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Organizational Factors Facilitating the Internationalization of Korean Franchising Companies (해외진출 국내 프랜차이즈기업의 조직특성)

  • Lim, Young-Kun;Lee, Dong-Whuy;Kim, Hee-Jung
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.2
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    • pp.40-52
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    • 2009
  • 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.

    shows the summary statistics for hypotheses testing. In conclusion, the results show that the size and history, which are the key variables in resource-based theory, have a significant relationship with internationalization and that geographic area, which belongs to agency theory, also has a strong relationship with internationalization. The results support the findings of extant research and, therefore, prove the usefulness of resource-based theory and agency theory in explaining internationalization of franchising companies. However, growth rate and price-bonding do not show a clear difference between the two types of companies. Accordingly, these two factors need further attention in the future research. Although this study shows meaningful findings theoretically and practically, it has several limitations. First, only organizational factors are considered even if there are various environmental factors influencing franchising firm's internationalization. Second, only being internationalized or not is considered. That is, modes of entry and the size of foreign operations are not included in the study. Third, internationalization strategy is often determined based on the desire for business expansion and higher profitability and egoistical reasons of the CEOs. However, this type of factors belonging to behavioral science is not discussed in the study. Finally, organizational ecology perspective is usefully applicable in explaining the survival and performance of internationally operating companies. Accordingly, research propositions based on this perspective need to be developed and tested.

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  • A Study on Business Diversification and Business Performance of Korean Mass Media Enterprises (국내 매스미디어 기업의 사업다각화와 경영성과에 관한 연구)

    • Chang, Yun-Hi
      • Korean journal of communication and information
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      • v.43
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      • pp.173-208
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      • 2008
    • This study analyses the business performance according to the business diversification of Korean mass media enterprises from year 2003 to 2006. The conclusions drawn which could be divided into five main parts are the followings: First, newspaper companies pursue unrelated diversification in various industrial areas, in order to gain maximum profit while broadcasting companies exert themselves to provide better service by diversifying the major contents. Second, overall the interviewed companies display a constant decline in profit gained from their major business area thus establishing strategies to broaden their focus on diversification of any sort. Third, the researcher completed group analysis in regard of diversification measure resulting in division of three groups. The group which had the most immense diversification range gained the highest ROE, the lowest ROE volatility, and lesser probability of risk taking. The analysis adresses the companies broadening their business areas by researching and focusing on diversification are relatively stable in terms of the profit they gain. Fourth, the middle level group in terms of sales scale, debts, enterprise history, major share rate and high ROE group carry out diversification progressively. The sales scale affects positively to diversification, while the major share rate affects negatively to diversification. Fifth, in accordance to the research, diversification overall contributes to obtainance of successful outcome. Since there was not an immense amount of studies to be referred in the media area, the researcher interviewed and did panel discussion with numerous strategists and managers who are in charge of diversification of media companies. However, collection of only 4 years of data limits the research to be considered to be a generalized study, and does not reflect time gap between business diversification and business performance. Development is required in future studies to be established regarding the media companies' specificity different to other industries, classified the media companies into media types, and consider the time gap in the diversification activities and business performance.

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    The Effect of The Types of Manufacturing Factories on Transferred Essence and Consumers' Perceived Value: Moderating Safety Product Betrayal (제조공장 유형이 본질 전이와 소비자의 가치 인식에 미치는 영향: 안전제품 배신을 중심으로)

    • Jeong, Heonbae;Lee, Yongju
      • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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      • v.11 no.5
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      • pp.117-128
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      • 2016
    • In order to extend FOO, this research has the object to demonstrate existing the difference of transferred essence and value between the types of factories(Original factory vs Extended factory). A safety product should save consumers from possible harm or risk, but it sometimes gives directly some damage to consumers. For example, like the issue of a germicide problem in 2016, a germicide killed consumers because of harmful chemistry even it should kept their health. This situation refer to 'Safety product betrayal', we expected that safety product betrayal presence/absence conditions moderate the relationship between types of factories, transferred essence and value. We selected a car air-bag as a safety product for study and implemented one study with total 213 participants. As a result, the participants evaluated the value of an air-bag manufactured throughout an original factory higher than the value of an air-bag manufactured throughout an extended factory. Futhermore, they evaluated the transferred brand essence of an original factory's air-bag higher than an extended factory's. However, in the safety product betrayal presence condition, the difference of value and transferred essence between an original factory and an extend factory was disappeared. Indeed, once consumers experienced or saw safety product betrayal, they avoided to buy or use safety products. Therefore, consumers evaluated the value and transferred essence of betrayed safety products is low without the types of manufacturing factories. From the past to now, there was no paper about the relationship between the types of manufacturing factories(Orignal factory vs Extended factory) and safety product betrayal in Korea. Therefore, this research on FOO and safety product betrayal can give new theoretical and operational contribution. In the conclusion, we discussed the contribution of the study results and proposed the limitation and future study.

