• Journal of Global Scholars of Marketing Science
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• v.18 no.4
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• pp.61-118
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• 2008

The purpose of this research is to construct research framework for international franchising based on existing literature and to identify research components in the framework. Franchise can be defined as management styles that allow franchisee use various management assets of franchisor in order to make or sell product or service. It can be divided into product distribution franchise that is designed to sell products and business format franchise that is designed for running it as business whatever its form is. International franchising can be defined as a way of internationalization of franchisor to foreign country by providing its business format or package to franchisee of host country. International franchising is growing fast for last four decades but academic research on this is quite limited. Especially in Korea, research about international franchising is carried out on by case study format with single case or empirical study format with survey based on domestic franchise theory. Therefore, this paper tries to review existing literature on international franchising research, providing research framework, and then stimulating new research on this field. International franchising research components include motives and environmental factors for decision of expanding to international franchising, entrance modes and development plan for international franchising, contracts and management strategy of international franchising, and various performance measures from different perspectives. First, motives of international franchising are fee collection from franchisee. Also it provides easier way to expanding to foreign country. The other motives including increase total sales volume, occupying better strategic position, getting quality resources, and improving efficiency. Environmental factors that facilitating international franchising encompasses economic condition, trend, and legal or political factors in host and/or home countries. In addition, control power and risk management capability of franchisor plays critical role in successful franchising contract. Final decision to enter foreign country via franchising is determined by numerous factors like history, size, growth, competitiveness, management system, bonding capability, industry characteristics of franchisor. After deciding to enter into foreign country, franchisor needs to set entrance modes of international franchising. Within contractual mode, there are master franchising and area developing franchising, licensing, direct franchising, and joint venture. Theories about entrance mode selection contain concepts of efficiency, knowledge-based approach, competence-based approach, agent theory, and governance cost. The next step after entrance decision is operation strategy. Operation strategy starts with selecting a target city and a target country for franchising. In order to finding, screening targets, franchisor needs to collect information about candidates. Critical information includes brand patent, commercial laws, regulations, market conditions, country risk, and industry analysis. After selecting a target city in target country, franchisor needs to select franchisee, in other word, partner. The first important criteria for selecting partners are financial credibility and capability, possession of real estate. And cultural similarity and knowledge about franchisor and/or home country are also recognized as critical criteria. The most important element in operating strategy is legal document between franchisor and franchisee with home and host countries. Terms and conditions in legal documents give objective information about characteristics of franchising agreement for academic research. Legal documents have definitions of terminology, territory and exclusivity, agreement of term, initial fee, continuing fees, clearing currency, and rights about sub-franchising. Also, legal documents could have terms about softer elements like training program and operation manual. And harder elements like law competent court and terms of expiration. Next element in operating strategy is about product and service. Especially for business format franchising, product/service deliverable, benefit communicators, system identifiers (architectural features), and format facilitators are listed for product/service strategic elements. Another important decision on product/service is standardization vs. customization. The rationale behind standardization is cost