• Asia-Pacific Journal of Business
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• v.14 no.2
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• pp.1-15
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• 2023

Purpose - This study investigates whether the inventory levels of Korean manufacturing firms increased or decreased from 2000 to 2019. We also explore the relationship between inventory levels and firm performance. Design/methodology/approach - We use panel data on KOSPI-listed firms in the manufacturing industry. We measure days in inventory as a proxy for inventory levels, and firm performance is measured by return on assets, return on sales, and EBITDA ratio. The panel data regression method is employed in our analysis. Findings - We find that days in inventory of Korean manufacturing firms significantly increased from 2000 to 2019, especially for raw materials and finished goods inventory. In addition, while days in inventory of large- and medium-sized firms were less than those of small-sized firms, the change in days in inventory of large- and medium-sized firms was positively significant over time. Moreover, the increase in days in inventory was more prevalent among industries related to foods, clothes, chemicals, and transportation. Finally, we show that the days in inventory are negatively related to firm performance. Research implications or Originality - While the Korean manufacturing industry has enormously grown over the last 20 years and managing inventory is critical in the manufacturing industry, our findings counter-intuitively show that the days in inventory of the Korean manufacturing industry had been gradually increased. We speculate that the increase in days in inventory is due to the Korean manufacturing firms' heavy reliance on global supply chains.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.3
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• pp.85-104
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• 2009

Managers have come to realized that a large and increasing amount of sources for a corporate competitive advantage can be found in their company's supply chain. At a fundamental level, there is a similar consensus that building a collaborative supply management is a more effective way of managing firms' supply chains. This paper is an attempt to examine the effects of collaborative supply management by probing a mechanism which shows how competences and/or performance are transferred from suppliers to markets through the supply chains. Research hypotheses regarding the relationships between collaborative supply management, supplier Performance, buyer internal performance (new product development and operational performance), and buyer market performance were empirically validated by utilizing a structural equation modeling analysis. The research result Indicates the positive impacts of a collaborative supply chain on supply performance as well as buyer internal and market performance, which also well illustrate how the improved competence and/or performance of suppliers engendered from the supplier-buyer collaboration flows throughout the entire supply chain.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.369-379
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• 2021

This paper investigated the relationship between corporate governance mechanisms and firm performance in Vietnam. Based on a dataset of 101 HOSE-listed manufacturing firms, the results showed that CEOs' knowledge capability, gender diversity, and board size are positively associated with firm performance, whereas firm age is negatively associated. These findings suggested that firms should consider enlarging the boardrooms, but to a certain extent to avoid an inverse-U-shaped decline of performance; furthermore, firms should promote women executives' presence in a boardroom for it brings greater cultural-diversity benefits and inhibits information asymmetry. Contrary, the aging process impedes firms' growth. It depreciates their values in terms of total assets, so managers must review their assets' net value after each working year to avoid such a hardship. However, the thesis constrains itself since it did not treat the TMTs' knowledge capability equally as the CEOs' and completely excluded their treatment. Besides, it did not regard the effect of external governance mechanisms such as the supply-demand relationship, customer behavior, market imperfections, and market concentration due to data unavailability. Based on the main findings, several suggestions are set forth for firms and managers to enhance performance and minimize a poor governance mechanism's adverse consequence.

• Journal of Digital Convergence
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• v.11 no.10
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• pp.169-179
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• 2013

Small and medium-sized firms are increasingly dependent on the knowledge and expertise of the supply chain as a whole to innovate and improve supply chain performance. This research examines the capabilities that enable firms to collaborate successfully, and aims to identify the determinants of SCM performance of the suppliers participating in supply chains managed by Global Korean companies. This study proposes the technology support, the collaboration with tier two companies, incentives and information sharing as major research variables, and collected the survey responses from 58 domestics suppliers. The statistical results indicate that the incentives, technology support and the collaboration with tier two firms influence the level of co-work with the firm leading supply chain, and that information sharing has some impact on SCM performance of the suppliers. But on the contrary to our expectation, the co-work with the firm leading supply chain has only moderate impact on SCM performance with p value just over 5%. We conclude this paper with some suggestions for future research.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2007.11a
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• pp.67-89
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• 2007

This study addresses manufacturers' ability to influence their supply chain network in order to adapt to their competitive environment. From the perspective of a manufacture, the supply chain comprises a network of suppliers and customers, and is theoretically viewed as a complex adaptive system. This study considers the following questions: (1) How can adaptability of supply chain network be operationally defined? (2) How does adaptability of supply chain network lead to combinative capabilities? (3) What is the influence of adaptability of supply chain network on business performance? Drawing on literature streams in supply chain management, operations strategy, organizational change and learning, and complexity theory, this study develops and tests the constructs and operational measures of adaptability of supply chain network and model the nomological set of relationships among constructs that form the basis of our theory. This study then develops and tests a model describing the outcomes of adaptability of supply chain network and its influence on combinative capability and business performance. Empirical results of this study show that adaptability supply chain network directly and positively affects combinative capability. Further, this study finds that adaptability of supply chain network does not impact business performance directly, but rather is mediated through combinative capability, which provides the requisite variety for firms to survive and thrive in dynamic environments.

