• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.42 no.3
• /
• pp.25-38
• /
• 2019

This study is to develop a diagnostic model for the effective introduction of smart factories in the manufacturing industry, to diagnose SMEs that have difficulties in building their own smart factory compared to large enterprise, to identify the current level and to present directions for implementation. IT, AT, and OT experts diagnosed 18 SMEs using the "Smart Factory Capacity Diagnosis Tool" developed for smart factory level assessment of companies. They analyzed the results and assessed the level by smart factory diagnosis categories. Companies' smart factory diagnostic mean score is 322 out of 1000 points, between 1 level (check) and 2 level (monitoring). According to diagnosis category, Factory Field Basic, R&D, Production/Logistics/Quality Control, Supply Chain Management and Reference Information Standardization are high but Strategy, Facility Automation, Equipment Control, Data/Information System and Effect Analysis are low. There was little difference in smart factory level depending on whether IT system was built or not. Also, Companies with large sales amount were not necessarily advantageous to smart factories. This study will help SMEs who are interested in smart factory. In order to build smart factory, it is necessary to analyze the market trends, SW/ICT and establish a smart factory strategy suitable for the company considering the characteristics of industry and business environment.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.2
• /
• pp.873-882
• /
• 2021

The study investigates the key factors that affect the adoption of the International Financial Reporting Standards (IFRS) by companies listed on Ho Chi Minh Stock Exchange (HOSE) in Vietnam. The factors that are studied in this research include total debt-to-equity ratio, firm size, return-on-equity ratio, audit quality, foreign investment, and financial institution category. The authors have utilized quantitative and qualitative analyses in combination with a logistics regression model and other available analytical tools for conducting the research. All statistics processed in the paper were based on 379 audited financial statements issued in 2018. The results reveal that factors like firm size, return on equity (ROE), audit quality, foreign investment, and financial institution category positively affect the IFRS adoption of HOSE-listed companies, while total debt-to-equity ratio negatively impacts the adoption. The findings suggest Vietnamese law and policy-makers, when promoting the adoption of IFRS by listed companies, should focus more on five variables with positive influence and they can disregard the total debt-to-equity ratio that is insignificant as a factor affecting the adoption of IFRS. This implication could be applied for other firms in Vietnam and for enterprises in other countries, which are in the same stage of IFRS application.

• Journal of Korea Trade
• /
• v.25 no.3
• /
• pp.153-168
• /
• 2021

Purpose - In this study, we aim to explore new distribution strategies for sustainable growth in the era of the 4th industrial revolution, focusing on SMEs (small and medium-sized enterprises) in Korea, and suggest ways to upgrade the government's official distribution channel to the next level. Design/methodology - First of all, this paper explored the prior research, the current status of sales support for SMEs, and the changes in the distribution industry due to COVID-19 pandemic. Based on Moon (2016)'s ABCD strategic model - Agility, Benchmarking, Convergence, and Dedication, the study then derived directions in which official distribution channels should move and the new distribution strategy for Korean SMEs to secure competitive advantage. Findings - First, in terms of 'Agility', in order to upgrade official distribution channels, which are currently at some competitive disadvantages compared to private distribution companies, we must quickly introduce technologies for the 4th industrial revolution, such as AI, Big Data, etc., and establish precise strategies to strengthen the capabilities of SMEs. Second, in terms of 'Benchmarking', the use of "Chamelezones" has been increasing to enhance the competitiveness of offline stores in line with recent ontact trends. Therefore, official distribution channels should also benchmark such cases, strengthening their competitiveness by utilizing offline spaces more efficiently and effectively. Third, in terms of 'Convergence', in line with the rapidly changing trend of the times, official distribution channels should also promote active partnerships with media commerce, e-commerce and ICT platforms, as well as cooperation with private retailers, and focus on creating synergy effects through them. Finally, from the perspective of 'Dedication', digitalization should be promoted step by step, finding the sector that can accelerate digital among the value chains of official distribution channels, and continuing to discuss how to digitize it realistically. Originality/value - Based on this analysis, we have presented strategies and implications for innovating official distribution channels for SMEs, which will contribute to enhancing the competitive advantage of official distribution channels in the post COVID-19 pandemic era.

• Smart Structures and Systems
• /
• v.30 no.5
• /
• pp.545-556
• /
• 2022

Through the examination of literatures, electronic commerce is a subject which is accepted in enterprises to define e-commerce adoption, trends, and issues that are assisting and obstructing its efficacy. E-commerce offers numerous advantages to consumer satisfaction in any place and helps the company to get a competitive benefit over its competitors. The Internet has expanded the scope of business. Many business information is available by the global network that supports information gathering between organizations, businesses and their clients, while various divisions of a business is increasing at an exponential rate. Meanwhile, there are a few barriers to proper e-commerce usage and adoption, such as reliable internet connections, poor e-commerce supporting infrastructures, logistics systems presenting socio-regulatory and poor transportation barriers and demonstrating the significant improvement of e-commerce reliable and affordable Internet provisions, i.e., Internet cost, intensity, and reasonable level of e-readiness. The operational and strategic significance of information-based virtual value chains for all organizations cannot be emphasized. As a consequence, this study confirms worldwide market elements of e-commerce, such as its issues, benefits, relevance, scope, facilitators and projects prospective obstacles in a developing economy.

