• Journal of Korea Trade
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• v.27 no.5
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• pp.63-90
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• 2023

Purpose - This study aims to identify the relationship between logistics companies' Logistics 4.0 technology adoption with logistics innovation capability and logistics performance, and analyze the mediating effect of logistics innovation capability and the mediated moderation effect of firm size through logistics innovation capability. Design/methodology - Research models and hypotheses were established based on prior research related to Industry 4.0, Logistics 4.0, logistics technology, logistics performance, and firm size. The survey was conducted on the employees of logistics companies, and exploratory factor analysis, reliability analysis, confirmatory factor analysis, discriminant validity analysis, structural equation model analysis, mediation effect, moderation effect, and the mediated moderation effect analysis were performed. Findings - The adoption of Logistics 4.0 technology was found to significantly affect logistics innovation capability and logistics performance. Logistics innovation capability was found to significantly affect logistics performance. Moreover, logistics innovation capability was found to have a significant mediation effect on the relationship between Logistics 4.0 technology adoption and logistics performance. The moderation effect based on firm size was found to have a partial effect on logistics innovation capability and logistics performance, but the mediated moderation effect was not significant. Originality/value - This study is meaningful in that it empirically analyzed the relationship of Logistics 4.0 technology adoption with logistics innovation capability and logistics performance, the mediating effect of logistics innovation capability, the moderation effect of firm size, and the mediated moderation effect of firm size, which were not addressed in previous studies.

• The Journal of Economics, Marketing and Management
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• v.12 no.4
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• pp.51-64
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• 2024

Recent studies have introduced that digital transformation positively impacts firm performance. However, research on the relationship between organizational capabilities or attitudes as antecedents or situational variables for successfully driving digital transformation remains limited. Therefore, this study aims to systematically analyze how dynamic digital capabilities and the mutual relationships between organizational members' digital acceptance influence firm performance throughout the process of driving and achieving digital transformation. Research design, data, and methodology: This study developed the concepts and measurement items for each variable based on prior research. A survey was conducted with 258 companies participating in mini clusters within industrial complexes across the county. The data was analyzed using a structural equation model with the AMOS software package. Results: Based on existing literature, hypotheses were formulated regarding the causal relationships among variables, and analysis was conducted. The results indicate that digital transformation and employees' technological acceptance play a mediating role in the relationship between dynamic digital capabilities and firm performance. Specifically, the organization's dynamic digital capabilities enhance both digital transformation and technological acceptance. Moreover, digital transformation leads to higher firm performance when technological acceptance is high. Conclusions: This study has shown the importance of enhancing dynamic digital capabilities as a prerequisite for driving digital transformation and highlighted the significance of organizational members' perceptions and attitudes toward information technology. Particularly, through detailed causal analysis among the specific items of each variable, insights were gained for both academic and practical applications.

• Journal of Distribution Science
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• v.17 no.1
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• pp.89-94
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• 2019

Purpose - In recent digital information society, the most important factor of to increase the firm value of the distribution company is not the activity to increase the sales through the general advertisement of the unspecified majority by purchasing the finished product, but to grasp the needs of the consumers and to develop a new distribution platform that connects producers and consumers directly through consumer-tailored advertisements centering on e-commerce. Therefore each company in the distribution industry is spending a lot on research and development investment to innovate the distribution technology and distribution system, and the research and development investment expenditures can affect firm value. The purpose of this study is to analyze the impact of research and development investment expenditures in the distribution industry on market value of the firm. Research design, data, and methodology - As a research method, the sample firms are those which are listed on korea stock exchange market from 2011 to 2017 and the research model is Ohlson(1995) model, which is a representative valuation model using accounting information. This study analyzes the effect of distribution company's research and development investment expenditures and advertising expenditures on market value of the firm Results - The results of empirical analysis show that research and development investment expenditures for developing new distribution technology and advertising expenditures for promoting sales in the distribution company are all positively related to the market value of firm. Therefore, in describing market value of the distribution company, it is shown that the research and development investment expenditures and advertising expenditures together with the net asset and net profit are the important accounting information that explains the market value of firm. This result show that investment expenditures on research and development for the innovation of distribution technology of distribution company creates intangible intellectual assets and increases market value of the firm. Conclusions - The result of this study shows that research and development investment expenditures for the new distribution technology as well as the spending for the advertisement in the future is a very important investment expenditures that can increase the market value of the distribution company.

