As the entrepreneurial ecosystem turns out to be a leading factor in improving nation's entrepreneurship, many studies are underway in the country to develop the start-up ecosystem. Although the entrepreneurial ecosystem is receiving attention as an essential factor for the nation's economic growth as well as entrepreneurship due to its inter-relationship with start-ups, government agencies and investors, criticism of measurement indicators has been increasing due to the different institutional and political contexts of each country, including the various definition of start-up ecosystem. In this study, we develop indicators that are suitable for domestic conditions in Korea and that can measure the level of start-up ecosystems in each regional level. FGI and Delphi surveys by scholarly experts in each field of start-ups & entrepreneurship were conducted to verify how well existing indicators fit the domestic situation and to develop indicators that can measure the local entrepreneurial ecosystem in Korea through close examination. As a result, the local entrepreneurial ecosystem consisted of three to four sub-components and 38 sub-components, each consisting of seven indicators, including Policy, Investment, Culture, Market, Human Capital, Support and Knowledge. It is expected that this research will be used to diagnose local start-up ecosystems and to propose discriminatory policies that can complement regional strengths and weaknesses.
The purpose of this study is to analyze the relationship between entrepreneurship and entrepreneurial intention. This relationship has been conceptually addressed in many previous studies and has been empirically tested. However, this study is different from the previous studies in the following four points. First, we measured entrepreneurial intention by manipulating launching a start-up as a relative concept for employment, which is consistent with the conceptual definition of entrepreneurial intention (i.e. entrepreneurial decision making in the process of career choice). Second, it is distinguished from previous researches in that it uses the question of preference for "action" with regard to job choice. Third, we expanded the opportunity for discussion using the youth panel data of the Korea Employment Information Service. Fourth, the altruistic purpose is included in the category of entrepreneurship. Empirical results showed that intentions of entrepreneurship were stronger when the need for achievement was intense, internal control tendency was intended, risk-taking propensity was sturdy, and autonomous tendency was high. However, innovation and aggressiveness are not statistically related to entrepreneurial intention. On the other hand, the altruistic tendency was found to have a negative correlation with entrepreneurial intention. The results of this study can provide meaningful implications for both private sector investors and government policy makers.
Most domestic companies, with the exclusion of major firms, are reluctant to implement a supply chain management (SCM) network into their operations. Most small- and medium-sized enterprises are not even aware of SCM. Due to the inherent total-systems efficiency of SCM, it coordinates domestic manufacturers, subcontractors, distributors, and physical distributors and cuts down on cost of inventory control, as well as demand management. Furthermore, a lack of SCM causes a decrease in competitiveness for domestic companies. The reason lies in the fundamentality of SCM, which is the characteristic of information sharing, process innovation throughout SCM, and the vast range of problems the SCM management tool is able to address. This study suggests the contemplation and reformation of the current SCM situation by analyzing the SCM strategic plan, discourses and logical discussions on the topic, and a successful case for adapting SCM; hence, the study plans to productively "process" SCM. First, it is necessary to contemplate the theoretical background of SCM before discussing how to successfully process SCM. I will describe the concept and background of SCM in Chapter 2, with a definition of SCM, types of SCM promotional activities, fields of SCM, necessity of applying SCM, and the effects of SCM. All of the defects in currently processing SCM will be introduced in Chapter 3. Discussion items include the following: the Bullwhip Effect; the breakdown in supply chain and sales networks due to e-business; the issue that even though the key to a successful SCM is cooperation between the production and distribution company, during the process of SCM, the companies, many times, put their profits first, resulting in a possible defect in demands estimation. Furthermore, the problems of processing SCM in a domestic distribution-production company concern Information Technology; for example, the new system introduced to the company is not compatible with the pre-existing document architecture. Second, for effective management, distribution and production companies should cooperate and enhance their partnership in the aspect of the corporation; however, in reality, this seldom occurs. Third, in the aspect of the work process, introducing SCM could provoke corporations during the integration of the distribution-production process. Fourth, to increase the achievement of the SCM strategy process, they need to set up a cross-functional team; however, many times, business partners lack the cooperation and business-information sharing tools necessary to effect the transition to SCM. Chapter 4 will address an SCM strategic plan and a case study of LG Electronics. The purpose of the strategic plan, strategic plans for types of business, adopting SCM in a distribution company, and the global supply chain process of LG Electronics will be introduced. The conclusion of the study is located in Chapter 5, which addresses the issue of the fierce competition that companies currently face in the global market environment and their increased investment in SCM, in order to better cope with short product life cycle and high customer expectations. The SCM management system has evolved through the adaptation of improved information, communication, and transportation technologies; now, it demands the utilization of various strategic resources. The introduction of SCM provides benefits to the management of a network of interconnected businesses by securing customer loyalty with cost and time savings, derived through the consolidation of many distribution systems; additionally, SCM helps enterprises form a wide range of marketing strategies. Thus, we could conclude that not only the distributors but all types of businesses should adopt the systems approach to supply chain strategies. SCM deals with the basic stream of distribution and increases the value of a company by replacing physical distribution with information. By the company obtaining and sharing ready information, it is able to create customer satisfaction at the end point of delivery to the consumer.
