• Journal of Distribution Research
• /
• v.17 no.5
• /
• pp.25-38
• /
• 2012

In general, commercial franchisors prefer franchisees with high entrepreneurship and business capability. However, these entrepreneurial franchisees with high capability tend to depend less on franchisors. Although franchisees with less entrepreneurship and low capability need intensive care from franchisors, some of them result in business failure due to improper supports from incapable franchisors. This paper suggests several propositions regarding social franchising's role in supporting the low-income urban people on the premise that social franchising or micro-franchising provides implications for franchisor strategic orientations for franchisees with little capital. Through literature review about social franchising and micro franchising, some implications are drawn. Many social enterprises use franchising to get growth and sustainability, because franchising allow social enterprise to expand its scale and to achieve economies of scale despite of its non-commercial and social purpose. And continuous support and training undertake the most important role to achieve its social purpose. In commercial franchising, especially small business format franchising sector, franchisor have to consider not only commercial purpose but also social responsibility because of low capability and less entrepreneurship of franchisee. If franchisor pursue only own profit, this can increase the conflict and franchise system failure. So far many franchisors are concerned with own profit and external growth. But it is necessary to consider symbiotic relationship, social responsibility and sustainability more for the sake of desirable industrial growth in the future.

• Journal of Korea Society of Industrial Information Systems
• /
• v.21 no.1
• /
• pp.83-92
• /
• 2016

This paper is intended for small businesses, and small-scale empirical analysis of the peripheral region has a research model of the relationship between consulting factors that are studied in various aspects of the existing and business performance. In other words, a model that is presented in the study with reference to the existing verification as to whether any association exists between management consulting factors and business performance targets in wonju region auto parts production enterprises. Consulting factors were modeled separately by the consumer and supplier factors as business performance and financial performance were divided into non-financial performance, we designed the model parameters as set by the corporate culture. Research consulting consumer factors and supplier factors business performance (financial and non-financial) showed that having a significant impact on corporate culture, set as a parameter also having a positive effect on business performance It showed that.

