• Title/Summary/Keyword: Growth Enterprise Market

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Effect of Venture Capitalists on the ChiNext IPO First-Day Return in China (중국 차이넥스트 시장의 벤처캐피탈이 IPO 첫날 수익률에 미치는 영향)

  • Kang, Kai;Ahialey, Joseph Kwaku;Kang, Ho-Jung
    • Management & Information Systems Review
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    • v.36 no.4
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    • pp.117-127
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    • 2017
  • In recent times the size of the world IPO in general has skyrocketed. Specifically, China's financial market development is becoming important as both the size of China's capital market and the number of companies going public are gradually increasing. This has led to a rapid development of venture vapital(VC) institutions in China for the past couple of decades. This study focuses on one of the three markets of China's Shenzhen Stock Exchange-the Growth Enterprise Board((GEB) hereafter, ChiNext). The ChiNext is established in October, 2009 to enable hi-tech or high growth potential technology companies that find it relatively difficult to fulfil the listing requirements of either the Shenzhen Main Board or Small and Medium Size Enterprise Board(SMEB) to go public. This study covers a three-year period(2012/01/-2015/01) and analyze first day initial return of 83 venture capital-backed companies and 53 non-venture capital-backed companies using T-test. Regression analysis is used as to examine the variables affecting IPO's first-day return. The empirical results are four-fold. First, the level of first day return of venture-backed is significantly lower than non venture capital backed support in the Chinese venture capital market. Second, the level of first-day return of listed companies supported by foreign venture capital is significantly higher than that of companies receiving domestic venture capital support. Third, the firms that have a large number of venture capital firms showed a low level of first-day return. Fourth, regression result for the IPO first-day return which is as dependent variable indicates that the venture capital support(VCAP), number of venture capital(VCNum), offering size(Lnsize) and PER all affect have negative effect on the first day initial return. Also, the venture capital type(VCType), turnover ratio and the the firm type(Tech-firms) statistically affect IPO first day return positively. Finally, by shedding more light on the IPO first-day return, this paper provides meaningful information to investors about the Chinese IPO market.

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Impact of Business Diversification Strategy on Firm Performance of Post-IPO Ventures in Korea (코스닥 등록 이후 벤처기업의 사업다각화가 기업성과에 미치는 영향)

  • Kang, Won Jin;Lee, Byung Heon;Oh, Wang Geun
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.8 no.2
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    • pp.21-33
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    • 2013
  • This study analyzes the effects of diversification on business results and enterprise values of KOSDAQ-listed venture companies to inquire into the effective diversification strategies of venture companies after an initial public offering (IPO). In particular, this study used the Berry-Herfindahl index as a proxy variable regarding the level of diversification of venture companies, and categorized the diversification methods into M&As, strategic partnerships and establishment of subsidiaries to analyze the effects of the mutual interaction among such methods. The following is a summary of the results of the analysis. First, diversification did not have any statistically significant effects on business growth. However, it was found that there was an inverted U-shaped relationship between diversification and the profitability of the company. Second, although no statistical significance was found between enterprise values measured based on diversification and market value, a U-shaped relationship or positive relationship was found. Third, M&As were found to moderate the relationship between diversification and business results and enterprise values. Fourth, strategic relationship and establishment of subsidiaries was found to moderate the relationship between diversification and the profit results of the company. Based on the above findings, this study discovered the practical implications regarding the diversification of venture companies after listing on the KOSDAQ.

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A Study of Determinants of the Sustainability of the Social Innovative Enterprise: Case Research on Fragrant People Co. (사회혁신기업의 지속가능성 결정요인 연구: (주)향기내는사람들 사례분석)

