• Journal of Korea Trade
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• v.23 no.5
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• pp.102-117
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• 2019

Purpose - This paper tried to identify the impact of electronic word of mouth (eWOM) on purchase intention (PI) of Korean-brand cars in the context of Russian consumers, taking into consideration the credibility, quality, and quantity of eWOM while also considering the mediation effects of brand image (BI) and perceived quality (PQ). Although there is a considerable number of studies discussing the impact of eWOM determinants on PI, not many studies were conducted focusing on the Russian market. Design/methodology - This paper is considered to fill this gap between eWOM and (PI) and, in order to do so, 211 Russian respondents were randomly selected. Descriptive analysis, factor, and reliability analysis were conducted using SPSS version 22.0. While structural equation modeling was conducted using AMOS version 24.0. Findings - The results display that, in terms of Russian consumers' perception, eWOM credibility, quality, and quantity for Korean-brand cars show a substantial impact on PI. The mediation effects of brand image, as well as perceived quality, were also supported by analysis. In the final part of the paper, theoretical and managerial implications alongside limitations with further research suggestions are presented. Originality/value - This study endeavored to explore the degree of impact of eWOM and mediating roles of BI and PQ on Russian customer intentions to buy Korean-brand cars.

• Journal of Korea Trade
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• v.25 no.1
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• pp.184-202
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• 2021

Purpose - This study empirically investigates the relationship between expatriate CEOs of multinational corporation (MNC) foreign subsidiaries and local philanthropy. Since corporate social responsibility (CSR) enables MNCs to achieve local legitimacy, this research argues that local philanthropy is a valuable strategic means for expatriate CEOs of foreign subsidiaries to secure local legitimacy. Design/methodology - To investigate our argument, we use a sample of 5,459 observations from 576 foreign subsidiaries of MNCs in Korea between 2002 and 2016. We conduct a random-effects panel Tobit regression with subsidiary CEO having foreign nationality as the independent variable and local philanthropy as the dependent variable. Findings - Our main findings are that expatriate CEOs of foreign subsidiaries are more actively engaged in local philanthropy. In addition, the positive relationship between expatriate CEOs and local philanthropy is weaker as their tenure increases. Originality/value - How expatriate CEOs overcome their weak local legitimacy as foreigners in a host country has remained unclear because existing studies mainly focused on the control and coordination aspects of staffing expatriates in CEO positions of foreign subsidiaries. This study broadens the literature on subsidiary CEO staffing and CSR activities of MNCs by identifying complementary relationships between expatriate CEOs and corporate philanthropy in the host country.

• Journal of Korea Trade
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• v.23 no.4
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• pp.131-148
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• 2019

Purpose - Based on the Korea-China FTA as the starting point, this paper makes an empirical analysis of the main influencing factors of the FTA utilization and performance of SMEs. Design/methodology - Taking into account the relationship between the internal and external environmental factors on FTA activities and performance of Korea's SMEs, with PLS-SEM and data obtained by the questionnaire, Smart PLS was applied for the analysis. Findings - The recognition of FTA in SMEs has a significant positive effect on FTA utilization and performance, the international marketing orientation factor only has a significant positive effect on the performance, while the inadequate improvement of non-tariff barriers has a significant negative impact on FTA utilization. In addition, FTA activity has a significant mediation effect on two paths. Originality/value - This paper is of great practical relevance as a tool to enable SMEs to make effective utilization of Korea-China FTA and improve their imports and exports. The paper helps grasp the main factors affecting the utilization and performance of FTA for SMEs, also to establish FTA Business Model and FTA utilization plans for specific industries in the future regarding tariff and non-tariffs compatibility.