• Korean small business review
• /
• v.32 no.2
• /
• pp.209-223
• /
• 2010

Korea's business is composed of a few large-sized enterprises (which can be abbreviated as LSE) and a majority of small-sized enterprises (SSE). Although there has been a growing recognition of the need for the development of medium-sized enterprises (MSE) which can serve as a link between SSE and LSE, as yet there has not yet been a consensus on the definition, characteristics and the function of the MSE in Korea. Nowadays, the world is being globalized, and Japan and China are in competition to ne a great economic power. While East Asia is experiencing rapid changes, promoting MSE which can secure flexibility and efficiency through covering up the limitation of LSE and SSE is needed in order to respond the global market which is being specialized. The features of MSE in Japan can be listed as follows. First, the MSE in Japan is developing the company through getting into niche markets which are hard for major companies to enter rather than developing markets in order to compete against major companies directly. While MSEs are endeavoring to build the business firmly in the domestic market, they can possess special and competitive technical skills through trials and errors; so that they can get a chance develop their business through independent business system rather than putting their effort to compete against major companies. Second, from the MSEs with competitive edge in the market, there are many contributions to the national exportation. Those MSEs produce in domestic and maintain the quality of high price products which need cutting-edge technology, while they relocate the low and middle priced goods to the country where manufacturing costs are low, so that they can maintain the price competitiveness. Third, the industrial structure in Japan is formed from dual structure between major companies and small sized companies. In other words, in Japan's industrial structure which are composed of subcontract structure, this dual structure has taken a major role of small sized companies' growth and manufacturing businesses' international competitive power. Forth, MSE in Japan adopt a strategy of putting their value on qualitative scale growth rather than quantitative scale growth. In this paper, the case of Japanese MSE is analyzed. Along with its long history of Industrialization, Japan has a corporate environment where the SSEs can develop as a MSE and later a LSE through a full-support system. Among its SSEs, there are a number of world class corporations equipped with a large domestic market, win-win cooperation with the LSEs and an independent technology development. It can also be observed that these SSEs develop into MSEs with sustainable growth potentials. This study will focus on the condition under which the MSEs of Japan have been developed, and how they have survived the competition between SSEs and LSEs. Through this study, this paper attempts to offer solutions to Korea's polarization between the SSE and LSE, while providing the basis for SSEs revitalization. In general, if both extremities phenomenon deepen between LSE and SSE, there are possible fears of occurring disutility in national economy by the monopolization of LSE. For that reason, enterprise group, which can make SSE or MSE compete LSE in some area and ease the monopoly and oligopoly problem, is needed. This awareness has been shared for ages long. Nevertheless, there is no legal definition for MSE in Japan, and there is no definition about the enterprise size or unified view of MSE between scholars, but it is defined differently by each of academical person or research institution and study meeting. For that reason, this paper will organize the definition of MSE in Japan, and then will propose the characteristics of the background which has made MSE secure competitiveness and sustainable growth in global market. This study focus on that because through this process, the positive change to the awareness of MSE can be proposed in Korea and to seek the policy direction for building institutional framework which can make SSE become MES. Through this way, the fundamentals for SSE to become MSE can be managed and some appropriate suggestions which will be able to make MSE enter the global market in the future can also be proposed. Due to these facts, this study is very important and well timed task. In a sense of this way, this study will examine the definition and role of MSE in Japan. after this examination, this study will deal with the status, special feature, and promotion policy for MSE. Through this analysis of MSE in Japan, the foundation which be able to set the desirable role model for MSE in Korea can be proposed. Also, the political implication which is needed to push ahead to contribute to creating employment and economic growth through sustainable growth of MSEs in economic system of Korea can be offered through this study. It has been found that Japan's MSE functions as an indispensable link among various industrial structures by holding a significant position in employment rate, production and value added. Although the MSEs took up less than 1% of the entire number of businesses with 2700 manufacturing firms and 7000 non-manufacturing firms, its employment ratios are about 15%, while taking about 25% of the manufacturing industry's exports. In industries such as machinery and electronics which is considered Japan's major industry, the MSEs showed a higher than average ratio of manufacturing exports and employment rate. It can be analyzed that behind Japan's advantageous industries, close and deeply knit MSEs exist. Although there are no clearly stated policies geared towards the MSEs by the Japanese government, various political measures exist such as the R&D Project and the inducement of cooperation between enterprises which gives room for MSEs to participate in the SSE policies. In relation to these findings, the following practical measures can be considered in order to revitalize Korea's MSEs: First, there is a need for a legal definition of MSE and the incentives to provide legal support for its growth. Second, if a law to support the MSEs is established, it could provide a powerful inducement for the SSE to grow as a MSE, rather than stay as a SSE. Third, there is a need for a strategy of MSEs to establish a stable base in the domestic market and then advance to the global market with the accumulated trial and error and competitiveness. Fourth, the SSE themselves need the spirit of entrepreneurship in order to make the leap to a MSE. Because if nothing is to be changed about the system on the firms that grew, and the parts of the past custom was left to be managed alone, confusion and absence of management can take place. No matter how much tax favors the government will give and no matter how much incentive there could be through the policies, there are limits for industries to higher the ability to propagate. And because of that it is a period where industries need their own innovative skills to reform their firms.

