• Journal of Distribution Science
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• v.10 no.2
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• pp.29-41
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• 2012

This paper undertakes a conceptual review of transaction cost to broaden the understanding of the transaction cost analysis (TCA) approach. More than 40 years have passed since Coase's fundamental insight that transaction, coordination, and contracting costs must be considered explicitly in explaining the extent of vertical integration. Coase (1937) forced economists to identify previously neglected constraints on the trading process to foster efficient intrafirm, rather than interfirm, transactions. The transaction cost approach to economic organization study regards transactions as the basic units of analysis and holds that understanding transaction cost economy is central to organizational study. The approach applies to determining efficient boundaries, as between firms and markets, and to internal transaction organization, including employment relations design. TCA, developed principally by Oliver Williamson (1975,1979,1981a) blends institutional economics, organizational theory, and contract law. Further progress in transaction costs research awaits the identification of critical dimensions in which transaction costs differ and an examination of the economizing properties of alternative institutional modes for organizing transactions. The crucial investment distinction is: To what degree are transaction-specific (non-marketable) expenses incurred? Unspecialized items pose few hazards, since buyers can turn toalternative sources, and suppliers can sell output intended for one order to other buyers. Non-marketability problems arise when specific parties' identities have important cost-bearing consequences. Transactions of this kind are labeled idiosyncratic. The summarized results of the review are as follows. First, firms' distribution decisions often prompt examination of the make-or-buy question: Should a marketing activity be performed within the organization by company employees or contracted to an external agent? Second, manufacturers introducing an industrial product to a foreign market face a difficult decision. Should the product be marketed primarily by captive agents (the company sales force and distribution division) or independent intermediaries (outside sales agents and distribution)? Third, the authors develop a theoretical extension to the basic transaction cost model by combining insights from various theories with the TCA approach. Fourth, other such extensions are likely required for the general model to be applied to different channel situations. It is naive to assume the basic model appliesacross markedly different channel contexts without modifications and extensions. Although this study contributes to scholastic research, it is limited by several factors. First, the theoretical perspective of TCA has attracted considerable recent interest in the area of marketing channels. The analysis aims to match the properties of efficient governance structures with the attributes of the transaction. Second, empirical evidence about TCA's basic propositions is sketchy. Apart from Anderson's (1985) study of the vertical integration of the selling function and John's (1984) study of opportunism by franchised dealers, virtually no marketing studies involving the constructs implicated in the analysis have been reported. We hope, therefore, that further research will clarify distinctions between the different aspects of specific assets. Another important line of future research is the integration of efficiency-oriented TCA with organizational approaches that emphasize specific assets' conceptual definition and industry structure. Finally, research of transaction costs, uncertainty, opportunism, and switching costs is critical to future study.

• Journal of Korean Society of Forest Science
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• v.108 no.3
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• pp.429-439
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• 2019

The objectives of this study were to gauge the extent of the forestry business through establishing the definition of forestry industry from the perspective of economic convergence and to analyze key components that affect each growth phase of a forestry business entity by classifying them. A total of 1,397 "sixth-sector industry" management entities were certified by the Ministry of Agriculture, Food, and Rural Affairs in South Korea from 2012-2017. Of these, 259 (18.5%) were in the forestry sector. In this study, the 259 forestry management entities were further classified into three phases based on sales distribution: entrance, development, and maturity. The entrance phase (<100 million KRW), development phase (>100 million and <1 billion KRW), and maturity phase (>1 billion KRW) constituted 33.2%, 55.4%, and 12.4% of the total 259 entities, respectively. The results showed that most of the management entities were either in the entrance or development phases, and only a small portion was in the maturity phase. To identify the key variables that affect each of the phases, chi-square analysis was used. We designed the "sixth-sector industry" type as an independent variable, whereas selected region, business organization, manager age group, forest product, processing type, and service type were designated as dependent variables. The results of the analysis showed that the processing and service types influenced all three developmental phases. Moreover, as the phase advanced, processing type showed a higher proportion of health-functional ingredients, such as powder or extract from forest products, which enable to develop and produce a variety of products. Service type also changed from simple experience to integrated experience tourism and finally to tourism education. Distribution and sales channel also turned out to be a significant factor during the development phase. This study provides the basic information needed to guide government support in the implementation of a formal forestry business through convergence as well as to increase the efficiency of business management.

