• Journal of Distribution Science
• /
• v.14 no.9
• /
• pp.95-110
• /
• 2016

Purpose - Based on expectation-disconfirmation theory, this study attempted to fill the gap in the literature by treating the expected profitability as a moderator in the relationship between these constructs, identifying what instrumental factors have effects on dissatisfaction, in turn lead to exit intention, neglect, voice, and loyalty, and provide the managerial implications for building long-term relationship to enhance the partnership between franchisor and franchisee. Research design, data and methodology - In order to test the hypotheses, the authors developed several hypotheses. The data were collected from 254 franchisees in Seoul and Gyeonggi Province with SPSS 18.0 and SmartPLS 2.0. Results - The findings of the study are as follows. First, marketing support and competitiveness of product and service had a negative effect on dissatisfaction, but did not on logistics support. Second, franchisee dissatisfaction had a positive effect on exit intention and neglect, and had a negative effect on loyalty. However, franchisee dissatisfaction had not a significant effect on voice. Third, expected profits play a moderating role in the relationships between marketing support, competitiveness of product and service and dissatisfaction, between dissatisfaction and exit intention, voice, loyalty, and neglect. First, marketing support and competitiveness of product and service were found to have a greater influence on dissatisfaction for the low expected profitability group than the highly expected profitability group. Also, dissatisfaction had a greater impact on exit intention, voice, and neglect for the low expected profitability group than the high expected profitability group while dissatisfaction had a weaker impact on loyalty for high expected profitability group. Conclusions - The result of this study indicates that franchisors should reduce dissatisfaction and prevent or improve complaint behaviors by continuously identifying the impact relationship between franchisee dissatisfaction and decision factors caused by difference in expectations for roles of franchisees and franchisors. In addition, franchisors should acknowledge that the impacts of marketing support, and product and service competitiveness on franchisee dissatisfaction and on exit intention, neglect, and loyalty differ by expected profits. Therefore they should provide support in perceiving high expected profits through creating direct profits including high sales, low costs, and low rents.

• International conference on construction engineering and project management
• /
• 2005.10a
• /
• pp.1237-1243
• /
• 2005

International construction projects are exposed to various and complicated risk factors stemming from different political, economical, social, and cultural backgrounds, which make contractors entering into international construction to experience severe losses. It implies that overseas markets do not necessarily secure the high return, which is typically expected to in the high risky attempts. Accordingly, contractors need to evaluate various risk factors faced with overseas construction projects that can possibly aggravate the profitability. This paper aims at establishing a valid groundwork for further research on developing the integrated risk management model. For this end, it analyzes the long-term trend of profitability on total of 3,487 projects performed by Korean global contractors in world-wide construction markets during the last four decades. Then, it investigates the possible factors/causes of bad profit that have affected the profitability significantly through the structured surveys of 90 real overseas projects based on the project-specific information and experiences of Korean contractors in overseas markets. Furthermore, it analyzes relative importance of these factors/causes and identifies the important features expected for the risk management of international construction projects. Finally, vital distinctions between success and failure projects and lessons learned to improve profitability are then distilled.

• Proceedings of the Safety Management and Science Conference
• /
• 2011.11a
• /
• pp.397-411
• /
• 2011

This study is aimed to measure the cause and effect relationship on observation on KS evaluation by surveys related to KS certification, opinions and satisfaction on KS certification, expected effect through KS certification, profitability performance, financial performance, and productivity performance based on department heads and acting chiefs working on KS certification, to SMEs which have acquired KS certification mark in Korea. This study aims to examine how KS certification is impacting on companies' expected effects, management performance and development by examining the realistic effects of KS certification in various aspects and expected effects on companies.

• Journal of Distribution Science
• /
• v.15 no.1
• /
• pp.123-130
• /
• 2017

Purpose - This research aims to examine the effect of e-business adoption on firm's growth and profitability in the distribution industry. The value added from the distribution industry acts as the cost of other industries. As the distribution industry develops, its stage becomes shorter and the distribution margin becomes smaller. Therefore, e-business is expected to have a different effect on the distribution industry than other industries. Research design, data and methodology - The previous research generally used e-business adoption as an independent variable and firm's performance as a dependent variable. This study elaborated the model using a dynamic panel model that includes the performance variable of the previous year as an independent variable. By employing system GMM (Generalized Method of Moments), the endogeneity problem in the dynamic panel model can be solved. For the analysis, I extracted the distribution companies as the raw data in the National Statistical Office's Business Activity Survey over the period 2006 to 2012. Results - The growth rate of firms adopting e-business was 0.299%p higher than that of the non-adopter. However, only ERP (Enterprise Resource Planning), KMS (Knowledge Management System) and SCM (Supply Chain Management) contributed positively to the growth rate. In the case of profitability, it was 0.04%p higher than the distribution companies that did not adopt e-business. ERP and LMS (Learning Management System) improve profitability, while SCM reduces profitability. Consequently, while ERP improves both growth and profitability, SCM improves growth but reduces profitability. In addition, KMS improves firm's growth only, and LMS does only profitability, showing that each e-business has a differentiated effect. Conclusions - Since the distribution industry has different characteristics from manufacturing and other service industries, the introduction of e-business may not guarantee the growth and profitability of distribution companies. Careful introduction considering the characteristics of the distribution industry is required. In particular, it is necessary to select an e-business meeting the characteristics and needs of a distribution company, and thereafter, it is required for the company's own efforts to internalize it within the system.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.5
• /
• pp.829-837
• /
• 2021