  • Yang, Oh-Suk
    • Journal of International Area Studies (JIAS)
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    • v.19 no.1
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    • pp.157-204
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    • 2015
  • This paper explores firm-specific internal and external determinants of the sustainability of "the social innovative enterprise(SIE)" by conducting a case research on Fragrant People Co. In doing so, some business and policy implications have been produced concerning the components and determinants of the sustainability of the SIE. First, entrepreneurship is a necessary factor for the survival and growth of the SIE. A social entrepreneur does manage effectively social and economic opportunities for making economic and social values interact dynamically beyond their trade-off relationship and creating new market chances. Second, the SIE also needs competitive advantages as commercial enterprises do. Valuable resources to be used for taking opportunities and avoiding threats, rare resources not to be possessed by other firms, and resources not to be easily imitated by competitors are extremely necessary for achieving objectives of the SIE. In addition, a firm must be well organized for those valuable, rare, and not easily imitated resources. Economic performance achieved by the SIE gives a birth to its financial independence, contributing to the realization of symmetric social performance. Third, the SIEs will be allowed to seek symmetrically economic and social performance only when they use sufficiently competitive advantage resources with entrepreneurship, which is composed of innovativeness, proactiveness, agility and risk-taking attitudes. In doing so, financial assistance from central or local governments may not ensure the sustainability of the SIEs. In addition, vision & value sharing(person-organization fit) can ensure the sustainability of the SIEs only when it is connected with the organizational commitment.

A Study on the Integrated Performance Measurement Framework for R&D Organization (연구개발 조직의 통합적 성과평가 체계에 관한 연구)

  • Lee Yeong-Cha;Jeong Min-Yong;Jeong Seon-Ho
    • Proceedings of the Society of Korea Industrial and System Engineering Conference
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    • 2002.05a
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    • pp.113-118
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    • 2002
  • Research and Development(R&D) was once considered to be a unique, creative and unstructured process that was difficult, if not impossible, to manage and control. R&D decisions impact the entire enterprise. Therefore, decisions must not be based solely on R&D's perception of what is important or worthwhile. R&D contributions are difficult to measure separately from other functional organizations such as manufacturing and marketing. While some firms are attempting to overcome perceived limitations in traditional accounting-based performance measures using ROI, EVA, others are embracing the use of non-financial measures for decision making and performance evaluation. In particular, many firms are implementing 'Balanced Scorecard(BSC)' systems that supplement traditional accounting measures with non-financial measures focused on at least three other perspectives-customers, internal business processes, and learning and growth. AHP is a popular multi-attribute decision making model that allows for the development of importance rankings. The AHP has been applied in a wide variety of practical settings to model complex decision problems. The former, determine Perspectives and the Key Performance indicator(KPI) through the former research, the latter compose the questionnaire for determine the weight of perspectives and KPIs. And then, make a survey with researchers about 4 perspectives and 18 KPIs. The results will be simulate with Expert Choice 2000 for determine the weights. This results helps establish the firm's business strategy and technology strategy The firm should establish the business strategy to consider market position, business growth potential, and technological capabilities.

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Design and Implementation of Channel Server Model for Large-scale Channel Integration (대용량 채널 통합을 위한 채널 서버 모델 설계 및 구현)

  • Koo, Yong-Wan;Han, Yun-Ki
    • Journal of Internet Computing and Services
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    • v.10 no.1
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    • pp.123-134
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    • 2009
  • The CRM(Customer Relationship Management) is a business strategy model which can reap higher profits and can provide a competitive edge to an enterprise in today's new business environments. Early next year (2009), the Capital Market Consolidation Act will be in effect in South Korea. This is required for a qualitative growth to provide QoS (Quality of Service) and ensure growth in finance, IT industry & service. Accordingly, the securities and insurance companies, banks and other financial institutions make efforts to improve their derivative financial product and also enhance their services. In this paper we design and implement a Channel Server model for a Scalable Service Channel Server to efficiently manage the high volumes of inbound customer interactions based on the requirements of a CRM center. The proposed Scalable Service Channel Server supports integration with other third party service and standardization of multiple inbound service channels. The proposed model can be efficiently used in an inbound CRM center of any banking, finance, securities and insurance establishments.

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Development of Distributed MRP System for Production Planning and Operation in Korean OEM/ODM Cosmetics Manufacturing Company (국내 OEM/ODM 화장품 제조기업의 생산계획 및 효율화를 위한 분산형 MRP시스템 개발)

