• Title/Summary/Keyword: business effectiveness

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Effective Strategies for Activating IT Ethics Education: A Study on Improving Internet Ethical Education for University Students (효과적인 IT윤리 교육 활성화 방안 : 대학생들의 인터넷 윤리적 교육 개선에 대한 연구)

  • Seung-Young Jang
    • The Journal of the Korea institute of electronic communication sciences
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    • v.19 no.1
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    • pp.197-208
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    • 2024
  • In today's era, where internet technology and culture are advancing rapidly, the importance of systematic internet ethics education has been underscored to address the insufficient levels of internet ethics among college students. This research primarily focused on assessing the level of internet ethics among college students, who represent a significant proportion of internet users. The innovative Flip Learning teaching method and the introduction of the Wheeler Model, along with the application of frequency measurement theory, allowed us to explore ways to maximize the effectiveness of the education. It was confirmed that students who received internet ethics education demonstrated improved levels of ethics. This study concluded that significant progress has been made in systematizing and effectively promoting internet ethics education. It also proposed the need for systematic ethics education and provided future directions for improving internet ethics education.

A Study on Expected Dispute Arbitration in Supply Chain ESG Management: Focusing on the cases of POSCO and NAVER (공급망 ESG 관리에서 예상되는 분쟁 중재에 관한 연구 - 포스코와 네이버 사례를 중심으로 -)

  • Lee, Geonwoo;Lee, Jungeun;Lee, Hunjong
    • Journal of Arbitration Studies
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    • v.34 no.1
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    • pp.75-101
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    • 2024
  • "ESG management" guides companies to prioritize corporate social responsibility and sustainable development as key management objectives, going beyond mere financial performance pursuits. This approach involves creating a sustainable and robust supply chain by urging companies, acting as 'supply chain managers', to implement ESG management practices alongside their 'supply chain partners'. The domestic business community has been quick to respond to this trend, recognizing that failure to adhere to ESG standards set by organizations such as the EU and SEC could lead to severe repercussions, including exclusion from international trade and reputational damage. POSCO and NAVER, two leading Korean companies, are at the forefront of practicing ESG management effectively. They have both produced and publicly disclosed ESG management reports, showcasing their success in enhancing supply chain ESG management. However, as supply chain managers enforce ESG-related obligations on their suppliers, the likelihood of disputes between the parties may increase. In scenarios where supply chain ESG management leads to conflicts between supply chain managers and suppliers, commercial arbitration emerges as a viable solution for dispute resolution. This method offers several advantages, including the arbitrators' expertise, time and cost efficiency, the binding nature of decisions akin to a court's final judgment, international recognition under the New York Convention, confidentiality, and ample opportunity for parties to be heard. Our analysis focuses on the emerging disputes between supply chain managers and suppliers within the context of supply chain ESG management, particularly examining the cases of POSCO and NAVER. By categorizing the expected types of disputes and assessing the appropriateness of commercial arbitration for their resolution, we highlight the effectiveness of this approach. Furthermore, we propose leveraging the Korean Commercial Arbitration Board's role to enhance the use of arbitration in resolving supply chain ESG disputes, underscoring its potential as a strategic tool for maintaining sustainable and harmonious supply chain relationships.

The Effect of E-commerce Platform Seller Signals on Revenue: Focusing on the Moderating Effect of Keyword Specificity (e-커머스 플랫폼 판매자 신호가 수익에 미치는 영향: 키워드 구체성의 조절 효과를 중심으로)

  • Jungwon Lee;Jaehyun You
    • Information Systems Review
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    • v.25 no.2
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    • pp.103-123
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    • 2023
  • One of the valid perspectives in the e-commerce platform literature is the seller signaling strategy in the information asymmetry situation. In this study, a research model was constructed based on signaling theory and shopping goal theory to systematically explore the effects of a seller's signaling strategy on consumer decision-making. Specifically, the study examined whether the signaling effects (i.e., reputation, electronic word-of-mouth, price) provided by the seller differed based on consumers' shopping goals. For the empirical analysis, the Gaussian Copula method was employed, utilizing 26,246 data collected from Amazon, a leading e-commerce platform. The analysis revealed that the signals provided by the seller positively impacted sales, and this effect was moderated by consumers' shopping goals. Drawing on shopping goal theory, this study contributes to signaling theory and e-commerce literature by discovering differences in the effectiveness of a seller's signaling strategy based on the keywords input by consumers.