• Korean Journal of Labor Studies
• /
• v.23 no.2
• /
• pp.195-230
• /
• 2017

This study combined Youth Panel Data(2009~2014) to analyze youth employees' turnover determinants by business scale and wage effects and the results are as follows: First, the turnover rate of youth employees was analyzed and as a result, the average turnover rate in 2014 was 26.3% and was found to be small company 25.6%, medium-sized company 25.1%, large company 17.2% in terms of business scale (based on regular permanent position), showing that the larger the company size, the lower the turnover rate. Second, turnover reasons of youth employees were found to be dissatisfaction with working conditions 40.3%, job mismatch 39.2%, personal reasons 11.8% in order and turnover by job mismatch was higher in large companies (41.5%) than in small and medium enterprises (38.5%). Third, job satisfaction and job-major agreement depending on the status of turnover were analyzed and as a result, the lower the job satisfaction and job-major agreement, the higher the turnover rate in all areas. Fourth, scale turnover determinants by business scale were analyzed through panel regression analysis and as a result, variables significantly affecting turnover were analyzed to affect objective working conditions such as wage and employment type and job satisfaction and 'job-level of education skill level major'agreement variables to lower the turnover rate as well. Fifth, wage effects depending on the status of turnover were estimated and as a result, the wage level of youth employees who changed their job was lower than that of youth employees working in the same company by about 3.1% and this wage gap was further expanded over time. But, turnover of changing employment type(temporary position${\rightarrow}$regular permanent position) and company size (small and medium enterprise${\rightarrow}$large company) was not the case. Therefore, in order to reduce the turnover rate of youth employees, it is necessary to increase overall job satisfaction and job-major agreement with objective working conditions and working in the same company for a long period of time rather than changing jobs frequently can be said to be rational choice in terms of youth employees.

• The Journal of Industrial Distribution & Business
• /
• v.2 no.2
• /
• pp.15-24
• /
• 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 the Korean Institute of Gas
• /
• v.22 no.6
• /
• pp.136-143
• /
• 2018

Cellular automata have been applied to simulations in many fields such as astrophysics, social phenomena, fire spread, and evacuation. Using cellular automata, this study develops a model for consequence analysis of the dispersion of hazardous chemicals, which is required for risk assessments of and emergency responses for frequent chemical accidents. Unlike in cases of detailed plant safety design, real-time accident responses require fast and iterative calculations to reduce the uncertainty of the distribution of damage within the affected area. EPA ALOHA and KORA of National Institute of Chemical Safety have been popular choices for these analyses. However, this study proposes an initiative to supplement the model and code continuously and is different in its development of free software, specialized for small and medium enterprises. Compared to the full-scale computational fluid dynamics (CFD), which requires large amounts of computation time, the relative accuracy loss is compromised, and the convenience of the general user is improved. Using Python open-source libraries as well as meteorological information linkage, it is made possible to expand and update the functions continuously. Users can easily obtain the results by simply inputting the layout of the plant and the materials used. Accuracy is verified against full-scale CFD simulations, and it will be distributed as open source software, supporting GPU-accelerated computing for fast computation.

• Journal of Distribution Science
• /
• v.11 no.6
• /
• pp.81-89
• /
• 2013

Purpose - The market orientation of a manufacturer is a very critical competitive advantage factor in the development of new markets and the sustainability and maintenance of existing ones, achieved through the design of customer-oriented products. This is recognized as a virtuous circle, in which firms grow by means of promoting quality management. However, though market-oriented activities are important in management and operations, they seem to be promoted mainly by large-scale enterprises rather than by small- and medium-scale firms, the latter having invested relatively few company resources. Furthermore, few studies and analyses have examined how market orientation relates to the expansion of quality programs within organizations or with business performance; the market orientation and customer-orientation concepts are mixed together when both are used in research. Given the current market situation in which the servitization of manufacturing firms is rapidly expanding, this study's analysis of the effect on market orientation of manufacturers is a significant contribution. From this perspective, this study has several objectives. First, is to analyze and suggest the relationship between market orientation and quality management activity for manufacturers, focusing on three sub-activities: products, process, and quality management activities. Second, it is intended to identify correlation between manufacturers' market oriented activity and their management performance and then to analyze how market orientation affects business performance. The results of a number of prior studies on the correlation between market orientation and management performance have indicated that market orientation does affect management performance. Third, this study also investigates whether any differences in the relationship among market orientation, quality management activity and business performance occur according to company size. The results are used to present operational suggestions for large- and small- and medium-size firms. Research design, data, methodology - This study seeks to analyze and identify the causal features of the organic relationship among market orientation, quality management, and management performance for Korean manufacturing companies using three years (2005-2007) of market orientation, quality management, and business performance data. Subsequently, structural equation modeling was used to analyze the causal features of related factors and it aims to identify the features of market orientation, quality management, and business performance. Results - The analysis examined how market orientation affected the quality management and management performance of 159 smalland medium-size companies. In particular, enterprise quality management was analyzed in relation to management performance with a focus on activities such as leadership, measurement and improvement, quality control, cost management, and process management. Conclusions - The result of the analysis show that market orientation significantly affected all of the quality management activities and that market orientation in turn significantly affected organizational performance. The result of analysis indicate that quality management activities have a significant effect on quality control and cost management.