reduction, efficiency, consistency, image congruence, brand awareness, and competitiveness on price. Also standardization enables large scale R&D and innovative change in management style. Another element in operating strategy is control management. The simple way to control franchise contract is relying on legal terms, contractual control system. There are other control systems, administrative control system and ethical control system. Contractual control system is a coercive source of power, but franchisor usually doesn't want to use legal power since it doesn't help to build up positive relationship. Instead, self-regulation is widely used. Administrative control system uses control mechanism from ordinary work relationship. Its main component is supporting activities to franchisee and communication method. For example, franchisor provides advertising, training, manual, and delivery, then franchisee follows franchisor's direction. Another component is building franchisor's brand power. The last research element is performance factor of international franchising. Performance elements can be divided into franchisor's performance and franchisee's performance. The conceptual performance measures of franchisor are simple but not easy to obtain objectively. They are profit, sale, cost, experience, and brand power. The performance measures of franchisee are mostly about benefits of host country. They contain small business development, promotion of employment, introduction of new business model, and level up technology status. There are indirect benefits, like increase of tax, refinement of corporate citizenship, regional economic clustering, and improvement of international balance. In addition to those, host country gets socio-cultural change other than economic effects. It includes demographic change, social trend, customer value change, social communication, and social globalization. Sometimes it is called as westernization or McDonaldization of society. In addition, the paper reviews on theories that have been frequently applied to international franchising research, such as agent theory, resource-based view, transaction cost theory, organizational learning theory, and international expansion theories. Resource based theory is used in strategic decision based on resources, like decision about entrance and cooperation depending on resources of franchisee and franchisor. Transaction cost theory can be applied in determination of mutual trust or satisfaction of franchising players. Agent theory tries to explain strategic decision for reducing problem caused by utilizing agent, for example research on control system in franchising agreements. Organizational Learning theory is relatively new in franchising research. It assumes organization tries to maximize performance and learning of organization. In addition, Internalization theory advocates strategic decision of direct investment for removing inefficiency of market transaction and is applied in research on terms of contract. And oligopolistic competition theory is used to explain various entry modes for international expansion. Competency theory support strategic decision of utilizing key competitive advantage. Furthermore, research methodologies including qualitative and quantitative methodologies are suggested for more rigorous international franchising research. Quantitative research needs more real data other than survey data which is usually respondent's judgment. In order to verify theory more rigorously, research based on real data is essential. However, real quantitative data is quite hard to get. The qualitative research other than single case study is also highly recommended. Since international franchising has limited number of applications, scientific research based on grounded theory and ethnography study can be used. Scientific case study is differentiated with single case study on its data collection method and analysis method. The key concept is triangulation in measurement, logical coding and comparison. Finally, it provides overall research direction for international franchising after summarizing research trend in Korea. International franchising research in Korea has two different types, one is for studying Korean franchisor going overseas and the other is for Korean franchisee of foreign franchisor. Among research on Korean franchisor, two common patterns are observed. First of all, they usually deal with success story of one franchisor. The other common pattern is that they focus on same industry and country. Therefore, international franchise research needs to extend their focus to broader subjects with scientific research methodology as well as development of new theory.