• East Asian Journal of Business Economics (EAJBE)
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• v.9 no.4
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• pp.1-15
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• 2021

Purpose - In a difficult time for a firm, it seems impossible to change circumstances by a firm. Nevertheless, the firm must do whatever it can do by however it can do. Therefore, the purpose of this study is to analyze the effect of HRM practice on organizational effectiveness with the status quo of the firm as a moderator. Based on the result of this study, the managerial implication could be suggested as a contextual response to each status quo of the firm in improving and managing organizational effectiveness by HRM practice. Research design, data, and methodology - This study measured organizational effectiveness with employee satisfaction and organizational commitment. HRM practice includes two HR management areas, HR system, and HR attitude. HR system includes education & training and additional wage welfare. HR attitude includes employee stress and empowerment. As for the status quo of the firm, this study considered three construct; firm feature, strategic feature, environment change feature. This study analyzed 397 employees of 24 company data from the 7th HCCP of KRIVET. Result - Hypothesis 1 through Hypothesis 3 were partially supported. The results of this study suggest that to increase organizational effectiveness(job satisfaction and organizational commitment), employee stress and education & training participation need to be managed. And circumstance of an organization as given the Status Quo of the firm needs to be managed differently like firm size, environment change in demand, and technology. Conclusion - This study suggests best-practice implications based on the result between HRM practice and organizational effectiveness. And also suggest differentiation in management to increase the best-fit in management.

• Journal of Distribution Science
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• v.13 no.10
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• pp.15-21
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• 2015

Purpose - This study examines a bundling effect on production and distribution in a patent-protected industry. Despite the heavy use of bundling strategies in the information and technology industry, literature has paid scant attention to bundling of intellectual property rights. This study examines a theoretical exploration of the bundling effect on licensing behavior. Research design, data, and methodology - To address this behavior, we build a simplified model consisting of three stages: 1) bundling decision, 2) licensing agreement, and 3) competition. The subgame perfect Nash equilibrium is applied to the model. Results - A single-patent holder with superior technology grants its own license to the multiple-patent firm, thereby leaving the market. Anticipating the single right holder's licensing strategy, the multiple-patent firm offers a bundle, making the single-right holder's bargaining position weaker. Conclusions - Bundling is an effective business strategy, resulting in multiple products for a firm as it faces other firms with single-product lines in each market. Taking advantage of the multi-patent or multi-product lines, the firm utilizes the bundling strategy obtaining better technology from the standalone single-patent firms.

• The Journal of Industrial Distribution & Business
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• v.6 no.4
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• pp.27-37
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• 2015

Purpose - This study first explores the possible dynamic relationship between ownership structure and firm performance using a panel of 4,900 Chinese-listed small- and medium-sized enterprises (SMEs) from 1999 to 2012. Research design, data, and methodology - We address this issue through a dynamic panel model using a method of moments (GMM) technique and dynamic simultaneous equations to alleviate the potential endogenous problem: unobserved heterogeneity, simultaneity, and dynamic endogeneity. Results - Under the framework of dynamic endogeneity, firm performance has a significantly positive influence on ownership, but not vice versa. Ownership and performance can be explained by their owned lagged values, respectively. Moreover, intertemporal endogeneity exists among ownership, investment, and performance through the application of system dynamic equations, which implies that the relationship among ownership structure, investment, and firm performance is dynamic by nature. Conclusions - This study also significantly contributes to a better understanding of dynamic corporate governance by providing further empirical evidence from the largest capital market in the Asian region.

• Journal of Korea Trade
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• v.24 no.2
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• pp.53-67
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• 2020

Purpose - The purpose of this paper is to study strategic trade policies under international process research and development (R&D) competition with or without market leaders for free trade and a subsidy regime and compare the effects of R&D subsidies and export subsidies on the equilibrium levels of firm profit and social welfare. Design/methodology - For the analysis, we use previous work by Haaland and Kind (2008) and construct a differentiated goods duopoly model, wherein two firms compete via quantity in a third-country market for free trade and the subsidy regime. We consider simultaneous-move quantity competition when the two firms choose their quantities simultaneously and sequential-move quantity competition when they choose their quantities sequentially. The results are compared to those of Balboa, Daughety and Reinganum (2004), who studied export subsidies. Findings - The following are the findings. First, the results of firm preference orderings regarding firm position from Dowrick (1986) and Balboa, Daughety and Reinganum (2004) may not hold in our model when the firms' strategies are strategic substitutes under free trade. Second, the preference rankings under Cournot competition for free trade and a subsidy regime are the same as those in the strategic trade policy of export subsidy. Third, except for the cases of too close substitutes and complements, the results of firm and government preferences regarding firm position are different from those of Balboa, Daughety and Reinganum (2004) in that Stackelberg leadership in a subsidy regime is advantageous when the goods are substitutes but is disadvantageous when the goods are complements. Moreover, the equilibrium level of firm profit is the highest in the Cournot-Nash play when the goods are substitutes in a subsidy regime. Fourth, except for the cases of too close substitutes and complements, the results of firms' and their respective governments' trade regime preferences are similar to those of Balboa, Daughety and Reinganum (2004) in that a Stackelberg leader firm and government prefer free trade if the goods are substitutes and prefer a subsidy regime if the goods are complements. Furthermore, a Stackelberg follower firm and government strongly prefer a subsidy regime to free trade. Originality/value - By analyzing the effects of R&D subsidies and export subsidies in international markets, we can find similarities and differences between them in international markets.