An Analysis on the Decoupling between Energy Consumption and Economic Growth in South Korea (한국의 에너지 소비와 경제성장의 탈동조화에 대한 분석)

  • Hyun-Soo Kang
    • Asia-Pacific Journal of Business
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    • v.14 no.4
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    • pp.305-318
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    • 2023
  • Purpose - This study analyzed the decoupling phenomenon between energy consumption and economic growth in Korea from 1990 to 2021. The main purpose of this study is to suggest policy implications for achieving a low-carbon society and decoupling that Korea must move forward in the face of the climate change crisis. Design/methodology/approach - This study investigated the relationship between energy consumption and economic growth by energy source and sector using the energy-EKC (EEKC) hypothesis which included the energy consumption on the traditional Environmental Kuznets Curve (EKC), and the impulse response function (IRF) model based on Bayesian vector auto-regression (BVAR). Findings - During the analysis period, the trend of decoupling of energy consumption and economic growth in Korea is confirmed starting from 1996. However, the decoupling tendency appeared differently depending on the differences in energy consumption by sources and fields. The results of the IRF model using data on energy consumption by source showed that the impact of GDP and renewable energy consumption resulted in an increase in energy consumption of bio and waste, but a decrease in energy consumption by sources, and the impact of trade dependence was found to increase the consumption of petroleum products. Research implications or Originality - According to the main results, efficient distribution by existing energy source is required through expansion of development of not only renewable energy but also alternative energy. Additionally, in order to increase the effectiveness of existing energy policies to achieve carbon neutrality, more detailed strategies by source and sector of energy consumption are needed.

A Study on the Effectiveness of Private Security Administrator's Leadership Style on Organizational commitment as well as Job Satisfaction of Private Security (민간경비 관리자의 리더십 유형이 경비원의 직무만족 및 조직몰입에 미치는 영향)

  • Kim, Chang-Ho;Lee, Young-Suk;Kim, Pyung-Soo
    • Korean Security Journal
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    • no.10
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    • pp.53-77
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    • 2005
  • This thesis analyzes the effectiveness of master's transformational and transactional leadership on organizational commitment as well as job satisfaction of private security, scrutinizes the difference in master's leadership according to social-demographic group. The sum of this thesis is as follows. To begin with, analyzed the difference of leadership style according to social-demographic characteristics of private security, it showed that monthly income is over 2.5 million won as well as people over 30 years old have higher transformational leadership than the others. That is, the older people's age is and the more someone gains his living, the higher he esteems and trusts his master who has charisma, personal concern and shows intellectual stimulus. And examined thoroughly the difference of organizational commitment as well as job satisfaction in accordance with social-demographic characteristics of private security, people who are 20-25 years old, are college graduates and employees who have worked for 2-3 years do well calculational commitment. It means that the younger he is and the lower academic background is, the higher calculational commitment is by the profit and loss which affects them. Secondly, inquired into consequence of leadership style on job satisfaction. Leadership of intellectual stimulus has negative effect on job satisfaction, whereas it has positive effect on conditional compensation. Exactly, if the master exhibits leadership that stimulate to improve an initiative, it reduces the job satisfaction. On the contrary, for the reason that his master indicates leadership that accompanies conditional compensation, job satisfaction tends to increase. Finally, judged from the effects of leadership style on organizational commitment, the charisma, the lower factor of transformational leadership affects to emotional commitment positively and then, it shows that employees tend to become attached to the organization and have a sense of oneness with it, if their master is able to show charismatic leadership. In conclusion, the private security companies pursue employees whose school career and payment is lower because of incidence in labor expense related with the profit and loss. Owing to it, employees are not satisfied with their job much. And also there is the change in increasing rate of job satisfaction according to business performance of the conditional compensation, i.e. a consideration, a promotion, etc., and the calculational commitment. Therefore, the university should try to focus on the researches for cultivate more professional manpower for business, the companies must try to make better deal, offer welfare for their employees to develop of the private security industry, to rise the job satisfaction of private security. And then, investigation to find private security's own level ought to be done by organic industry-academic cooperation of university and industries.