• Korean Journal of Social Welfare
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• v.60 no.1
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• pp.233-250
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• 2008

The purpose of this study is to report a case of cost analysis for community-based social service centers for the disabled. This study analyzed 2002 accounting reports and annual business reports from 20 social service centers for the disabled. To identify weight of each service researchers surveyed each service in terms of significance, difficulty, and emphasis from managers among centers. For cost analysis, this study used TCA(Traditional cost accounting), rather than ABC(Activity-based costing) because of costs, time, and difficulty to find cost drivers. Findings indicate that average annual expenditure is about 1260 million Won. About 65.8% is for labor and another 13.2% is for programs. In addition, the cost for respite care service(1 hour basis) is 26,922 Won and job counselling with job capacity evaluation(2 hour basis) is 143,355 Won. These costs does not count on real estate costs and low labor costs. Thus, market price of those services should be higher than the above. This study analyzed the costs with service bassis rather than costing item basis. This method would provide more useful information to decision makers in relation to program expansion, reducement, and resources allocation etc.

• Korean System Dynamics Review
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• v.2 no.2
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• pp.25-40
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• 2001

This paper describes the forecast of power plant construction in a competitive korean electricity market. In Korea, KEPCO (Korea Electric Power Corporation, fully controlled by government) was responsible for from the production of the electricity to the sale of electricity to customer. However, the generation part is separated from KEPCO and six generation companies were established for whole sale competition from April 1st, 2001. The generation companies consist of five fossil power companies and one nuclear power company in Korea at present time. Fossil power companies are scheduled to be sold to private companies including foreign investors. Nuclear power company is owned and controlled by government. The competition in generation market will start from 2003. ISO (Independence System Operator will purchase the electricity from the power exchange market. The market price is determined by the SMP(System Marginal Price) which is decided by the balance between demand and supply of electricity in power exchange market. Under this uncertain circumstance, the energy policy planners such as government are interested to the construction of the power plant in the future. These interests are accelerated due to the recent shortage of electricity supply in California. In the competitive market, investors are no longer interested in the investment for the capital intensive, long lead time generating technologies such as nuclear and coal plants. Large unclear and coal plants were no longer the top choices. Instead, investors in the competitive market are interested in smaller, more efficient, cheaper, cleaner technologies such as CCGT(Combined Cycle Gas Turbine). Electricity is treated as commodity in the competitive market. The investors behavior in the commodity market shows that the new investment decision is made when the market price exceeds the sum of capital cost and variable cost of the new facility and the existing facility utilization depends on the marginal cost of the facility. This investors behavior can be applied to the new investments for the power plant. Under these postulations, there is the potential for power plant construction to appear in waves causing alternating periods of over and under supply of electricity like commodity production or real estate production. A computer model was developed to sturdy the possibility that construction will appear in waves of boom and bust in Korean electricity market. This model was constructed using System Dynamics method pioneered by Forrester(MIT, 1961) and explained in recent text by Sternman (Business Dynamics, MIT, 2000) and the recent work by Andrew Ford(Energy Policy, 1999). This model was designed based on the Energy Policy results(Ford, 1999) with parameters for loads and resources in Korea. This Korea Market Model was developed and tested in a small scale project to demonstrate the usefulness of the System Dynamics approach. Korea electricity market is isolated and not allowed to import electricity from outsides. In this model, the base load such as unclear and large coal power plant are assumed to be user specified investment and only CCGT is selected for new investment by investors in the market. This model may be used to learn if government investment in new unclear plants could compensate for the unstable actions of private developers. This model can be used to test the policy focused on the role of unclear investments over time. This model also can be used to test whether the future power plant construction can meet the government targets for the mix of generating resources and to test whether to maintain stable price in the spot market.

• Journal of Global Scholars of Marketing Science
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• v.17 no.4
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• pp.113-139
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• 2007

This study aims to, looking from a standpoint of network, has investigated the shipping industry's B2B e-marketplace, the characteristics that can earn electronic trust from the users, and characteristics of the web-site. It has examined the mechanism whereby electronic trust be earned and how it affects web-site involvement and service transaction intention. Ultimately, The study attempts to make proposals whereby such trust can lead for a cooperative trading community in the shipping industry's B2B e-marketplace The Covalence structural equation modeling was designed and empirically tested for the shipping industry's B2B e-marketplace. The shipping industry employees were given questionnaires and data were analyzed. Except for perceived security of the three characteristic factors on the web-site, the perceived site quality and characteristics factors in operation only affected co-variables. Transaction Fairness was determined to be the most important factor among exogenous factors increasing electronic trust. With regards to transaction rules, if a transaction is beneficial only to one side, then no long term transaction will not take place. If the concerned parties properly recognize that transaction fairness is crucial to electronic transaction, then it will enormously contribute to successful operations of shipping e-marketplace. Also, Perceived efficiency in transaction also affects electronic trust. This reduces transaction costs and speeds up and simplifies the transaction process. It has reduced greater time and costs than existing off-line transaction, and would positively affect electronic trust. By making an open forum for participants to obtain information for transaction, they can gather useful information, and at the same time, the web-site operator can provide information, which, in turn, will increase electronic trust in electronic transaction. Furthermore, such formation of trust in electronic transaction influences shipping companies in such a way that they will want to continuously participate in the transaction, raising web-site involvement. The result of increased trust is that shipping companies in the future will do business with each other and form a foundation for continuous transactions amongst themselves. Consequently, the formation of trust in electronic transaction greatly influences web-site involvement and service transaction intention. The results of the study have again proved that in order to maintain continuous business relationship with the current clients, electronic trust in virtual space, which operates the shipping industry's B2B e-marketplace, is important for the interested parties.

