• Title/Summary/Keyword: Risk Knowledge

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Comparison of Association Rule Learning and Subgroup Discovery for Mining Traffic Accident Data (교통사고 데이터의 마이닝을 위한 연관규칙 학습기법과 서브그룹 발견기법의 비교)

  • Kim, Jeongmin;Ryu, Kwang Ryel
    • Journal of Intelligence and Information Systems
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    • v.21 no.4
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    • pp.1-16
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    • 2015
  • Traffic accident is one of the major cause of death worldwide for the last several decades. According to the statistics of world health organization, approximately 1.24 million deaths occurred on the world's roads in 2010. In order to reduce future traffic accident, multipronged approaches have been adopted including traffic regulations, injury-reducing technologies, driving training program and so on. Records on traffic accidents are generated and maintained for this purpose. To make these records meaningful and effective, it is necessary to analyze relationship between traffic accident and related factors including vehicle design, road design, weather, driver behavior etc. Insight derived from these analysis can be used for accident prevention approaches. Traffic accident data mining is an activity to find useful knowledges about such relationship that is not well-known and user may interested in it. Many studies about mining accident data have been reported over the past two decades. Most of studies mainly focused on predict risk of accident using accident related factors. Supervised learning methods like decision tree, logistic regression, k-nearest neighbor, neural network are used for these prediction. However, derived prediction model from these algorithms are too complex to understand for human itself because the main purpose of these algorithms are prediction, not explanation of the data. Some of studies use unsupervised clustering algorithm to dividing the data into several groups, but derived group itself is still not easy to understand for human, so it is necessary to do some additional analytic works. Rule based learning methods are adequate when we want to derive comprehensive form of knowledge about the target domain. It derives a set of if-then rules that represent relationship between the target feature with other features. Rules are fairly easy for human to understand its meaning therefore it can help provide insight and comprehensible results for human. Association rule learning methods and subgroup discovery methods are representing rule based learning methods for descriptive task. These two algorithms have been used in a wide range of area from transaction analysis, accident data analysis, detection of statistically significant patient risk groups, discovering key person in social communities and so on. We use both the association rule learning method and the subgroup discovery method to discover useful patterns from a traffic accident dataset consisting of many features including profile of driver, location of accident, types of accident, information of vehicle, violation of regulation and so on. The association rule learning method, which is one of the unsupervised learning methods, searches for frequent item sets from the data and translates them into rules. In contrast, the subgroup discovery method is a kind of supervised learning method that discovers rules of user specified concepts satisfying certain degree of generality and unusualness. Depending on what aspect of the data we are focusing our attention to, we may combine different multiple relevant features of interest to make a synthetic target feature, and give it to the rule learning algorithms. After a set of rules is derived, some postprocessing steps are taken to make the ruleset more compact and easier to understand by removing some uninteresting or redundant rules. We conducted a set of experiments of mining our traffic accident data in both unsupervised mode and supervised mode for comparison of these rule based learning algorithms. Experiments with the traffic accident data reveals that the association rule learning, in its pure unsupervised mode, can discover some hidden relationship among the features. Under supervised learning setting with combinatorial target feature, however, the subgroup discovery method finds good rules much more easily than the association rule learning method that requires a lot of efforts to tune the parameters.

Determinants of IPO Failure Risk and Price Response in Kosdaq (코스닥 상장 시 실패위험 결정요인과 주가반응에 관한 연구)