The study investigates the impact of the Counter-Cyclical Buffer Policy (CCB) on regional development bank profitability in Sumatra, Indonesia. CCB requires banks to hold capital at times when credit is growing rapidly so that the buffer can be reduced if the financial cycle turns down or the economic and financial environment becomes substantially worse. This study employs time series data of regional development banks (RDBs) in Sumatra Island, Indonesia. The methodology applied in this study is a panel dynamic model with Generalized Methods of Moments (GMM). The results show that increasing capital through the implementation of CCB did not have a significant effect on RDBs' profitability. The findings of this study suggest that the activation and implementation of CCB lead to an increase in the amount and cost of loans to companies but do not affect the profitability of RDBs. The value of a Non-Performing Loan (NPL) proved to have a negative and significant effect on bank profitability. The CCB policy aims to overcome the pro-cyclicality of credit growth and improve bank resilience through increased capital which is expected to reduce excessive credit growth as a source of systemic risk. This causes a lack of lending to the community so that the profits obtained by the bank decrease.

• Asia-Pacific Journal of Business
• /
• v.14 no.2
• /
• pp.101-118
• /
• 2023

Purpose - The purpose of this study is to find out how a company can do reasonable cost calculations in a simple way and establish profitability improvement strategies based on the results. Design/methodology/approach - In this study, a case that compounding company K applied TDABC was studied. A case study was conducted on the process of company K reviewing and applying TDABC and the process of implementing the cost calculation for each product by applying TDABC, and establishing a profitability improvement strategy for each product based on the results. Findings - Company K rearranged the production standard information of the compounding industry such as productivity and batch size of each product to apply TDABC. Cost calculation was performed for each product according to the revised production standard information. After the cost calculation for each product was carried out, Company K established a strategy to improve profitability of each product. The profitability improvement strategy was implemented in two ways: a cost reduction strategy and a product price increase strategy. As a result of the final strategy execution, the profitability of each product was improved. Research implications or Originality - This study found a reasonable costing standard in consideration of the specificity of the research target company, and applied it to cost calculation cost for each product. It contains the process of establishing production and sales strategies for each product based on the cost calculation results. It is expected that this case study will serve as a good reference material for establishing cost calculation and profitability improvement strategies in similar businesses.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.7 no.1
• /
• pp.19-26
• /
• 2012

This study is aimed to measure the cause and effect relationship on observation on KS evaluation by surveys related to KS certification, opinions and satisfaction on KS certification, expected effect through KS certification, profitability performance, financial performance, and productivity performance based on department heads and acting chiefs working on KS certification, to SMEs which have acquired KS certification mark in Korea. This study also aims to examine how KS certification is impacting on companies' expected effects, management performance and development by examining the realistic effects of KS certification in various aspects and expected effects on companies.

• Korean Journal of Agricultural Science
• /
• v.40 no.2
• /
• pp.169-176
• /
• 2013

The price and revenue of rice are expected to decrease due to increasing rice imports, decreasing consumption and the discontinuance of the government's rice procurement. This degenerating profitability is leading to a rise in the cultivation of upland-crops such as beans, fodder crops and fruits in paddy fields. However, there is a lack of research on the selection of rice substitute crops which are adaptable to the relevant region through profitability analysis. This research, therefore, analyzed investment profitability of rice substitute crops for Cheorwon-gun area in Kangwon province. The study applied net present value (NPV) and internal rate of return (IRR), which fit for mutually exclusive investments that make one selection to the exclusion of other crops. Target crops are green house plants in Cheorwon-gun area. Financial analysis showed paprika and cucumber have investment feasibility for automated vinyl greenhouses and conventional plastic greenhouses respectively.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.12
• /
• pp.615-626
• /
• 2020

The purpose of this study is to analyze the determinants of risk factor model for the Jordanian banking stocks from 2006 to 2018. This study employs the Five-factor Fama and French's (2015) methodology and uses the annual returns of all Jordanian banks including 2 Islamic and 13 commercial banks listed on the Amman Stock Exchange (ASE) over a period of 13 years. The results show that the factors of value and profitability have an important role in evaluating the expected return in Jordanian banking stocks. Moreover, the value HML and profitability RMW factors provide the highest cumulative returns among these five factors, while the investment CMA and size SMB factors are still around zero cumulative returns. For the market factor, it provides the least negative cumulative returns. The results showed that the largest correlation is between value and investment factors which means that banks with a high book to market value become banks with a conservative investment strategy. The result of the sub-periods confirmed the value and profitability results. The findings of this study suggest that the five-factor Fama and French model is the choice of building an investment portfolio, especially the factors of value and profitability.

• Journal of the Korea Institute of Building Construction
• /
• v.9 no.1
• /
• pp.123-129
• /
• 2009

The global financial crisis resulting from sub-prime mortgage crisis in the United States, beginning in 2007, has had dealt a blow to domestic economy. The economic downturn, coupled with a large number of apartments remaining unsold has resulted in contracted investment sentiment of the builders. Thus it's difficult to even implement the business, unless the investment project is thoroughly verified as well as the accurate profitability is granted. Viewing the current situation, forecasting and evaluating the business profitability is more than important today. The study was planned to identify the factors influencing the business success and to evaluate the sensitivity, relative risk of each factor was measured, and the scope of the study was limited to the commercial buildings among other buildings except apartment buildings. Hence, the study was aimed to analyze the factors affecting the business and the sensitivity so as to be able to systematically materialize the risk management of the commercial buildings. The outcome of the study is expected to serve the useful data in analyzing the business profitability and implementing the investment projects as well.