  • Jang, Dongmin;Shin, Moonsoo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.43 no.4
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    • pp.133-141
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    • 2020
  • Up to date cosmetic OEM/ODM (original equipment manufacturing/original development manufacturing) industry receives attention as a future growth engine due to steady growth. However, because of limited research and development capability, many companies have employed commercial management platforms specialized for large-sized companies; thus, overall system effectiveness and efficiency is low. Especially, MRP (material requirement planning) system introduced originally in 1970s is employed to calculate the requirement of the parts. However, dynamic nature of production lead time usually results in incorrect requirements. In addition, its algorithm does not consider the capability of the production resources. Also, because the commercial MRP system calculates all subcomponent for fixed period, the more goods have subcomponent, the slower calculation is. Therefore, conventional MRP system cannot respond complicated situation in time. In this study, we will suggest a new method that can respond to complicated situations resulting from short lead time and urgent production order in Korean cosmetic market. In particular, a distributed MRP system is proposed, that consists of multi-functional and operational modules, based on the characteristic of the BOM (bill of material). The distributed MRP system divides components (i.e. products and parts) into several fields and decrease the problem size; thus, we can respond to dynamically changed data any time. Through this solution, we can order components quickly, adjust schedules and planned quantity, and manage stocks reasonably. In addition, a prototype of the distributed MRP system is presented in this paper, in which ERP (enterprise resource planning) sever data is associated with an excel spreadsheet via MSsql. System user interface is implemented by a VBA (visual basic for applications) tool. According to a case study, response rate for delivery and planning achievement rate were enhanced about 20%, and inventory turnover was also decreased. Consequently, the proposed system improves overall profit.

A Data-based Sales Forecasting Support System for New Businesses (데이터기반의 신규 사업 매출추정방법 연구: 지능형 사업평가 시스템을 중심으로)

  • Jun, Seung-Pyo;Sung, Tae-Eung;Choi, San
    • Journal of Intelligence and Information Systems
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    • v.23 no.1
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    • pp.1-22
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    • 2017
  • Analysis of future business or investment opportunities, such as business feasibility analysis and company or technology valuation, necessitate objective estimation on the relevant market and expected sales. While there are various ways to classify the estimation methods of these new sales or market size, they can be broadly divided into top-down and bottom-up approaches by benchmark references. Both methods, however, require a lot of resources and time. Therefore, we propose a data-based intelligent demand forecasting system to support evaluation of new business. This study focuses on analogical forecasting, one of the traditional quantitative forecasting methods, to develop sales forecasting intelligence systems for new businesses. Instead of simply estimating sales for a few years, we hereby propose a method of estimating the sales of new businesses by using the initial sales and the sales growth rate of similar companies. To demonstrate the appropriateness of this method, it is examined whether the sales performance of recently established companies in the same industry category in Korea can be utilized as a reference variable for the analogical forecasting. In this study, we examined whether the phenomenon of "mean reversion" was observed in the sales of start-up companies in order to identify errors in estimating sales of new businesses based on industry sales growth rate and whether the differences in business environment resulting from the different timing of business launch affects growth rate. We also conducted analyses of variance (ANOVA) and latent growth model (LGM) to identify differences in sales growth rates by industry category. Based on the results, we proposed industry-specific range and linear forecasting models. This study analyzed the sales of only 150,000 start-up companies in Korea in the last 10 years, and identified that the average growth rate of start-ups in Korea is higher than the industry average in the first few years, but it shortly shows the phenomenon of mean-reversion. In addition, although the start-up founding juncture affects the sales growth rate, it is not high significantly and the sales growth rate can be different according to the industry classification. Utilizing both this phenomenon and the performance of start-up companies in relevant industries, we have proposed two models of new business sales based on the sales growth rate. The method proposed in this study makes it possible to objectively and quickly estimate the sales of new business by industry, and it is expected to provide reference information to judge whether sales estimated by other methods (top-down/bottom-up approach) pass the bounds from ordinary cases in relevant industry. In particular, the results of this study can be practically used as useful reference information for business feasibility analysis or technical valuation for entering new business. When using the existing top-down method, it can be used to set the range of market size or market share. As well, when using the bottom-up method, the estimation period may be set in accordance of the mean reverting period information for the growth rate. The two models proposed in this study will enable rapid and objective sales estimation of new businesses, and are expected to improve the efficiency of business feasibility analysis and technology valuation process by developing intelligent information system. In academic perspectives, it is a very important discovery that the phenomenon of 'mean reversion' is found among start-up companies out of general small-and-medium enterprises (SMEs) as well as stable companies such as listed companies. In particular, there exists the significance of this study in that over the large-scale data the mean reverting phenomenon of the start-up firms' sales growth rate is different from that of the listed companies, and that there is a difference in each industry. If a linear model, which is useful for estimating the sales of a specific company, is highly likely to be utilized in practical aspects, it can be explained that the range model, which can be used for the estimation method of the sales of the unspecified firms, is highly likely to be used in political aspects. It implies that when analyzing the business activities and performance of a specific industry group or enterprise group there is political usability in that the range model enables to provide references and compare them by data based start-up sales forecasting system.

