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.
A Study on Relationship between National Policy Support and Recognized Competitiveness of Spatial Information Company (공간정보기업의 해외진출 체감 경쟁력과 국가 지원정책간의 연관성 분석)
- Jin, Heui Chae;Choe, Byong Nam;Han, Seon Hee
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- Spatial Information Research
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- v.22 no.3
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- pp.59-69
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- 2014
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Korea's spatial information companies have been supported by the government due to overcome the weak global competitiveness. This research examines possible causality between the request from the company and the policy support by the government. Structural equation model is used to analyze the recognized competitiveness and the supporting policy. The analysis result shows no statistically significant causality between the company's request and government's support. In other words, the current policies including subsidies, tax incentives, national certificates, and information channels do not impact the global competitiveness of a spatial information company. This research concludes that it is necessity to identify actual weaknesses of the company and to review the efficiency of the supporting policies to overcome those identified weaknesses.
Understanding Policies related to Home Modification for the Elderly: An Occupational Therapist's Perspective (고령자 가정환경수정 관련 정책에 대한 이해: 작업치료사의 관점에서)
- Hwang, Na-Kyoung;Shim, Sun-Hwa
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- Journal of the Korea Convergence Society
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- v.12 no.12
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- pp.389-399
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- 2021
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The purpose of this study was to explore the domestic and overseas home modification policies, and review the direction of domestic home modification policies to enable 'Aging In Place; AIP' and the competencies required of occupational therapist as and expert in home modification. In order to expand occupational therapy for domestic home modification and strengthen occupational therapist competency, it is required to establish a clear and practical home modification process that reflects the design and intervention of occupational therapy. Appropriate selection and standardization of the evaluation tools that identifies the needs of the elderly and reflects the characteristics of domestic housing types are also required. In addition, it is necessary to understand policies and systems, and endeavour to establish a relevant knowledge base for communication and cooperation with experts in other fields. In terms of the policy, there is a need for the home modification support system that allows the elderly to adapt to their aging regardless of their income level, beyond the existing support system, which was implemented mainly for low-income people and disabled. In addition, as in overseas cases, the efforts need to be made to provide various and efficient measures, such as support for barrier-free housing, expansion of the scope of support through cooperation between the national government and local governments, low-interest loans and tax reductions, and establishment of governance with organizations and institutions related to home modification services.
CGV's China Market-Oriented Growth Strategy for the Korean Wave (한류 증진을 위한 CGV의 성장 전략: 중국 시장을 중심으로)
- Kwon, Sang-Jib
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- The Journal of the Korea Contents Association
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- v.16 no.6
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- pp.576-588
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- 2016
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The main objective of this study is to investigate the overseas performance of CGV in order to boost Korean wave and movie platform competitiveness. The focus of this study is to on how CGV may enhance the market share of china market, emphasizing the entrepreneurial orientation of top management team and differentiated entrant strategy based on Korean wave. This study suggests key factors in the china movie platform market expansion process of CGV. In order to analyze this mechanism, we employ a case study method design. The case study results show that there are differences of CGV strategy in movie platform characteristics and the important key factors of growth depending on market situation. The most important thing is that entrepreneurial orientation of top management including differentiated entrant strategy and Korean wave-oriented vision enhance between brand loyalty and market share in china market. In addition, growing overseas impacts of CGV support on Korean wave entertainment and globalization of movie platform industry. Contributions and implications for the academic and managerial field are discussed.
