• Asia pacific journal of information systems
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• v.18 no.4
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• pp.57-81
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• 2008

Knowledge is an essential strategic weapon for sustaining competitive advantage and is the key determinant for organizational growth. When knowledge is shared and disseminated throughout the organization, it increases an organization's value by providing the ability to respond to new and unusual situations. The growing importance of knowledge as a critical resource has forced executives to pay attention to their organizational knowledge. Organizations are increasingly undertaking knowledge management initiatives and making significant investments. Knowledge sourcing is considered as the first important step in effective knowledge management. Most firms continue to make an effort to realize the benefits of knowledge management by using various knowledge sources effectively. Appropriate knowledge sourcing strategies enable organizations to create, acquire, and access knowledge in a timely manner by reducing search and transfer costs, which result in better firm performance. In response, the knowledge management literature has devoted substantial attention to the analysis of knowledge sourcing strategies. Many studies have categorized knowledge sourcing strategies into intemal- and external-oriented. Internal-oriented sourcing strategy attempts to increase firm performance by integrating knowledge within the boundary of the firm. On the contrary, external-oriented strategy attempts to bring knowledge in from outside sources via either acquisition or imitation, and then to transfer that knowledge across to the organization. However, the extant literature on knowledge sourcing strategies focuses primarily on large organizations. Although many studies have clearly highlighted major differences between large and small firms and the need to adopt different strategies for different firm sizes, scant attention has been given to analyzing how knowledge sourcing strategies affect firm performance in small firms and what are the differences between small and large firms in the patterns of knowledge sourcing strategies adoption. This study attempts to advance the current literature by examining the impact of knowledge sourcing strategies on small firm performance from a holistic perspective. By drawing on knowledge based theory from organization science and complementarity theory from the economics literature, this paper is motivated by the following questions: (1) what are the adoption patterns of different knowledge sourcing strategies in small firms (i,e., what sourcing strategies should be adopted and which sourcing strategies work well together in small firms)?; and (2) what are the performance implications of these adoption patterns? In order to answer the questions, this study developed three hypotheses. First hypothesis based on knowledge based theory is that internal-oriented knowledge sourcing is positively associated with small firm performance. Second hypothesis developed on the basis of knowledge based theory is that external-oriented knowledge sourcing is positively associated with small firm performance. The third one based on complementarity theory is that pursuing both internal- and external-oriented knowledge sourcing simultaneously is negatively or less positively associated with small firm performance. As a sampling frame, 700 firms were identified from the Annual Corporation Report in Korea. Survey questionnaires were mailed to owners or executives who were most erudite about the firm s knowledge sourcing strategies and performance. A total of 188 companies replied, yielding a response rate of 26.8%. Due to incomplete data, 12 responses were eliminated, leaving 176 responses for the final analysis. Since all independent variables were measured using continuous variables, supermodularity function was used to test the hypotheses based on the cross partial derivative of payoff function. The results indicated no significant impact of internal-oriented sourcing strategies while positive impact of external-oriented sourcing strategy on small firm performance. This intriguing result could be explained on the basis of various resource and capital constraints of small firms. Small firms typically have restricted financial and human resources. They do not have enough assets to always develop knowledge internally. Another possible explanation is competency traps or core rigidities. Building up a knowledge base based on internal knowledge creates core competences, but at the same time, excessive internal focused knowledge exploration leads to behaviors blind to other knowledge. Interestingly, this study found that Internal- and external-oriented knowledge sourcing strategies had a substitutive relationship, which was inconsistent with previous studies that suggested complementary relationship between them. This result might be explained using organizational identification theory. Internal organizational members may perceive external knowledge as a threat, and tend to ignore knowledge from external sources because they prefer to maintain their own knowledge, legitimacy, and homogeneous attitudes. Therefore, integrating knowledge from internal and external sources might not be effective, resulting in failure of improvements of firm performance. Another possible explanation is small firms resource and capital constraints and lack of management expertise and absorptive capacity. Although the integration of different knowledge sources is critical, high levels of knowledge sourcing in many areas are quite expensive and so are often unrealistic for small enterprises. This study provides several implications for research as well as practice. First this study extends the existing knowledge by examining the substitutability (and complementarity) of knowledge sourcing strategies. Most prior studies have tended to investigate the independent effects of these strategies on performance without considering their combined impacts. Furthermore, this study tests complementarity based on the productivity approach that has been considered as a definitive test method for complementarity. Second, this study sheds new light on knowledge management research by identifying the relationship between knowledge sourcing strategies and small firm performance. Most current literature has insisted complementary relationship between knowledge sourcing strategies on the basis of data from large firms. Contrary to the conventional wisdom, this study identifies substitutive relationship between knowledge sourcing strategies using data from small firms. Third, implications for practice highlight that managers of small firms should focus on knowledge sourcing from external-oriented strategies. Moreover, adoption of both sourcing strategies simultaneousiy impedes small firm performance.

