• Advanced Industrial SCIence
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• v.2 no.4
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• pp.17-27
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• 2023

The purpose of this study is to improve the efficiency of digital conversion by presenting factors that domestic small and medium-sized manufacturers should consider when attempting digital conversion. Using SME data from 2019 to 2021, we analyze the impact of digital transformation on the financialization of enterprises and which digital technologies affect financialization, and further analyze the mediating effect of green technology innovation between digital transformation and business finance. did The results of the study support the negative impact of digital technologies on corporate finance, and cloud computing technologies have been found to significantly inhibit the level of corporate finance. In addition, it was found that green technology innovation plays a mediating role in suppressing corporate financialization by promoting green technology innovation through digital transformation. Digital transformation influences corporate decision-making through green technology innovation, suggesting that the combination of digital technology and green projects should be considered.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.2
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• pp.1-13
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• 2009

In this paper, we develop theoretical game models to determine the level of government subsidies for banks to provide policy loans to Innovative SMEs(small and medium sized enterprises) through banks, which otherwise would not finance them for the sake of their own profitability. For this, we compare net cash flows of each bank using different strategies against high risk innovative SMEs. A bank can decide whether to provide them loans or not In each period. Following Kim(2003)'s Infinite horizon model on the soft budget constraint, we introduce a situation in which banks compete against each other for higher net long-term payoffs from their loans to innovative SMEs and non-innovative SMEs. From the models, we show that competition among banks in general leads to a tighter decision against innovative SMEs, as a Nash equilibrium. It is not because the government bank is simply loose in providing loans, but because competition among commercial banks for fewer riskier borrowers results in tighter loan decisions against innovative SMEs. Thus, the competitive market for policy loans to innovative SMEs fails to reach the socially optimal level of loans for innovative SMMs. Commercial banks in the competitive market may require additional supports from the government to make up for the differences in their payoffs to support innovative SMEs, possibly much riskier due to moral hazards and poor discounted cash flows. The monopolistic government bank might also request such supports from the government to fund otherwise unqualified SMEs. We calculate an optimal level of governmental support for banks to guarantee funding such high-risk innovative SMEs over periods without deviating from their optimal Nash equilibrium policies.

• Journal of Labour Economics
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• v.41 no.2
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• pp.1-29
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• 2018

The paper reviews the trend of youth employment in Korea in recent years and examines whether the change in labor demand through declining business dynamism is one of the causes. The analysis based on Employment Insurance database finds that the rate of job creation declined over the period from 1999 to 2014 and that the job creation of small- and medium-sized enterprises fell sharply. This is partly explained by entry of fewer firms than before given that young firms tend to experience rapid employment growth. In fact, it is confirmed that the share of firms under age 6 in employment level and job creation declined. The finding that young firms employ young workers more than old firms suggests that a smaller role of young firms in the economy had a negative effect on youth employment.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.2
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• pp.147-165
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• 2012

Recently, the theory of open innovation emerges as a new innovation paradigm. This paper aims to examine open innovation activities of SMEs. Many firms tend to search new knowledge from various external sources and to pursue to achieve innovation resources or knowledge of external innovators. Particularly, this paper focus on the process of external knowledge networking and open innovation occurred in the process of technology innovation. The data used in this study were those that had been collected for total 3,400 sample SMEs that had conducted R&D. and in-depth interviews were conducted with 14 SMEs located at Chungbuk-Technopark. Empirical findings can be summarized as follows; SMEs tend to search new knowledge from various external sources and to pursue to achieve innovation resources or knowledge of external innovators, because they have lack of innovation resources. therefore, the conducting of open innovation affected positively the innovation performance of SMEs. In addition, empirical findings also indicated that expanding flexibility of labor market enhances open innovation activities of SMEs.

• Journal of Digital Convergence
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• v.15 no.9
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• pp.147-153
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• 2017

This research empirically analyzes not only the direct impact of the external technological information network diversity of small and medium-sized enterprises (SMEs) on the sales growth from their technology development but also the mediating impact of their productivity improvement and the moderating effect of the technology development driven by CEO on this direct impact in order to deepen the research stream on SMEs' external technological information network. Based on the ordinary least squares regression by using 2,200 data of South Korean SMEs, this study reveals the three findings. First, SMEs' external technological information network diversity positively influences their sales growth from technology development. Second, SMEs' productivity improvement partially mediates this positive influence of the external technological information network diversity. Third, SMEs' technology development driven by CEO moderates the positive influence.

• Management & Information Systems Review
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• v.32 no.1
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• pp.111-134
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• 2013

Today, TQM is used as a important tool of management innovation for enterprise's competitive power. Purposes of this paper are to find out the implementation strategy of TQM activities for SMEs through the analysis which examine the relationship between key activity factors and business performance. This study has been conducted using the data collected from 116 SMEs implementing TQM activity. By analyses of the questionnaires, empirical results shows that TQM activities has positive effect on business performance. The contribution of this study is that it provides a conceptual framework and empirical evidence of the causal relationship between key activity factors and business performance. The result of this study can be used for selection of the performance measurement indicators for target achievement in TQM activity. And it will contribute for objectivity of activity performance in case of displaying measurement indicator showing the performance of TQM activity.

