• 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.

• Cartoon and Animation Studies
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• s.24
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• pp.223-246
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• 2011

Today, cultural content industry could be defined to service business rather than manufacturing business because of its own trait. Also, it has the realistic restriction that it can't hold the dominant position in the market competition when it can't provide consumers satisfaction regardless of its quality or degree of completion. In other word, it can only expect great success when the business plan and the activities get the perfect balance with its best quality and perfect of completion. As the result, it emphasizes the importance of business competition in the global market. In briefly, there is no doubt that the creativeness of content is very important in the cultural content industry but in the future, making system to maintain the distribution process and share the profits fairly will be taken more important role. Especially, animation genre has the feature, which compares to other genres, such as film or TV drama, would be free from cultural barriers, and it is a great advantage. So to speak, animation can get little influence from cultural discount. However, Korean animation can't use the advantage properly for the foreign distribution because of its poor infrastructure and short of professional human resources. For those reasons, it has been needed to set up the realistic and specific action plan to overcome the situation. Therefore, considering those needs and the situations of Korean animation facing, making B2B online marketplace could be a great solution. The online marketplace stands for taking more efficient and broad distribution channel instead of the passive way, which we have now. If we have the B2B online marketplace, we can share all the information about the Korean animation with the potential customers whom live outside of Korea at real time. It also could be use to the windows of multiple distribution, which can make additional profits and activate the optional markets for the Korean animation. Through the method, Korean animation would be expected to get the higher international competitiveness, and it would be developed in quality and quantity of the business. Finally, it would be a great chance to Korean animation, which can get the unique brand power by improving the backward distribution circumstances.

• The Journal of Industrial Distribution & Business
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• v.2 no.2
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• pp.15-24
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• 2011

Modern enterprises should concentrate their efforts on continuous improvements in focusing their development in the core areas of business and to reduce their expenses and to enhance the quality of service for customers. The enterprises should focus on their core business while outsourcing the non-core areas of business to external specialists for the purpose of reducing cost. In South Korea, the enterprises are becoming increasingly interested in outsourcing their logistics function, especially in using IT technologies to the 3PL. The underlying reason for this trend is because the logistics costs of Korean businesses are much higher than that of other advanced countries. This higher logistic costs weakens the price competitiveness of Korean companies in the overseas export markets and even dampening the balance of international trade. Domestically, the higher logistics costs have the effect of raising prices in the local markets and thus affecting the local economy. Therefore a solution is urgently needed to save the logistics costs for the Korean companies in the interest of increasing national competitiveness. Outsourcing to the 3PL is becoming an attraction solution to this problem. Thanks to the increasing supply of professional logistics companies, many of the enterprises are switching to the Third Party Logistics. Nevertheless the enterprises do not yet utilize the integrated third-party logistics services on a full scale. This study analyzes present conditions and problems of the domestic third-party logistics market and suggests directions for future development. To solve the problems in the domestic third-party logistics market, four actions are recommended. First there should be new supporting policies in the laws and regulations and a system for small and medium sized companies to grow. Solutions to structural problems such as abnormal multilevel merchandising, illegal operation of private cars, and freight dumping should be implemented concurrently. Furthermore, standards for new companies entry into the market should be enhanced to allow only the competitive distribution companies to enter the market. Second, development of variety of educational programs is needed through establishing human-resource development system and specialized formal educational institution focused on this market. Third, the third party distribution companies, which seek long-term relationships with the owners of goods, should endeavor to strengthen their communications capability. Fourth, adoption of high-tech distribution system and the advent of U-Logistics, making use of RFID is urgent. This study has the limitation of objectivity because it does not include various comparative case studies about companies relating to the Third Party Logistics and domestic franchise companies. However, this study is significant to the extent that it analyzes the general present conditions and the problems of domestic Third Party Logistics and suggests recommendations for revitalization of Third Party Logistics. For future studies, analyzing the successful cases of international third party logistics companies' empirical data and studying the application into domestic franchise companies would improve the objectivity of the results. This would assist the domestic third party logistics companies not only to perform excellent domestic logistics function but also to enter into the global market for international logistics.

• Journal of Korea Port Economic Association
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• v.37 no.1
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• pp.159-178
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• 2021