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    The Effects of Psychological Contract Violation on OS User's Betrayal Behaviors: Window XP Technical Support Ending Case (심리적 계약 위반이 OS이용자의 배신 행동에 미치는 영향: 윈도우 XP 기술적 지원서비스 중단 사례)

    • Lee, Un-Kon
      • Asia pacific journal of information systems
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      • v.24 no.3
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      • pp.325-344
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      • 2014
    • Technical support of Window XP ended in March, 8, 2014, and it makes OS(Operating System) users fall in a state of confusion. Sudden decision making of OS upgrade and replacement is not a simple problem. Firms need to change the long term capacity plan in enterprise IS management, but they are pressed for time and cost to complete it. Individuals can not help selecting the second best plan, because the following OSs of Window XP are below expectations in performances, new PC sales as the opportunities of OS upgrade decrease, and the potential risk of OS technical support ending had not announced to OS users at the point of purchase. Microsoft as the OS vendors had not presented precaution or remedy for this confusion. Rather, Microsoft announced that the technical support of the other following OSs of Wndow XP such as Window 7 would ended in two years. This conflict between OS vendor and OS users could not happen in one time, but could recur in recent future. Although studies on the ways of OS user protection policy would be needed to escape from this conflict, few prior studies had conducted this issue. This study had challenge to cautiously investigate in such OS user's reactions as the confirmation with OS user's expectation in the point of purchase, three types of justice perception on the treatment of OS vendor, psychological contract violation, satisfaction and the other betrayal behavioral intention in the case of Window XP technical support ending. By adopting the justice perception on this research, and by empirically validating the impact on OS user's reactions, I could suggest the direction of establishing OS user protection policy of OS vendor. Based on the expectation-confirmation theory, the theory of justice, literatures about psychological contract violation, and studies about consumer betrayal behaviors in the perspective of Herzberg(1968)'s dual factor theory, I developed the research model and hypothesis. Expectation-confirmation theory explain that consumers had expectation on the performance of product in the point of sale, and they could satisfied with their purchase behaviors, when the expectation could have confirmed in the point of consumption. The theory of justice in social exchange argues that treatee could be willing to accept the treatment by treater when the three types of justice as distributive, procedural, and interactional justice could be established in treatment. Literatures about psychological contract violation in human behaviors explains that contracter in a side could have the implied contract (also called 'psychological contract') which the contracter in the other side would sincerely execute the contract, and that they are willing to do vengeance behaviors when their contract had unfairly been broken. When the psychological contract of consumers had been broken, consumers feel distrust with the vendors and are willing to decrease such beneficial attitude and behavior as satisfaction, loyalty and repurchase intention. At the same time, consumers feel betrayal and are willing to increase such retributive attitude and behavior as negative word-of-mouth, complain to the vendors, complain to the third parties for consumer protection. We conducted a scenario survey in order to validate our research model at March, 2013, when is the point of news released firstly and when is the point of one year before the acture Window XP technical support ending. We collected the valid data from 238 voluntary participants who are the OS users but had not yet exposed the news of Window OSs technical support ending schedule. The subject had been allocated into two groups and one of two groups had been exposed this news. The data had been analyzed by the MANOVA and PLS. MANOVA results indicate that the OSs technical support ending could significantly decrease all three types of justice perception. PLS results indicated that it could significantly increase psychological contract violation and that this increased psychological contract violation could significantly reduce the trust and increase the perceived betrayal. Then, it could significantly reduce satisfaction, loyalty, and repurchase intention, and it also could significantly increase negative word-of-month intention, complain to the vendor intention, and complain to the third party intention. All hypothesis had been significantly approved. Consequently, OS users feel that the OSs technical support ending is not natural value added service ending, but the violation of the core OS purchase contract, that it could be the posteriori prohibition of OS user's OS usage right, and that it could induce the psychological contract violation of OS users. This study would contributions to introduce the psychological contract violation of the OS users from the OSs technical support ending in IS field, to introduce three types of justice as the antecedents of psychological contract violation, and to empirically validate the impact of psychological contract violation both on the beneficial and retributive behavioral intentions of OS users. For practice, the results of this study could contribute to make more comprehensive OS user protection policy and consumer relationship management practices of OS vendor.

