• Journal of the Korean Operations Research and Management Science Society
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• v.40 no.4
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• pp.1-18
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• 2015

This paper proposes relational capability as a main driver of constructing inter-organizational collaboration networks. Based on social network theory and relational view literature, three components of relational capability are constructed and implemented by an agent-based model. The components include organizational capability, structural capability, and trust between a partner and a focal firm. These three components are updated by two micro mechanisms: structural mechanism and relational mechanism. Structural mechanism is a feedback loop in which the relational capability increases structural capability and vice versa. Relational mechanism is a learning-by-doing process in which a focal firm experiences success or failure of collaboration and the experience increases or decreases cumulative trust in a partner firm. Result of agent-based simulation shows that a collaboration network emerges through interactions of firm's relational capabilities and the characteristics of emerged networks vary with the contribution of structural capability and trust to relational capability. Specifically, in case structural capability contributes more to relational capability, the average degree centrality and collaboration proportion increases as time passes and enters into an equilibrium state. In that case, almost every firms participated in the network collaborates each other so that the emerged network becomes highly cohesive. In case trust contributes more to relational capability, the results are reversed. In an equilibrium state, the balance of contribution between structural capability and trust makes an emerged network larger and maximizes average degree centrality of the network.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.30 no.1
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• pp.15-24
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• 2007

This paper attempts to identify empirically whether the certification of Quality Management System affects positively to firm performance using the sample sets of 200 SMEs in Korea who have adopted ISO 9000 majoring in the domestic markets as well as the overseas markets. The empirical study has been done on the assumptions and the hypothesis that the certification itself can conceptually and practically be considered an effective tool to improve the level of standardization of quality management system, and it would result in higher productivity and good corporate image by enabling firms to strengthen up their capabilities to achieve competitive advantage. The empirical findings show that the ISO 9000 has positively contributed to not only obtaining competitive advantage but also bringing about a superior firm performance as it would be, making sure that the certification itself would be used as a powerful tool for good management. This study also pinpoints that the success/failure in introducing & adopting the certification depends highly upon the managers' interests and concerns, especially the CEO's.

• Journal of Service Research and Studies
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• v.7 no.4
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• pp.109-126
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• 2017

Designing cost-effective service recovery strategies mix has been recognized one of important issues by both service researchers and practitioners. In spite of the rising interest in them, there has been scarce studies on them. In this paper, we try to find cost-effective service recovery strategies mix via game-theoretic modeling. Especially, we focus on the possible incentives such as voucher type reward and service re-performance which have different cost structure. We investigated three questions about the topics as follows:(1) Should the service firm use the possible incentive scheme such as voucher and service re-performance for service recovery?, (2) How much voucher and service re-performance is adequate for service recovery under diverse service failure severity level?, (3) How much voucher and service re-performance is adequate for service recovery under diverse threshold level to make the customer repurchase? The results are as follows:(1) The use of both voucher and service re-performance for service recovery results in greater surplus for the service firm. (2) The higher gets the service failure severity level, the higher total incentives are required in the equilibrium. As service failure severity level gets higher, higher level of discount might be more useful to the service firm. However, service re-performance should be cut down above some critical level of service failure severity in the equilibrium. (3) The higher gets the threshold level to make the customer repurchase, the higher incentives are required in the equilibrium, and the higher portion of voucher incentive is required relative to that of service re-performance in the equilibrium.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.1
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• pp.275-284
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• 2021

Survival analysis was used to analyze whether there is a difference in the effect of leverage on corporate failure according to the firm size. A total of 25,250 (year-company) companies listed on the Korea Stock Exchange and KOSDAQ market from 1999 to 2019 were analyzed. First, the increase in leverage generally acts as a factor that increases the possibility of corporate failure. On the other hand, the increase in the trade payable ratio lowered the possibility of failure of the company. The increase in corporate trade payable was perceived as a factor in reducing the possibility of corporate failure because it was considered the active development of business activities or active use of interest-free debt rather than leading to an increase in corporate risk. Second, a higher leverage ratio and trade payable ratio in large firms lowered the possibility of corporate failure. In the SMEs, all types of leverage increases are a factor that increases corporate failure. Overall, the effect of leverage on corporate failure differs according to the size of the company.

• Journal of Technology Innovation
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• v.18 no.2
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• pp.175-219
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• 2010

Since diversification can be a necessary means for company's survival and the conservation of its success, hundreds of studies have been done by three schools of industrial economics, strategic management, and Neo-Schumpeterian economics for over 30 years. However, any school has not presented a model comprehensively explaining diversification' success or failure. The study tried to suggest a theoretical framework integrating findings came from three schools. The framework considers both firm's technological capabilities and sector-specific characteristics as well as reflects a Neo-Schumpeterian view emphasizing technological aspects. The goal of the study is finding major reasons of success and failure during company's diversification through studying three diversification cases of Samsung. Our findings show that the diversification toward TFT-LCD was easier and more successful than the diversification toward microprocessor because DRAM is more similar to TFT-LCD than microprocessor. Samsung also tended to build only the types of capabilities which were originated from capabilities accumulated in DRAM business. Our findings give firm's strategists a lesson that they can increase the probability of success in diversification, if only they should simultaneously consider a new sector's characteristics, a firm's technological capabilities accumulated in old sectors, and the availability of old capabilities for being applied to a new sector.

