Organizational Factors Facilitating the Internationalization of Korean Franchising Companies (해외진출 국내 프랜차이즈기업의 조직특성)
- Lim, Young-Kun;Lee, Dong-Whuy;Kim, Hee-Jung
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- 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
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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.
The Mediating Effect of Learning Agility in the Relationship between Issue Leadership and Innovative Behavior (이슈 리더십이 혁신 행동에 미치는 영향 연구 : 학습 민첩성의 매개효과)
- Park, Sung-ryeul;Chung, Byoung-gyu
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- Journal of Venture Innovation
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- v.4 no.3
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- pp.69-87
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- 2021
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This study was conducted focusing on the innovative behavior necessary for the long-term survival of an organization in a business environment in which uncertainty and complexity are increasing. To this end, the relationship between issue leadership and innovative behavior of organizational members was investigated from the perspective of Signaling theory, Path-Goal theory and Job Demands-Resources theory. In addition, the mediating role of learning agility and sub-components of learning agility was empirically analyzed. For empirical analysis, a survey was conducted with a total of 252 team leaders and team members working in multinational companies (142 in Korea, 110 in the US). The results of this study are as follows. Issue leadership was analyzed to have a positive (+) effect on the innovative behavior of employees. Learning agility was found to play a mediating role between issue leadership and innovative behavior. On the other hand, the mediating effect was tested for each of the sub-components of learning agility, such as feedback seeking, information seeking, reflecting, experimenting, agility. As a result, all five sub-components were found to play a mediating role between issue leadership and innovative behavior. In particular, it was analyzed that the mediating effect of agility was the largest. Next, information seeking appeared to be large. Although there are some studies that have identified the mediating role of learning agility between issue leadership and innovative behavior, this study is considered to have academic implication as there are few cases of subdivided study. At the practical level, it is expected to provide implications for where to focus more when trying to improve an organization's learning agility and innovation behavior
The Effect of Frequent Change in Railway Driving Regulations on Human Error (철도운전관련규정의 잦은 변경이 휴먼에러에 미치는 영향)
- Kim, Jin-Tae;Shin, Tack-Hyun
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- Journal of the Korea Safety Management & Science
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- v.16 no.2
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- pp.19-29
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- 2014
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Korean societal concern for the train accidents is fast and widely increasing with an ever-increasing demand and use for KTX. Most of these train accidents are inclined to be caused by human error. Experts used to attribute the causes of human error to the defects in various aspects such as technology, organizational system, practices, corporate culture, and/or human resource itself. Among the diverse causes of human error, an important one, even though it was rarely focused, may be the issue of impact of rule or procedure change on human error. Giving attention to the implicit importance of this issue, this study intends to highlight the theme of frequent procedure change in railway driving manual as a critical factor of human error. To attain this purpose mentioned above, dual methodologies were adopted. One is to qualitatively analyze the real cases of procedure change in relevant manuals followed by the incident case(passing the station scheduled to stop) happened lately. Another is to quantitatively perform statistical analysis based on questionnaires received from 224 train drivers. Results show that frequent changes in internal affairs procedure is or may be an important factor causing stress and human error from train drivers.
The Effects of Export Market Prioritization on Superior Financial Performance: A Focus on Propositional Development
- Oh, Han-Mo
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- Asia-Pacific Journal of Business
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- v.10 no.3
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- pp.143-151
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- 2019
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Whether export-market prioritization is effective on financial performance is a controversial issue. Nevertheless, few studies have addressed this issue. The present study attempted to explicate the effects of exporters' market prioritization on their superior financial performance. Based prominently on the market-segmentation theory and the relationship-marketing theory, the current study developed propositions of whether export-market prioritization is economically reasonable. It is posited that export-market prioritization postively influences buyer satisfaction in a primary market; that export-market prioritization negatively affects on buyer satisfaction in a secondary market; that export market prioritization reduces costs in relation to export marketing and sales; that buyer satisfaction positively influences buyer loyalty for both buyers in primary markets and ones in secondary markets; that buyer loyalty positively influences share of wallet for both buyers in primary markets and ones in secondary markets; and that share of wallet positively influences sales per buyer for both buyers in primary markets and ones in secondary markets. Thus, exporters should identify suitable export-market segments and prioritize export markets. The present study suggested that exporters monitor market profitability, assess the quality of buyer information, and conduct selective organizational alignment in order to develop a prioritization strategy.