  • Oh, Sung-Bae;Nam, Sam-Hyun;Yi, Hwa-Deuk
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.5 no.4
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    • pp.1-34
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    • 2010
  • Recently, failure rates of Kosdaq IPO firms are increasing and their survival rates tend to be very low, and when these firms do fail, often times backed by a number of governmental financial supports, they may inflict severe financial damage to investors, let alone economy as a whole. To ensure investors' confidence in Kosdaq and foster promising and healthy businesses, it is necessary to precisely assess their intrinsic values and survivability. This study investigates what contributed to the failure of IPO firms and analyzed how these elements are factored into corresponding firms' stock returns. Failure risks are assessed at the time of IPO. This paper considers factors reflecting IPO characteristics, a firm's underwriter prestige, auditor's quality, IPO offer price, firm's age, and IPO proceeds. The study further went on to examine how, if at all, these failure risks involved during IPO led to post-IPO stock prices. Sample firms used in this study include 98 Kosdaq firms that have failed and 569 healthy firms that are classified into the same business categories, and Logit models are used in estimate the probability of failure. Empirical results indicate that auditor's quality, IPO offer price, firm's age, and IPO proceeds shown significant relevance to failure risks at the time of IPO. Of other variables, firm's size and ROA, previously deemed significantly related to failure risks, in fact do not show significant relevance to those risks, whereas financial leverage does. This illustrates the efficacy of a model that appropriately reflects the attributes of IPO firms. Also, even though R&D expenditures were believed to be value relevant by previous studies, this study reveals that R&D is not a significant factor related to failure risks. In examing the relation between failure risks and stock prices, this study finds that failure risks are negatively related to 1 or 2 year size-adjusted abnormal returns after IPO. The results of this study may provide useful knowledge for government regulatory officials in contemplating pertinent policy and for credit analysts in their proper evaluation of a firm's credit standing.

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Elementary School Students' Amounts of Sugar, Sodium, and Fats Exposure through Intake of Processed Food (초등학생의 주요 가공식품으로부터 섭취하는 당, 나트륨, 지방류 등의 노출실태 조사 연구)

  • Kang, Moon-Hee;Yoon, Ki-Sun
    • Journal of the Korean Society of Food Science and Nutrition
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    • v.38 no.1
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    • pp.52-61
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    • 2009
  • The purpose of this study was to investigate the extent of excessive sugar, sodium, cholesterol, and saturated fat consumptions by elementary school students through processed food's intake. A survey study was conducted with 384 fourth and sixth grade students and their mothers from two schools in Seoul and Gyeonggi province. The data were analyzed for the frequency analysis, chi-square test and Pearson correlation using the SPSS/Windows (ver. 15.0). Results showed that students consumed high amounts of sugars through processed milk and carbonated beverages, and yogurt. Additionally, they had high sodium and saturated fat levels in their diet through Ramen. There was significant correlation (p<0.01) between mothers' purchasing and students' intake of processed food. Overall, both students and mothers had some knowledge on the impact of sodium on human health. About 50 percent of the respondents did not have accurate information about cholesterol, saturated fat, and trans fat. More than 50 percent of students and mothers had no nutritional education on the risk of excessive intake of sugar, sodium, cholesterol, saturated fat, and trans fat. Top twenty percent of the students had 39.7 g of sugar, 940.1 mg of sodium, 17.8 mg of cholesterol, and 11.2 g of saturated fat through processed foods per day on the average. These results suggest that execution of nutritional education about processed food is needed for high risk group of elementary school students and their mothers. Moreover, government must enact the regulation and policy for the food industry to reduce the risky nutrients from children's favorite processed food.

The Study on Risk Factors Analysis and Improvement of VDT Syndrome in Nuclear Medicine (핵의학과 Video Display Terminals Syndrome 유해 요인 조사 및 개선에 관한 연구)