• Journal of the Korea Society for Simulation
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• v.31 no.2
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• pp.1-10
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• 2022

The packaging plastic manufacturing(blown film) industry has long developed in China, but most of them are small/medium-sized enterprises, and it is very rare to have appropriate operation plans suitable for their own business. The packaging plastic manufacturing industry(blown film) follows a typical Make-To-Order method, and the sequence of processing orders is very important. Waste of materials incurred by frequent conversions of production cannot be avoided, and generally, related costs incurred during conversion production are also different. Therefore, this study developed a job sequence determination model for improving operating profits using @RISK simulation software, compared and analyzed 3 actionable clustering treatment methods proposed by technical managers and field experts under the actual situation of the factory.

• Korea Trade Review
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• v.48 no.2
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• pp.197-216
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• 2023

This research aims to examine and reevaluate the risk management procedures required for facilitating E-Commerce exports by Small and Medium-sized Enterprises(SMEs) in the context of customs risk management procedures. Based on risk management studies, this research focuses on three research questions. First, what courses comprise the export risk management structure? Second, what are the key issues in risk management in facilitating E-Commerce export clearance? Third, based on the research results, what are the implications and improvements for export customs risk management in boosting SMEs' E-Commerce exports? The research concluded that risk control for SMEs' E-Comerce exports should be further strengthened based on a compliance management approach. To achieve this, the customs authorities should develop a new method of reasoning about the difficulties SMEs face in exporting and the risks of failure to comply with the regulations at the foreign markets.

• Journal of Korean Society for Quality Management
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• v.50 no.4
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• pp.647-664
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• 2022

Purpose: The purpose of this study is to derive major policies that domestic small and medium-sized manufacturing companies should consider to maximize productivity and quality improvement by utilizing manufacturing data and AI, and to find priorities and implications. Methods: In this study, domestic and international issues and literature review by country were conducted to derive major considerations such as manufacturing AI technology, manufacturing AI talent, manufacturing AI data and manufacturing AI ecosystem. Additionally, the questionnaire survey targeting 46 experts of manufacturing data and AI industry were conducted. Finally, the major considerations and detailed factors importance were derived by applying the Analytic Hierarchy Process (AHP). Results: As a result of the study, it was found that 'manufacturing AI technology', 'manufacturing AI talent', 'manufacturing AI data', and 'manufacturing AI ecosystem' exist as key considerations for domestic manufacturing AI. After empirical analysis, the importance of the four key considerations was found to be 'manufacturing AI ecosystem (0.272)', 'manufacturing AI data (0.265)', 'manufacturing AI technology (0.233)', and 'manufacturing AI talent (0.230)'. The importance of the derived four viewpoints is maintained at a similar level. In addition, looking at the detailed variables with the highest importance for each of the four perspectives, 'Best Practice', 'manufacturing data quality management regime, 'manufacturing data collection infrastructure', and 'manufacturing AI manpower level of solution providers' were found. Conclusion: For the sustainable growth of the domestic manufacturing AI ecosystem, it should be possible to develop and promote manufacturing AI policies in a balanced way by considering all four derived viewpoints. This paper is expected to be used as an effective guideline when developing policies for upgrading manufacturing through domestic manufacturing data and AI in the future.

• Journal of Distribution Science
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• v.12 no.6
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• pp.59-65
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• 2014

Purpose - The competitiveness of logistics in the 21st century rests on ensuring the efficiency and effectiveness of its local hub. While considering entry into a niche market in local logistics, it is pertinent to note that Budapest is emerging as a hub in EU enlargement in Eastern Europe. Big, small, and medium-sized businesses in Korea entered Hungary in the early 1990s since then, there has been a significant increase in Korean presence, of approximately 130 times. This study aimed to identify the key distribution issues that have emerged in relation to Eastern Europe. Research design, data, and methodology - This study indicates that 33 major Korean companies were located in Hungary, which serves as an out post to enter the European marketplace. However, Korea's exports to Hungary have declined (-32.0% in 2012) because of a loss of competitiveness against multinational corporations, due to factors such as the rise in current local distribution costs and wages. Hungary, on the other hand, through diversification and expansion of foreign trade with the non-EU markets, including Korea, is increasing its exports. Strategies of emerging countries are compared and reviewed in this study, by examining the vicissitudes of Hungary's distribution methods. Results - There are issues regarding Hungary's innovative ability. Hungary has a history of low wages and high skilled labor. However, the outflow of high-quality human resources for high-wages has become more extensive, and this underlines concerns that the CEE's trade hub is moving to neighboring countries. After the European financial crisis in 2010, the Hungarian economy is now developing, because of the IMF's measures, and it is being transformed into a trade surplus nation, while regaining distribution volumes rapidly. However, if there is continued lack of investment, the supply chain is weakened and exports decline amidst competition with TNCs or with China's distribution networks. Conclusions - It is necessary to create a new logistics approach for increasing trade between Korea and Hungary. First, Korean small and medium enterprises (SMEs) should build trust by working with advanced Hungarian talent, and they should expand into state-of-the-art fields instead of being confined to traditional sectors. Second, this study focuses on limiting and lowering their high expectations for success according to foreign direct investment (FDI) inflows and the role in the CEE distribution hub Korea should try to strengthen the distribution hub with its centralized population, using better, more highly educated human resources, thereby sustaining more innovative ability. Further, the positive effects of these measures are manifested in enhanced business on both sides of Hungary, namely, the EU and non-EU nations such as Turkey and emerging markets around Europe, and a better engagement in the core placement of culture and industry. For this, Korea can contribute to, and benefit from, a Hungarian logistics center, for adopting the high-tech cluster systems and commercializing distribution technology such as RFID·USN.