The effects of workplace Spirituality on organizational citizenship behavior in the social enterprise - Moderating effect of LMX - (사회적기업의 일터영성이 조직시민행동에 미치는 영향에 관한 연구 - LMX의 조절효과 -)
- Ryu, Tae-Mo;Seo, Jeong-Gee;Jung, Hyun-Woo
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- Management & Information Systems Review
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- v.33 no.1
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- pp.119-138
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- 2014
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Since the mid-1980s, the role of Corporate Social Responsibility(CSR) has become a hot issue in business world due to increasing comparative importance of firms in current society. The purposes of this research are to analyze empirically the relationship between workplace spirituality and organizational citizenship behavior, also to analyze the moderating effects of Leader-Member Exchange(LMX) on the relationship between workplace spirituality and organizational citizenship behavior in the social enterprises. For these purposes, literature review and survey research were conducted. The suggested hypothetical relationships were tested with primary data from a sample 552 employees of social enterprises. The main findings of this study are as follow ; First, inner life and sense of community which are composed workplace spirituality have positive influence sportsmanship and courtesy. second, sense of community have differential influence on organizational citizenship behavior by LMX. In conclusion, inner life and sense of community are expected to improve sportsmanship and courtesy, important of LMX in the social enterprises.
The Relationship between Workplace Bullying Victimization and Displaced Aggression: The Mediating Effects of Perceived Organizational Injustice and State Anger (20, 30대의 직장 내 괴롭힘 피해경험과 전위된 공격성 간의 관계: 지각된 조직불공정성과 상태분노의 이중매개효과)
- Yun, Jung-min;Lee, Seung-yeon
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- Korean Journal of Culture and Social Issue
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- v.27 no.1
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- pp.1-18
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- 2021
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The purpose of this study was to examine the relationship between workplace bullying victimization and displaced aggression, along with the mediating effects of perceived organizational injustice and state anger. Self-reported data of 268 employees were analyzed using SPSS 22.0 and Process macro. When applying the standard suggested by Leymann(1996), which defines workplace bullying victims as those who experience at least one negative act, on a weekly basis, for more than 6 months, the bullying victimization prevalence rate was 77.2%. Furthermore, although workplace bullying victimization did not directly predict displaced aggression, it significantly predicted perceived organizational injustice and state anger. Both mediators significantly predicted displaced aggression. The mediating effect of bullying victimization on displaced aggression through perceived organizational injustice and state anger subsequently was also significant. This study has its significance in that it thoroughly investigated the current state of workplace bullying victimization among people in their 20s and 30s, and helps better understand the relationship between workplace bullying victimization and displaced aggression.
The Effects of Shared Leadership on Team Efficacy, Team Organizational Citizenship Behavior, and Turnover Intentions (공유리더십이 팀효능감과 팀조직시민행동, 이직의도에 미치는 영향)
- Young-Min Choi ;Na-Young Han
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- Journal of Korea Society of Industrial Information Systems
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- v.28 no.4
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- pp.45-58
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- 2023
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In a world of uncertainty and complexity, leadership is essential to lead collaborative and positive interactions among employees. In other words, if members share opinions and work through voluntary leadership, they will respond more effectively to uncertain challenges and get closer to the targeted management performance. Therefore, in this study, we would like to elucidate the importance of shared leadership, which has recently become an issue. We will examine the impact of shared leadership on team efficacy, team organizational citizenship behavior, and turnover intention. A survey was conducted among members working in a team organization in Busan, and the results were as follows. First, the effects of shared leadership on team efficacy were found to have significant positive(+) effects, such as the hypotheses set at planning and organizing 0.202(C.R.=2.853), problem solving 0.463(C.R.=5.620), support and caring 0.237(C.R.=3.326), and development and mentoring 0.366(C.R.=5.132), respectively. Second, the effects of team efficacy on team organizational citizenship behavior and turnover intention were 0.545(C.R.=5.895) and -0.143(C.R.=-0.817), respectively, and team efficacy was found to have a positive(+)positive(+) effect on team organizational citizenship behavior, but team efficacy did not have a significant effect on turnover intention.