This paper estimates a translog cost function for the Korea's banking industry and derives various implications on the prospect for the Korean banking structure in the future based on the estimated efficiency indicators for the banking sector. The Korean banking industry is permitted to operate trust business to the full extent and the security business to a limited extent, while it is formally subjected to the strict, specialized banking system. Security underwriting and investment businesses are allowed in a very limited extent only for stocks and bonds of maturity longer than three year and only up to 100 percent of the bank paid-in capital. Until the end of 1991, the ceiling was only up to 25 percent of the total balance of the demand deposits. However, they are prohibited from the security brokerage business. While the in-house integration of security businesses with the traditional business of deposit and commercial lending is restrictively regulated as such, Korean banks can enter the security business by establishing subsidiaries in the industry. This paper, therefore, estimates the efficiency indicators as well as the cost functions, identifying the in-house integrated trust business and security investment business as important banking activities, for various cases where both the production and the intermediation function approaches in modelling the financial intermediaries are separately applied, and the banking businesses of deposit, lending and security investment as one group and the trust businesses as another group are separately and integrally analyzed. The estimation results of the efficiency indicators for various cases are summarized in Table 1 and Table 2. First, security businesses exhibit economies of scale but also economies of scope with traditional banking activities, which implies that in-house integration of the banking and security businesses may not be a nonoptimal banking structure. Therefore, this result further implies that the transformation of Korea's banking system from the current, specialized system to the universal banking system will not impede the improvement of the banking industry's efficiency. Second, the lending businesses turn out to be subjected to diseconomies of scale, while exhibiting unclear evidence for economies of scope. In sum, it implies potential efficiency gain of the continued in-house integration of the lending activity. Third, the continued integration of the trust businesses seems to contribute to improving the efficiency of the banking businesses, since the trust businesses exhibit economies of scope. Fourth, deposit services and fee-based activities, such as foreign exchange and credit card businesses, exhibit economies of scale but constant returns to scope, which implies, the possibility of separating those businesses from other banking and trust activities. The recent trend of the credit card business being operated separately from other banking activities by an independent identity in Korea as well as in the global banking market seems to be consistent with this finding. Then, how can the possibility of separating deposit services from the remaining activities be interpreted? If one insists a strict definition of commercial banking that is confined to deposit and commercial lending activities, separating the deposit service will suggest a resolution or a disappearance of banking, itself. Recently, however, there has been a suggestion that separating banks' deposit and lending activities by allowing a depository institution which specialize in deposit taking and investing deposit fund only in the safest securities such as government securities to administer the deposit activity will alleviate the risk of a bank run. This method, in turn, will help improve the safety of the payment system (Robert E. Litan, What should Banks Do? Washington, D.C., The Brookings Institution, 1987). In this context, the possibility of separating the deposit activity will imply that a new type of depository institution will arise naturally without contradicting the efficiency of the banking businesses, as the size of the banking market grows in the future. Moreover, it is also interesting to see additional evidences confirming this statement that deposit taking and security business are cost complementarity but deposit taking and lending businesses are cost substitute (see Table 2 for cost complementarity relationship in Korea's banking industry). Finally, it has been observed that the Korea's banking industry is lacking in the characteristics of natural monopoly. Therefore, it may not be optimal to encourage the merger and acquisition in the banking industry only for the purpose of improving the efficiency.