  • Kim, Jung-Soo;Kim, Seung-Jeong;Lee, Hong-Jae;Kim, Jin-Eui;Kim, Hyun-Joo;Han, In-Im;Joo, Yung-Soo
    • The Korean Journal of Nuclear Medicine Technology
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    • v.14 no.1
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    • pp.61-66
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    • 2010
  • Purpose: Recently, Department of Nuclear Medicine have an interest in Video Display Terminals (VDT) syndrome including musculoskeletal disorders, ophthalmologic disorders, trouble of electromagnetic waves and stress disorders occur to VDT workers as the growing number of users and rapid pace of service period supply in large amount. This study research on the actual condition for VDT syndrome in Nuclear Medicine, Seoul National University Hospital (SNUH), discover the problem and draw a plan of upcoming improvement. The aim of this study establish awareness about VDT syndrome and is to prevent for it in the long run. Materials and Methods: Department of Nuclear Medicine, SNUH is composed Principle part, Pediatric part and PET center. We estimated risk factors visit in each part directly. Estimation method use "Check list for VDT work" of Wonjin working environment health laboratory and check list is condition of VDT work, condition of work tables, condition of chairs, condition of keyboards, condition of monitors, working position, character of health management and other working environment. Analysis result is verified in Department of Occupational and Environment, Hallym University Sacred Heard Hospital. Results: As a result of analysis, VDT condition of Department of Nuclear Medicine, SNUH is rule good. In case of work tables, recent of things are suitable to users upon the ergonomical planning, but 15% of existing work tables are below the standard value. In case of chairs are suitable, but 5% of theirs lost optimum capacity become superannuated. The keyboards are suitable for 98% of standard value. In case of monitors, angle control of screen is possible of all, but positioning control is impossible for 38%. In case of working position, 10% is fixed positioning for long time and some of the items researched unsuitable things for standard. At health management point, needed capable of improvement. Also, other working condition as lighting, temperature, noise and ventilation, discovered the problem, but is sufficient to advice value. Conclusion: VDT syndrome is occurrences of possibility continuously, come economical expensive about improvement, is inherent in various causes and originate without your knowledge. So, there is need systematic management system. In Nuclear Medicine, VDT syndrome make it better that constant interest and effort as improvement of ergonomical working environment, improvement of working procedure, regular exercise and steady stretching, and can be prevented fairly. This promote physical and mental condition of worker in top form in comfortable working environment, so this is judged by enlargement of operations efficiency and rising of satisfaction ratings of the inside client.

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A Study on Recent Research Trend in New Product Development Using Keyword Network Analysis (키워드 네트워크 분석을 이용한 NPD 연구의 진화 및 연구동향)

  • Pyun, JeBum;Jeong, EuiBeom
    • Journal of Korea Society of Industrial Information Systems
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    • v.23 no.5
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    • pp.119-134
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    • 2018
  • Today, many firms face the environment of high uncertainty and severe competition due to the rapid technology development and the diverse needs of customers. In the business environment, one of the most important ways to gain sustainable competitive advantage and future growth engine is related to NPD (New Product Development), which is a very important issue for practice and academia. Thus, this study intends to provide new values to practitioners and researchers related to NPD by analyzing current research trends and future trends in NPD field. For this, we bibliometrically analyzed keyword networks which consist of keywords that were already published in the eminent journals from Scopus database to generate insights that have not been captured in the previous reviews on the topic. As a result, we could understand the extant research streams in NPD field, and suggest the changes of specific research topics based on the connected relationships among keywords over the time. In addition, we also foresaw the general future research trends in NPD field based on the keywords according to preferential attachment processes. Through this study, it was confirmed that NPD keyword network is a small world network that follows the distribution of power law and the growth of network is formed by link formation by keyword preferential attachment. In addition, through component analysis and centrality analysis, keywords such as Innovation, New product innovation, Risk management, Concurrent engineering, Research and development, and Product life cycle management are highly centralized in NPD keyword network. On the other hand, as a result of examining the change of preferential attachment of keywords over the time, we suggested the required new research direction including i) NPD collaboration with suppliers, ii) NPD considering market uncertainty, iii) NPD considering convergence with the other academic areas like technology management and knowledge management, iv) NPD from SME(Small and medium enterprises) perspective. The results of this study can be used to determine the research trends of NPD and the new research themes for interdisciplinary studies with other disciplines.

Current Status and Perspective and Future Task in Korea of Crop Genetic Transformation (작물형질전환의 현황과 한국내의 발전전망 및 과제)