• Journal of Korea Trade
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• v.25 no.2
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• pp.1-21
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• 2021

Purpose - The purpose of this research is to develop two medical tourism system models which explain medical tourism phenomenon with a systemic approach. Design/methodology - This research was conducted by using a qualitative data analysis which mainly refers to previous references of medical tourism in the areas of tourism and medicine. Leiper's tourism system model was utilized as a conceptual framework. In-depth interviews with experts in the field were conducted in order to pretest the models. Findings - This research suggests a medical tourism system framework and a medical service provision framework. The first model presents medical tourism components and their relationships within a framework presented in a diagram. The second model shows the relationships among medical services required by medical tourists, the service providers, and service human resources along with movements of medical tourists. Originality/value - The first model presents a spatial composition of medical tourism components and their relationships, whereas the second model shows the linkage among medical services, the service providers, and relevant service human resources along with time sequential steps of medical tourists. These two models are complementary and may be used as useful tools to observe medical tourism phenomenon with a systemic and holistic approach. These two models may enable stake holders avoid unnecessary confusions and conflicts that result in duplication of government policies and a waste of budget and human resources.

• Journal of Korea Trade
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• v.24 no.6
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• pp.61-81
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• 2020

Purpose - This paper examines how the consumer animosity of partner country influences the purchase of foreign products. We analyzed news sentiment to determine whether Chinese consumer's animosity affect the purchase of the products made in Korea around the time when the U.S. Terminal High Altitude Area Defense missile system was deployed in South Korea. Design/methodology - To measure the tone of Chinese consumer animosity more carefully, we utilized a text mining technique of the Chinese language to read the public's opinion. Using Chinese news paper's editorials of 2015.1-2018.10, we analyzed the sentiment toward Korea and regressed it with Korean export to China. Findings - Empirical results report that Chinese consumers tended to reduce their purchase of consumer goods from Korea when the animosity increased, that is, the sentiments of Chinese news editorials were negative. In contrast, the animosity did not affect the purchase of Korean intermediates or raw materials. We further analyzed the effect by dividing the animosity into three categories; politics, economics, and culture. Among these groups, political news exhibits a unique effect on Chinese purchase on consumer goods from Korea. Originality/value - Existing literature on animosity models has measured the animosity by collecting the consumers' opinions through survey at a given time point, whereas it is measured by analyzing the tone of the press release by sentiment analysis during the time period around the event occurrence in this study.

• Journal of Korea Trade
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• v.23 no.6
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• pp.52-65
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• 2019

Purpose - This paper aims to study what is impacting the development of e-Government Procurement in China, the current strategies of developing Chinese Governmental e-Procurement, and to present some measures by which Korea's exporting industry could enter the Chinese procurement market. Design/methodology - This study is to provide a systematic literatures review on what is impacting the development of e-Government Procurement in China. Hence, based on western research, Chinese literiatures are used for this study. Findings - To penetrate the e-procurement of the Chinese government, the acquisition of government procurement certification is necessary. Secondly, the qualification of "Made in China" is one way to join the market. And finally for Korean companies to enter the procurement, it is necessary to provide products to the public institutions such as universities, hospitals and social organizations and to the state-owned enterprises. Originality/value - This paper aims to study what is impacting the development of the e-Government Procurement in China, the current strategies of developing Chinese Governmental e-Procurements, and to present some measures by which Korea's exporting industry could enter the Chinese procurement market. These originalities can be expected to give understanding of Chinese e-govenment procurement and insight for strategy for both Korean enterprise and relavant academic circles.

• Journal of Korea Trade
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• v.24 no.2
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• pp.15-30
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• 2020

Purpose - This paper investigates the theories and practices of Most-Favored-Nation (MFN) clauses. The MFN clause became a controversial issue during the past two decades, especially in the context of investment arbitration. This paper aims to clarify a reasonable way to apply MFN clauses. It in particular focuses on the territoriality requirements and the scope of investment activity which are common features included in most of investment treaties. Design/methodology - This paper analyses two investment arbitration cases, Ansung Housing and Beijing Urban Construction. Through the case study, this paper reveals limitations of the currently dominant views on the operation of MFN clauses. It then tries to reconstruct the system of MFN application within the relevant arbitration principles. Findings - Tribunals of recent investment arbitration as represented in the two cases above employed strict literal interpretation of the treaty provisions, especially of the phrase "in its territory". This paper finds a more functional interpretation is appropriate and consistent with theories of public international law and developments of global economy. Originality/value - Existing studies either stuck to literal interpretation or suggested more flexible interpretation of the phrase "in its territory" without full explanation. This paper tries to fill the gap in the existing discussion by analyzing legal foundations and theoretical structure for an effective interpretation of MFN clauses.