• Korea Trade Review
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• v.48 no.3
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• pp.43-68
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• 2023

In this study, in relation to "Chapter 3 Support for Priority Purchase of Technology Development Products" of the 「Market Channel Support Act」, this study investigated the positive growth impact of technology development products subject to preferential purchase on small and medium sized enterprises. The data used for empirical verification is for 371 companies that obtained certification for technology development products subject to preferential purchase in 2016 and Data from SMEs were collected from 2017 to 2021, Sales, operating profit, and net profit was identified, and empirical verification. And conducted through statistical analysis to determine whether it had a positive effect on the growth factors of SMEs. In addition, data from 225 technology development product certification companies were collected, and empirical testing was conducted through t-test analysis on the change in growth factors before and after acquiring certification. As a result of statistical analysis, it was found that the total assets, certified sales, operating profit, and net profit, which are the growth factors of a company, are all positively affected according to the type of technology development product certification. However, in the case of authentication types, some authentications showed significant negative results. In addition, significant results were derived that after acquiring certification had a positive effect on growth factors than before acquiring certification. Consistent with this conclusion, I think that it is effective for technology development-based SMEs to enter the public procurement market and utilize the technology development product priority purchase policy for market exploitation and corporate growth. And the government should strengthen the market support policy to create demand so that SMEs can enter the procurement market and actively utilize the preferential purchase system, and come up with an improvement plan so that public institutions can actively utilize the preferential purchase system.

• Journal of Digital Convergence
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• v.10 no.5
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• pp.105-116
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• 2012

This thesis is surveying the notions and the countermeasures of the farmers, who produce environmental-friendly crops, on a market and buyers. It ultimately tries to find out ways to increase the sale and the consumption of environmental-friendly crops from the side of the farmers. In chapter 2, analyzing the reality of consuming environmental-friendly crops and consumers inclinations. Also, on the basis of this, in chapter 3, I demonstrate how environmental-friendly producers countermeasures for the consumers are. I try to analyze the trust of the consumer buying environmental-friendly crops, which have been pointed out as a decisive factor for environmental-friendly crops by a lot of researchers, and analyze producers methods dealing with consumers approach to consume environmental-friendly crops. Regarding ways of the reconsideration about the trust, I have shown the problems about the quality authentication, forming consumers trust, and the ways of the consumer management. For the channel and method of the sale I have scrutinized not only a farmers notion about an internet homepage and his or her use but also producers principal sales route, cognition, and correspondence about it. Finally, I have examined the counter plans of the producer to increase sale and to facilitate consumption.

• Journal of Distribution Science
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• v.14 no.2
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• pp.135-144
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• 2016

Purpose - The purpose of this paper is to empirically investigate the moderating effects of social capital on antecedents factors path of export performance in the materials and components SMEs(Small and Medium-sized Enterprises) of Busan and Kyungnam region. In case of materials and components SMEs, they are always trying to achieve business performance including export sales and market share, but it is difficult for them to increase performance due to the limitation of inner & tangible resources. Therefore intangible asset such as technology capability and its antecedents factors which are technology innovation and learning orientation are getting more important to SMEs. In addition, it is supposed that social capital such as local network including distribution channel in overseas market plays an essential role to enhance export performance. Accordingly, the main goal of this study is to find out the relationship between export performance and antecedents factors and the validity of social capital as a moderating valuable. Research design, data, and methodology - Technology innovation, learning orientation and technology capability have been used as antecedents factors for export performance and social capital such as network diversity and intensity has been used for moderating effects analysis. In order to select these valuables mentioned above, this study examined the existing researches on a basis of Resources Based View, Organizational Learning Theory and Social Capital theory. To achieve the objective of this paper, 7 hypotheses including the moderating effects have been proposed with 6 potential variables measured by 24 questions. The survey was carried out from December 2014 to March 2015 and 137 samples out of total 175 were selected for the analysis. PLS(Partial Least Squares) has been used for the methodology of empirical analysis for both antecedents factors path and moderating effects. Results - Research findings are as follows. First, technology innovation has a significant impact on learning orientation, learning orientation has a positive effect on the technology capability and technology capability also has a significant impact on export performance. Therefore 3 valuables are proved as antecedents factors of export performance. Second, the social capital(both network diversity and intensity) plays a moderating role with learning orientation to technology capability. However, there is no moderating effects between both of social capital and technology capability regarding export performance. Conclusions - According to path analysis results, it is suggested that the materials and components SMEs should raise technology innovation and learning orientation in order to improve technology capability and export performance. Meantime, the moderating effect analysis shows that SMEs should consider local network diversity and intensity along with learning orientation to add up technology capability. But local network diversity and intensity does not work systematically with technology capability for export performance and it means that SMEs should find the appropriate local partners for the purpose of establishing concrete distribution channels based on marketing perspective, not for improving technology capability.