  • Harn, Chee-Hark
    • Journal of Plant Biotechnology
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    • v.33 no.3
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    • pp.171-184
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    • 2006
  • According to ISAAA report, the global area of genetically modified (GM) crops increased more than 50 fold during the ten-year period from 1996 to 2005 with a sustained double-digit growth rate of 10%. This biotechnology adoption is one of the highest rates of technology adoption in agriculture history and this phenomenon indicates that the industrial value of the GM crops is highly perspective. In addition, the year 2010, 60% of cereal seeds in the global market would be GM or biotechnology related seeds so that the GM crop regards as the second green revolution that could provide a huge impact to food and agriculture. Nevertheless, there has not been any GM variety ever successfully commercialized in Korea and even none of the GM crops has ever been approved for safety testing by risk assessment. This seems that Korean agriculture industry might be indeed lost in the war of future seed market. However, lots of evidence show that Korean scientists have established advanced technologies and protocols to develop GM crops for last 20 years. Actually there have been many cases of successful transformation of crops that were previously known very difficult in transforming. Therefore, Korean agbiotechnology arena firmly holds an infrastructure for developing GM crops with a superior technology. Then what were the problems? Why has even a single GM crop not been commercialized in Korea? The tardiness shown by business in adopting the GM crop is caused by many factors: academical weakness, poor research funding, short knowledge of risk assessment, public concern, no successful experience, lack of professional leaders on GM variety development, lack of systems toward industrialization and inappropriate target transgenes from the beginning. In order to catch up in the race for the new green industry, each one of us in private sectors alongside academia and national research institutes needs to focus altogether on what can be done best in terms of choosing crops, investing fund and establishing a road map for commercialization of GM crops.

A Study on the Impact of Human Factors for the Students Pilot's in ATO -With Respect to Korea Aviation Act and ICAO Human Factors Training Manual- (항공법규에 의거 지정된 조종사 양성 전문교육기관의 학생조종사에 대한 휴먼팩터 영향 연구)

  • Lee, Kang-Seok
    • The Korean Journal of Air & Space Law and Policy
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    • v.26 no.2
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    • pp.149-179
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    • 2011
  • Statistics of aviation accident in Korea show that safety level of training flights is high. However, more than 80% of aviation accidents happen owing to human factors. And because most reasons of them are concerned with pilot error, it is very important for student pilots who will transport a lot of passengers to develop the knowledge of safety and abilities of risk management for preventing accidents. In this study, in order to investigate the Human Factors which affect safety in training student pilots for flight, verified the correlationbetween experiences of accident, the differences according to the experience level of training flight and the differences between college student pilots and ordinary student pilots on the basis of human factors that composes the SHELL models. For the study, Using SPSS 17.0, conducted Correlation Analysis, Analysis of Variance(ANOVA) and t-test. To sum up the result of this study, student pilot's ability and equipment in the cockpit are the important factors for safety when pilots are training flight. Also the analysis of the differences between human factors according to the characters of student pilots' groups shows that college student pilots are affected by immanent factors and organizational cultures. So far, there haven't been any accidents which is related with human casualties when training at the ATO(Approved Training Organization). But accidents can occur at any time and anywhere. Especially the human factors which comprises most of aviation accident have a wide reach and are impossible to be eliminated, therefore, it is best to minimize them. Because ATO is the starting point to lead the aviation industry of Korea, we will have to be aware of problems and improve education/training of human factors.

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A Study on User's Opinion for Designing of Multi-Functional Plant Applications (복합적 기능의 식물 애플리케이션 디자인을 위한 사용자 조사)

  • Lee, Ha Na;Park, Han Na;Paik, Jin Kyung
    • Korea Science and Art Forum
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    • v.37 no.4
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    • pp.297-308
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    • 2019
  • Air pollution due to the fine dust level updating every day, and the problem of indoor air pollution due to ventilation difficulties and indoor discharge pollutants is also serious. In order to improve the indoor air quality, the air purification effect using the plants is prominent. In this study was started to investigated the living environment of modern people, the risk of indoor air pollution and the improvement function of plants, and to activate plant application. The purpose of this study is to analyze the main functions and design status of domestic and overseas plant - related applications, and to understand the actual use of modern plant applications and to help them learn more convenient plant - related knowledge. Therefore, this paper attempted to establish a basis for suggesting a new plant application by conducting a survey on the health effects of indoor air pollution and user awareness of plant - related applications. The results and contents of the study are as follows. First, as a theoretical review, indoor air pollution is more dangerous to modern people who have a high proportion of indoor living time and adversely affects their health. In order to solve such a problem, it has been shown that air conditioning and stress reduction can be effectively achieved by placing plants in the indoor space. Second, the analysis of the previous study shows the risk of indoor air pollution and its adverse effects on health. In addition, I have been able to find some researches related to the improvement of the indoor air by using the air purifying plants, and I can see the improvement of the user's behavior through the development or improvement of the application. Third, as a result of the survey on the status of domestic and overseas plant application, the main function of the application having high installation number was watering notification, provision of basic information of plants, and most of the functions were plant discerment through cameras. Fourth, most of the survey respondents have either raised or raised plants. Those who have little experience with plant applications have also shown positive feedback in the future on the use of plant-related applications. In addition, due to social problems such as air pollution, air purification using plants and functional plants showed high interest. Based on these results, we propose the need for a multi-functional plant application that can improve the indoor air pollution and facilitate the provision of information related to it.