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Measuring the Economic Impact of Item Descriptions on Sales Performance (온라인 상품 판매 성과에 영향을 미치는 상품 소개글 효과 측정 기법)

  • Lee, Dongwon;Park, Sung-Hyuk;Moon, Songchun
    • Journal of Intelligence and Information Systems
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    • v.18 no.4
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    • pp.1-17
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    • 2012
  • Personalized smart devices such as smartphones and smart pads are widely used. Unlike traditional feature phones, theses smart devices allow users to choose a variety of functions, which support not only daily experiences but also business operations. Actually, there exist a huge number of applications accessible by smart device users in online and mobile application markets. Users can choose apps that fit their own tastes and needs, which is impossible for conventional phone users. With the increase in app demand, the tastes and needs of app users are becoming more diverse. To meet these requirements, numerous apps with diverse functions are being released on the market, which leads to fierce competition. Unlike offline markets, online markets have a limitation in that purchasing decisions should be made without experiencing the items. Therefore, online customers rely more on item-related information that can be seen on the item page in which online markets commonly provide details about each item. Customers can feel confident about the quality of an item through the online information and decide whether to purchase it. The same is true of online app markets. To win the sales competition against other apps that perform similar functions, app developers need to focus on writing app descriptions to attract the attention of customers. If we can measure the effect of app descriptions on sales without regard to the app's price and quality, app descriptions that facilitate the sale of apps can be identified. This study intends to provide such a quantitative result for app developers who want to promote the sales of their apps. For this purpose, we collected app details including the descriptions written in Korean from one of the largest app markets in Korea, and then extracted keywords from the descriptions. Next, the impact of the keywords on sales performance was measured through our econometric model. Through this analysis, we were able to analyze the impact of each keyword itself, apart from that of the design or quality. The keywords, comprised of the attribute and evaluation of each app, are extracted by a morpheme analyzer. Our model with the keywords as its input variables was established to analyze their impact on sales performance. A regression analysis was conducted for each category in which apps are included. This analysis was required because we found the keywords, which are emphasized in app descriptions, different category-by-category. The analysis conducted not only for free apps but also for paid apps showed which keywords have more impact on sales performance for each type of app. In the analysis of paid apps in the education category, keywords such as 'search+easy' and 'words+abundant' showed higher effectiveness. In the same category, free apps whose keywords emphasize the quality of apps showed higher sales performance. One interesting fact is that keywords describing not only the app but also the need for the app have asignificant impact. Language learning apps, regardless of whether they are sold free or paid, showed higher sales performance by including the keywords 'foreign language study+important'. This result shows that motivation for the purchase affected sales. While item reviews are widely researched in online markets, item descriptions are not very actively studied. In the case of the mobile app markets, newly introduced apps may not have many item reviews because of the low quantity sold. In such cases, item descriptions can be regarded more important when customers make a decision about purchasing items. This study is the first trial to quantitatively analyze the relationship between an item description and its impact on sales performance. The results show that our research framework successfully provides a list of the most effective sales key terms with the estimates of their effectiveness. Although this study is performed for a specified type of item (i.e., mobile apps), our model can be applied to almost all of the items traded in online markets.

The Effect of Mobile Advertising Platform through Big Data Analytics: Focusing on Advertising, and Media Characteristics (빅데이터 분석을 통한 모바일 광고플랫폼의 광고효과 연구: 광고특성, 매체특성을 중심으로)