• Korean Journal of Construction Engineering and Management
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• v.9 no.5
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• pp.104-115
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• 2008

Currently, reconstruction and remodeling are conducted to improve the performance of aged housing. Recently reconstruction has caused many problems such as wastes generation, wasting resources and real estate speculation, remodeling is drawing attention. Accordingly, remodeling business for aged housings gradually increasing, but the use of scheduling method not considering characteristics of remodeling deters construction in some construction types. Especially, in case of dismantling construction, the dismantling is delayed since the scheduling method not considering characteristics of remodeling is used. In case of remodeling, dismantling construction is ahead of other processes, if the dismantling construction is delayed, whole construction will be delayed and if speedy construction is conducted, the costs for remodeling will increase. Furthermore, existing remodeling for aged housing has been for rahmen(crossbeam and pillar) structure apartments, but since most apartments to be remodeled are wall-slab structure where dismantling takes a lot of weight, it is highly possible the dismantling construction is delayed. Thus, this paper is to establish scheduling method for the dismantling construction reflecting characteristic of remodeling to prevent delay of dismantling construction for remodeling of aged housing with wall-slab structure.

• Journal of Cadastre & Land InformatiX
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• v.44 no.2
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• pp.73-90
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• 2014

The Officially Announced Land Price System has a limit, that is required to be able to reflect changes in land constantly every year, to implement Land Characteristic Survey for calculating land price during a specific period and human resources with limited. The purpose of this study is to apply the 'National Territory Space Usage status Survey' method to survey part of the territorial feature status information inside of selected the target sites, considering the core survey items (land category, the state of land use, altitude difference, standard site inclusion, etc) in the areas surrounding Yeonshinnae Station in which three dongs (Galhyeon-dong, Daejo-dong, Bulgwang-dong) of Eunpyeong-gu, Seoul share borders with. Based on the given budget, the manpower and period was taken into consideration to sort a total of 2,041 lots and conduct surveys on all sites. This study will be able to diagnose the efficient idle human resource utilization and work process construction plan through pilot projects specialized for providing real estate information services in preparation for cases in which national territory information survey projects that provide various business model, as well as major future core projects of the corporation will be carried out.

• Journal of the Korea Convergence Society
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• v.13 no.1
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• pp.349-355
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• 2022

Today, apartment houses account for a very high proportion of the types of residence. This study aims to present basic data for preparing a reasonable distribution plan by identifying factors considered in calculating the amount of collection of management fees. After reviewing previous studies on common management fees and long-term repair allowances, various data on apartment houses subject to mandatory management in Busan in 2020 were collected from the Apartment Management Information System to analyze the differences in influencing factors according to type of apartment management(self-governing management, consignment management). As a result of statistical analysis, the number of households and many construction elapsed periods had a negative(-) effect on long-term repair allowances, and many construction elapsed periods had a negative(-) effect on common management fees. In addition, the degree to which many construction elapsed periods had a negative(-) effect on long-term repair allowances and common management fees had less impact on consignment management than on self-governing management. And the long-term repair allowances were imposed less by consignment management, common management fees were charged less by self-governing management. The results of this study will serve as basic data for rational distribution of long-term repair allowances and common management fees to residents and managers of apartment houses subject to mandatory management in Busan.

• Korean Journal of Construction Engineering and Management
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• v.10 no.6
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• pp.146-153
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• 2009

The year 2008 was a hard year for Korea's construction companies. The real estate downturn resulted in halting new construction and stopping existing work, and inflation of global oil prices caused price hikes in rebar and concrete materials. As a solution to reducing the budget, the newly appointed government announced plans to increase low cost bid contracts from 10 billion to 30 billion won. When such economical and political factors negatively impact the construction market, projects based on low cost contracts are the hardest hit. Many problems already inherent in low cost bid contracts become accentuated. Consequently, this provides an opportune time to actually study and analyze the issues in these projects. This paper introduces the findings made from investigating four projects struggling to make ends meet in the year 2008. Results show that flow of cash (i.e., liquidity), or lack thereof, was the root cause which in turn was hampered by failed mechanisms for design changes, material inflation. Attributing cash flow risk to the bottom of the production structure (i.e., small business subcontractors) was also a problem within the industry. Contractors need a better way to prepare against material price fluctuations, and owners need to assist in expediting payment during times of extreme downturn.

