• International conference on construction engineering and project management
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• 2015.10a
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• pp.496-500
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• 2015

International construction projects are inherently more risky than domestic projects with multi-dimensional uncertainties that require complementary risk management at both the country and project levels. However, despite a growing need for systematic country evaluations, most studies have focused on project-level decisions and lack country-based approaches for firms in the construction industry. Accordingly, this study suggests data-driven approaches for evaluating countries using two quantitative models. The first is a two-stage country segmentation model that not only screens negative countries based on country attractiveness (macro-segmentation) but also identifies promising countries based on the level of past project performance in a given country (micro-segmentation). The second is a multi-criteria country segmentation model that combines a firm's business objective with the country evaluation process based on Kraljic's matrix and fuzzy preference relations (FPR). These models utilize not only secondary data from internationally reputable institutions but also performance data on Korean firms from 1990 to 2014 to evaluate 29 countries. The proposed approaches enable firms to enhance their decision-making capacity for evaluating and selecting countries at the early stage of corporate strategy development.

• Journal of Convergence for Information Technology
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• v.10 no.11
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• pp.302-312
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• 2020

This study examined whether there is a difference in cost asymmetry between a corporate listed on KOSDAQ and a corporate listed on KOSPI, and whether there is a difference in cost asymmetry depending on the size of the listed corporate. In the previous study, cost asymmetry was examined only for listed corporate, but the difference in size between KOSDAQ-listed corporate and KOSPI-listed corporate was not examined. However, according to many studies, since the characteristics of corporate and firm risks are different between corporate listed on KOSPI and corporate listed on KOSDAQ, or even for listed corporate, such an impact may affect the decision-making of internal resource allocation. The analysis was conducted that there would be a difference in the impact. For this study, the results of analyzing the KOSPI and KOSDAQ markets from 2011 to 2019 using the cost behavior model of Anderson et al. (2003), There was a difference in cost behavior in the KOSPI and KOSDAQ markets. Overall, as in previous studies, Cost Stickiness was appeared. but in the case of the KOSPI market, Cost Stickiness was mitigated.It was found that corporate with large corporate size made the decision to dispose of idle resources more clearly when sales decreased. In addition, it was observed that the higher the foreign investor's ownership ratio, the KOSPI market, and the larger the corporate size, the more clearly the Stickiness of cost was mitigated. This study expands research on cost asymmetry and reveals that there is a difference between the KOSPI market and the KOSDAQ market, and between the size of the corporate, and has a differentiation from previous studies.

• Korean System Dynamics Review
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• v.5 no.1
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• pp.5-33
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• 2004

This study explores how agents would make decisions responding to control mechanism in contractual relationship of their firm. Focusing on agent's averse behavior against control, system dynamics model for agent's opportunistic behavior is developed in view of agent theory and control theory. This SD model shows that control mechanism by contracts doesn't always play a positive role on corporate decision-making process and Control, especially in the over-controlled contracts, often makes a paradox accelerating agent's opportunistic behavior unexpectedly. This paradox provides us both theoretical and practical implications for the relationship between control mechanism and autonomous behavior for sustainable corporate management.

• Journal of the Korean Operations Research and Management Science Society
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• v.40 no.2
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• pp.43-61
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• 2015

The valuation of patents is very important, since technology competitiveness is crucial for firms to maintain global competitiveness. But, the patent valuation is difficult and challenging because of the uncertainty affecting their returns. Hence, we propose a patent valuation method by incorporating game theory into the real option model, which can not only potentially recognizes the effect of uncertainty on patent value, but also consider investment decision in a competitive market, as a game between firms. With the model, we can consider dynamic strategy involving an option of patent leveraging strategies enabling the firm to switch among compete, cooperate, or wait modes under different demand or competitive advantage condition.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.16 no.2
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• pp.1006-1015
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• 2015

This study proposed a model to examine the interorganizational relationship factors on the technology diffusion in supply chain networks whereby a firm's adoption decision is influenced by information from physical and social proximity with others as well as its own attributes. To test several hypotheses developed in this context, this paper analyzed the data set of US consumer packaged goods companies adopting an inventory tracking technology in a retail supply chain and found that a potential adopter's decision is largely influenced by the social proximity with prior adopters in a network over time, while a firm's likelihood of adoption at the initial period is mainly determined by its own attributes.