• Korea Trade Review
• /
• v.47 no.6
• /
• pp.335-353
• /
• 2022

There are two aspects of digital trade: the digitalisation of goods/services being traded and the digitalisation of the transactional act. Digital data (i.e. machine-readable industrial data and transactional data) is the major driving force for both aspects of digital trade. Digital data is a non-rivalrous input, whether for production or marketing activities, and is thus able to be used by many firms or government agencies without limiting the use of others. Digital platforms provide online infrastructure for the interactions between groups, for instance, consumers and producers. The externality effect refers to the situation in which prosperity in one group on a given platform will improve the returns of other groups on the same platform. In the era of the data-driven economy, strategic trade policy can involve data-related policies. The major objective of these policies is to improve the competitiveness of domestic firms. For instance, firms may be subsidised if they use cloud services provided by specific platforms. This strand of strategic trade policies might be useful for increasing the competitiveness of small-and medium-sized enterprises (SMEs) via the digitalisation of production/marketing processes. Alternatively, strategic trade policy may also exploit the externality effect via platform economy-related policies. Further, some countries may form data coalitions to facilitate cross-border data flow. This paper uses cases in Asian countries to illustrate which role these strategic trade policies can play in the digital economy.

• East Asian Economic Review
• /
• v.28 no.3
• /
• pp.359-388
• /
• 2024

With the escalation of global trade, the Chinese commodity futures market has ascended to a pivotal role within the international shipping landscape. The Shanghai Containerized Freight Index (SCFI), a leading indicator of the shipping industry's health, is particularly sensitive to the vicissitudes of the Chinese commodity futures sector. Nevertheless, a significant research gap exists regarding the application of Chinese commodity futures prices as predictive tools for the SCFI. To address this gap, the present study employs a comprehensive dataset spanning daily observations from March 24, 2017, to May 27, 2022, encompassing a total of 29,308 data points. We have crafted an innovative deep learning model that synergistically combines Long Short-Term Memory (LSTM) and Convolutional Neural Network (CNN) architectures. The outcomes show that the CNN-LSTM model does a great job of finding the nonlinear dynamics in the SCFI dataset and accurately capturing its long-term temporal dependencies. The model can handle changes in random sample selection, data frequency, and structural shifts within the dataset. It achieved an impressive R² of 96.6% and did better than the LSTM and CNN models that were used alone. This research underscores the predictive prowess of the Chinese futures market in influencing the Shipping Cost Index, deepening our understanding of the intricate relationship between the shipping industry and the financial sphere. Furthermore, it broadens the scope of machine learning applications in maritime transportation management, paving the way for SCFI forecasting research. The study's findings offer potent decision-support tools and risk management solutions for logistics enterprises, shipping corporations, and governmental entities.

• Journal of Distribution Science
• /
• v.10 no.5
• /
• pp.45-55
• /
• 2012

In Korea, the parcel delivery service was launched officially in 1992, and the market has grown to 13.2 billion units, or 3.5 trillion won, as of 2011. The service companies accept small packages under 30 kg and deliver them on the next day in most domestic areas. This service plays an important role in business and personal activities. The parcel service companies have themselves designed the tariff for the delivery service based on two criteria: weight and the sum of three side lengths. Further, the tariff is graded in steps of three or four rate structures based on size (small, medium, large, and extra-small). However, the basic freight rate is generally decided according to the cargo's weight or measurement size, and an extra rate is added according to some factors (handling, stowability, liability, and so on). The parcel service tariff adopted by the companies is illogically designed, and this study was carried out to assess the need for redesigning the tariff structure. The cargo volume cannot be logically reflected by three side lengths. For example, two parcels measuring 160 cm based on three side lengths may have different volumes, one measuring 0.152 cbm (53.33 cm × 53.33 cm × 53.34 cm) and the other 0.05 cbm (100 cm × 50 cm × 10 cm). A small package of less than120 cm (sum of three side lengths) may have a volume of as much as 0.064 cbm (40 cm × 40 cm × 40 cm). Sample comparison showed that 17% of medium-size parcels (based on the sum of three side lengths) are small-volume packages, 24% of large-size parcels are small- or medium-volume packages, and 40% of extra-big-size parcels are big- or under-size packages. Therefore, if parcel service companies rate their services for volume cargo based on the three side lengths standard, users may have to pay higher than normal rates, particularly because a large percentage of parcels are volume cargo. According to this study, the average weight per 1 cbm is less than 300 kg. Therefore, users face an increasing risk of paying higher than logical freight charges. Generally, transportation companies are called "public interest enterprises," and parcel service companies operate as postal services. Public interest enterprises must provide the delivery service to all customers without discrimination at a reasonable service level and logical service charges. Therefore, parcels service tariffs must be designed and adopted logically. In this study, freight theories and prior research findings were used to consider the importance of freight rates, and distortion of parcel service rates based on the three side lengths system was verified through regression analysis of a parcel sample and sample comparison. In conclusion, volume sizes based on three side lengths have a higher correlation to the rate level than does the sum of three side lengths. Further, compared to the sum of three side lengths, volume size has a higher correlation to cargo weight, which is the most basic factor determining transportation cost. Therefore, the existing parcel service tariff should be changed to weight- and volume-based rates, and the tariff must be graded in steps of 8 to 10 higher rate structures for a logical freight schedule based on service cost.

