the land of Lower Cambodia, the region of the Mekong delta step by step as silkworm nibbles mulberry leave(general meaning of $t{\acute{a}}m$ thực), but his final goal was to eat all(another meaning of $t{\acute{a}}m$ thực) the part of the Mekong delta including the three provinces of Cambodia mentioned above. He used Cham to strike Cambodian in the process of getting land from Long An area to $Ch{\hat{a}}u$ Đốc. This is a faithful application of the Dĩ Man $C{\hat{o}}ng$ Man (to strike barbarians by barbarians). In addition he used Chinese refugees led by the Mạc family or their quasi kingdom to gain land in the region of $H{\grave{a}}$ $Ti{\hat{e}}n$ and its environs from the hand of Cambodian king. This is another application of Dĩ Man $C{\hat{o}}ng$ Man. In sum, author claims a new way of looking at the origin of the imperial world order which emerged during the first half of the 19th century. It was not the result of the long history of Đại Việt empires based on the Red River delta, but the succession of the King $V{\tilde{o}}^{\prime}s$ new world based on $Ph{\acute{u}}$ $Xu{\hat{a}}n$. The same ways of Dĩ Man $C{\hat{o}}ng$ Man and $T{\acute{a}}m$ Thực Chi $K{\acute{\hat{e}}}$ were still used by $V{\tilde{o}}^{\prime}s$ descendents. His grandson Gia Long used man such as Thai, Khmer, Lao, Chinese, and European to win another man the '$T{\hat{a}}y$ Sơn bandits' that included many of Chinese pirates, Cham, and other mountain peoples. His great grand son Minh Mạng constructed a splendid empire. At the same time, however, Minh Mạng kept expanding the size of his empire by eating all the part of Cambodia and Cham territories.

The Causes of Conflict and the Effect of Control Mechanisms on Conflict Resolution between Manufacturer and Supplier (제조-공급자간 갈등 원인과 거래조정 방식의 갈등관리 효과)

  • Rhee, Jin Hwa
    • Journal of Distribution Research
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    • v.17 no.4
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    • pp.55-80
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    • 2012
  • I. Introduction Developing the relationships between companies is very important issue to ensure a competitive advantage in today's business environment (Bleeke & Ernst 1991; Mohr & Spekman 1994; Powell 1990). Partnerships between companies are based on having same goals, pursuing mutual understanding, and having a professional level of interdependence. By having such a partnerships and cooperative efforts between companies, they will achieve efficiency and effectiveness of their business (Mohr and Spekman, 1994). However, it is difficult to expect these ideal results only in the B2B corporate transaction. According to agency theory which is the well-accepted theory in various fields of business strategy, organization, and marketing, the two independent companies have fundamentally different corporate purposes. Also there is a higher chance of developing opportunism and conflict due to natures of human(organization), such as self-interest, bounded rationality, risk aversion, and environment factor as imbalance of information (Eisenhardt 1989). That is, especially partnerships between principal(or buyer) and agent(or supplier) of companies within supply chain, the business contract itself will not provide competitive advantage. But managing partnership between companies is the key to success. Therefore, managing partnership between manufacturer and supplier, and finding causes of conflict are essential to improve B2B performance. In conclusion, based on prior researches and Agency theory, this study will clarify how business hazards cause conflicts on supply chain and then identify how developed conflicts have been managed by two control mechanisms. II. Research model III. Method In order to validate our research model, this study gathered questionnaires from small and medium sized enterprises(SMEs). In Korea, SMEs mean the firms whose employee is under 300 and capital is under 8 billion won(about 7.2 million dollar). We asked the manufacturer's perception about the relationship with the biggest supplier, and our key informants are denied to a person responsible for buying(ex)CEO, executives, managers of purchasing department, and so on). In detail, we contact by telephone to our initial sample(about 1,200 firms) and introduce our research motivation and send our questionnaires by e-mail, mail, and direct survey. Finally we received 361 data and eliminate 32 inappropriate questionnaires. We use 329 manufactures' data on analysis. The purpose of this study is to identify the anticipant role of business hazard (environmental dynamism, asset specificity) and investigate the moderating effect of control mechanism(formal control, social control) on conflict-performance relationship. To find out moderating effect of control methods, we need to compare the regression weight between low versus. high group(about level of exercised control methods). Therefore we choose the structural equation modeling method that is proper to do multi-group analysis. The data analysis is performed by AMOS 17.0 software, and model fits are good statically (CMIN/DF=1.982, p<.000, CFI=.936, IFI=.937, RMSEA=.056). IV. Result V. Discussion Results show that the higher environmental dynamism and asset specificity(on particular supplier) buyer(manufacturer) has, the more B2B conflict exists. And this conflict affect relationship quality and financial outcomes negatively. In addition, social control and formal control could weaken the negative effect of conflict on relationship quality significantly. However, unlikely to assure conflict resolution effect of control mechanisms on relationship quality, financial outcomes are changed by neither social control nor formal control. We could explain this results with the characteristics of our sample, SMEs(Small and Medium sized Enterprises). Financial outcomes of these SMEs(manufacturer or principal) are affected by their customer(usually major company) more easily than their supplier(or agent). And, in recent few years, most of companies have suffered from financial problems because of global economic recession. It means that it is hard to evaluate the contribution of supplier(agent). Therefore we also support the suggestion of Gladstein(1984), Poppo & Zenger(2002) that relational performance variable can capture the focal outcomes of relationship(exchange) better than financial performance variable. This study has some implications that it tests the sources of conflict and investigates the effect of resolution methods of B2B conflict empirically. And, especially, it finds out the significant moderating effect of formal control which past B2B management studies have ignored in Korea.

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