1. Introduction The new computing era started with the various computer technologies and services having been used in communication and automation area since 1980's. We call that era information technology(IT) era. In such era, especially communication plays very important roles in every aspect. So Schoderbek named that era the ege of c2. Therefore, communition became widely used in organizations. Now the majority of organizations have computer-aided communication capabilities that facilitate access to people and information, both within and outside organization. So one objective of this study is to assess the effects of these changes in data communication on decision making. Decision making is the essence of management and is too important to organizational success. This dissertation has three basic objectives: 1)to clarify the concept of data communication, who influences on decision making, and the concept of decision types, managerial and operational, may be affected differently by data communication 2)to investigate whether the effects of data communication upon decision making may be organizational variables. 3)to verify that business and decision types may affect different impact on decision making.2. Hypotheses Four attributes are selected to make hypotheses from the information attributes presented by famous scholars. They are as follows. ①effectiveness ②routinization ③communication easiness ④timeliness Hypotheses are developed according to these attributes, which are chosen from the literature study and theory H1 : Data communication is positively related to the effectiveness of DM H2 : Data communication is positively related to the routinization of DM H3 : Data communication is positively related to the communication easiness of DM H4 : Data communication is positively related to the timeliness of information for DM3. Methodology After pilot study, data are collected from the decision makers in 200 companies located at Seoul and the metropolitan area. A random sample of 174 employees sent back their questionnaires(response rate of 87%). Among them, 151 questionnaires was useful to the analysis of this study(useful rate of 75.5%).4. Conclusion and Discussion Among four proposed hypotheses, all hypotheses are fully supported. They are as follows. 1)effectiveness 2)routinization 3)communication easiness 4)timeliness. So, first objective of this study is proved. Namely, to clarify that the effects of data communication upon DM is fully supported. But they are different from the decision types. Second one is not apparently verfied. i.e. the effect of data communication on the decision variables is not moderated by organizational variables. Third is inspected. The effects of data communication differs from the industry and decision types evidently. This study has many limitations to generalize the statistical results. Since the definition of data communication has broad meanings in reality. So allare not contained in this research. Another restrict in this study is like this. Decision types are usually divided into three types-operational, managerial, strategic DM. But in this study, strategic DM is left out.
Owing to the rapid growth of hypermarket/discount store formats since 1996, Korean retailing has suddenly attracted the significant attention from researchers. Before the emergence of large scale retailers such as E-Mart, Lotte Mart and Tesco Korea, there were the two retail formats who led the Korean retailing in the modern retailing history: department store and supermarket formats. Nevertheless, there has been little literature concerned about the two retail formats as a case study, while some authors have paid their attention to hypermarket/discount store formats. In addition, when mentioning the development process of retailing history, it is less likely that authors have made an effort to illustrate supermarket retailing history. In order to regard supermarket retailing as part of the Korean retailing, it is interesting to look at a representative supermarket retailer, Haitai, who was one of the subsidiaries of Haitai chaebol. Based on supermarket retailing, the company which was established as a joint venture in 1974 led a supermarket retailing in the Korean modernised retailing history. Before analysing whether Haitai failed or not, the definition of failure should be illustrated. With regard to the term, failure, in the academic world, authors have interchangeably used the following terms: failure, divestment, closure, organisational restructuring, and exit. To collect research data as a case study, the author adopted an in-depth interview method. The research is based on research interviews with 13 ex-staff who left after Haitai went bankruptcy, from store management department to merchandise department. By investigating Haitai's experiences through field interviews, the research found that Haitai restructured organisational decision-making process at the early stage when companies started to modernise organisational charts, benchmarking sophisticated retailing knowledge through the strategic alliance with a Japanese retailer. In respect of buying system, the company established firmly buying functions by adopting central buying system, and further, outstandingly allocated considerable marketing resources to the development of retailer brands with the dedicated team of retailer brand development. In the grocery retailing, abandoning a 'no-frill' packaging concept, the introduction of retailer brand packaging equal to, or better than national brand packaging design, encouraged other retailers to change their retailer brand development strategies. In product sourcing ways, Haitai organised for the first time the overseas sourcing team with the aim of improving the profit margins of foreign products and providing exotic products for customers, followed by other retailers. Regarding distribution system, the company introduced the innovative idea which delivered products ordered by stores directly to each store withboth its own vehicles and its own warehouse in which could deal with dry foods, chilly foods, frozen food, and non-foods, and even, process produce. In addition, Haitai developed many promotional methods to attract more customers like 'the guarantee of the lowest price', and expanded its own business to US in 1996, although withdrew, because of bankruptcy in 1997. Together with POS introduction in 1994, Haitai made a significant contribution to the development of the Korean retailing, influencing other retailers in many aspects. As a case study, the study has provided a number of lessons from Haitai's experiences for academicians and practitioners, suggesting that its history should be involved in the Korean modernised retailing.