• Journal of Korea Port Economic Association
• /
• v.39 no.1
• /
• pp.131-147
• /
• 2023

Gwangyang Port Marine Industry Cluster is the only marine industry cluster in Korea that is currently in operation, but despite the implementation of various revitalization policies since its opening, the occupancy rate has been low so far. Accordingly, this study aims to identify the constraints of the current system that hinder the inducement of tenant companies and to suggest revitalization measures. For this purpose, this study analyzed the current status of research and development(R&D) projects in the port, shipping and logistics sector, which is a core industry of the Gwangyang Port Marine Industry Cluster. And a survey was conducted on companies with potential to move in. As a result, the proportion of R&D in the core industry sectors is lower than in other sectors, and most of R&D projects are being carried out mainly by small and medium-sized enterprises. In addition, the low need for port facilities and low accessibility to Gwangyang Port were derived as constraints. Considering the results, this study suggests four revitalization measures to induce tenant companies as follows. First, it is necessary to expand the scope of core industries from the current shipping, ports, and logistics to the entire maritime and fisheries, so that companies performing R&D in the industry can move in. Second, the industry code currently specified as a qualification need to be revised to include both the industry of the enterprise carrying out R&D projects and the core industry. Therefore, this study suggests an expanded industry code list that can replace current list. Third, a transition of tenant recruitment system from the regular system(once or twice a year) to the occasional system is proposed so that companies can move in flexibly when demand arises. Finally, in order to overcome geographically low accessibility, technology development support projects specialized in R&D that prospective tenant companies actually need are needed rather than financial support.

• International Commerce and Information Review
• /
• v.18 no.4
• /
• pp.3-29
• /
• 2016

Recently, the market size of the global electronic-commerce is rapidly growing. The global market size of an overseas direct-purchase is expected to reach 1 trillion won by 2020. This study intends to determine the decision making factors of B2B overseas direct-purchase(DP) and reverse direct-purchase(RDP), and the impact on the vitalization of the small to middle-sized companies'(SMC) overseas DP and RDP. Ultimately, the purpose of this study is to provide a policy insight on the expansion of exports by SMC. For this, we determined the necessary elements for getting good results by Korean SCM in the overseas DP and RDP market through a preceding research based on resource-based theory and industry structure theory. Afterwards, we used the multiple regression model for positive analysis of the survey documents. We were able to confirm through analysis that the company information, logistics delivery, customs process, law and regulations have positive effects on the overseas DP and RDP. This study surveyed the entire overseas DP market, rather than focusing on the cases of harm and responses of the overseas DP, which was the topic for the preceding research, and can be differentiated from the previous study by deducting influence factors for the Korean SMC to succeed in the overseas DP and RDP market. Moreover, the results of this study is meaningful in proposing a strategic direction for the SMC participating in the overseas DP market and the government enacting policies.

• Journal of the Korean Data and Information Science Society
• /
• v.27 no.2
• /
• pp.285-294
• /
• 2016

In general, employment duration is influenced by the individual characteristics (level-1) as well as type of the occupational characteristics (level-2). That is, the data has hierarchical structure in the sense that individual employment duration is influenced by the individual-level variables (level-1) and the job-level (level-2) variables. In this paper, we study the determinants of the employment duration of youth-intern in the SMEs (small and medium enterprises) using Cox's mixed effect model. Major results at level-1 variables are as followings. First, the hazard rate of treatment group is lower than that of control group. Second, the hazard rate of woman is lower than that of man. Also, the hazard rate is lower, for the older and the workers working in the bigger company. Investigation of level-2 variables has shown that random effect for job-level is statistically significant.