• The Journal of Industrial Distribution & Business
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• v.10 no.8
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• pp.45-53
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• 2019

Purpose - The purpose of this study was to clarify the factors to make an exclusive importation contract between foreign fashion brands and local retailers for successful business in Korea. Even though imported fashion brand market shows stead increasing in terms of sales amount, the number of store related study was very rare in fact. Meanwhile, as long as this business is glowing a lot of brands are suffering from bad business performance or getting in ruins thus these problems result in foreign currency loss. The local marketers therefore, strongly expect to know the solution for this matter. Research design, data, and methodology - For the qualitative research, 10 experts who are operating foreign brands with an exclusive contract at a department store or at duty free shop now and who had at least over 10 years of related working experience were included. The factors for the exclusive importation contract with foreign brands were drawn up through the one-to-one in-depth interview method from September 3, 2017 to January 15, 2018. The expert group for the validity analysis includes 2 professors and 5 postgraduate students. Results - As a result of qualitative study on the factors for imported fashion brand's launching with the exclusive importation contract, it turned out that there were 5 factors - safety, profitability, reliability, speed and global retailing. Safety, profitability, and reliability have been mentioned in most related surveys but some details are added and speed and global retailing have been newly highlighted and many unknown legal issues that it was not easy to get form common academic research are included. Speed simply means quick lead time and global retailing means stores where located in other countries. Conclusions - The reason that qualitative research should be done before the quantitative research is due to the scant theoretical background for this matter. Because the market of an imported fashion brand is steadily increasing, determining the factors to make exclusive importation contract is very meaningful from the point of academic and business. After this study, many marketers may get basic conditions to apply for real business and I hope the following quantitative research will give more effective results. The next study also will have extended range concerning industry area, product and distribution channel.

• Asia-Pacific Journal of Business
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• v.2 no.1
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• pp.91-114
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• 2011

The market size of e-Commerce in Japan was 15 trillion Yen in 2006, and B2C Internet shopping sales were over 6.57 trillion in 2009. Lakuten is a representative Internet shopping company whose market share is 45%. Lakuten has over 70,000 online stores and Japanese shoppers trust them based on the fair competition rule and pre-control system on e-commerce. Japanese consumers accept new technology rapidly and highly use Internet and mobile channel. This research analyse online shopping behaviors of Japan, a big e-commerce market. Internet shopping intention, satisfaction, and recommendation by Internet shopping motivations, perceived risks, shopping innovativeness were analyzed. A questionnaire survey of 464 Japanese consumer was performed and ANOVA, factor analysis, reliability test have done by SPSS 12.0. As the results, Internet shopping intentions were higher in groups of olders, higher innovativeness. House wives' satisfaction of Internet shopping is highest. High innovativeness group showed higher internet shopping motivation of economics, connivence, hedonic, and social. Student, women, and low income group perceives high risks to Internet shopping. Implications and further researches were suggested based on the results.