• Journal of the Korean Operations Research and Management Science Society
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• v.42 no.2
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• pp.19-34
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• 2017

In this study, we develop an optimal sourcing strategy considering compensation orders to mitigate the supply chain disruption risks. We considered two-echelon supply chain consisting of a single buyer and multiple suppliers who have fixed transaction cost and probabilistic disruption risks. Under this setting, we provide the joint optimization method to determine the number of suppliers and the order quantities. Through numerical examples, we provide managerial implications on the sourcing strategy by investigating changes in the order quantities and the number of suppliers due to the degree of supply chain disruption risks.

• Asia pacific journal of information systems
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• v.10 no.3
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• pp.1-16
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• 2000

The purpose of this research is to validate the determinants of information systems(IS) sourcing strategy focusing on Korean financial institutions. Based on the factor analyses and discriminant analyses using data from 34 major Korean financial institutions, we observed that determinants of IS souring strategy are perceived risks, strategic expectations and organizational IS maturity. If the clients have clear objectives, can control the risks from IS sourcing, and have information systems in the less-matured stage, they frequently outsource their IS. In view of the IS maturity, previous studies suggest that more-matured IS are outsourced. But the results of this study show that more-matured IS are insourced. These phenomena can be explained by classifying IS by their functions. Transaction processing systems, which are mission-critical, are generally insourced, but decision support systems, which are in their mature state, are generally outsourced.

• Korea Trade Review
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• v.45 no.5
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• pp.223-238
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• 2020

In the environment of protectionism and bilateral trade agreements, Korea has promoted the conclusion of FTAs for its export-oriented trading policy, and 16 FTAs have entered into force at present. The main goal of this paper is to introduce the ISI system and its benefits and to extend the preferential rule of origin regime by using the Integrated Sourcing Initiative in the U.S. Code of Federal Regulations. The ISI illustrates with impressive clarity the fact that it considered as a tool of expanding the geographic limit of states and maximizing the global sourcing strategy of multinational corporations, allowing the developing countries to gain access to the market of developed ones that avoid the complexity and costs of many rules of origin regimes. This paper utilizes the literature research and analyzes a case study of FTAs which have adopted the ISI system. In conclusion, it presents several implications of additional measures to satisfy rules of origin in Korea's existing FTAs relating to the global supply chain strategy.

• Journal of the Korean Society of Clothing and Textiles
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• v.23 no.1
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• pp.42-53
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• 1999

Global sourcing strategy is the one that apparel firms adopt in order to improve efficiency. Souring statesgies are not limited to the decision of sourcing country or vertical integration of sewing process Sourcing strategies include all the ecision of marketing process from the acquisition of fabric to distribution of products. The present study aims to analyze the soucing strategies of Korea apparel industry in global perspectives by applying transaction cost approach and aims to provide the implications for the future. The results are as follows ; (1) sourcing strategies in the dimension of domestic versus offshore soucing are determined by the experience in foreign business and the degree of fashionability of the product. (2) Firms tend to increase affshore soucing as they accumulate the experience in foreign business because they can decrease transaction costs as the perceived risks decrease (3) Also firms tend to source their products in foreign countries when the products are more fashionable. Brand loyalty of the product is a additional factor that increases the proportion of domestic sourcing. (4) Degree of vertical integration of sourcing is determined by the fashionability brand loyalty and the experience in foreign business. That is firms decrease the transaction costs by avoiding the investment to short life fashion products. However firms increase the control over the high reputation product by in house production. As the apparel firms tend to more marketing oriented and the national boundaries of business envrionment becomes permeable more efficient global sourcing strategies should be stablished, Besides the production costs nonproduction costs should be equallly considered in order to analyze the total costs.