Korean Medical Care and Education Activity in Uzbekistan - Focusing on the Korea-Uzbekistan Friendship Hospital of Korean Medicine - (우즈베키스탄의 한의 진료 및 한의학 교육 현황 - 한국 우즈베키스탄 친선 한방병원을 중심으로 -)
- Oh, Seungyun;Kwon, Donghyun;Lee, Joonsuk;Dilfuza, Buranova;Jang, Eunsu;Joo, Jongcheon
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- The Journal of Korean Medicine
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- v.35 no.3
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- pp.15-21
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- 2014
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The Korea-Uzbekistan Friendship Hospital of Korean Medicine has been providing care and education of Korean medicine in Uzbekistan since 1997, while overseas expansion of Korean medicine is expanding each year. The status of these activities is investigated to suggest methods of development of Korean medicine in Uzbekistan. The hospital treats about 15000 people in Uzbekistan for free every year. Among patients visiting the hospital, the distribution of female, age 50s to 70s is most common, Uzbek, Russian, and Korean are common ethnicities, musculoskeletal disease, neurologic disease and gastrointestinal disease are common ailments. In addition, the hospital has educated students of Tashkent Medical Academy and doctors belonging to the Department of Acupuncturists of Korean Oriental Medicine of the Uzbekistan Medical Association. Korean medical care, education and research in the field of systematic support on a long-term roadmap should be continued for developing Korean medicine on Uzbekistan.
Counterstrategy of Textile/Clothing Industry to FTA (Focusing on Korea-US/China FTA) (섬유/의류 산업의 FTA 대응전략 (한-미, 한-중 FTA를 중심으로))
- Kim, Jung Hoi
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- Fashion & Textile Research Journal
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- v.18 no.2
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- pp.139-148
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- 2016
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There is an expanding global network of free trade agreements (FTA). High-quality, comprehensive free trade agreements play an important role to support global trade liberalization and are explicitly allowed under the World Trade Organization (WTO) rules. An FTA is an international treaty that removes barriers to trade and facilitates stronger trade and commercial ties that contribute to increased economic integration between participating countries. Korea benefits from the global FTA trend; however it has started and developed FTA negotiations later than other countries. Current FTA agreements exist with Chile, Singapore, EFTA, ASIAN, India, EU, Peru, USA, Turkey, Australia, and Canada; in addition, there are ongoing negotiations with China, Colombia, New Zealand, and Vietnam. FTA open up opportunities for the textile/clothing industry to expand businesses into key overseas markets. FTA improve market access across all areas of trade to help maintain and stimulate the competitiveness of textile/clothing firms. This study examines the expansion of free trade agreements in light of changes in the international trade environment and the status of the Korean textile/clothing industry. Korea's textile/clothing export/import products and concession of tariff, country of origin covered under Korea-US/China FTA are investigated to identify problems. This study provides practical and policy implications for the textile/clothing industry in regards to the Korea-US/China FTA.
Product versus Process Innovation and the Global Engagement of Firms
- Jang, Yong Joon;Hyun, Hea-Jung
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- Journal of Korea Trade
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- v.25 no.4
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- pp.37-59
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- 2021
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Purpose - Although models of innovation and exporting dominate recent studies of relations between innovation and access to foreign markets, relations between innovation and foreign direct investment (FDI) are less explored. This is especially true of relations between types of innovation and FDI. We fill that gap in the literature with empirical evidence that clarifies whether firms enter foreign markets through exports or FDI. Design/methodology - In order to assess the role of innovation in firms' international engagement strategies, we develop research hypotheses and present new empirical evidence on firms' choice of entry - exports and FDI - based on firm-level data. Findings - Our empirical results suggest that the impact of product innovation is more significant in transition from being a purely domestic firm to an exporter, while process innovation more significantly affect transition from being an exporter to a multinational enterprise. Our results also support 'self-selection into FDI' rather than 'learning-by-performing FDI' in the relationship between innovation and firms' overseas expansion. Originality/value - Recent literature on the relationship between innovation and firms' participation in foreign markets is dominated by models of innovation and export behavior. However, foreign direct investment by multinational enterprises may also be associated with firms' innovative activities. We first analyze how product and process innovations influence firms' choices to initiate exports or FDI.