  • Bae, Seong Deok;Park, Do-Hyung
    • Journal of Intelligence and Information Systems
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    • v.24 no.2
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    • pp.37-57
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    • 2018
  • With the spread of smart phones, interest in mobile media is on the increase as useful media recently. Mobile media is assessed as having differentiated advantages from existing media in that not only can they provide consumers with desired information anytime and anywhere but also real-time interaction is possible in them. So far, studies on mobile advertising were mostly researches analyzing satisfaction with, and acceptance of, mobile advertising based on survey, researches focusing on the factors affecting acceptance of mobile advertising messages and researches verifying the effect of mobile advertising on brand recall, advertising attitude and brand attitude through experiments. Most of the domestic mobile advertising studies related to advertisement effect and advertisement attitude have been conducted through experiments and surveys. The advertising effectiveness measure of the mobile ad used the attitude of the advertisement, purchase intention, etc. To date, there have been few studies on the effects of mobile advertising on actual advertising data to prove the characteristics of the advertising platform and to prove the relationship between the factors influencing the advertising effect and the factors. In order to explore advertising effect of mobile advertising platform currently commercialized, this study defined advertising characteristics and media characteristics from the perspective of advertiser, advertising platform and publisher and analyzed the influence of each characteristic on advertising effect. As the advertisement characteristics, we classified advertisement format classified by bar type and floating type, and advertisement material classified by image and text. We defined advertisement characteristics of advertisement platform as Hedonic and Utilitarian media characteristics. As a dependent variable, we use CTR, which is the ratio of response (click) to ad exposure. The theoretical background and the analysis of the mobile advertising business, the hypothesis that the advertisement effect is different according to the advertisement specification, the advertisement material, In the ad standard, bar ads are classified as static framing, Floating ads can be categorized as dynamic framing, and the hypothetical definition of floating advertisements, which are high-profile dynamic framing ads, is highly responsive. In advertising, images with high salience are defined to have higher ad response than text. In the media characteristics classified as practical / hedonic type, it is defined that the hedonic type media has a more relaxed tendency than the practical media, and there is a high possibility of receiving various information because there is no clear target. In addition, image material and hedonic media are defined to be highly effective in the interaction between advertisement specification and advertisement material, advertisement specifications and media characteristics, and advertisement material and media characteristics. As the result of regression analysis on each characteristic, material standard, which is a characteristic of mobile advertisement, and media characteristics separated into 'Hedonic' and 'Utilitarian' had significant influence on advertisement effect and mutual interaction effect was also confirmed. In the mobile advertising standard, the advertising effect of the floating advertisement is higher than that of the bar advertisement, Floating ads were more effective than text ads for image ads. In addition, it was confirmed that the advertising effect is higher in the practical media than the hedonic media. The research was carried out with the big data collected from the mobile advertising platform, and it was possible to grasp the advertising effect of the measure index standard which is used in the practical work which could not be grasped in the previous research. In other words, the study was conducted using the CTR, which is a measure of the effectiveness of the advertisement used in the online advertisement and the mobile advertisement, which are not dependent on the attitude of the ad, the attitude of the brand, and the purchase intention. This study suggests that CTR is used as a dependent variable of advertising effect based on actual data of mobile ad platform accumulated over a long period of time. The results of this study is expected to contribute to establishment of optimum advertisement strategy such as creation of advertising materials and planning of media which suit advertised products at the time of mobile advertisement.

Implementation Strategy for the Elderly Care Solution Based on Usage Log Analysis: Focusing on the Case of Hyodol Product (사용자 로그 분석에 기반한 노인 돌봄 솔루션 구축 전략: 효돌 제품의 사례를 중심으로)

  • Lee, Junsik;Yoo, In-Jin;Park, Do-Hyung
    • Journal of Intelligence and Information Systems
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    • v.25 no.3
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    • pp.117-140
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    • 2019
  • As the aging phenomenon accelerates and various social problems related to the elderly of the vulnerable are raised, the need for effective elderly care solutions to protect the health and safety of the elderly generation is growing. Recently, more and more people are using Smart Toys equipped with ICT technology for care for elderly. In particular, log data collected through smart toys is highly valuable to be used as a quantitative and objective indicator in areas such as policy-making and service planning. However, research related to smart toys is limited, such as the development of smart toys and the validation of smart toy effectiveness. In other words, there is a dearth of research to derive insights based on log data collected through smart toys and to use them for decision making. This study will analyze log data collected from smart toy and derive effective insights to improve the quality of life for elderly users. Specifically, the user profiling-based analysis and elicitation of a change in quality of life mechanism based on behavior were performed. First, in the user profiling analysis, two important dimensions of classifying the type of elderly group from five factors of elderly user's living management were derived: 'Routine Activities' and 'Work-out Activities'. Based on the dimensions derived, a hierarchical cluster analysis and K-Means clustering were performed to classify the entire elderly user into three groups. Through a profiling analysis, the demographic characteristics of each group of elderlies and the behavior of using smart toy were identified. Second, stepwise regression was performed in eliciting the mechanism of change in quality of life. The effects of interaction, content usage, and indoor activity have been identified on the improvement of depression and lifestyle for the elderly. In addition, it identified the role of user performance evaluation and satisfaction with smart toy as a parameter that mediated the relationship between usage behavior and quality of life change. Specific mechanisms are as follows. First, the interaction between smart toy and elderly was found to have an effect of improving the depression by mediating attitudes to smart toy. The 'Satisfaction toward Smart Toy,' a variable that affects the improvement of the elderly's depression, changes how users evaluate smart toy performance. At this time, it has been identified that it is the interaction with smart toy that has a positive effect on smart toy These results can be interpreted as an elderly with a desire to meet emotional stability interact actively with smart toy, and a positive assessment of smart toy, greatly appreciating the effectiveness of smart toy. Second, the content usage has been confirmed to have a direct effect on improving lifestyle without going through other variables. Elderly who use a lot of the content provided by smart toy have improved their lifestyle. However, this effect has occurred regardless of the attitude the user has toward smart toy. Third, log data show that a high degree of indoor activity improves both the lifestyle and depression of the elderly. The more indoor activity, the better the lifestyle of the elderly, and these effects occur regardless of the user's attitude toward smart toy. In addition, elderly with a high degree of indoor activity are satisfied with smart toys, which cause improvement in the elderly's depression. However, it can be interpreted that elderly who prefer outdoor activities than indoor activities, or those who are less active due to health problems, are hard to satisfied with smart toys, and are not able to get the effects of improving depression. In summary, based on the activities of the elderly, three groups of elderly were identified and the important characteristics of each type were identified. In addition, this study sought to identify the mechanism by which the behavior of the elderly on smart toy affects the lives of the actual elderly, and to derive user needs and insights.