A Study of Guidelines for Genetic Counseling in Preimplantation Genetic Diagnosis (PGD) (착상전 유전진단을 위한 유전상담 현황과 지침개발을 위한 기초 연구)

  • Kim, Min-Jee;Lee, Hyoung-Song;Kang, Inn-Soo;Jeong, Seon-Yong;Kim, Hyon-J.
    • Journal of Genetic Medicine
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    • v.7 no.2
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    • pp.125-132
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    • 2010
  • Purpose: Preimplantation genetic diagnosis (PGD), also known as embryo screening, is a pre-pregnancy technique used to identify genetic defects in embryos created through in vitro fertilization. PGD is considered a means of prenatal diagnosis of genetic abnormalities. PGD is used when one or both genetic parents has a known genetic abnormality; testing is performed on an embryo to determine if it also carries the genetic abnormality. The main advantage of PGD is the avoidance of selective pregnancy termination as it imparts a high likelihood that the baby will be free of the disease under consideration. The application of PGD to genetic practices, reproductive medicine, and genetic counseling is becoming the key component of fertility practice because of the need to develop a custom PGD design for each couple. Materials and Methods: In this study, a survey on the contents of genetic counseling in PGD was carried out via direct contact or e-mail with the patients and specialists who had experienced PGD during the three months from February to April 2010. Results: A total of 91 persons including 60 patients, 49 of whom had a chromosomal disorder and 11 of whom had a single gene disorder, and 31 PGD specialists responded to the survey. Analysis of the survey results revealed that all respondents were well aware of the importance of genetic counseling in all steps of PGD including planning, operation, and follow-up. The patient group responded that the possibility of unexpected results (51.7%), genetic risk assessment and recurrence risk (46.7%), the reproduction options (46.7%), the procedure and limitation of PGD (43.3%) and the information of PGD technology (35.0%) should be included as a genetic counseling information. In detail, 51.7% of patients wanted to be counseled for the possibility of unexpected results and the recurrence risk, while 46.7% wanted to know their reproduction options (46.7%). Approximately 96.7% of specialists replied that a non-M.D. genetic counselor is necessary for effective and systematic genetic counseling in PGD because it is difficult for physicians to offer satisfying information to patients due to lack of counseling time and specific knowledge of the disorders. Conclusions: The information from the survey provides important insight into the overall present situation of genetic counseling for PGD in Korea. The survey results demonstrated that there is a general awareness that genetic counseling is essential for PGD, suggesting that appropriate genetic counseling may play a important role in the success of PGD. The establishment of genetic counseling guidelines for PGD may contribute to better planning and management strategies for PGD.

The Effect of Mutual Trust on Relational Performance in Supplier-Buyer Relationships for Business Services Transactions (재상업복무교역중적매매관계중상호신임대관계적효적영향(在商业服务交易中的买卖关系中相互信任对关系绩效的影响))