This study analyzed issues and trends related to ports with 86,611 news articles for the 30 years from 1991 to 2020, using BIGKinds, a big data news analysis service. The analysis was based on keyword analysis, word cloud, relationship diagram analysis offered by BIG Kinds. Analysis results of issues and trends on ports for the last 30 years are summarized as follows. First, during Phase 1 (1991-2000), individual ports such as Busan, Incheon, and Gwangyang ports tried to strengthen their own competitiveness. During Phase 2 (2001-2010), efforts were made on gaining more professional and specialized port management abilities by establishing the Busan Port Authority in 2004, the Incheon Port Authority in 2005, and the Ulsan Port Authority in 2007. During Phase 3 (2011-2020), the promotion of future-oriented, eco-friendly, and smart ports was major issues. Efforts to reduce particulate matters and pollutants produced from ports were accelerated, and an attempt to build a smart port driven by port automation and digitalization was also intensified. Lastly, in 2020, when the maritime sector was severely hit by the unexpected shock of the COVID-19 pandemic, a microscopic analysis of trends and issues in 2019 and 2020 was made to look into the impact the pandemic on the maritime industry. It was found that shipping and port industries experienced more drastic changes than ever while trying to prepare for a post-pandemic era as well as promoting future-oriented ports. This study made policy suggestions by analyzing port-related news articles and trends, and it is expected that based on the findings of this research, further studies on enhancing the competitiveness of ports and devising a sustainable development strategy will follow through a comparative analysis of port issues of different countries, thereby making further progress toward academic research on ports.

• Korean small business review
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• v.43 no.4
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• pp.59-93
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• 2021

This study surveyed 413 small business owners who experienced closure to see how the loss perception experienced by small business owners affects their comeback through fear of failure. The analysis results are as follows. First, the larger the received loss of financial capital, market capital, and social capital, the greater the fear of failure. Second, the greater the fear of failure, the less willingness to re-start-up, but it did not affect the willingness to work. Third, perceived loss of financial capital, market capital, and social capital grew fear of failure, which negatively affected the willingness to re-start. However, as for the willingness to work, only the perception of loss to market competitiveness strengthened the willingness to work through fear of failure. This suggests that if you think you are out of business due to market competitiveness, you are more likely to choose to get a job than to start a business. Fourth, those with higher entrepreneurial self-efficiency had less effect of perceived loss on fair of failure than those with lower entrepreneurial loss. In other words, it can be seen that a person with high entrepreneurial self-efficiency is likely to start-up. It is noteworthy that despite the tendency to fail due to market competition and lack of understanding of risks, small business operators were most aware of the loss of social capital. This is presumed to have had the greatest impact on fear of failure because small business owners try to receive funding or business revitalization support through social networks such as acquaintances and relatives. Based on the above results, this study requires sufficient market research to secure a competitive advantage when preparing for start-ups through policy practice suggestions, and suggests ways to reduce financial loss through the establishment of sophisticated business plans.

• Korean small business review
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• v.31 no.1
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• pp.73-88
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• 2009

This study examines the characteristics of 24 Korean hidden champions such as key success factors, core competences, strategic problems, and desirable future directions. The study categorized them into 8 types with Danny Miller's four trajectories and top manager's decision making style(rationality and passion). Danny Miller argued in his book, Icarus paradox, that outstanding firms will extend their orientations until they reach dangerous extremes and their momentum will result in common trajectories of decline. He suggested four very common success types: Craftsmen, Builders, Pioneers, Salesmen. He also suggested common trajectories of decline:Focusing(from Craftsmen to Tinkers), Venturing(from Builders to Imperialists), Inventing(from Pioneers to Escapists), Decoupling(from Salesmen to Drifts). In Korea, successful startups appear to possess three kinds of drive: Technology-drive, Vision-drive, Market-drive. Successful technology-driven firms tend to grow as craftsmen or pioneers. Successful vision-driven and market-driven ones tend to grow as builders and salesmen respectively. Korean top managers or founders seem to have two kinds of decision making style: Passion-based and Rationality-bases. Passion-based(passionate) entrepreneurs are biased towards action or proactiveness in competing and getting things done. Rationality- based ones tend to emphasis the effort devoted to scanning and analysing information to better understand a company's threats, opportunities and options. Consequently this study suggested 4*2 types of Korean hidden champions: (1) passionate craftsmen, (2) rational craftsmen, (3) passionate builders, (4) rational builders, (5) passionate pioneers, (6) rational pioneers, (7) passionate salesmen, (8) rational salesmen. These 8 type firms showed different success stories and appeared to possess different trajectories of decline. These hidden champions have acquired competitive advantage within domestic or globally niche markets in spite of the weak market power and lack of internal resources. They have maintained their sustainable competitiveness by utilizing three types of growth strategy; (1) penetrating into the global market, (2) exploring new service market, (3) occupying the domestic market. According to the types of growth strategy, these firms showed different financial outcomes and possessed different issues for maintaining their competitiveness. This study found that Korean hidden champions were facing serious challenges from the transforming economic structure these days and possessed the decline potential from their success momentum or self-complacence. It argues that they need to take a new growth engine not to decline in the turbulent environment. It also discusses how firms overcome the economic crisis and find a new business area in promising industries for the future. It summarized the recent policy of Korean government called as "Green Growth" and discussed how small firms utilize such benefits and supports from the government. Other implications for firm strategies and governmental policies were discussed.

