This study attempts to understand factors influencing the persistence of companie's outsourcing arrangements using the techniques of survival analysis. It provides an insight into the dynamics of outsourcing relationships between clients and vendors. This is particularly relevant considering that current IS sourcing arrangements are strategic and long term, and require close interdependent relationships between the client and the vendor.
Korea's entertainment industry laid its foundation in the early 2000s when global popularity of South Korean soap operas increased in Japan. K-pop has been recently leading the popularity in China. However, many Korean entertainment businesses are dying out. This study reviews factors influencing business survival for 42 chosen corporations listed in the Korea Stock Exchange based on organizational ecology. When all of the variables are analyzed at the same time, long period of public offering and high wages and global sales ratio positively affect business survival. When the individual variables are separately analyzed, long period of public offering and CEO incumbency and high wages and global sales ratio positively affect business survival. Meanwhile, size of businesses do not affect the survival. The results of this study imply that policies to help businesses list an entertainment corporation in the Korea Stock Exchange, increase sales and reciprocity with other culture are needed. Laws and institutions for evaluating intangible asset value should be improved. The results also suggest that a corporation should carefully consider change of CEO and make the best use of the popularity of Korean culture to increase global sales and pay competitive wages to attract professionals.
This study focuses on succession in a family business which is the crucial factor affecting future and survival of a family business. Especially, the study concentrate a successor's view which is regarded as a key-player during the succession. In this study, we used AHP (Analytic Hierarchy Process) methodology to identify priorities of factors influencing succession. We divided into two-tier level. The first-tier is defined as 1) the relationship with an incumbent CEO, 2) a successor 's management ability, 3) a successor' s self-efficacy and 4) succession plan. For the second-tier of each first-tier have 3 sub-factors ; 1) the relationship with an incumbent CEO is set as level of mutual trust, sharing the vision of a company, and level of communication each other. 2) A successor 's management ability is based on business competence, education and training and interpersonal management ability, 3) a successor 's self-efficacy was set as successor' s willingness of succession, confidence of overcoming crisis and confidence of achieving objectives. Lastly, 4) a succession plan is set as finance plan, leadership transformation plan and human-organization management plan. A total of 93 questionnaires is distributed and retrieved, and 88 questionnaires are used for the study, excluding those with missing data. As a result of this study, successors selected 1) the relationship with an incumbent C.E.O. as the most important priority in the first-tier. The second is 2) a successor 's management ability, the third is 3) a successor' s self-efficacy, and the last priority is 4) a succession plan. In particular, 3 sub-factors that make up the relationship with an incumbent are the most important factors. These factors rank the first to the third in the final result.
This study was important considering the prevalence of small business owners in the Korean economy and the challenges they faced amidst an economic downturn. The business performance of these owners was crucial for their survival. Thus, an empirical analysis was conducted to identify factors influencing their management performance. The analysis included personal characteristics of small business owners such as innovativeness, management capability, need for achievement, and technical capability as independent variables, along with product differentiation factors. Additionally, the moderating effect of social capital on these variables and their impact on management performance was tested. To achieve this, a survey targeting small business owners across Korea was conducted, and data from 250 respondents were utilized. Hierarchical regression analysis using SPSS 24.0 was employed for the empirical analysis. The results indicated that management capability, need for achievement, and product differentiation significantly positively impacted business performance. However, the impact of innovativeness and technical capability was not tested. The influence of the variables on business performance ranked as follows: product differentiation, management capability, and need for achievement. The moderating effect of social capital was significant in the relationship between management capability, need for achievement, and management performance, enhancing these relationships. However, the moderating effect of social capital on the relationship between innovativeness, technical capability, product differentiation, and management performance was not tested. These findings underscored the importance of management capability, need for achievement, and product differentiation as key factors affecting the management performance of Korean small businesses. This study was significant as it provided insights into improving the management performance of small business owners in challenging economic conditions by highlighting how the influence of these factors varied depending on the social capital possessed by the owners.
Franchising is one of the fastest growing types of business. It is already popular and well-known in the U.S., and has been growing in many other countries including Korea. Furthermore, many Korean franchising companies have expanded their business overseas actively. According to the data by the Ministry of Industry and Resource, 82 companies out of a sample of 500 franchising companies are already operating in many foreign countries and 48% of them have started their foreign business since 2006. This clearly indicates the fast growing current trend of foreign operation by Korean franchising companies. In spite of the fast growing trend of foreign expansion in the industry, academic research on internationalization of franchising companies is extremely difficult to find. Accordingly, academic research on the issue is necessary and urgent in Korea. Among the various research questions on internationalization of franchising business, this study intends to investigate the difference in organizational factors between the franchising companies doing foreign operation and those doing business only domestically. More specifically, this research has the following purposes. First, considering the lack of theoretical basis of previous studies, resource-based theory and agency theory are employed as the theoretical bases. Second, this study explains the difference in internationalization based on organizational factors such as company size, history and growth rate. Third, the five hypotheses regarding the difference in organizational factors are presented and tested empirically, which is the first attempt in the area of this topic. Finally, the study attempts to clarify the conflicting implications among theories regarding some organizational factos such as growth rate. As the theoretical background, resource-based theory and agency theory are discussed. According to resource-based theory, a firm can grow continuously when it has competence and resource, and also the ability to develop them. The competence and resource can include capital, human resource, management skill, market information, ability to manage risk, etc. Meanwhile, agency theory views the relationship between franchisor and franchisee as an agency relationship. In agency theory, bonding capability and monitoring capability are the two key factors which promote internationalization of franchising companies. Based on the two theories, a conceptual model is designed. The model consists of two groups of variables. One is organizational factors including size, history, growth rate, price bonding and geographic dispersion. The other is whether a franchising company is operating overseas or not. We developed the following five research hypotheses basically describing the relationship between organizational factors and internationalization of franchising companies. H1: The size of franchising companies operating overseas is larger than that of franchising companies operating domestically. H2: The history of franchising companies operating overseas is longer than that of franchising companies operating domestically. H3: The growth rate of franchising companies operating overseas is higher than that of franchising companies operating domestically. H4: The price bonding of franchising companies operating overseas is higher than that of franchising companies operating domestically. H5: The geographic dispersion of franchising companies operating overseas is wider than that of franchising companies operating domestically. Data for the analyses are obtained from 2005 Korea Franchise Survey data co-generated by Ministry of Industry and Resource, GS1 Korea, and Korea Franchise Association. Out of 2,804 population companies, 2,489 companies are excluded for various reasons and 315 companies are selected as the final sample. Prior to hypotheses tests, validity and reliability of the measures of size, history, growth rate and price bonding are examined for further analyses. Geographic dispersion is not validated since it is measured using nominal data. A series of independent sample T-tests is used to find out whether there exists any significant difference between the companies internationalized and those operating only domestically for each organizational factor. Among the five factors, size and geographic dispersion show significant difference, growth rate and price bonding do not reveal any difference and, finally, history factor shows conflicting results in the difference depending on how to measure it.