The Effect of Group Success on Organizational Commitment: Collective Efficacy and Group Cohesiveness of Naval Officials (집단의 성공 경험이 조직몰입에 미치는 영향: 해군 간부들의 집단효능감과 집단응집성을 중심으로)
- Gil-Hwan Kim ;Ju-Hyun Kim ;Dong-Gun Park
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- Korean Journal of Culture and Social Issue
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- v.23 no.4
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- pp.527-556
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- 2017
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The purpose of this study was to examine the effect of group success on organizational commitment in organizational situations. It also aimed to investigate the dynamics in the relevance of motivational attitudes to the individual and group level variables(collective efficacy, group cohesiveness). This study used a multi-level model and tested a series of hypotheses through meso-mediation procedure. The results from 613 naval officials in 36 groups provided evidence that; (1) collective efficacy mediated the relationship between group success and group cohesiveness, (2) the cross-level main effects of group success and collective efficacy were shown on vocationa[l self-efficacy, (3) group cohesiveness exerted positive influence on organizational commitment and (4) the meso-mediation effects among the variables at the multi-level were revealed. It was found that the degree of work motivation and motivational attitudes depended on the group's contextual factors, and that each group's shared perceptions on group performance outcomes could be an important motivational source and cornerstone leading to group cohesiveness. The implications and limitations of these study as well as the direction for future study were discussed.
The Effect of CSR Authenticity on Organizational Attractiveness for Job seekers: Value Congruence as a Mediator and Moral Identity as a Moderator (CSR 진정성이 구직자의 조직매력도에 미치는 영향: 가치일치성의 매개효과와 도덕적 정체성의 조절효과)
- Dooeun Shin;Young Woo Sohn
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- Korean Journal of Culture and Social Issue
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- v.30 no.2
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- pp.101-120
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- 2024
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Due to the expanding roles of corporations, the significance of Corporate Social Responsibility (CSR) has escalated, fostering continued efforts for organizations to integrate CSR into the context of recruitment. Additionally, demand for CSR authenticity is increasing. Damaged CSR authenticity can give rise to negative consequences, but research on the CSR authenticity is lacking, particularly within the realms of job search and recruitment. Consequently, this study aimed to investigate whether organizational attractiveness varies with CSR authenticity (high CSR authenticity, low CSR authenticity, and control conditions) through a scenario design. Additionally, the study examined the mediating effects of value congruence, as well as the moderating effect of moral identity in this relationship. Conducted among 300 undergraduate students, the results indicated that the organizational attractiveness was highest in the high CSR authenticity condition, followed by the control condition, and the lowest in the low CSR authenticity condition. However, the difference between the high CSR authenticity condition and the control condition was not statistically significant. PROCESS macro was employed to analyze the mediating model of value congruence. The results revealed that the mediating effect of value congruence was significant across all conditions. In sequence, examining the moderating effect and the moderated mediating effect of moral identity, it was found that these effects were significant in the high CSR authenticity condition in comparison to the other conditions. The findings of this study suggest the importance of considering CSR authenticity in the context of job search and recruitment and also, provides an insight into the mechanism through which CSR authenticity influences organizational attractiveness.