• The Korean Journal of Air & Space Law and Policy
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• v.33 no.2
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• pp.291-314
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• 2018

In recent 3 years, Korea's low-cost airlines have expanded their areas of passenger transportation not only to domestic market but also to Japan, China, Southeast Asia and US territory as a total of 6 companies (8 airlines including small air operation business carriers). Currently, three more airlines have filed for air transportation business certification as future low-cost carriers, and this expansion is expected to continue. To cope with the aggressive airline operations of domestic and foreign low-cost carriers and to enhance their competitiveness, each low-cost airline is taking a number of strategies for promoting cabin service. Therefore, the workload of the cabin crew is increased in proportion to the expansion, and the fatigue directly connected with the safety task performance is increased. It is stipulated in the Enforcement Regulations of the Korea Aviation Safety Act that at minimum, one cabin crew is required per 50 passenger seating capacity, and all low cost carriers are boarding only the minimum cabin crew. Sometimes it is impossible for them to sit in a floor level emergency exit for evacuation, which is the main task of the cabin crew, and this can cause confusion among evacuating passengers in the event of an emergency. In addition, if one of the minimum cabin crew becomes incapacitated due to an injury or the like, it will become a serious impediment in performing emergency evacuation duties. Even in the normal situation, since it will be violating the Act prescription on the minimum cabin crew complement, passengers will have to move to another available airline flights, encountering extreme inconvenience. Annex 6 to the Convention on International Civil Aviation specifies international standards for the determination of the minimum number of cabin crew shall be based only on the number of passenger seats or passengers on board for safe and expeditious emergency evacuation. Thereby in order to enhance the safety of the passengers and the crew on board, it is necessary to consider the cabin crew's fatigue that may occur in the various job characteristics (service, safety, security, first aid)and floor level emergency exit seating in calculating the minimum number of cabin crew. And it is also deemed necessary for the government's regulatory body to enhance the cabin safety for passengers and crew when determining the number of minimum cabin crew by reflecting the cabin crew's workload leading to their fatigue and unavailability to be seated in a floor level emergency exit on low cost carriers.

• Journal of Digital Convergence
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• v.12 no.4
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• pp.201-211
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• 2014

This study is to identify whether a difference exists between factors that influence the time when independently owned nail shops and franchises commence business. Futhermore, we set out to investigate the criteria for nail shop owners use when selecting franchise nail shops with a relatively high level of customer satisfaction and performance, to discuss the necessity of a franchise agreement. An actual analysis has revealed that there is a difference in factors that influence management at the time of and after the inception of independently owned shops and franchise nail shops. Business performance of franchise shops, as a result of evaluating customer satisfaction or monthly sales, turns out to be higher than independently owned shops. The criteria for selecting franchise stores includes intensity of competitiveness in the same business district, accessibility, ability to keep up with current trends, directors' skills, color scheme, excellence of company logo, interesting interior, reasonable prices compared to the level of cosmetic procedure and efforts to motivate employees. Overall, the deciding factor enabling shops to operate continuously is constant supervision from the headquarters of the franchise company.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2004.11a
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• pp.331-336
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• 2004

In order to strengthen the competitiveness of port against calling for the huge vessel and reducing the shipping service time, the productivity of container terminal must be improved. This productivity variously results according to the kinds of productivity evaluation model, input elements like yard, equipment, employee, facility, etc,. But, it is discussed that the productivity is measured by partial productivity evaluation model or general input elements. Therefore, we measured for the productivity of the container terminal using the Developed the data Envelopment Analysis (DEA), which is developed in order to evaluate the relative efficiency of decision making units - it's difficult to clear cause and effect between input and output. We measured the whole productivity of container terminal in Busan according to decision of the correct input elements. And we investigated the change of the productivity measurement result according to input elements, presents more accurate productivity evaluation model in container terminal.

• Journal of dental hygiene science
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• v.11 no.4
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• pp.353-359
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• 2011

This study was designed to identify a subjective symptom level by Indoor air according to ventilation system in Dental Clinic. The number of respondents was 582 who work in dental clinic and period of investigation was October 2010 through January 2011. A structured questionnaire was employed to evaluate the level of participants' sociodemographics, job-related factors, work place condition, a subjective symptom. Most of respondents were answered that time for symptom to begin was at around 2 P.M. and time for symptom to feel serve pain was at around 3 P.M. and ventilation frequency per a day was often in case of individual cooling and heating system. More often natural ventilation and in case of individual cooling and heating system, the level of subject symptom was low and multiple regression analysis has found that indoor air quality related elements were main factors that influence to the feeling of satisfaction in work place. The results of this study suggest that more often natural ventilation was very important to reduce the level of subjective symptom. Thus, a management program for indoor air quality is strongly recommended by natural ventilation, maintenance man for promotion of quality of life in dental hygienist and to improve dental service and competitiveness.