An Empirical Study on the Influencing Factors of Perceived Job Performance in the Context of Enterprise Mobile Applications (업무성과에 영향을 주는 업무용 모바일 어플리케이션의 주요 요인에 관한 연구)

  • Chung, Sunghun;Kim, Kimin
    • Asia pacific journal of information systems
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    • v.24 no.1
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    • pp.31-50
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    • 2014
  • The ubiquitous accessibility of information through mobile devices has led to an increased mobility of workers from their fixed workplaces. Market researchers estimate that by 2016, 350 million workers will be using their smartphones for business purposes, and the use of smartphones will offer new business benefits. Enterprises are now adopting mobile technologies for numerous applications to increase their operational efficiency, improve their responsiveness and competitiveness, and cultivate their innovativeness. For these reasons, various organizational aspects concerning "mobile work" have received a great deal of recent attention. Moreover, many CIOs plan to allocate a considerable amount of their budgets mobile work environments. In particular, with the consumerization of information technology, enterprise mobile applications (EMA) have played a significant role in the explosive growth of mobile computing in the workplace, and even in improving sales for firms in this field. EMA can be defined as mobile technologies and role-based applications, as companies design them for specific roles and functions in organizations. Technically, EMA can be defined as business enterprise systems, including critical business functions that enable users to access enterprise systems via wireless mobile devices, such as smartphones or tablets. Specifically, EMA enables employees to have greater access to real-time information, and provides them with simple features and functionalities that are easy for them to complete specific tasks. While the impact of EMA on organizational workers' productivity has been given considerable attention in various literatures, relatively little research effort has been made to examine how EMA actually lead to users' job performance. In particular, we have a limited understanding of what the key antecedents are of such an EMA usage outcome. In this paper, we focus on employees' perceived job performance as the outcome of EMA use, which indicates the successful role of EMA with regard to employees' tasks. Thus, to develop a deeper understanding of the relationship among EMA, its environment, and employees' perceived job performance, we develop a comprehensive model that considers the perceived-fit between EMA and employees' tasks, satisfaction on EMA, and the organizational environment. With this model, we try to examine EMA to explain how job performance through EMA is revealed from both the task-technology fit for EMA and satisfaction on EMA, while also considering the antecedent factors for these constructs. The objectives of this study are to address the following research questions: (1) How can employees successfully manage EMA in order to enhance their perceived job performance? (2) What internal and/or external factors are important antecedents in increasing EMA users' satisfaction on MES and task-technology fit for EMA? (3) What are the impacts of organizational (e.g. organizational agility), and task-related antecedents (e.g., task mobility) on task-technology fit for EMA? (4) What are the impacts of internal (e.g., self-efficacy) and external antecedents (e.g., system reputation) for the habitual use of EMA? Based on a survey from 254 actual employees who use EMA in their workplace across industries, our results indicate that task-technology fit for EMA and satisfaction on EMA are positively associated with job performance. We also identify task mobility, organizational agility, and system accessibility that are found to be positively associated with task-technology fit for EMA. Further, we find that external factor, such as the reputation of EMA, and internal factor, such as self-efficacy for EMA that are found to be positively associated with the satisfaction of EMA. The present findings enable researchers and practitioners to understand the role of EMA, which facilitates organizational workers' efficient work processes, as well as the importance of task-technology fit for EMA. Our model provides a new set of antecedents and consequence variables for a TAM involving mobile applications. The research model also provides empirical evidence that EMA are important mobile services that positively influence individuals' performance. Our findings suggest that perceived organizational agility and task mobility do have a significant influence on task-technology fit for EMA usage through positive beliefs about EMA, that self-efficacy and system reputation can also influence individuals' satisfaction on EMA, and that these factors are important contingent factors for the impact of system satisfaction and perceived job performance. Our findings can help managers gauge the impact of EMA in terms of its contribution to job performance. Our results provide an explanation as to why many firms have recently adopted EMA for efficient business processes and productivity support. Our findings additionally suggest that the cognitive fit between task and technology can be an important requirement for the productivity support of EMA. Further, our study findings can help managers in formulating their strategies and building organizational culture that can affect employees perceived job performance. Managers, thus, can tailor their dependence on EMA as high or low, depending on their task's characteristics, to maximize the job performance in the workplace. Overall, this study strengthens our knowledge regarding the impact of mobile applications in organizational contexts, technology acceptance and the role of task characteristics. To conclude, we hope that our research inspires future studies exploring digital productivity in the workplace and/or taking the role of EMA into account for employee job performance.