  • Noh, Jeon-Pyo
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.4
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    • pp.32-43
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    • 2009
  • Trust has been studied extensively in psychology, economics, and sociology, and its importance has been emphasized not only in marketing, but also in business disciplines in general. Unlike past relationships between suppliers and buyers, which take considerable advantage of private networks and may involve unethical business practices, partnerships between suppliers and buyers are at the core of success for industrial marketing amid intense global competition in the 21st century. A high level of mutual cooperation occurs through an exchange relationship based on trust, which brings long-term benefits, competitive enhancements, and transaction cost reductions, among other benefits, for both buyers and suppliers. In spite of the important role of trust, existing studies in buy-supply situations overlook the role of trust and do not systematically analyze the effect of trust on relational performance. Consequently, an in-depth study that determines the relation of trust to the relational performance between buyers and suppliers of business services is absolutely needed. Business services in this study, which include those supporting the manufacturing industry, are drawing attention as the economic growth engine for the next generation. The Korean government has selected business services as a strategic area for the development of manufacturing sectors. Since the demands for opening business services markets are becoming fiercer, the competitiveness of the business service industry must be promoted now more than ever. The purpose of this study is to investigate the effect of the mutual trust between buyers and suppliers on relational performance. Specifically, this study proposed a theoretical model of trust-relational performance in the transactions of business services and empirically tested the hypotheses delineated from the framework. The study suggests strategic implications based on research findings. Empirical data were collected via multiple methods, including via telephone, mail, and in-person interviews. Sample companies were knowledge-based companies supplying and purchasing business services in Korea. The present study collected data on a dyadic basis. Each pair of sample companies includes a buying company and its corresponding supplying company. Mutual trust was traced for each pair of companies. This study proposes a model of trust-relational performance of buying-supplying for business services. The model consists of trust and its antecedents and consequences. The trust of buyers is classified into trust toward the supplying company and trust toward salespersons. Viewing trust both at the individual level and the organizational level is based on the research of Doney and Cannon (1997). Normally, buyers are the subject of trust, but this study supposes that suppliers are the subjects. Hence, it uniquely focused on the bilateral perspective of perceived risk. In other words, suppliers, like buyers, are the subject of trust since transactions are normally bilateral. From this point of view, suppliers' trust in buyers is as important as buyers' trust in suppliers. The suppliers' trust is influenced by the extent to which it trusts the buying companies and the buyers. This classification of trust using an individual level and an organization level is based on the suggestion of Doney and Cannon (1997). Trust affects the process of supplier selection, which works in a bilateral manner. Suppliers are actively involved in the supplier selection process, working very closely with buyers. In addition, the process is affected by the extent to which each party trusts its partners. The selection process consists of certain steps: recognition, information search, supplier selection, and performance evaluation. As a result of the process, both buyers and suppliers evaluate the performance and take corrective actions on the basis of such outcomes as tangible, intangible, and/or side effects. The measurement of trust used for the present study was developed on the basis of the studies of Mayer, Davis and Schoorman (1995) and Mayer and Davis (1999). Based on their recommendations, the three dimensions of trust used for the study include ability, benevolence, and integrity. The original questions were adjusted to the context of the transactions of business services. For example, a question such as "He/she has professional capabilities" has been changed to "The salesperson showed professional capabilities while we talked about our products." The measurement used for this study differs from those used in previous studies (Rotter 1967; Sullivan and Peterson 1982; Dwyer and Oh 1987). The measurements of the antecedents and consequences of trust used for this study were developed on the basis of Doney and Cannon (1997). The original questions were adjusted to the context of transactions in business services. In particular, questions were developed for both buyers and suppliers to address the following factors: reputation (integrity, customer care, good-will), market standing (company size, market share, positioning in the industry), willingness to customize (product, process, delivery), information sharing (proprietary information, private information), willingness to maintain relationships, perceived professionalism, authority empowerment, buyer-seller similarity, and contact frequency. As a consequential variable of trust, relational performance was measured. Relational performance is classified into tangible effects, intangible effects, and side effects. Tangible effects include financial performance; intangible effects include improvements