A Study on the Administration for the Han River Water Quality Control (漢江 水質保全 行政에 관한 硏究)
- Kim, Kwang Hyop
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- Journal of Environmental Health Sciences
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- v.10 no.2
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- pp.9-40
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- 1984
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This thesis purports to overview the diverse administrative and organizational factors and plannings developed by the government organizations, municipal or otherwise, to tackle the Han River water pollution issues in the past years. This thesis also looks into the ever-worsening Han River water pollution problems, in particular, in terms of the various government plans ostensibly designed to reduce the pollution level but with little success. Also dealt with are the efficiencies with which the laws and decrees on water pollution the administrative organizations put to use in the prosecution of the diverse antiwater pollution projects involving the Han River basin. From the early 1960's up to the 1970's the government had concentrated on the growth-oriented economic policy with the result that little attention had been paid to the water pollution and other environmental issues that are bound to arise from the massive economic growth. Belatedly, the five-year Hah River Development Project was initiated in 1982 with emphasis on reducing the water pollution level at Hah River to the minimum. The following are the gists of the thesis and recommendations for the future antiwater pollution plans by the administrative organizations: 1. Documents to date indicate that the irrigation projects along the Han River area had been the main focus of attention during the Yi Dynasty and under the Japanese rule of the country. 2. Despite that the water pollution issue became the subject of many debates among the academic and research institutions in the 1960's and in the 1970's, the administrative organizations in charge of the Han River water quality control failed to come up with a concrete plan for the river's water quality control. 3. Nevertheless, the water pollution of the Han River area in fact began in the 1950's, with the unprecedented concentration into Seoul of population and the industrial facilities on a larger scale, in particular, enforced by the government's strong growthoriented policy in its Economic Development plans in the 1960's. 4. Starting in the 1960's, the Han River water pollution level dramatically increased, but the government was reluctant to promulgate or put into effect strong measures to curb the many factors contributing to the river water pollution, thus worsening the environmental issues along the Han River basin. 5. The environmental protection law and other laws and decrees relating to the antiwater and air pollution issues that were subsequently put into effect underwent so many changes that efficient anti-water pollution policies could not be effected for the Han River basin. The frequent organizational reshuffle within the administrative units concerned with environmental problems has resulted in the undue waste in personnel management and finance. 6. The administration on the environmental protection could not be efficiently carried out due to the organizational overlapping. Under the existing law, frequent organizational frictions and inefficiency are bound to occur among the central government offices themselves, as well as between the central government and the Seoul city administration, and among the city's administrative offices over the conservation of the Han River basin and over the river's anti-water pollution issue. 7. In the planning and prosecution of the Han River project, political influences from the president down to the lower-level politicious appear to have been involved. These political influences in the past had certainly had negative influence on the project, nevertheless, it appears that in the recent years, these political influences are not all that negative in view of the fact that they serve as a positive contributing factor in developing a better water quality control project along the Han River basin. The following are a few recommendations based on the data from the thesis: First, officials in charge of the Han River water quality control should pay attention to a careful screening of the opinions and recommendations from the academic circles and from the public should be made so that the government could better grasp the core issues in the environmental problems that require preventive and other necessary measures. Second, vigorous redistribution policies of population and industrial facilities away from the Seoul area should be pursued. Third, the government should refrain from revising or revamping too frequently the laws and decrees on the anti-water pollution, which is feared to cause undue inconveniences in the environmental administration. Fourth, a large-scale streamlining should be made to the existing administrative organization in an effort to do away with the inter- and intra-organizational friction. It is recommended that a secretariat for the Hah River basis conservation be established. Fifth, High-level administrative officials, with a thorough knowledge and vision on the Han River water quality control, should be prepared to better deal with the budgeting and personnel management for the Han River water pollution control not only at the control government, but also at the Seoul city municipal government levels. Environmental issues should be kept distinct from political issues. Environmental issues should not serve as a window-dressing for sheer political purposes. Sixth, the Hah River proiect should also include, along with the main Han River basin, those areas covering North Han River, South Han River, and the tributaries to the main river basin. The 'Han River Basin Water Quality Control Board' should be established immediately as a means of strengthening the current Han River basin water quality control policy. Seventh, in drawing up the Han River proiect, the administrative officials should be aware that Han River basin is a life line for those people in the region, providing them with not only a sheer physical space, but with a psychological living space for their everyday life.
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