• East Asian Economic Review
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• v.16 no.3
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• pp.249-272
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• 2012

This paper examines how a Korean automobile firm price-discriminates between the Korean and the U.S. markets. We argue that a Korean automobile firm's pricing behavior depends on the differences in price elasticity over the segmented markets between the countries. Our findings are that differences in price elasticity may help explain why a medium-class car's price is higher in Korea than that in the U.S. while a small-sized car's price is higher in the U.S. than in Korea, which implies that a Korean automobile firm $3^{rd}$ degree price-discriminates on the same or similar products between Korea and the U.S. This type of $3^{rd}$ degree price discrimination differs from a typical home-bias effect (charging higher prices to domestic consumers) because a small-sized car which is produced domestically sells at higher price abroad. This finding can be added as a source that violates the law of one price.

• Korean Management Science Review
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• v.32 no.4
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• pp.81-96
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• 2015

This paper models knowledge diffusion on an inter-organizational network. Based on literatures related to knowledge diffusion, the model considers critical factors that affect diffusion behavior including nodal property, relational property, and environmental property. We examine the relationships among network structure, knowledge search, and diffusion performance. Through a massive simulation runs based on the agent-based model, we find that the average path length of a network decreases a firm's cumulative knowledge stock, whereas the clustering coefficient of a firm has no significant relationship with the firm's knowledge. We also find that there is an interaction effect of network structure and the range of knowledge search on knowledge diffusion. Specifically, in a network of a larger average path length (APL) the marginal effect of search conduct is significantly greater than in that of a smaller APL.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.55 no.5
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• pp.214-219
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• 2006

Oligopoly differs from perfect competition and monopoly in that a firm must consider rival firms' behavior to determine its own best policy. This interrelationship among firms is the issue examined in this paper. In the oligopoly market, the complete information market means that each producer has full information about itself, the market, and its rivals. That is, each producer knows the market demand function, its own cost function and the cost functions of rivals. On the other hand, the incomplete information market means that in general each producer lacks full information about the market or its rivals. Here, we assume that each firm doesn't know the cost functions and the strategic biddings of its rivals. The main purpose of this paper is to analyze firm' strategic behaviors and equilibrium in an electricity market with incomplete information. In the case study, the complete information market and the incomplete market are compared at the Nash Equilibrium from the viewpoints of market price, transaction quantities, consumer benefits, and Social Welfare.

• International Journal of Advanced Culture Technology
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• v.11 no.1
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• pp.103-109
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• 2023

This study examines the association between ownership structure and labor investment efficiency. Specifically, this study investigates whether owner-manager firms, where managers own a large percentage of shares in the firm, involve in more efficient labor investment. Based on the management entrenchment hypothesis, managers are more likely to make labor investment decisions to maximize their private benefits rather than creating value for shareholders, resulting in lower efficiency in labor investment. On the other hand, according to the incentive alignment hypothesis, managers tend to make labor investment decisions that will improve future firm performance as their interests are aligned with those of shareholders. In this situation, owner-manager firms are expected to have higher efficiency in labor investment. Our empirical results show that owner-manager firms engage in more efficient labor investment, which contributes to long-term firm value. This study provides empirical evidence that firms' labor investment behavior can vary depending on the characteristics of the ownership structure.

• Journal of the Economic Geographical Society of Korea
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• v.11 no.3
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• pp.375-388
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• 2008

The early studies on the cultural industries had mainly emphasized the viewpoint of "efficiency" based on the "flexible specialization" theory, but they have gradually shed light on the viewpoint of "creativity": creative human resources and various networks generating creative energies. Despite the importance of these studies, it is impossible to explain every cultural industrial agglomeration phenomena from specific and few viewpoints due to the diversity of each cultural industry. This study describes the dissimilarity of agglomeration factors between the Japanese animation and home video game industries which form salient agglomeration in the same region. Both industries share similar characteristics with industrial agglomeration of SMEs in Tokyo and close inter-firm relationships. However, they differ in their historical development paths and each firm's behavior and strategy because of their own distribution systems and production processes. In particular, the difference in distribution systems clearly affects whether a company values "efficiency" factors of agglomeration advantage or "creativity" factors of that in case of locational choice. The distribution sector of the cultural industry, compared with the production sector, has a tendency to value profitability rather than creation itself. Therefore, a cultural industry with the strong distribution sector tends to form the industrial system emphasizing profitability. The Japanese animation firm is apt to choose its location from the perspective of efficiency, which easily contributes to profitability, because television broadcasting stations are strong distribution sector. Conversely, the Japanese game firm chooses its location from the perspective of creativity due to the absence of strong distribution sector.

• Korea Trade Review
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• v.47 no.6
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• pp.21-37
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• 2022

This study sought to look at why Facebook and Twitter, which have dominated the social media market, are moving away from other services. To this end, we sought to identify the causes of churn in terms of firm-level strategic direction and resource allocation, which have not been actively presented to the studies. For this purpose, this study divides the social media firm's strategies into horizontal expansion strategy and vertical integration strategy based on the existing reports and researches, and how each of the representative firms' strategies affects users' switching behavior. As a result, there was a significant difference in the strategic direction of the social media firm, when a horizontal expansion strategy is taken, user's switching intention is higher than when a vertical integration strategy is taken. In addition, the switching intention according to the level of dependence showed that the lower the dependence on social media, the higher the intention to switch to other media. The findings are expected to provide highly realistic and concrete strategic alternatives for a variety of economic actors, such as individuals and companies who want to do business using social media.