• Journal of the Korean Operations Research and Management Science Society
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• v.33 no.4
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• pp.13-30
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• 2008

We explore the determinants of long-term relationship between the buyer and the supplier to help suppliers develope a strategy to build long-term relationship with their buyers. Based upon an extensive literature review, we propose three droops of independent variables which may affect long-term relationship, including (a) environmental factors (product complexity, product importance, source dependence, price sensitivity), (b) relational factors(trust, commitment, satisfaction, intention of expansion), (c) operational performance(quality, delivery, cost capability, technical knowhow). The buyer's actual period of relationship with its main supplier is used as a dependent variable. Using hierarchical multiple regression analysis, we empirically test hypotheses, analysing a sample of 290 manufacturing firms in the U.S. The statistical results indicate that the buyer's source dependence, price sensitivity and the supplier's commitment play a significant role in establishing long-term relationship between the buyer and the supplier. However, the supplier's cost capability and technical knowhow in operational performance negatively affect long-term relationship in contrast with our hypotheses. Due to this controversial result, we divide the sample group Into dual sourcing and multiple sourcing environments and reconduct regression analysis in a post hoc manner. The findings show that the supplier's cost capability and technical knowhow are negatively associated with the length of relationship only in the multiple sourcing environment. The results may confirm that both parties' opportunistic behavior is more salient in the multiple sourcing environment than in the single sourcing environment.

• Proceedings of the Korean Society for Quality Management Conference
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• 1998.11a
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• pp.287-292
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• 1998

As business looks towards the $21^{\st}$ century, a long-term strategy that focuses on global sourcing will be the vital factor in whether companies win or lose. At the same time, with electronic components, it is important to ensure stable quality and reliability, together with other important parameters. In order to achieve this, creating an effective mechanism of failure analysis and database management for electronic components is essential. The authors introduce the actual mechanism employed by NEC and explain the ideas and insight they have obtained from their experience.

• Journal of the Korean Society of Clothing and Textiles
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• v.31 no.6 s.165
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• pp.902-910
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• 2007

The purpose of this study was to suggest future marketing strategy for Korean textile and apparel industry so that they could find a way to maintain a major sourcing site in the global market place. This study identified international buyers' visiting purposes and the items they were most interested in sourcing from Korea according to their firm types and home country regions. This study analyzed the survey results obtained fiom international buyers who visited the international textile and apparel trade show in Seoul, Korea. The data was analyzed using frequency and ${\chi}^2$-test analysis. The results showed that there was a significant relationship between buyers' country regions and their interests. There was also a significant relationship between buyers' firm types and their visiting purposes. The results indicated that decision making for what Korean industry should focus their marketing efforts on should be different according to the buyers' country regions and firm types. This study was conducted to present an effective marketing strategy for how Korean textile and apparel industries could survive in the competitive global marketplace.

• Journal of the Korean Society of Clothing and Textiles
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• v.19 no.1
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• pp.96-103
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• 1995

의류산업의 효율성 (efficiency) 제고를 위한 중요한 결정의 한가지는 상품생산지 및 생산방법 즉 생산지 결정전략(sourcing strategy)에 관한 것이다. 점차 생산의 대상지역과 방법이 다양해짐에 따라 이는 복잡한 의사결정체계를 요하게 퇸다. 본 연구는 생산지 결정의 의사결정과정에서 흔히 중요시되는 생산비용 이외에 비생산비용, 즉 거래비응(transaction cost)으로 포현될 수 있는 인자를 분석하고자한다. 이를 위해 미국 의류, 신발 산업의 생산지 결정의 첫단계로서 해외기지생산과 국내생산의 문제점을 비교하였다. 의류산업과 신발산업에 있어 적시공급과 품질관리가 생산지에 관계없이 공통된 문제점으로 지적되었고 의류산업의 겋우 노동력 부족과 재료의 공급이 국내생산의 문제점으로, 오랜생산기일과 생산국가의 환경적요소(예를 들면, 정치적 불안정, 정부규제 등)가 해외기지생산의 특이한 문제점으로 지적되었다. 본 연구는 비국의 의류, 신발 산업을 대상으로 한 것이나, 최근 저가의 노동력을 찾아 동남아 또는 남미로 생산지를 이전하는 국내 의류, 신발업체들이 급격히 증가하고 있음을 감안할 때, 우리 산업에도 시사하는 바가 크다고 할 수 있다.

• Proceedings of the Korea Database Society Conference
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• 2000.11a
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• pp.1-10
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• 2000

o Procurement inefficiencies - Material and Purchase Process Cost reduction o Sourcing not proactive - Lack of visibility disrupts ability to deliver o Poor collaboration impedes ability to meet demand o Communications Impeded by product content negotiation (omitted)