• Journal of the Korean Home Economics Association
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• v.48 no.1
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• pp.83-96
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• 2010

This study was conducted to derive useful predictive variations for the qualitative supply of homes to provide information to real estate venture businesses and other business owners in neighborhood amenities and significant basic information to housing suppliers and policy makers. For this purpose, a number of apartment dwellers in Seoul were surveyed to examine their housing satisfaction, difference in housing satisfaction according to variables, and any relevant correlations. In detail, 500 apartment dwellers in Seoul were surveyed from September 1, 2009 to September 20, 2009 to gather resources that were processed through SPSS 14.0 to find percentage of frequency, mean, standard deviations, t-test, ANOVA, and Duncan Multiple Ranger's Test. The following were the findings of this study: First, housing satisfaction of apartment dwellers in Seoul was above average with the highest satisfaction with neighborhood environment. Second, satisfaction with amenities was significantly affected by dweller-related variables. Gangnam dwellers were more satisfied with housing environment and community environment than Gangbuk dwellers. By age, people in 20s and 30s showed high satisfaction with housing environment. Satisfaction with community environment was high among 20s, 30s and 40s. Satisfaction with management conditions was high among 20s. Also, satisfaction was high when housing period was between 1 and 10 years. By size, dwellers in 40py or larger homes showed high satisfaction with housing environment and management conditions. Dwellers in 30py and 40py or larger homes were satisfied with community environment. By ownership, dwellers with ownership of their homes showed high satisfaction. Third, there was a significant difference in satisfaction with neighborhood and social environments according to dweller-related variables. By region, dwellers of Gangnam area showed high satisfaction with neighborhood environment. By age, people in 20s, 30s and 40s showed high satisfaction with neighborhood environment. Also, satisfaction with neighborhood environment was high when housing period was around 10 years. By size, dwellers in 30py and 40py or larger homes were satisfied with neighborhood and social environments. Fourth, there was a close correlation between satisfaction with housing environment and satisfaction with community environment, and between satisfaction with community environment and satisfaction with management conditions. Thus, most dwellers that were satisfied with one variable of housing environment showed high satisfaction with other variables.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.15 no.1
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• pp.71-94
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• 2020

Korea's innovation cluster policy has been implemented since 2005 with the goal of balanced regional development. The purpose of this study is to investigate the factors affecting the sustainability of innovative cluster tenants by using Pangyo Techno Valley as an example. Pangyo Techno Valley was established under the leadership of the local government (Gyeonggi-do) rather than the central government and it is called "Silicon Valley of Korea" and "Asia Silicon Valley" and is becoming more representative. The growing number of companies in Pangyo Techno Valley decreased in 2017 compared to 2016. This is because Pangyo Techno Valley's business ecosystem will change from 2019. In this paper, quantitative and qualitative studies were conducted to investigate the influencing factors. Quantitative research was conducted based on the survey and qualitative research was applied through interviews. The quantitative research examined the factors affecting the sustainability of Pangyo Techno Valley, and the qualitative research examined the specific reasons and additional factors for the quantitative research results. The quantitative results showed that factors affecting sustainability in terms of changes in corporate internal conditions, human and physical infrastructure, cooperation and synergy, and occupancy patterns. The specific reason for the impact appeared in the qualitative research process. The support category of local governments did not show any significant factors in quantitative research. In addition, qualitative research suggested 'Good image of Pangyo Techno Valley' as the category that has the greatest impact on sustainability. It is shown that companies are passive and expect the role of local governments in activating cooperation network in Pangyo Techno Valley. In this paper, based on the results of the study, Pangyo Techno Valley is presented with a realistic plan based on real estate issues and an ideal plan with a long-term perspective.