Moon Administration's ICT Startup Policy (문재인 정부의 ICT창업정책)
- Shin, Jin
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- Journal of the Korea Institute of Information and Communication Engineering
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- v.22 no.11
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- pp.1495-1504
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- 2018
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The Moon administration has proposed three major directions for startup growth: the creation of a new environment, active investment, and the creation of a virtuous cycle in venture investment. The policy is progressive but not sufficient to create a startup innovation boom in the current Korean economic environment. ICT Startup support policies must pay more attention to the product release stage. For growth of startups and small businesses it is important to establish a close value chain to secure competitiveness in the global market. It is necessary to secure a bridgehead to advance into the global market, including technical cooperation with large companies and joint advancement overseas. The final goal of the startup policy should be the continuous growth of the national economy and the expansion of employment. The establishment of fair trade and the strengthening of the startup ecosystem are important to foster a startup-friendly environment. Funding programs requires a shift from general support to enhanced choice and focus.
A Study on the Financing Methods and Risk Management for Expansion of Overseas Investment Infrastructure Projects (해외투자개발형 인프라사업 확대를 위한 금융조달 및 위험관리 방안)
- Jung, Chang-Go
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- KSCE Journal of Civil and Environmental Engineering Research
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- v.37 no.2
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- pp.427-435
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- 2017
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Korea's overseas construction awards reached US $750 bn for more than 50 years since it first entered the market in 1966. In particular, the company won US $540 bn over 10 years from 2007, achieving 72% of the total contracts. However, in recent two years, awarded amounts have decreased by 40% each year. The most significant decline is due to the impact of international oil prices, which have plummeted since end of 2014, as oil-producing nations, which are Korea's major target countries, are struggling to cancel or postpone infrastructure orders. In order to lessen the impact of raw material price fluctuations, the recent trend is that even countries with relatively loose government financing conditions are rapidly changing their ordering methods to investment development forms such as PPP. The Korean government and companies have been already preparing for this for several years, but they are still not doing so well. The main reason is the lack of understanding about the investment development type project, especially financing methods and the aggravated fear of exposing it to various risks due to the characteristics of the development project, which takes a long time to collect the investment. In this paper, I propose a more systematic solution to financial process and risk management, which is recognized as a obstructive factor for Korean companies, in line with the recent government-led establishment of overseas infrastructure development support organizations. I would like to serve as a investment guide.
Analysis of Important Factors for Sustainable Fishing Village Development (지속가능한 어촌마을 개발을 위한 중요 요소 분석)
- Lee, Chan;Park, Ji-Hoon;Kang, Hyun-Kyung
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- Journal of Korean Society of Rural Planning
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- v.26 no.1
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- pp.23-38
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- 2020
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This study is aimed at the deduction of the important priority factors by setting the comprehensive rate in each of the economy, sociability and environmental areas for the sustainable development of fishing villages. As the research methods, review of domestic and overseas literature and Delphi questionnaire survey on experts, and hierarchical structure analysis were executed. Accordingly, this study is aimed at providing the basic data at the time of establishing plans by assessing the level of importance and priorities for each item through the deduction of the elements necessary for the fishing village plan. Key results of the study are as follows. First, as the results of review of domestic and overseas literature related to sustainability indices of fishing villages, a total of 50 items in the areas of economy, sociability and environment were deduced. Second, validity for each area was confirmed through Delphi questionnaire survey on experts. Third, as the results of factor analysis conducted on the basis of the hierarchical structure analysis for detailed items for each sector, 3 factors in the economic area, 2 factors in the social area and 3 factors in environment area were deduced. Fourth, as the results of the relative importance of the higher tiers, economic sector (0.528) displayed results that are more than 2 times higher than the social (0.261) and environmental (0.212) sectors. Establishment of foundation for independent competition (0.105), balanced development of small fishing village (0.086) and population engaged in economic activities in comparison to the fishing village population (0.077) were analyzed as the most important detailed items. Based on these results, experts pointed out that the economic sector is most important for the sustainable development of fishing village and, in detail, priority must be placed on the balanced development on the basis if the extent of independence of the fishing villages, and emphasized activation of residents engaged in economic activities in fishing villages in order to support them. That is, in order to increase the level of independence of the fishing villages, it was determined that there is a dire needs for expansion of diversified specialized businesses and infrastructural facilities through agreement by the residents capable of economic activities, and means of activating fishing villages through securing of budget at the local autonomous government level to provide support for the residents.
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