• Journal of the Korea Society of Computer and Information
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• v.24 no.8
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• pp.151-158
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• 2019

In this paper, we conducted a study to understand the impacts of safety behavior, safety and health delivery and communication, which should be managed for the establishments' safety and health control on occupational safety and health policy satisfaction to utilize that as a material for preparing policy support and preventive measures. For this purpose, we conducted a statistic analysis with 2,970 establishments, utilizing the material, "2015 Occupational Safety and Health Company Survey". As a result, in the manufacturing industry, it turned out in the establishments with more than 300 workers, safety behavior, safety and health delivery and communication of the cooperative firm of the prime contractor were high. In addition, it turned out that safety behaviors had the biggest impact on occupational safety and health policy satisfaction in the manufacturing industry and safety and health delivery and communication had the biggest impact on occupational safety and health policy satisfaction in the construction industry and other industries. As for the relationship between companies, it turned out that safety behaviors had the biggest impact on that between the parent company and a cooperative firm of a prime contractor while safety and health delivery and communication on that between the prime contractor and the subcontractor. Through the results of this study, it is necessary to build up safety and health behavior and safety and health delivery and communication systems for the characteristics of the company, and it is expected that the effect of the safety and health control will increase when policy support is made accordingly.

• Korean System Dynamics Review
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• v.5 no.1
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• pp.5-33
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• 2004

This study explores how agents would make decisions responding to control mechanism in contractual relationship of their firm. Focusing on agent's averse behavior against control, system dynamics model for agent's opportunistic behavior is developed in view of agent theory and control theory. This SD model shows that control mechanism by contracts doesn't always play a positive role on corporate decision-making process and Control, especially in the over-controlled contracts, often makes a paradox accelerating agent's opportunistic behavior unexpectedly. This paradox provides us both theoretical and practical implications for the relationship between control mechanism and autonomous behavior for sustainable corporate management.

• Journal of Korea Trade
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• v.25 no.6
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• pp.57-77
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• 2021

Purpose - International strategic alliance has been regarded as a strategic decision made by firms' managerial problems and ensure performance growth. From the perspective of the proactive behavior for changing strategies in a global market, this study aims to identify whether performance feedback influences firms' decisions to pursue strategic alliances. This study examines the effects of performance feedback on performance when firms use strategic alliances. Design/methodology - To analyze the impact of performance feedback on forming an international strategic alliance, this study adopt the concept of performance feedback to develop a research model and our hypotheses. Thus, this study used a two-stage least squares unbalanced panel data analysis with random effects. This study is based on 24,543 observations from Korean manufacturing firms from 2007 to 2016. Findings - The results show that firms pursue the formation of strategic alliances more actively, if their past financial and R&D performance are lower than their aspiration level, based on the result of performance feedback. An in split sample analysis for examining the effect of a firm's technology sophistication based on the OECD's classification, negative innovation performance discrepancy has positive effects on the probability of international alliance in high-tech and medium-high-tech industries. Financial performance also improves when a firm decides to form a strategic alliance based on the results of performance feedback. Originality/value - This research extends recent efforts to better understand the effect of performance feedback on firms' performance when they use strategic alliances. These findings suggest that the CEOs and managers of firms should consider the performance feedback perspective when deciding to pursue a strategic alliance to improve performance. In other words, the decision-makers in a firm must analyze and consider various complex variables inside and outside the firm and expand such subjects of examination to more complex and dynamic factors.

• Journal of Convergence for Information Technology
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• v.10 no.11
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• pp.302-312
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• 2020

This study examined whether there is a difference in cost asymmetry between a corporate listed on KOSDAQ and a corporate listed on KOSPI, and whether there is a difference in cost asymmetry depending on the size of the listed corporate. In the previous study, cost asymmetry was examined only for listed corporate, but the difference in size between KOSDAQ-listed corporate and KOSPI-listed corporate was not examined. However, according to many studies, since the characteristics of corporate and firm risks are different between corporate listed on KOSPI and corporate listed on KOSDAQ, or even for listed corporate, such an impact may affect the decision-making of internal resource allocation. The analysis was conducted that there would be a difference in the impact. For this study, the results of analyzing the KOSPI and KOSDAQ markets from 2011 to 2019 using the cost behavior model of Anderson et al. (2003), There was a difference in cost behavior in the KOSPI and KOSDAQ markets. Overall, as in previous studies, Cost Stickiness was appeared. but in the case of the KOSPI market, Cost Stickiness was mitigated.It was found that corporate with large corporate size made the decision to dispose of idle resources more clearly when sales decreased. In addition, it was observed that the higher the foreign investor's ownership ratio, the KOSPI market, and the larger the corporate size, the more clearly the Stickiness of cost was mitigated. This study expands research on cost asymmetry and reveals that there is a difference between the KOSPI market and the KOSDAQ market, and between the size of the corporate, and has a differentiation from previous studies.