• Journal of Technology Innovation
• /
• v.29 no.3
• /
• pp.33-62
• /
• 2021

This study compares and analyzes the efficiency of R&D activities of technology-innovative small and medium-sized enterprises(SMEs) between industries and proposes ways to improve efficiency. The research samples are 6,708 technology-innovative SMEs, which have received a guarantee by the KIBO from 2008 to 2011. Input variables are the level of R&D personnel, R&D investment, and output variables are patent applications, prototype. Efficiency is measured by the DEA model, and indirect comparisons that are individually measured by industry are performed. As a result of the analysis, the CCR for determining the optimal returns to scale is 0.19, the BCC for determining the optimal input distribution is 0.70, and the SE for determining the optimal output is 0.30. By industry type, the medium and low-tech industries have high CCR and BCC, while the high-end and high-tech industries have high SE. R&D activities need to be operated on an optimal scale through managing R&D performance because there is the inefficiency of scale across the industry. The contribution of the study is to analyze the R&D efficiency of each industry of technology-innovative SMEs by the technology evaluation data of the KIBO.

• The Journal of Industrial Distribution & Business
• /
• v.3 no.1
• /
• pp.7-16
• /
• 2012

Despite the enforcement of SSM control laws such as 'the Law of Developing the Distribution Industry (LDDI)' and 'the Law of Promoting Mutual Cooperation between Large and Small/medium Enterprises (LPMC)' stipulating the business adjustment system, the number of super-supermarkets (SSMs) has ever been expanding in Korea. In France, however, Super Centers are being regulated most strongly and directly in the whole Europe viewing that there is not a single SSM in Paris, which is emphasized to be the outcome from French government's regulation exerted on the opening of large scale retail stores. In France, the authority to approve store opening is deeply centralized and the store opening regulation is a socio-economic regulation driven by economic laws whereas EU strongly regulates the distribution industry. To control the French distribution industry, such seven laws and regulations as Commission départementale d'urbanisme commercial guidelines (CDLIC) (1969), the Royer Law (1973), the Doubin Law (1990), the Sapin Law (1993), the Raffarin Law (1996), solidarite et renouvellement urbains (SRU) (2000), and Loi de modernisation de l'économie (LME) (2009) have been promulgated one by one since the amendment of the Fontanet guidelines, through which commercial adjustment laws and regulations have been complemented and reinforced while regulatory measures have been taken. Even in the course of forming such strong regulatory laws, InterMarche, the largest supermarket chain in France, has been in existence as a global enterprise specialized in retail distribution with over 4,000 stores in Europe. InterMarche's business can be divided largely into two segments of food and non-food. As a supermarket chain, InterMarche's food segment has 2,300 stores in Europe and as a hard-discounter store chain in France, Netto has 420 stores. Restaumarch is a chain of traditional family restaurants and the steak house restaurant chain of Poivre Rouge has 4 restaurants currently. In addition, there are others like Ecomarche which is a supermarket chain for small and medium cities. In the non-food segment, the DIY and gardening chain of Bricomarche has a total of 620 stores in Europe. And the car-related chain of Roady has a total of 158 stores in Europe. There is the clothing chain of Veti as well. In view of InterMarche's management strategies, since its distribution strategy is to sell goods at cheap prices, buying goods cheap only is not enough. In other words, in order to sell goods cheap, it is all important to buy goods cheap, manage them cheap, systemize them cheap, and transport them cheap. In quality assurance, InterMarche has guaranteed the purchase safety for consumers by providing its own private brand products. InterMarche has 90 private brands of its own, thus being the retailer with the largest number of distributor brands in France. In view of its IT service strategy, InterMarche is utilizing a high performance IT system so as to obtainas much of the market information as possible and also to find out the best locations for opening stores. In its global expansion strategy of international alliance, InterMarche has established the ALDIS group together with the distribution enterprises of both Spain and Germany in order to expand its food purchase, whereas in the non-food segment, it has established the ARENA group in alliance with 11 international distribution enterprises. Such strategies of InterMarche have been intended to find out the consumer needs for both price and quality of goods and to secure the purchase and supply networks which are closely localized. It is necessary to cope promptly with the constantly changing circumstances through being unified with relevant regions and by providing diversified customer services as well. In view of the InterMarche's positive policy for promoting local partnerships as well as the assistance for enhancing the local economic structure, implications are existing for those retail distributors of our country.

