• 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.

• The Journal of Information Systems
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• v.25 no.3
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• pp.175-196
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• 2016

Purpose The development of new products in automobile parts industry plays an important role. Nowadays, automobile industry is one of the most important industries in the world, because automobile industry includes the industries of steel, machinery, electronic, etc. As a result, automobile industry embodies a country's level of development and competitiveness. The purpose of this study is to analyze the relationship between team characteristics such as communication, familiarity, and contiguity, and team performance through TMS in the process of new products development in automobile parts industry. Design/Methodology/Approach Based on real phenomenon of Korean automobile parts industry, this study tried to figure out the influence of TMS between team members for new product development on team performance. Thus, this study adopts communication, familiarity and contiguity as antecedents, and TMS with specialty, credibility and coordination as a mediating variable, and adopts team performance as a dependent variable. The data of questionnaire were collected from team managers who belong to new product development team in automobile parts firms. 171 questionnaires as data unit of group level from 80 Korean automobile parts firms were collected using face-to-face interview methods. Findings This study proved empirically that the relationship between antecedents and TMS has a positive influence, and TMS also has a positive influence on team performance. This study provides the managers an insight that automobile parts companies should pay more attention to set up TMS in order to improve higher performance between their team members for new product development of automobile parts.

• Journal of Korean Institute of Industrial Engineers
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• v.25 no.1
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• pp.67-74
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• 1999

Market share is one of the most important measures in the valuation of prospering firm. It plays a role of composite indicator for the competitiveness of firm. So, the understanding of the underlying process of market share is inevitable factor for the econometricians and the business engager. Lately, the Korean Economy has been placed in the control of IMF. This shock will cause a lot of influence over the domestic economy. The idea that the information about the past shock-response experience will do us good for dealing with this kind of economic shocks is not new. Among numerous markets, we pay attention to the durable goods market, especially automobile market. The automobile market has large repercussion effect over the domestic economy on the issue of both national employment and technology integration. We divided the Korean automobile market into three segments: small, medium, and large-sized car, while each proportion of these segments has been changing slowly. We propose a Bayesian approach to detect and forecast structural changes in time series of the market shares in the domestic automobile market, especially for level shifts and drift changes, and compare the empirical results with other existing approaches.

• Journal of Korea Trade
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• v.24 no.3
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• pp.37-54
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• 2020

Purpose - This study is to investigate the determinants of suppliers' dependence on buyers in the home country by developing a theoretical model of innovative activities. The high dependence of auto parts suppliers on a single local buyer in South Korea due to firm ownership issues and incremental innovation is examined using data from a set of organizations that supply intermediate goods to this automotive manufacturer. Furthermore, we tested the moderating effect of FDI and global knowledge sourcing on the relationship between firm ownership and suppliers' dependence on the local buyer. Design/methodology - To test the hypotheses, we examined a sample of 101 suppliers over 10 years in the Korean automobile parts industry. In this empirical analysis, we utilized a fixed-effects generalized least squares model using panel data. Findings - In this study, domestic firms (automobile parts suppliers) were more dependent on a single local buyer (automobile assembler) than foreign-owned suppliers operating in Korea. In addition, incremental innovation was the mediating mechanism between domestic firms and dependence on the local buyer. To reduce this dependence on the buyer, we suggest two different international strategies: geographical diversification through FDI and global knowledge sourcing. Originality/value - Previous studies showed that asymmetric dependence between firms has many adverse effects. This study proved that domestic and foreign-owned suppliers have different levels of dependence on local buyers due to their heterogeneous characteristics and business strategies. We distinguish two different types of innovation - radical innovation and incremental innovation - that previous studies have often treated as equal when it comes to firm autonomy. Finally, we propose that both FDI and international knowledge sourcing as global strategies to weaken suppliers' asymmetric dependence on a single buyer.

• Journal of Korean Society for Quality Management
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• v.46 no.3
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• pp.551-568
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• 2018

Purpose: This study addressed the relationship between technological innovation activity and management efficiency of Korean automobile firms. We tested the hypothesis of non-liner relationship of innovation activity in relation to management efficiency. Methods: We discussed prior literature in the firm innovation strategy and management efficiency studies to provide better understanding of relationships between technological innovation activity and management efficiency. As a result, we developed develop and tested a model (Inverted-U shaped) capturing the non-linear impact of technological innovation activity. While we used R&D expenditure and patent registration data for measuring firms' innovation activity, management efficiency was evaluated by using DEA(Data Envelopment Analysis). Results: Main findings of our empirical analysis indicated that the relationships between technological innovation activity and management efficiency was inverted U shaped. This implied that the relationship between technological innovation and management efficiency is inverted U-shaped non-linear, with management efficiency increasing up to a point, beyond which higher levels of R&D and patent registration activities led to a decrease in management efficiency. Conclusion: This study empirically assessed the inconclusive findings of previous research in the area of effects of innovation activities in relation to firm performance. The paper also provided theoretical and practical implications for firms who explore efficient strategy to promote the management performance through technological innovation activities. Future research directions with the limitation of the study was discussed.