• Journal of Distribution Science
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• v.14 no.8
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• pp.113-121
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• 2016

Purpose - This paper aims to examine the impact of buyer-supplier cooperation on suppliers' trust on buyers and the moderating role of buyers' governance mechanism between the sharing activities and trust. Research design, data, and methodology - An integrated research model is designed to materialize the research hypotheses. First, the impact of buyer-supplier cooperation is empirically analyzed by looking into how the sharing activities, in the field of information, resource, and knowledge, of buyer with supplier will affect the trust of supplier on buyer. Second, the moderating effect of contract-based governance mechanism of buyer is empirically analyzed. Third, the influence of trust on innovation performance of suppler is empirically analyzed. Results - Our findings provide supporting evidence for some of our hypotheses. First, all of the sharing activities are significantly influential, but in different degree, to trust of supplier. Second, contract-based governance mechanism of buyer have a moderating effect on the relationship between sharing activities and trust, positively in resource-sharing activities, negatively in information-sharing activities, not significant in knowledge-sharing activities. Third, supplier's trust on buyer positively affects supplier's own innovation performance. Conclusions - The strategies applied in supply chain management have become important as the competition among firms has shifted from competition between individual firms to competition between supply chains. A customer's sharing activities with its supplier may contribute to an increase in innovation performance. The supplier's information-sharing activity with its customer could affect its information-sharing activities with its main supplier. Cooperative activity with a partner in the supply chain is cultivated and amassed into relationship knowledge, and this study shows that the cooperative relational knowledge related to information-sharing activities enables firms to participate in sharing activities with their main suppliers. Increasing evidence shows that sharing various activities between buyer and supplier improves trust and performance outcomes, and enables firms to maintain competitive advantage. From the perspective of knowledge theory, external knowledge is becoming more important in firms' innovation activities, because innovative knowledge is acquired primarily through interaction with another organization. In addition, relationship learning could be an important tool in absorbing the supplier's core technology, information, expertise, and core competencies, increasing relational value.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.4
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• pp.61-68
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• 2019

Currently many companies are interested in reduction of the carbon emissions associated with their supply chain activities such as transportation and operations. Operational decisions, such as modifications in order quantities could an effective way in reducing carbon emissions in the supply chain. Cap-and-trade regulation, sometimes called emissions trading, is a market-based tool to limit greenhouse gas emissions. Under cap-and-trade regulation, emission credits are allocated to the firms and the firms trades emissions under cap-and-trade schemes. In this paper, we propose a single-manufacturer single-buyer two-echelon supply chain problem under the cap-and-trade mechanism incorporating the carbon emissions caused by transportation and warehousing activities where a single manufacturer produces a family of items in order to deliver a family of items to a single buyer at a fixed interval of time for effective implementation of Just-In-Time (JIT) Purchasing. An integrated multi-product lot-splitting model of facilitating multiple shipments in small lots between buyer and manufacturer is developed in a JIT Purchasing environment. Also, an iterative heuristic algorithm is developed to derive the common order interval, the number of intervals for each product and the number of shipments between the buyer and the manufacturer during the common interval. A numerical example is given to illustrate the savings in reduction of total cost and carbon emissions by the inventory model incorporating cap-and-trade mechanism compared to the classical inventory model. The proposed inventory model could be useful for the practical solution of two-echelon supply chain inventory problem under cap-and-trade mechanism.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.16 no.9
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• pp.5836-5842
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• 2015

We examine the effect of Corporate Social Responsibility activities on the value of corporations through the supply contracts with customers, one of important stakeholders. The analyses using KEJI index and supply contract announcements show that the likelihood of involving in a supply contract is lower and the announcement return is lower when CSR performance is higher. However, this negative effect of CSR is different across the level of CSR performance. The negative effects of CSR do not exist in the firms with highest level of CSR performance while most of the negative effects are concentrated in the firms with mediocre performance in CSR. These results indicate that market recognizes not best CSR activities but mediocre CSR activities as sacrifice of shareholder value.

• Journal of Korea Society of Industrial Information Systems
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• v.27 no.2
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• pp.163-176
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• 2022

As the business ecosystem has become more uncertain, the sources of supply chain risk have also been becoming more diverse. In particular, due to the development of informational technology in recent years, firms need to consider the emerging supply chain risk sources as well as traditional supply chain risk sources. A typical example is negative word-of-mouth by social media. Therefore, we investigated the virality of negative word-of-mouth on manufacturing firms by using YouTube as a representative social media. More specifically, we investigated how the social capital of the video creator influences the virality of negative word-of-mouth and how the emotional tone of the video affects the virality of negative word-of-mouth. In conclusion, the social capital of the video creator influenced the scale and speed of negative word-of-mouth. Furthermore, negative emotion words moderated the relation between the social capital of the video creator and the scale of negative word-of-mouth.

• Korean Management Science Review
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• v.14 no.1
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• pp.151-176
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• 1997

This study addresses strategic issues related to the question of" how can a supply chain become more competivity\ulcorner" We examine several cases of manufacturing supply chains. Results show that each constituent firm is required to maintain different manufacturing capabilities and to play different roles by its position (up/mid/down-stream) in a chain. Furthermore, there are patterns of required capabilities by the positions in a chain. These findings imply that the "position in a chain" should be treated as one of the strategic factors when discussing the buyer-seller relationship. It is also shown that different action programs are required for building different manufacturing capabilities of individual firms in a supply chain. Additionally, we argue that some programs need to be done simultaneously, by all the members of the chain, while some need to be carried out by only a small group or an individual firm. Finally, we propose a direction for a theoretical framework for analyzing supply chain structures and strategies.ures and strategies.