• Journal of Korea Trade
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• v.23 no.3
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• pp.38-51
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• 2019

Purpose - An appreciable number of small- and medium-sized exporters have continuously succeeded in their export marketplaces even though they do not possess enough resources. Advocating that affiliation with an export service-provider plays an important role in this phenomenon, we aimed to theoretically explain how export service providers' competences and relational factors drive small- and medium-sized exporters' competitive advantages in the long-run. Design/methodology - Drawing prominently on the resource-based view and the relationship-marketing theory, we built an empirically testable model. The model showed the roles of exporter capabilities, export service-provider competences, and relational factors on small- and medium-sized exporters' sustainable competitive advantages. Findings - The results of our research showed that exporter production and branding capabilities positively influenced their sustainable competitive advantage. In addition, export service-providers' marketing competence and relationship-building competence positively moderated the effects of exporter capabilities on their parties' sustainable competitive advantages. Finally, affiliation parties' interfirm trust and relationship commitment positively moderated the effects of export service-provider competence on the relationship between exporter capabilities and sustainable competitive advantages. Originality/value - Although prior studies have highlighted the effects of an exporter's resources on export performance, our research filled a knowledge gap of the effects of other resources on export performance. First, we proposed two types of export service-provider, competence marketing and relationship-building, influencing exporters' competitive advantage. Second, the effects of relational factors were proposed in the context of export affiliations.

• Journal of Korea Trade
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• v.24 no.5
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• pp.35-54
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• 2020

Purpose - It seems common sense that corporate social responsibility (CSR) is a key driver of business sustainability. Nevertheless, there has been little research on the performance of socially responsible activities, including economic and environmentally responsibility activities, in internationally diversified firms. Design/methodology - The purpose of this study was to evaluate the effects of CSR activities on management performance. For this evaluation, an empirical analysis was conducted with total of 2,520 cases, selected from companies listed on the Korea Composite Stock Price Index market for six years from 2013 to 2018. As proxies for management performance, financial data such as a total asset net profit ratio and a total asset operating ratio were used. A multivariate regression analysis was conducted to test hypotheses. Findings - The results of this analysis indicated that firms in the CSR outstanding group were ranked significantly higher than other groups in management performance. In addition, CSR activities of internationally diversified firms positively influenced the total asset net profit ratio and total asset operating ratio. Originality/value - The results suggest that the CSR activities of these firms can play a significant role in enhancing management performance in the economic status of Korea, where the degree of export dependency is high.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.107-122
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• 2020

Purpose - This paper investigates the relations among exploratory and exploitative supply chain management practices, competitive advantage, and firm performance. Design/methodology/approach - This study takes a hypothesis-generating study to capture the tradeoffs between exploration and exploitation and develops some hypotheses which involve the relations among SCM practices, competitive advantage, and short-term and long-term performance. Findings - Exploitative SCM practices have more positive effects on short-term performance rather than long-term performance, whereas exploratory SCM activities affect long-term performance. Further competitive strategy, environmental dynamism, and organizational slack moderates the relationship between SCM and performance. Exploitative SCM is more desirable when a firm uses low cost strategy, lacks slack resources, and faces stable environment, while exploratory SCM is more effective when a firm employs differentiation strategy, has slack resources, and confront dynamic environment. Research implications or Originality - In order to understand the performance effects of a variety of SCM practices, we should distinguish between exploitative and exploratory SCM activities. Further the relationship between SCM and performance may differ depending upon some contingent variables such as external environment, competitive strategy and organizational slack.