Franchise businesses in South Korea have contributed to economic growth and job creation, and its growth potential remains very high. However, despite such virtues, domestic franchise businesses face many problems such as the instability of franchisor's business structure and weak financial conditions. To solve these problems, the government enacted legislation and strengthened franchise related laws. However, the strengthening of laws regulating franchisors had many side effects that interrupted the development of the franchise business. For example, legal regulations regarding franchisors have had the effect of suppressing the franchisor's leadership activities (e.g. activities such as the ability to advocate the franchisor's policies and strategies to the franchisees, in order to facilitate change and innovation). One of the main goals of the franchise business is to build cooperation between the franchisor and the franchisee for their combined success. However, franchisees can refuse to follow the franchisor's strategies because of the current state of franchise-related law and government policy. The purpose of this study to explore the effects of franchisor's leadership style on franchisee's commitment in a franchise system. We classified leadership styles according to the path-goal theory (House & Mitchell, 1974), and it was hypothesized and tested that the four leadership styles proposed by the path-goal theory (i.e. directive, supportive, participative and achievement-oriented leadership) have different effects on franchisee's commitment. Another purpose of this study to explore the how the level of franchisee's self-efficacy influences both the franchisor's leadership style and franchisee's commitment in a franchise system. Results of the present study are expected to provide important theoretical and practical implications as to the role of franchisor's leadership style, as restricted by government regulations and the franchisee's self-efficacy, which could be needed to improve the quality of the long-term relationship between the franchisor and franchisee. Quoted by Northouse(2007), one problem regarding the investigation of leadership is that there are almost as many different definitions of leadership as there are people who have tried to define it. But despite the multitude of ways in which leadership has been conceptualized, the following components can be identified as central to the phenomenon: (a) leadership is a process, (b) leadership involves influence, (c) leadership occurs in a group context, and (d) leadership involves goal attainment. Based on these components, in this study leadership is defined as a process whereby franchisor's influences a group of franchisee' to achieve a common goal. Focusing on this definition, the path-goal theory is about how leaders motivate subordinates to accomplish designated goals. Drawing heavily from research on what motivates employees, path-goal theory first appeared in the leadership literature in the early 1970s in the works of Evans (1970), House (1971), House and Dessler (1974), and House and Mitchell (1974). The stated goal of this leadership theory is to enhance employee performance and employee satisfaction by focusing on employee motivation. In brief, path-goal theory is designed to explain how leaders can help subordinates along the path to their goals by selecting specific behaviors that are best suited to subordinates' needs and to the situation in which subordinates are working (Northouse, 2007). House & Mitchell(1974) predicted that although many different leadership behaviors could have been selected to be a part of path-goal theory, this approach has so far examined directive, supportive, participative, and achievement-oriented leadership behaviors. And they suggested that leaders may exhibit any or all of these four styles with various subordinates and in different situations. However, due to restrictive government regulations, franchisors are not in a position to change their leadership style to suit their