Comparative Analysis on Efficiency and Productivity for Korea, Japan and Global Parcel Delivery Companies (한국, 일본, 글로벌 택배기업의 효율성 및 생산성 비교 분석)

  • Ma, Jin-Hee;Ahn, Young-Hyo
    • Journal of Distribution Science
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    • v.14 no.3
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    • pp.73-83
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    • 2016
  • Purpose - The parcel delivery service(courier) industry all over the world has been expanding its market so far, but its growth has been declining in recent years. In this situation, most parcel delivery companies are having trouble with managing themselves because of the pressure from the customer to increase service level and decrease the rate. The purpose of this study is to provide ways to improve competitive advantages of the parcel delivery service industry by evaluating the multi-period operating efficiency of Korea, Japan and global service providers. Research design, data, and methodology - The data for the period of 2011 to 2014 were collected from the annual reports published by parcel delivery companies. In this study, we analyze the marketability (revenue), profitability (operating profits), and management conditions (net profits) of parcel service companies by combining information on human resources (number of employees) and material resources (total assets and equity). Therefore, the number of employees, total assets, and equity are selected as input variables, and revenue, operating profits, and net profits as the output variables. In this study, DEA (Data Envelopment Analysis) is used to measure the comparative efficiency and MPI (Malmquist Productivity Index) is used to analyze the trend of change of the efficiency for a multi-year period. Results - The operational efficiency scores of medium-sized parcel delivery companies in Korea are higher than other larger competitors such as Korean, Japan and Global larger companies. As of 2014, Logen(1.878) was found to be the most efficient parcel delivery enterprise, followed by KGB (1.224), and Kyoungdong(1.002). Otherwise, Hanjin(0.235), CJ(0.262), Hyundai Logistics(0.657), DHL(0.611), UPS(0.766), FedEx(0.498), TNT(0.350), Yamato(0.762) and Sagawa(0.520), larger sized companies, were done inefficiently. The productivity of parcel delivery companies is influenced by endogenous factors as well as exogenous ones such as changes in business environment and technological advances. Conclusions - Korean medium-sized companies have relatively high efficiency scores in operation. That is why they still survive the competitive market in Korea where market restructuring on the industry has been expected to be conducted for many years. The reason why medium-sized couriers had higher efficient scores than larger couriers is that most of couriers spend more operating expenses versus unit price of delivery which is the amount of money that is needed in order to send a package by parcel service. So the delivery unit price must be taken into account by all the expenses associated with the cost of fuel, labor and maintenance expenses for facilities, etc. therefore, the unit price must be increased to strengthen business competitive power. In order for the industry to have more competitive advantage, the companies need to make profits by increasing demand volume and raising the delivery rate to provide high-quality delivery service to customers. And both endogenous and exogenous change must take precedence in order to strengthen their competitiveness.

Establishing a Business Model for Social Enterprises in the Fields of Culture, Performance, and the Arts Associated with the Tourism Industry: Gwangju Metropolitan City (관광분야와 연계된 문화·공연·예술 사회적기업 비즈니스모델 구축: 광주광역시를 중심으로)

  • Kim, Chang-Beom;Byeon, Jang-Seop;Na, Ju-Mong
    • The Journal of the Korea Contents Association
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    • v.16 no.9
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    • pp.236-246
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    • 2016
  • Social enterprise is an organization which use business activities as a means to achieve of social purposes. It has grown sharply since 2007 in Korea. However, now it is time had to pursue qualitative growth through the development of specialized business model. This study aims to identify business components using the Analytic Hierarchy Process (AHP) with experts and to develop a tailored business model for social enterprises in the fields of culture, performance, and the arts associated with the tourism based on regional demand within Gwangju. The analysis shows that job creation should be set as the main objectives to create value, and programs that offer hands-on experience with that fields can be the core competency. Cooperation among private corporations, local governments and agencies related to that fields is essential, as are programs provided through on- and off-line platforms. To develop a value proposition, customers must be segmented among a variety of the market participants.