• Journal of Korean Society for Quality Management
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• v.47 no.3
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• pp.641-659
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• 2019

Purpose: Recently, the managing customer complaints properly has emerged as key source of competitive advantage in the large distribution industry. Effective customer complaint management helps firms minimize service failures and incense the capability to respond to customer's needs. Despite this importance, the in-depth prior study of a firm's service failures is very limited. Therefore, the actual service failure cases of large discount stores in Korea were analyzed in this study, and the types of service failures that occur at the service interface were identified. Method: Specifically, a total of 48,307 cases of customer complaints that have occurred in the past three years were collected from 1 January 2016 to 31 December 2018. Using 7 dimensions of service marketing mix. we have classified and analyzed systematically the service failure cases collected. Results: Among the cases of service failures, 34,921 (72.3%) cases were involved with the product factor, followed by 6,152 (12.7%) cases with person factor and 5,392 (11.2%) cases with process factor. Conclusion: By linking the main causes of service failure with the service marketing mix variables, this research presented a more systematic analytic model and verified by applying it to large domestic distribution company. Understanding the main factors affecting customer complaints n the large distribution industry can provide managers useful information and insight who want to achieve an effective customer complaint management.

• Asian Journal of Innovation and Policy
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• v.6 no.1
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• pp.23-44
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• 2017

This study explores how the technology commercialization process leads to either success or failure after transfer from PROs to SMEs by conducting a binomial logistic regression analysis. We found that the more additional development a firm implements on the transferred technology, the more likely the commercialization is to fail. The higher number of alternative technology and bigger market risk are associated with a greater likelihood of failure. On the other hand, the existence of complementary technology, the degree of cooperation with the technology provider, the size of the target market, the willingness of the CEO, and the funding availability are known to have positive effects on the success of technology commercialization. In addition, the case studies we conducted from the sample companies demonstrated that "market uncertainty," "technological issues depending on the technology-specific characteristics," and "a lack of funding capability" are some of the causes for failure of technology commercialization.

• The Journal of Economics, Marketing and Management
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• v.8 no.1
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• pp.12-19
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• 2020

Purpose - Strategic causes for the failure include unrealistic growth, overexpansion, unfamiliar new markets, volume obsession, unrealistic promises and poor project selection. Organizational causes are insufficient capital and profits, lack of business knowledge, poor financial management, poor sales skills, inadequate marketing, poor leadership, poor leadership transfer, project losses, poor field performance and owner bankruptcy. Uncontrollable causes include industry and economic weakness and banking and surety changes. While helpful, the list provides insufficient clarity regarding the causal roots of failure. Research design, data and methodology - The research framework to organize the information involved with many of the recent and large failures in the industry. Results - This research then identified five dominant root causes - excessive egoism, poor strategic leadership, too much change, loss of discipline and inadequate capitalization. Conclusion - Finally, additional input from external forces may accelerate the firm's pace to failure. It is important on the development of diagnostic tools that are based on this model and that will provide new ways to assess a conglomerate's level of risk for incurring a financial crisis.

• Asia Pacific Journal of Business Review
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• v.1 no.2
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• pp.37-62
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• 2017

To analyze the effects of R&D expenditure on the firm value of Korean firms, we classified portfolios based on R&D activity levels. After that, we conducted a time-series analysis to assess excess returns from the portfolios. To carry out such an analysis, an empirical analysis of excess returns in the capital market was performed by using the monthly earning rate of stocks from 2000 to 2013. The purpose of this research is to provide basic data on investment to stakeholders in the capital market by analyzing the effects of R&D on the firm value and to overcome scholarly limitations by offering a new model of analysis. The criteria for classifying the portfolios were based on R&D expenditure levels. The analysis models follow the Fama-French Three-Factor Model and the Carhart Four-Factor Model. The analyses results are as follows. Extrapolating monthly profit rates based on R&D expenditure levels, portfolios with low R&D expenditures showed higher earning rates than those with high R&D expenditures. This suggests that high R&D expenditures did not translate into high earning rates. The investor depreciates the R&D expenditures related profitability and the possibility of success in the market, leading to falls in stock prices and a failure to give a positive effect on the firm value. Our research differs from the previous investigations as we carried out an empirical analysis based on the actual investors' attitudes about R&D expenditures and how these can generate excess earnings. Our research results show that the data related to R&D expenditure are not reflected fully in the market.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.4
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• pp.27-37
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• 2015

Start up a company is critical to the regional economy and job creation and so get support from government and other organizations, but there are still exist of high rate of failure and CEO's stressful fear of failure. New firms are of utmost importance for the vitality of national economic driving forces but for those failed firms, they caused social and economic problems directly and indirectly, and brought frustration to the founders. The many education and research programs about entrepreneurship and venture creation were undertaken by the country and organizations, but the education and research about the vigilance of failed to start up company were almost ignored. If the attention can be put into the research about failed companies and the research can make the founders and pre-CEOs aware the failure of establishing a company, that would be very valuable as scenarios to see the company risks. This case study shows the finding the reasons which caused the failure of small venture companies and it's implications in the filed of establishing companies. The technology based venture company which had run 10 years in Daedeok's IT field was selected as the research object. The results show that the important factors such as entrepreneur characteristics(lack of communication and management knowledge), business management(lack of business expertise) and technology(loss of unique feature of product and lack of product extension) were the root cause of failures.