circumstances. In addition, quoted by Northouse(2007), ssubordinate characteristics determine how a leader's behavior is interpreted by subordinates in a given work context. Many researchers have focused on subordinates' needs for affiliation, preferences for structure, desires for control, and self-perceived level of task ability. In this study, we have focused on the self-perceived level of task ability, namely, the franchisee's self-efficacy. According to Bandura (1977), self-efficacy is chiefly defined as the personal attitude of one's ability to accomplish concrete tasks. Therefore, it is not an indicator of one's actual abilities, but an opinion of the extent of how one can use that ability. Thus, the judgment of maintain franchisee's commitment depends on the situation (e.g., government regulation and policy and leadership style of franchisor) and how it affects one's ability to mobilize resources to deal with the task, so even if people possess the same ability, there may be differences in self-efficacy. Figure 1 illustrates the model investigated in this study. In this model, it was hypothesized that leadership styles would affect the franchisee's commitment, and self-efficacy would moderate the relationship between leadership style and franchisee's commitment. Theoretically, quoted by Northouse(2007), the path-goal approach suggests that leaders need to choose a leadership style that best fits the needs of subordinates and the work they are doing. According to House & Mitchell (1974), the theory predicts that a directive style of leadership is best in situations in which subordinates are dogmatic and authoritarian, the task demands are ambiguous, and the organizational rule and procedures are unclear. In these situations, franchisor's directive leadership complements the work by providing guidance and psychological structure for franchisees. For work that is structured, unsatisfying, or frustrating, path-goal theory suggests that leaders should use a supportive style. Franchisor's Supportive leadership offers a sense of human touch for franchisees engaged in mundane, mechanized activity. Franchisor's participative leadership is considered best when a task is ambiguous because participation gives greater clarity to how certain paths lead to certain goals; it helps subordinates learn what actions leads to what outcome. Furthermore, House & Mitchell(1974) predicts that achievement-oriented leadership is most effective in settings in which subordinates are required to perform ambiguous tasks. Marsh and O'Neill (1984) tested the idea that organizational members' anger and decline in performance is caused by deficiencies in their level of effort and found that self-efficacy promotes accomplishment, decreases stress and negative consequences like depression and emotional instability. Based on the extant empirical findings and theoretical reasoning, we posit positive and strong relationships between the franchisor's leadership styles and the franchisee's commitment. Furthermore, the level of franchisee's self-efficacy was thought to maintain their commitment. The questionnaires sent to participants consisted of the following measures; leadership style was assessed using a 20 item 7-point likert scale developed by Indvik (1985), self-efficacy was assessed using a 24 item 6-point likert scale developed by Bandura (1977), and commitment was assessed using a 6 item 5-point likert scale developed by Morgan & Hunt (1994). Questionnaires were distributed to Korean optical franchisees in Seoul. It took about 20 days to complete the data collection. A total number of 140 questionnaires were returned and complete data were available from 137 respondents. Results of multiple regression analyses testing the relationships between the each of the four styles of leadership shown by the franchisor as independent variables and franchisee's commitment as the dependent variable showed that the relationship between supportive leadership style and commitment (
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.