• Journal of Korean Society for Quality Management
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• v.32 no.4
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• pp.113-124
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• 2004

Customer satisfaction is becoming an increasingly salient topic in many firms and in academic research. One main rationale behind this interest is that customer satisfaction is believed to be associated with fruitful customer re-visit from the firm's point of view. Some country already had index models which can measure the degree of customer satisfaction. But, such models are ordinary models which used generally the scope of nation-wide /industry. Therefore, we needs some modifications to measure customer satisfaction for specific product & service and to provide the valuable feedback to specific firms. In this Perspectives, this study will evaluate the customer satisfaction index about automobile company and analyze it's result for valuable feedback. This study will present a model for an integrated customer satisfaction evaluation system which used structural equation modeling. Through this study, we anticipate that it will offer the measuring method about customer satisfaction and some guideline for product design process.

• Journal of the Korean Operations Research and Management Science Society
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• v.21 no.2
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• pp.95-109
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• 1996

In automobile industry, the depot (distribution center) system is utilized to adjust the inventory and to supply the demands to the firm timely. In case of the small lot demands of short delivery cycle and the long distance from the parts manufacturing to the firm, the depot system is very important. In this paper, a model to minimize the sum of costs of holding, inventory and transportation, is proposed to determine the optimal quantities of production and transportation in JTT system. Finally, computational results that verify the effectiveness of the proposed model are demonstrated.

• Journal of Distribution Research
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• v.2 no.1
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• pp.59-85
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• 1997

The automobile industry in Korea has grown to the fifth in the world in terms of production capacity. In spite of the production growth, the marketing aspects such as distribution and customer service in the auto industry are still behind the world-class. Thus, the major purposes of this paper are as follows. The first is to analyze competitive structure of the industry and to compare distribution strategies of the major auto firms(Hyundai, Daewoo, and Kia). The second is to theoretically explain the transition from the vertical marketing system to the dealer system using transaction cost analysis. The third is to compare auto distribution channels in Korea with those in the U.S. and Japan. Finally, an optimal channel stucture in the auto industry is suggested after reviewing five alternative channel structures such as corporate-owned VMS, sales-specializing firm, multiplex system(VMS+limited dealer system), dual sales channel, and advanced dealer system. In the short-run, sales-specilizing firm was suggested as an optimal channel system to enhance customer satisfaction by integrating sales and customer service. In the long-run, advanced dealer system through regional differentiation was desirable for an optimal channel structure by organically integrating new car sales, used car sales, and after service to provide total marketing service to customers.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2000.11a
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• pp.227-245
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• 2000

Korean firms have attempted to catch up in the aircraft industry during last quarter century. Korean firms have built up their capabilities by moving from parts manufacturing through subassembly to system integration. The number of projects carried out and the intensity of technological effort undertaken by firms strongly influences market position and firm performance. However, successful catching up is not simply dependent on capability building within the firm. The national environment (Porter, 1990) in which firms are located plays a pivotal role. The Korean government has been effective in creating a favorable environ-ment in many areas, but has not been able to replicate this success in the aircraft industry. Opportunities for learning in the aircraft industry have been hampered by the small size of the Korean civilian aircraft market and the sophisticated requirements of military systems. A policy of domestic rivalry in airframe manufacture has created too many firms for such a small market. The ability of Korean firms to catch up in the aircraft industry depends on both the internal capabilities of firms as well as appropriate government policies and the involve- ment of government research institutions and universities over an extended period of time. There have been many studies about the catching up of developing countries in mass production (such as automobile, consumer electronics, and recently DRAM), but few in complex systems, such as aircraft.

• Proceedings of the Korean Society for Quality Management Conference
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• 2004.04a
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• pp.38-43
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• 2004

Customer satisfaction is becoming an increasingly salient topic in many firms and in academic research. One main rationale behind this interest is that customer satisfaction is believed to be associated with fruitful customer re-visit from the firm's point of view. Some country already had index models which can measure the degree of customer satisfaction. But, such models are ordinary models which used generally the scope of nation-wide industry. Therefore, we needs some modifications to measure customer satisfaction for specific product & service and to provide the valuable feedback to specific firms. In this perspectives, this study will evaluate the customer satisfaction index about automobile company and analyze it's result for valuable feedback. This study will present a model for an integrated customer satisfaction evaluation system which used structural equation modeling. Through this study, we anticipate that it will offer the measuring method about customer satisfaction and some guideline for product design process.