in relations, network developing, and internal employee satisfaction; side effects include those not included either in the tangible or intangible effects. Three hundred fifty pairs of companies were contacted, and one hundred five pairs of companies responded. After deleting five company pairs because of incomplete responses, one hundred five pairs of companies were used for data analysis. The response ratio of the companies used for data analysis is 30% (105/350), which is above the average response ratio in industrial marketing research. As for the characteristics of the respondent companies, the majority of the companies operate service businesses for both buyers (85.4%) and suppliers (81.8%). The majority of buyers (76%) deal with consumer goods, while the majority of suppliers (70%) deal with industrial goods. This may imply that buyers process the incoming material, parts, and components to produce the finished consumer goods. As indicated by their report of the length of acquaintance with their partners, suppliers appear to have longer business relationships than do buyers. Hypothesis 1 tested the effects of buyer-supplier characteristics on trust. The salesperson's professionalism (t=2.070, p<0.05) and authority empowerment (t=2.328, p<0.05) positively affected buyers' trust toward suppliers. On the other hand, authority empowerment (t=2.192, p<0.05) positively affected supplier trust toward buyers. For both buyers and suppliers, the degree of authority empowerment plays a crucial role in the maintenance of their trust in each other. Hypothesis 2 tested the effects of buyerseller relational characteristics on trust. Buyers tend to trust suppliers, as suppliers make every effort to contact buyers (t=2.212, p<0.05). This tendency has also been shown to be much stronger for suppliers (t=2.591, p<0.01). On the other hand suppliers trust buyers because suppliers perceive buyers as being similar to themselves (t=2.702, p<0.01). This finding confirmed the results of Crosby, Evans, and Cowles (1990), which reported that suppliers and buyers build relationships through regular meetings, either for business or personal matters. Hypothesis 3 tested the effects of trust on perceived risk. It has been found that for both suppliers and buyers the lower is the trust, the higher is the perceived risk (t=-6.621, p<0.01 for buyers; t=-2.437, p<0.05). Interestingly, this tendency has been shown to be much stronger for buyers than for suppliers. One possible explanation for this higher level of perceived risk is that buyers normally perceive higher risks than do suppliers in transactions involving business services. For this reason, it is necessary for suppliers to implement risk reduction strategies for buyers. Hypothesis 4 tested the effects of trust on information searching. It has been found that for both suppliers and buyers, contrary to expectation, trust depends on their partner's reputation (t=2.929, p<0.01 for buyers; t=2.711, p<0.05 for suppliers). This finding shows that suppliers with good reputations tend to be trusted. Prior experience did not show any significant relationship with trust for either buyers or suppliers. Hypothesis 5 tested the effects of trust on supplier/buyer selection. Unlike buyers, suppliers tend to trust buyers when they think that previous transactions with buyers were important (t=2.913 p<0.01). However, this study did not show any significant relationship between source loyalty and the trust of buyers in suppliers. Hypothesis 6 tested the effects of trust on relational performances. For buyers and suppliers, financial performance reportedly improved when they trusted their partners (t=2.301, p<0.05 for buyers; t=3.692, p<0.01 for suppliers). It is interesting that this tendency was much stronger for suppliers than it was for buyers. Similarly, competitiveness was reported to improve when buyers and suppliers trusted their partners (t=3.563, p<0.01 for buyers; t=3.042, p<0.01 for suppliers). For suppliers, efficiency and productivity were reportedly improved when they trusted buyers (t=2.673, p<0.01). Other performance indices showed insignificant relationships with trust. The findings of this study have some strategic implications. First and most importantly, trust-based transactions are beneficial for both suppliers and buyers. As verified in the study, financial performance can be improved through efforts to build and maintain mutual trust. Similarly, competitiveness can be increased through the same kinds of effort. Second, trust-based transactions can facilitate the reduction of perceived risks inherent in the purchasing situation. This finding has implications for both suppliers and buyers. It is generally believed that buyers perceive higher risks in a highly involved purchasing situation. To reduce risks, previous studies have recommended that suppliers devise risk-reducing tactics. Moving beyond these recommendations, the present study uniquely focused on the bilateral perspective of perceived risk. In other words, suppliers are also susceptible to perceived risks, especially when they supply services that require very technical and sophisticated manipulations and maintenance. Consequently, buyers and suppliers must solve problems together in close collaboration. Hence, mutual trust plays a crucial role in the problem-solving process. Third, as found in this study, the more authority a salesperson has, the more he or she can be trusted. This finding is very important with regard to tactics. Building trust is a long-term assignment; however, when mutual trust has not been developed, suppliers can overcome the problems they encounter by empowering a salesperson with the authority to make certain decisions. This finding applies to suppliers as well.

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