Recently, with the advent of various information channels, the number of has continued to grow. The main cause of this phenomenon can be found in the significant increase of unstructured data, as the use of smart devices enables users to create data in the form of text, audio, images, and video. In various types of unstructured data, the user's opinion and a variety of information is clearly expressed in text data such as news, reports, papers, and various articles. Thus, active attempts have been made to create new value by analyzing these texts. The representative techniques used in text analysis are text mining and opinion mining. These share certain important characteristics; for example, they not only use text documents as input data, but also use many natural language processing techniques such as filtering and parsing. Therefore, opinion mining is usually recognized as a sub-concept of text mining, or, in many cases, the two terms are used interchangeably in the literature. Suppose that the purpose of a certain classification analysis is to predict a positive or negative opinion contained in some documents. If we focus on the classification process, the analysis can be regarded as a traditional text mining case. However, if we observe that the target of the analysis is a positive or negative opinion, the analysis can be regarded as a typical example of opinion mining. In other words, two methods (i.e., text mining and opinion mining) are available for opinion classification. Thus, in order to distinguish between the two, a precise definition of each method is needed. In this paper, we found that it is very difficult to distinguish between the two methods clearly with respect to the purpose of analysis and the type of results. We conclude that the most definitive criterion to distinguish text mining from opinion mining is whether an analysis utilizes any kind of sentiment lexicon. We first established two prediction models, one based on opinion mining and the other on text mining. Next, we compared the main processes used by the two prediction models. Finally, we compared their prediction accuracy. We then analyzed 2,000 movie reviews. The results revealed that the prediction model based on opinion mining showed higher average prediction accuracy compared to the text mining model. Moreover, in the lift chart generated by the opinion mining based model, the prediction accuracy for the documents with strong certainty was higher than that for the documents with weak certainty. Most of all, opinion mining has a meaningful advantage in that it can reduce learning time dramatically, because a sentiment lexicon generated once can be reused in a similar application domain. Additionally, the classification results can be clearly explained by using a sentiment lexicon. This study has two limitations. First, the results of the experiments cannot be generalized, mainly because the experiment is limited to a small number of movie reviews. Additionally, various parameters in the parsing and filtering steps of the text mining may have affected the accuracy of the prediction models. However, this research contributes a performance and comparison of text mining analysis and opinion mining analysis for opinion classification. In future research, a more precise evaluation of the two methods should be made through intensive experiments.
1. Introduction Today Internet is recognized as an important way for the transaction of products and services. According to the data surveyed by the National Statistical Office, the on-line transaction in 2007 for a year, 15.7656 trillion, shows a 17.1%(2.3060 trillion won) increase over last year, of these, the amount of B2C has been increased 12.0%(10.2258 trillion won). Like this, because the entry barrier of on-line market of Korea is low, many retailers could easily enter into the market. So the bigger its scale is, but on the other hand, the tougher its competition is. Particularly due to the Internet and innovation of IT, the existing market has been changed into the perfect competitive market(Srinivasan, Rolph & Kishore, 2002). In the early years of on-line business, they think that the main reason for success is a moderate price, they are awakened to its importance of on-line service quality with tough competition. If it's not sure whether customers can be provided with what they want, they can use the Web sites, perhaps they can trust their products that had been already bought or not, they have a doubt its viability(Parasuraman, Zeithaml & Malhotra, 2005). Customers can directly reserve and issue their air tickets irrespective of place and time at the Web sites of travel agencies or airlines, but its empirical studies about these Web sites for reserving and issuing air tickets are insufficient. Therefore this study goes on for following specific objects. First object is to measure service quality and service recovery of Web sites for reserving and issuing air tickets. Second is to look into whether above on-line service quality and on-line service recovery have an impact on overall service quality. Third is to seek for the relation with overall service quality and customer satisfaction, then this customer satisfaction and loyalty intention. 