    A Study on the Relationship Between Entrepreneur Characteristics and the Performance of Small Firms (창업자 특성과 소기업 사업성과 간 관계에 관한 연구)

    • Kim, Wan-Jae;Chung, Hwa-Young
      • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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      • v.2 no.3
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      • pp.33-60
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      • 2007
    • This study alms to analyze the entrepreneur characteristics of founder on enterprise performance from the strategic viewpoint as well as features of founder of small firms such as background feature of founder, psychological features and management skill. As considered by Background features of founder include educational background of founder, his experience in business creation, consultation or course related to business creation. This study verified the effects of factor which business performance (financial, non financial) on small firms. Also, this study considered psychological features of founder include achievement desire, risk-free propensity, level of patience on vagueness and control position. And it analyzed that between such factors and performance of small firms were examined in related. In the mean time, management ability of founder, entrepreneur ability, technical and function ability were considered for management skill of founder and alalyzed effect of the factors on performance of small firm were examined. Effects of strategic intention of founder of small firm were analyzed by the strategic viewpoint. At this time, strategy of small firm was divided into product-service reform differentiation strategy, marketing differentiation strategy and cost leadership strategy. This study distributed questionnaire on CEO of small firms in Daejeon and Chungnam area for accomplish the study objective and it collected a total of 145 copies of questionnaires. As a result of analyzing collected questionnaire, this study deduced the following study results and suggestions. First, results different from those of existing studies were found Since sales, net income and profit rate of small firm were not high cause economic depression on the whole. Second, entrepreneur ability was found to be required for success of business creation. Entrepreneur ability of founder was the factor that affects both financial and non - financial performance of small firm. As such, entrepreneur ability can be regarded as the most important factor for success in business creation of small firm. Accordingly, entrepreneur ability is the most important source for success in business creation of small firm. Third, strategy of small firm was found to be the important factor that affects the non-financial performance even if it could not give significant effects on financial performance. Thus, product service reform differentiation strategy, marketing differentiation strategy and cost leadership strategy have significant effects on non - financial performance of small firm. Accordingly, it is required to operate small firm with strategic mind - set for small firm to achieve success. This study analyzed the effects of feature of founder and strategy of small firm on business performance of small firm through practical analysis on small firms in Daejeon and Chungnam area, and deduced meaningful results. However, Since this study collected data on small firms in Daejeon and Chungnam only, there is a limit in generalizing the results of this study to all small firms in Korea. Companies answering to this questionnaire process were mainly wholesale and retail service companies. In addition, there is a limit in that it failed to analyze feature of representative type of industry due to limit in number of sample, it is required to divide representative type of industry and to compare and analyze types of industry in future studies.

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    Analysis of Unrest Signs of Activity at the Baegdusan Volcano (백두산 화산의 전조활동 분석 연구)