• Journal of Korea Trade
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• v.24 no.1
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• pp.1-34
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• 2020

Purpose - In this study, we investigate determinants of hedging with derivatives and its effect on firm value and firm risk for Korean firms. Design/methodology - To avoid the endogeneity problem pointed out in previous studies, we use a two-stage analysis by using gains and losses from derivatives as instrument variable for hedging with derivatives. Findings - Our analysis on the determinants of hedging shows that firms that are more leveraged and less profitable, and with more growth opportunities are likely to hedge through derivatives. Additionally, large firms, firms less diversified into industry, and firms more diversified geographically are likely to use derivatives. Our two-stage analysis shows that indicators of hedging with derivatives have an insignificant effect on firm value, and the indicator of futures/forwards use and of swaps use have significant negative effect on firm value. Whereas, the extent of hedging with derivatives has positive effect on firm value for all types of foreign currency derivatives, which suggests that moderately low hedgers use derivatives inefficiently, but extensive hedgers use derivatives properly. With regard to firm risk, hedging with derivatives increases market-based risk, but decreases accounting-based risk. Thus, we conclude that Korean firms use derivatives to manage operational volatility rather than to manage market risk, and accounting-based risk reduction through hedging is not directly translated into higher firm value. Originality/value - This is not the first study to investigate hedging behavior of Korean firms, but the sample period that that this study analyzed is the longest and various method are used to control the endogeneity problem. We investigate not only total foreign currency derivatives but also by types of derivatives, including futures/forwards, options, and swaps.

• Journal of Korea Trade
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• v.26 no.3
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• pp.45-62
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• 2022

Purpose - Using unexpected changes in geopolitical tensions on the Korean peninsula as a quasi-natural experimental setting, we examine whether and how geopolitical risks travel across borders through firm-level imports and exports linkages. We also test whether the effects are driven by either imports or exports and assess whether firms can effectively hedge themselves against geopolitical risks. Design/methodology - We focus on a series of unanticipated geopolitical events taken place in Korea in 2018. Making use of the shocks to geopolitical climate, we identify five milestone events toward peace talks. We employ the event studies methodology. We examine heterogenous firm-level stock price reactions around key event dates depending on firms' exposure to geopolitical risks. As a measure of firms' exposure to geopolitical risks in Korea, we utilize a text-based measure of firm-level trade links. When a firm announces and discusses its purchase of inputs from Korea or sales of outputs to Korea in their annual disclosure filings, we define a firm to have a trade relationship with Korea and have exposure to Korean geopolitical risks. Similarly, we use a measure of a firm's hedging policies based on a firm's textual mention of the use of foreign exchange derivatives in their annual disclosure. Findings - We find that U.S. firms that have direct trade links to Korea gained significantly more value when the intensity of geopolitical risks drops compared to firms without such trade links to Korea. The effects are pronounced for firms purchasing inputs from or selling outputs to Korea. We find that the effectiveness of foreign exchange hedging against geopolitical risks is limited. Originality/value - We document the international transmission of geopolitical uncertainty through trade linkages. Export links as well as import links serve as important nexus of transmission of geopolitical risks across borders. Hedging strategies involving foreign-exchanges derivatives do not seem to insulate firms again geopolitical risks. With the recent movements of localization and reshuffling of the global value chain, our results suggest a significant impact of geopolitical risks in Korea on the construction of the global value chain.

• The Journal of Information Systems
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• v.25 no.1
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• pp.25-47
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• 2016

Purpose In this study, the relationships among environmental information exchange with suppliers(EIES), green collaboration with suppliers, green learning by environmental information, the adoption of green supply-chain management techniques(AGSMT) (i.e., the green purchasing, product design and production, and the recovery of extra facilities and inventories), environmental performance, and the organizational performance of a firm were empirically investigated. Design/methodology/approach Data for this study were drawn from a survey of the current status of EIES levels and AGSMT usage observed in Korean manufacturing firms. In total, 500 organizations were randomly selected from a population of about 1,000 firms that are listed on the Korean stock market. In order to collect empirical data, this research administered questionnaires with the sample firms. Only chief production executives were selected as respondents. A questionnaire with a cover letter was mailed to each respondent. The survey was conducted during a 3-month period between March 2015 and June 2015. Finally, 78 valid data of the sample firms were collected. Findings The results of this study showed that EIES positively affects the green corporation and learning. According to the results, it was observed that both green corporation and green learning have a positive impact on the levels of AGSMT(i.e., the green purchasing, product design and production). It was also demonstrated that AGSMT has a direct positive impact on environmental performance. In examining the effects of environmental performance on the organizational performance of a firm, significant impact was found.