2. Theoretical Background 2.1 On-line Service Quality Barnes & Vidgen(2000; 2001a; 2001b; 2002) had invented the tool to measure Web sites' quality four times(called WebQual). The WebQual 1.0, Step one invented a measuring item for information quality based on QFD, and this had been verified by students of UK business school. The Web Qual 2.0, Step two invented for interaction quality, and had been judged by customers of on-line bookshop. The WebQual 3.0, Step three invented by consolidating the WebQual 1.0 for information quality and the WebQual2.0 for interactionquality. It includes 3-quality-dimension, information quality, interaction quality, site design, and had been assessed and confirmed by auction sites(e-bay, Amazon, QXL). Furtheron, through the former empirical studies, the authors changed sites quality into usability by judging that usability is a concept how customers interact with or perceive Web sites and It is used widely for accessing Web sites. By this process, WebQual 4.0 was invented, and is consist of 3-quality-dimension; information quality, interaction quality, usability, 22 items. However, because WebQual 4.0 is focusing on technical part, it's usable at the Website's design part, on the other hand, it's not usable at the Web site's pleasant experience part. Parasuraman, Zeithaml & Malhorta(2002; 2005) had invented the measure for measuring on-line service quality in 2002 and 2005. The study in 2002 divided on-line service quality into 5 dimensions. But these were not well-organized, so there needed to be studied again totally. So Parasuraman, Zeithaml & Malhorta(2005) re-worked out the study about on-line service quality measure base on 2002's study and invented E-S-QUAL. After they invented preliminary measure for on-line service quality, they made up a question for customers who had purchased at amazon.com and walmart.com and reassessed this measure. And they perfected an invention of E-S-QUAL consists of 4 dimensions, 22 items of efficiency, system availability, fulfillment, privacy. Efficiency measures assess to sites and usability and others, system availability measures accurate technical function of sites and others, fulfillment measures promptness of delivering products and sufficient goods and others and privacy measures the degree of protection of data about their customers and so on. 2.2 Service Recovery Service industries tend to minimize the losses by coping with service failure promptly. This responses of service providers to service failure mean service recovery(Kelly & Davis, 1994). Bitner(1990) went on his study from customers' view about service providers' behavior for customers to recognize their satisfaction/dissatisfaction at service point. According to them, to manage service failure successfully, exact recognition of service problem, an apology, sufficient description about service failure and some tangible compensation are important. Parasuraman, Zeithaml & Malhorta(2005) approached the service recovery from how to measure, rather than how to manage, and moved to on-line market not to off-line, then invented E-RecS-QUAL which is a measuring tool about on-line service recovery. 2.3 Customer Satisfaction The definition of customer satisfaction can be divided into two points of view. First, they approached customer satisfaction from outcome of comsumer. Howard & Sheth(1969) defined satisfaction as 'a cognitive condition feeling being rewarded properly or improperly for their sacrifice.' and Westbrook & Reilly(1983) also defined customer satisfaction/dissatisfaction as 'a psychological reaction to the behavior pattern of shopping and purchasing, the display condition of retail store, outcome of purchased goods and service as well as whole market.' Second, they approached customer satisfaction from process. Engel & Blackwell(1982) defined satisfaction as 'an assessment of a consistency in chosen alternative proposal and their belief they had with them.' Tse & Wilton(1988) defined customer satisfaction as 'a customers' reaction to discordance between advance expectation and ex post facto outcome.' That is, this point of view that customer satisfaction is process is the important factor that comparing and assessing process what they expect and outcome of consumer. Unlike outcome-oriented approach, process-oriented approach has many advantages. As process-oriented approach deals with customers' whole expenditure experience, it checks up main process by measuring one by one each factor which is essential role at each step. And this approach enables us to check perceptual/psychological process formed customer satisfaction. Because of these advantages, now many studies are adopting this process-oriented approach(Yi, 1995). 2.4 Loyalty Intention Loyalty has been studied by dividing into behavioral approaches, attitudinal approaches and complex approaches(Dekimpe et al., 1997). In the early years of study, they defined loyalty focusing on behavioral concept, behavioral approaches regard customer loyalty as "a tendency to purchase periodically within a certain period of time at specific retail store." But the loyalty of behavioral approaches focuses on only outcome of customer behavior, so there are someone to point the limits that customers' decision-making situation or process were neglected(Enis & Paul, 1970; Raj, 1982; Lee, 2002). So the attitudinal approaches were suggested. The attitudinal approaches consider loyalty contains all the cognitive, emotional, voluntary factors(Oliver, 1997), define the customer loyalty as "friendly behaviors for specific retail stores." However these attitudinal approaches can explain that how the customer loyalty form and change, but cannot say positively whether it is moved to real purchasing in the future or not. This is a kind of shortcoming(Oh, 1995). 3. Research Design 3.1 Research Model Based on the objects of this study, the research model derived is . 3.2 Hypotheses 3.2.1 The Hypothesis of On-line Service Quality and Overall Service Quality shows, Step 1 and Step 2 are significant, and mediation variable has a significant effect on dependent variables and so does independent variables at Step 3, too. And there needs to prove the partial mediation effect, independent variable's estimate ability at Step 3(Standardized coefficient
shows, Step 1 and Step 2 are significant, and mediation variable has a significant effect on dependent variables and so does independent variables at Step 3, too. And there needs to prove the partial mediation effect, independent variable's estimate ability at Step 3(Standardized coefficient
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