    • Yun, Sung-Hyo;Lee, Jeong-Hyun
      • The Journal of the Petrological Society of Korea
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      • v.21 no.1
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      • pp.1-12
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      • 2012
    • The Baegdusan volcano is one of the most active volcanoes in northeastern Asia, and the 10th century eruption was the most voluminous eruption in the world in recent 2,000 years. During the period from 2002 to 2005, volcanic earthquakes and abnormal surface distortions by suspected subsurface magma intrusion beneath the volcano were observed in the Baegdusan area. Seismic activity has gradually increased with earthquake swarms during 2002-2003 and hundreds of seismic event in a day, especially annual peak of 2,100 in 2003. Then the number of seismic activity has declined since 2006 to the background level in 1999-2001. According to the typical frequency of volcanic earthquakes in the Baegdusan volcano, the frequency distribution of typical volcanic earthquakes between 2002 and 2005 indicates that all the main frequency of the earthquakes basically falls down less than 5 Hz and 5-10 Hz. These events are all the VT-B and LP events caused by the shallow localized fracture and intrusion of magma. The horizontal displacement measurement by GPS during the period from 2000 to 2007 of the Baegdusan stratovolcano area indicates that an inflated process has been centered at the summit caldera since 2002. The displacement between 2002 and 2003 reached at a maximum value of 4 cm. After 2003, the deformation rate of the volcano continued to decrease with unusual variation during the period from 2006 to 2007. After 2003 the vertical displacement uplift rate falls down gradually but still keeps in an uplift trend in northern slope. It is generally believed that when $^3He/^4He(R)$ in a gas sample from a hot spring exceeds $^3He/^4He(R)$ in the atmosphere, it can be concluded that mantle-source. And temperatures of hot springs are rising steadily to $83^{\circ}C$. It is unrest signals at the Baegdusan, which is potentially active. The Baegdusan volcano is now in unrest status, there is eruption threat in the near future. Intensified monitoring and emergency response plan for volcanic risk mitigation are urgent for the volcano.

    Evaluation of Attenuation Rate Error on Skin Dosimeter using Monte Carlo Simulation in Photon and Electron Beam Therapy (광자선 및 전자선 치료에서 피부선량계의 측정과 시뮬레이션을 이용한 감약률 오차 평가)

    • Han, Moo-Jae;Yang, Seung-Woo;Heo, Seung-Uk;Bae, Sang-Il;Moon, Young-Min;Park, Sung-Kwang;Kim, Jin-Young
      • Journal of the Korean Society of Radiology
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      • v.14 no.6
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      • pp.841-848
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      • 2020
    • In the field of radiation therapy using photon beams and electron beams, since each patient has a different sensitivity to radiation, skin side effects may occur even at the same dose. Therefore, if there is a risk of excessive dose to the skin, a dosimeter is attached to verify whether the correct dose is being investigated. However, since the skin dosimeter checks the attachment site visually by measuring a point dose, it is difficult to confirm an accurate dose distribution. As a result, the measurement and simulation errors of the material HgI2 in the 6 MV photon beam were 3.73% and 5.24%, respectively, at the minimum thickness of 25 ㎛, and the material PbI2 was 4.73% and 5.65%, respectively. On the other hand, as a result of the 6 MeV electron beam, the measurement and simulation errors of the material HgI2 were 1.35% and 1.12%, respectively, at a minimum thickness of 25 ㎛, and the material PbI2 showed relatively low attenuation error, 1.67% and 1.20%, respectively. Therefore, it was evaluated that the thickness of the photon beam within 25 ㎛ and the electron beam within 100 ㎛ is suitable to have a reduction rate error within 5%. This study presents a new research direction for a flexible dosimeter attached to the human body that is required in clinical practice and the construction conditions of a future skin dosimeter.

    An Epidemiologic Study on the Seropositive Rate of Hepatitis A Virus in Children of Gwangju and Jeonnam (광주, 전남 지역 소아의 A형 간염 항체 보유율에 대한 연구)

    • Jung, Ji;Ahn, Young-Joon;Moon, Kyung-Rye
      • Pediatric Gastroenterology, Hepatology & Nutrition
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      • v.14 no.1
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      • pp.67-73
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      • 2011
    • Purpose: Recently, the incidence of acute hepatitis A has increased nationwide and is related to a low rate of IgG anti-HAV production. To establish effective measures for preventing hepatitis A virus infection, an epidemiologic study on the seroprevalence of anti-HAV is needed. Thus, we investigated the seroprevalence of IgG anti-HAV in children living in Gwangju and Jeonnam. Methods: IgG anti-HAV levels were measured in a total of 1,435 patients who visited Chosun University Hospital between January 2009 and December 2009. Results: The overall seropositve rate was 40.8% (586/1,435). The seropositive rates were 41% among children under the age of 1 year, 49.9% for children 1~5 years old, 51.1% among individuals 5~10 years old, 12.9% for individuals 10~15 years old, and 8.2% for subjects over 15 years old. There was no significant difference between genders in any group. The seropositive rates in Gwangju and Jeonnam were 57.3% and 32.9% for children under the age of 1 year, 52.5% and 44.3% for children 1~5 years old, 60.2% and 33.9% among children 5~10 years old, 14.1% and 9.7% for children 10~15 years old, and 10.8% and 4.2% for individuals over 15 years old. Conclusion: The results demonstrated the low rates of IgG anti-HAV, particularly among subjects over 10 years old, which suggests the possibility of increasing clinical HAV infection rates among adults in the near future. We should actively prevent the spread of hepatitis A virus. Vaccination is the most effective means of preventing hepatitis A virus transmission among persons at risk for infection. Hepatitis A vaccination is recommended for children who have low IgG anti-HAV seropositive rates.