Feasibility of Deep Learning Algorithms for Binary Classification Problems (이진 분류문제에서의 딥러닝 알고리즘의 활용 가능성 평가)

  • Kim, Kitae;Lee, Bomi;Kim, Jong Woo
    • Journal of Intelligence and Information Systems
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    • v.23 no.1
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    • pp.95-108
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    • 2017
  • Recently, AlphaGo which is Bakuk (Go) artificial intelligence program by Google DeepMind, had a huge victory against Lee Sedol. Many people thought that machines would not be able to win a man in Go games because the number of paths to make a one move is more than the number of atoms in the universe unlike chess, but the result was the opposite to what people predicted. After the match, artificial intelligence technology was focused as a core technology of the fourth industrial revolution and attracted attentions from various application domains. Especially, deep learning technique have been attracted as a core artificial intelligence technology used in the AlphaGo algorithm. The deep learning technique is already being applied to many problems. Especially, it shows good performance in image recognition field. In addition, it shows good performance in high dimensional data area such as voice, image and natural language, which was difficult to get good performance using existing machine learning techniques. However, in contrast, it is difficult to find deep leaning researches on traditional business data and structured data analysis. In this study, we tried to find out whether the deep learning techniques have been studied so far can be used not only for the recognition of high dimensional data but also for the binary classification problem of traditional business data analysis such as customer churn analysis, marketing response prediction, and default prediction. And we compare the performance of the deep learning techniques with that of traditional artificial neural network models. The experimental data in the paper is the telemarketing response data of a bank in Portugal. It has input variables such as age, occupation, loan status, and the number of previous telemarketing and has a binary target variable that records whether the customer intends to open an account or not. In this study, to evaluate the possibility of utilization of deep learning algorithms and techniques in binary classification problem, we compared the performance of various models using CNN, LSTM algorithm and dropout, which are widely used algorithms and techniques in deep learning, with that of MLP models which is a traditional artificial neural network model. However, since all the network design alternatives can not be tested due to the nature of the artificial neural network, the experiment was conducted based on restricted settings on the number of hidden layers, the number of neurons in the hidden layer, the number of output data (filters), and the application conditions of the dropout technique. The F1 Score was used to evaluate the performance of models to show how well the models work to classify the interesting class instead of the overall accuracy. The detail methods for applying each deep learning technique in the experiment is as follows. The CNN algorithm is a method that reads adjacent values from a specific value and recognizes the features, but it does not matter how close the distance of each business data field is because each field is usually independent. In this experiment, we set the filter size of the CNN algorithm as the number of fields to learn the whole characteristics of the data at once, and added a hidden layer to make decision based on the additional features. For the model having two LSTM layers, the input direction of the second layer is put in reversed position with first layer in order to reduce the influence from the position of each field. In the case of the dropout technique, we set the neurons to disappear with a probability of 0.5 for each hidden layer. The experimental results show that the predicted model with the highest F1 score was the CNN model using the dropout technique, and the next best model was the MLP model with two hidden layers using the dropout technique. In this study, we were able to get some findings as the experiment had proceeded. First, models using dropout techniques have a slightly more conservative prediction than those without dropout techniques, and it generally shows better performance in classification. Second, CNN models show better classification performance than MLP models. This is interesting because it has shown good performance in binary classification problems which it rarely have been applied to, as well as in the fields where it's effectiveness has been proven. Third, the LSTM algorithm seems to be unsuitable for binary classification problems because the training time is too long compared to the performance improvement. From these results, we can confirm that some of the deep learning algorithms can be applied to solve business binary classification problems.