• Journal of Intelligence and Information Systems
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• v.18 no.2
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• pp.85-105
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• 2012

In recent years, IT advancement has brought out the new Internet communication environment such as online social network services, where people are connected in global network without temporal and spatial limitation. The popular use of online social network helps people share their experience and preference for specific products and services, thus holding large potential to significantly affect firms' business performance through Word-of-Mouth (WOM). This study examines the role of online social network in raising WOM effect on the movie industry by comparing with the similar role of Internet portal, another major online communication channel. Analyzing 109 movies and data from both Twitter and Naver movie, we found that significant WOM effect exists simultaneously in both Twitter and Naver movie. However, we also found that different figures of online viral effects exist depending on the popularity of movies. In the hit movie group, before the movie release, the WOM effect occurs only in Twitter while the WOM effect arises in both Twitter and Naver movie at the same time after the movie release. In the less-popular (or niche) movie group, the WOM effect occurs in both Twitter and Naver movie only before the movie release. Our findings not only deepen theoretical insights into different roles of the two online communication channels in provoking the WOM effect on entertainment products but also provide practitioners with incentive to utilize SNS as strategic marketing platform to enhance their brand reputations.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.45
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• pp.191-238
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• 2010

The purpose of this paper is to make research on the trend of the worldwide medical device market, the trend of the medical device market in the major foreign countries, the present status of the medical device industry in Korea and Gangwon area, the present status of export competitive power and the SWOT analysis of competitive power of the medical device industry in Gangwon area, and the strengthening methods of export competitive power of the medical device industry in Gangwon area. As the research method, the questionaire for the strengthening of export competitive power of the medical device industry in Gangwon area was carried out from August 13 to Otober 22, 2009. The worldwide medical device market in 2008 is estimated at USD 210.2 billion, with the United States being the largest market, followed closely by Japan and Western Europe. In 2006, the worldwide export amount of medical devices recorded USD 121.1 billion and the worldwide import amount of medical devices recorded USD 126.3 billion. As of the end of 2008, the number of Korea's medical device manufacturers expanded to 1,726. The production amount of Korea's medical device industry in 2008 recorded 2,525 billion won, and the domestic market volume of medical devices in 2008 recorded 3,618 billion won. Korea's export amount of medical devices in 2008 recorded USD 1,132 million and recorded a 9.67% growth compared to the previous year, and the import amount of medical devices recorded USD 2,123 million and recorded a 1.43% reduction compared to the previous year. As of the end of 2008, the number of Gangwon area's medical device manufacturers expanded to 81. The production amount of Gangwon area's medical industry in 2008 recorded 380 billion won, and Gangwon area's export amount of medical devices recorded USD 269 million and recorded a 0.25% reduction compared to the previous year, and the import amount of medical devices recorded USD 3 million and recorded a 39.63% reduction compared to the previous year. According to the result analysis of the questionaire for the strengthening of export competitive power of medical device industry in Gangwon area(August 13~October 22, 2009), the competing country of the export medical device is the United States being the highest ranking. Comparing to the collective competitive power level 100 of the competing country, the collective competitive level of the export medical device is 60 below and 70-80 below being the highest ranking. Comparing to the quality level 100 of the United States, EU and Japan, the quality level of the export medical device is 80-90 below being the highest ranking. Comparing to the design level 100 of the United States, EU and Japan, the design level of the export medical device is 90-100 below being the highest ranking. Comparing to the technology level 100 of the United States, EU and Japan, the technology level of the export medical device is 80-90 below being the highest ranking. According to the SWOT analysis of competitive power of medical device industry in Gangwon area, the strength is the abundant expert manpower of the medical device in Wonju area. The weakness is the fragility of the brand recognition of the medical device industry. The opportunity is the demand increase of the new medical device owing to the advanced age of population. The threat is the difficulty of entry into overseas market owing to the request of the new specification certification of the medical device. In order to strengthen the export competitive power of the medical device industry in Gangwon area, the following measures should be taken by the government, local self-government body, related organization and medical device industry : the development of new technology and design, the enhancement of brand recognition. the acquisition of the foreign specification certification, the building of overseas distribution channel and after sales service channel, the positive participation in overseas medical device exhibition and opening of medical device exhibition, the training of expert manpower, the strengthening of overseas marketing, and the application of FTA and the establishment of counter measures against FTA. In conclusion, the medical device industry in Gangwon area has the difficulty in the entry into the overseas market owing to the shortage of overseas marketing capability. Therefore, the government and local self-government body should make the intensive and systematical support for overseas marketing of the medical device industry. For the support of overseas marketing, the government and local self-government body should provide positively the support of expenses for the acquisition of foreign specification certification, the support of participation in the overseas medical device exhibition, the despatch of market development mission, the increase of the support amount for R&D investment fund, and the training of expert manpower of medical devices.