    An Analysis of Efficiency of Security Services : A Comparative Determinants Analysis of Public and Private Security (경호업무 효율성에 관한 연구 : 공공경호와 민간경호의 효율성 영향요인의 비교분석)

    • Park, Moon-Sun
      • Korean Security Journal
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      • no.19
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      • pp.67-103
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      • 2009
    • Objectives of this study is develop security services through determinants analysis on the efficiency of security works regarding security and guarding business in Korea because nowadays the modern society like Korea let alone all over the world faces the increase of dangerous factors in every security field of the human societies, and also it is the very present situation that an individual's life even the national security itself can be at the risk without guaranteeing the efficiency of the security services. For this purpose, this study reviewed related documents, surveyed and interviewed security personnels to identify what the potentially influential factors are in both the public and private security organizations regarding the efficiency of present security services and organizations, and what differences are. Also, comparing the public and private security sectors, this study intended to suggest policy agendas how to enhance the efficiency of security services in the future. This study surveyed the 177 agents and former agents of the Presidential Security Service(PSS) for the public security sector, and also surveyed, interviewed, and internet-based polled 821 randomly selected personnels for the private security sector. This research showed that regarding the efficiency of the security services number of independent variables which had positive responses in the public security sector was more than that in the private security sector. Among the 21 questions regarding this issue, there were all of 21 positive responses in the public security sector while there were 18 negative responses in the private security sector. As a result of synthesizing all the answers of the both sides, it is possible to understand that mostly the ratio of the positive response was much higher. In the public security service, statistically significant variables were budget support for events, prior access of information, an integrated teamwork training, organizational atmosphere, morale of organization personnel. However, practical training of the security service and mutual communication showed unexpectedly negative(-) signs. In the private security service, statistically significant variables were budget support for events, integrated teamwork training, socially friendly atmosphere, compensation for the personnels, bullet-proof equipments and vehicles, mood of organization, personnel recruit and disposition, unexpected incidents and basic attitude for security services. In sum, while organizational personnel variables and organizational management variables were significant in the public security service, some organizational management variables and all socio-environment variables were statistically significant at 5% significance level.

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    Usefulness of Data Mining in Criminal Investigation (데이터 마이닝의 범죄수사 적용 가능성)

    • Kim, Joon-Woo;Sohn, Joong-Kweon;Lee, Sang-Han
      • Journal of forensic and investigative science
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      • v.1 no.2
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      • pp.5-19
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      • 2006
    • Data mining is an information extraction activity to discover hidden facts contained in databases. Using a combination of machine learning, statistical analysis, modeling techniques and database technology, data mining finds patterns and subtle relationships in data and infers rules that allow the prediction of future results. Typical applications include market segmentation, customer profiling, fraud detection, evaluation of retail promotions, and credit risk analysis. Law enforcement agencies deal with mass data to investigate the crime and its amount is increasing due to the development of processing the data by using computer. Now new challenge to discover knowledge in that data is confronted to us. It can be applied in criminal investigation to find offenders by analysis of complex and relational data structures and free texts using their criminal records or statement texts. This study was aimed to evaluate possibile application of data mining and its limitation in practical criminal investigation. Clustering of the criminal cases will be possible in habitual crimes such as fraud and burglary when using data mining to identify the crime pattern. Neural network modelling, one of tools in data mining, can be applied to differentiating suspect's photograph or handwriting with that of convict or criminal profiling. A case study of in practical insurance fraud showed that data mining was useful in organized crimes such as gang, terrorism and money laundering. But the products of data mining in criminal investigation should be cautious for evaluating because data mining just offer a clue instead of conclusion. The legal regulation is needed to control the abuse of law enforcement agencies and to protect personal privacy or human rights.

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