A New Exploratory Research on Franchisor's Provision of Exclusive Territories (가맹본부의 배타적 영업지역보호에 대한 탐색적 연구)

  • Lim, Young-Kyun;Lee, Su-Dong;Kim, Ju-Young
    • Journal of Distribution Research
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    • v.17 no.1
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    • pp.37-63
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    • 2012
  • In franchise business, exclusive sales territory (sometimes EST in table) protection is a very important issue from an economic, social and political point of view. It affects the growth and survival of both franchisor and franchisee and often raises issues of social and political conflicts. When franchisee is not familiar with related laws and regulations, franchisor has high chance to utilize it. Exclusive sales territory protection by the manufacturer and distributors (wholesalers or retailers) means sales area restriction by which only certain distributors have right to sell products or services. The distributor, who has been granted exclusive sales territories, can protect its own territory, whereas he may be prohibited from entering in other regions. Even though exclusive sales territory is a quite critical problem in franchise business, there is not much rigorous research about the reason, results, evaluation, and future direction based on empirical data. This paper tries to address this problem not only from logical and nomological validity, but from empirical validation. While we purse an empirical analysis, we take into account the difficulties of real data collection and statistical analysis techniques. We use a set of disclosure document data collected by Korea Fair Trade Commission, instead of conventional survey method which is usually criticized for its measurement error. Existing theories about exclusive sales territory can be summarized into two groups as shown in the table below. The first one is about the effectiveness of exclusive sales territory from both franchisor and franchisee point of view. In fact, output of exclusive sales territory can be positive for franchisors but negative for franchisees. Also, it can be positive in terms of sales but negative in terms of profit. Therefore, variables and viewpoints should be set properly. The other one is about the motive or reason why exclusive sales territory is protected. The reasons can be classified into four groups - industry characteristics, franchise systems characteristics, capability to maintain exclusive sales territory, and strategic decision. Within four groups of reasons, there are more specific variables and theories as below. Based on these theories, we develop nine hypotheses which are briefly shown in the last table below with the results. In order to validate the hypothesis, data is collected from government (FTC) homepage which is open source. The sample consists of 1,896 franchisors and it contains about three year operation data, from 2006 to 2008. Within the samples, 627 have exclusive sales territory protection policy and the one with exclusive sales territory policy is not evenly distributed over 19 representative industries. Additional data are also collected from another government agency homepage, like Statistics Korea. Also, we combine data from various secondary sources to create meaningful variables as shown in the table below. All variables are dichotomized by mean or median split if they are not inherently dichotomized by its definition, since each hypothesis is composed by multiple variables and there is no solid statistical technique to incorporate all these conditions to test the hypotheses. This paper uses a simple chi-square test because hypotheses and theories are built upon quite specific conditions such as industry type, economic condition, company history and various strategic purposes. It is almost impossible to find all those samples to satisfy them and it can't be manipulated in experimental settings. However, more advanced statistical techniques are very good on clean data without exogenous variables, but not good with real complex data. The chi-square test is applied in a way that samples are grouped into four with two criteria, whether they use exclusive sales territory protection or not, and whether they satisfy conditions of each hypothesis. So the proportion of sample franchisors which satisfy conditions and protect exclusive sales territory, does significantly exceed the proportion of samples that satisfy condition and do not protect. In fact, chi-square test is equivalent with the Poisson regression which allows more flexible application. As results, only three hypotheses are accepted. When attitude toward the risk is high so loyalty fee is determined according to sales performance, EST protection makes poor results as expected. And when franchisor protects EST in order to recruit franchisee easily, EST protection makes better results. Also, when EST protection is to improve the efficiency of franchise system as a whole, it shows better performances. High efficiency is achieved as EST prohibits the free riding of franchisee who exploits other's marketing efforts, and it encourages proper investments and distributes franchisee into multiple regions evenly. Other hypotheses are not supported in the results of significance testing. Exclusive sales territory should be protected from proper motives and administered for mutual benefits. Legal restrictions driven by the government agency like FTC could be misused and cause mis-understandings. So there need more careful monitoring on real practices and more rigorous studies by both academicians and practitioners.

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