• Journal of the Korean Dietetic Association
• /
• v.8 no.3
• /
• pp.280-288
• /
• 2002

The purpose of this study was to investigate the operational characteristics of the contract-managed highschool foodservice and to analyze the factors to effect the menu price. The data was collected from 249 highschools in Seoul. The results are as follows; Those surveyed highschools were established as 1 national, 74 public, and 174 private institution. Highschools were classified as 176 academic, 66 vocational, and 7 specific purposed institution. Students were organized as 70 boys', 23 girls', and 41 coeducational highschools. Most highschool started contract-managed highschool foodservice from 1999 and the period of foodservice contract was most 3 years and the operation styles in food distribution were 96 classrooms, 105 dining halls and 17 classrooms combined dining halls. The scale of contract foodservice management companies was 63.1% small and medium and 36.9% large enterprises. The surveyed highschools had the average meal price 2,141 won per meal and they had 1,518 pupils on the register. The participating rate to the foodservice was 68.5%. The facilities investment cost of the contract foodservice management company was 179,204,230 won for private institutions and was 138,119,010 won for national&public institutions. The period of the contract was 3.22 years in private institutions, which was significantly higher than national&public institutions which showed 2.85 years. The commissary foodservice schools had higher facilities investment cost than conventional foodservice schools. Classrooms foodservice had higher participating foodservice rate than Dining halls. The investment cost for facilities showed high in order of girls', boys', and coeducational high schools, and the number on the register and the number participating in the foodservice showed high in order of boys', girls', and coeducational high schools. The number on the register showed the highest in academic and vocational schools, specific purposed institutions in sequence, and the number participating in the foodservice showed high in order of academic schools, specific purposed institutions and vocational. However, the participating foodservice rate showed high in specific purposed institution, academic and vocational schools in order, and the meal price, the investment cost for facilities showed high in specific purposed institution, academic and vocational schools in sequence. Regionally, the district south of Han river had the average meal price 2,266.13 won, which showed higher in the eastern part which had 2,033.33 won. The western part had the average investment cost for facilities of 233,331,060 won, and the central district 126,137,140 won. The number on the register showed 1845.68 in the eastern part and 1308.00 in Dong-Jak area, that had clear differences among areas. When the period of the contract went longer, the investment cost for facilities had a tendency to increase. The significant differences were existed among meal price, the investment cost for facilities, the number on the register, the number participating in the foodservice, and the participating foodservice rate. The investment cost for facilities had increased according to the number participating in the foodservice and the participating foodservice rate. And the large enterprises showed higher participating foodservice rate than the small and medium enterprises.