• Journal of Distribution Research
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• v.16 no.3
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• pp.1-32
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• 2011

I. Introduction: In Chinese electronics industry, the local wholesalers are still dominant but power is rapidly swifting from wholesalers to retailers because in recent foreign big retailers and local mass merchandisers are growing fast. During such transient period, conflicts among channel members emerge important issues. For example, when wholesalers who have more power exercise influence strategies to maintain status, conflicts among manufacturer, wholesaler, and retailer will be intensified. Korean electronics companies in China need differentiated channel strategies by dealing with wholesalers and retailers simultaneously to sell more Korean products in competition with foreign firms. For example, Korean electronics firms should utilize 'guanxi' or relational quality to form long-term relationships with whloesalers instead of power and conflict issues. The major purpose of this study is to investigate the impact of conflict, dependency, and influence strategies between local Korean-products-selling retailers and wholesalers on performance in Chinese electronics distribution channels. In particular, this paper proposes effective distribution strategies for Korean electronics companies in China by analyzing moderating effects of 'Guanxi'. II. Literature Review and Hypotheses: The specific purposes of this study are as follows. First, causes of conflicts between local Korean-products-selling retailers and wholesalers are examined from the perspectives of goal incongruence and role ambiguity and then effects of these causes are found out on perceived conflicts of local retailers. Second, the effects of dependency of local retailers upon wholesalers are investigated on local retailers' perceived conflicts. Third, the effects of non-coercive influence strategies such as information exchange and recommendation and coercive strategies such as threats and legalistic pleas exercised by wholesalers are explored on perceived conflicts by local retailers. Fourth, the effects of level of conflicts perceived by local retailers are verified on local retailers' financial performance and satisfaction. Fifth, moderating effects of relational qualities, say, 'quanxi' between wholesalers and retailers are analyzed on the impact of wholesalers' influence strategies on retailers' performances. Finally, moderating effects of relational qualities are examined on the relationship between conflicts and performance. To accomplish above-mentioned research objectives, Figure 1 and the following research hypotheses are proposed and verified. III. Measurement and Data Analysis: To verify the proposed research model and hypotheses, data were collected from 97 retailers who are selling Korean electronic products located around Central and Southern regions in China. Covariance analysis and moderated regression analysis were employed to validate hypotheses. IV. Conclusion: The following results were drawn using structural equation modeling and hierarchical moderated regression. First, goal incongruence perceived by local retailers significantly affected conflict but role ambiguity did not. Second, consistent with conflict spiral theory, the level of conflict decreased when retailers' dependency increased toward wholesalers. Third, noncoercive influence strategies such as information exchange and recommendation implemented by wholesalers had significant effects on retailers' performance such as sales and satisfaction without conflict. On the other hand, coercive influence strategies such as threat and legalistic plea had insignificant effects on performance in spite of increasing the level of conflict. Fourth, 'guanxi', namely, relational quality between local retailers and wholesalers showed unique effects on performance. In case of noncoercive influence strategies, 'guanxi' did not play a role of moderator. Rather, relational quality and noncoercive influence strategies can serve as independent variables to enhance performance. On the other hand, when 'guanxi' was well built due to mutual trust and commitment, relational quality as a moderator can positively function to improve performance even though hostile, coercive influence strategies were implemented. Fifth, 'guanxi' significantly moderated the effects of conflict on performance. Even if conflict arises, local retailers who form solid relational quality can increase performance by dealing with dysfunctional conflict synergistically compared with low 'quanxi' retailers. In conclusion, this study verified the importance of relational quality via 'quanxi' between local retailers and wholesalers in Chinese electronic industry because relational quality could cross out the adverse effects of coercive influence strategies and conflict on performance.