• Asian Journal of Business Environment
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• v.10 no.1
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• pp.37-43
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• 2020

Purpose: The purpose of this study was to examine the relationship between portfolio quality and financial sustainability of microfinance institutions in Kenya. Research Design, Data, and Methodology: The analysis was based on a panel dataset of 30 microfinance institutions for the period of 2010 to 2018. Data was obtained from the Microfinance information exchange (MIX) database, and it was analyzed through descriptive and inferential statistics with the aid of STATA. Based on the results of the Hausman test, the study adopted the fixed effect regression model to test the research hypothesis. Results: The study found that portfolio quality had a positive significant effect on financial sustainability of Microfinance institutions in Kenya (β= 0. 211; p-value < 0.05). For the control variables; firm age had a positive effect (β= 0.773; p-value <0.05), while firm size (β= -0. 749; p-value < 0.05) had a negative effect on financial sustainability. Conclusions: The study concluded that portfolio quality has an important influence on the financial sustainability of microfinance institution. The study recommends that managers of microfinance institutions should devise good collection policies to improve portfolio quality while lessening loan default rate. The portfolio quality may improve the overall profitability and enhance investor confidence in their strategic decision-making on refinancing.

• East Asian Journal of Business Economics (EAJBE)
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• v.7 no.4
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• pp.41-49
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• 2019

Purpose - This paper empirically investigates what factors contribute to corporate investments under financial constraint condition in the Korean stock market. In the paper, tangible assets' growth rate and fixed assets' growth rate were employed as investment performance and total assets were also used for comparison purpose. Research design and methodology - Samples are constructed by manufacturing firms listed on the stock market of Korea as well as those who settle accounts in December from 2001 to 2018. Financial institutions are excluded from the sample as their accounting procedures, governance and regulations differ. This study adopted a fixed panel regression model to assess the sample construction including yearly and cross-sectional data. Results - This results support the literatures that major shareholders showed positive significance to investment in financially unconstrained firms and no significance to investment in financially constrained firms. ROA showed positive significance to investment in financially unconstrained and constrained firms, whereas firm size showed negative significance to investment in financially unconstrained and constrained firms. Debt showed no positive significance to investment in financially unconstrained firms and negative significance to investment in financially constrained firms. Conclusions - This paper documented evidence that ROA and firm size are important factors to investment irrespective of firms' financial constraints. And this paper also supports that major shareholders give positive impact to investments in financially unconstrained firms. This means that financial constraints itself rule corporate' investment decision in financially constrained firms.

• Journal of Korea Trade
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• v.27 no.5
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• pp.91-112
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• 2023

Purpose - This study empirically investigates how the effects of localized knowledge spillovers on technology adoption are conditional on the organizational capabilities of potential adopters. Design/methodology - The empirical model utilized in this study examines how the presence of prior adopters of advanced manufacturing technologies affects a plant's technology adoption decision differently based on its organizational capabilities, measured by plant size and plant status (single-plant firm vs. multi-plant firm). Moreover, this study investigates how the scope of knowledge spillovers from prior adopters, both in terms of geographical and functional proximities, differ for plants with different organizational capabilities. Findings - The main findings of this study are as follows: 1. Although plants with lower organizational capabilities are less likely to adopt advanced technologies, such plants receive greater marginal benefits from knowledge spillovers from prior adopters in their region. 2. Plants with greater organizational capabilities can benefit from knowledge spillovers from a wider set of prior adopters. In other words, while plants with lower organizational capabilities tend to benefit from knowledge spillovers from "similar" and "local" adopters, plants with greater organizational capabilities can also benefit from knowledge spillovers from "not-too-similar" or are geographically distant prior adopters. Originality/value - While existing studies mainly focus on the effects of the various kinds of regional agglomeration, few studies investigate localized knowledge spillovers in technology adoption. Moreover, no prior studies have explored how the effects of knowledge spillovers on technology adoption depend on a plant's organizational capabilities and how the scope of knowledge spillovers differs for plants with different organizational capabilities. This study is the first to empirically investigate this topic.

• The Research Journal of the Costume Culture
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• v.32 no.2
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• pp.148-163
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• 2024

With the digitalization of production and consumption environments, consumers are no longer merely targets of marketing, but key players in creating value jointly with companies by participating in various decision-making processes. Much virtual content in particular, such as fashion shows, exhibitions, games, social activities, and shopping, which fashion brands implement in virtual worlds, cannot be completed without consumers' active engagement and interaction. Thus, this study considers consumers' participation in virtual content provided by fashion brands as value co-creation in virtual worlds. This study aims to examine how consumer (i.e., consumer smartness) and fashion firm (i.e., perceived intellectual capital) factors influence value co-creation behavior intention in virtual worlds. Data were collected from 410 consumers in their 20s nationwide through an online survey, and a higher-order structural equation modeling analysis was conducted to test the research model. The results showed that both consumer smartness and perceived intellectual capital positively influenced customer participation behavior and citizenship behavior intentions. Specifically, perceived intellectual capital had a greater impact on value co-creation behavior in the virtual world than consumer smartness. The findings provide empirical evidence that the fashion firms' intangible assets and consumers' competence in the digital shopping environment encourage their intentions to co-create value in virtual worlds.

• Asia Marketing Journal
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• v.16 no.1
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• pp.35-69
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• 2014

The impact of competition on pricing has been studied in the context of counterfactual merger analyses where expected optimal prices in a hypothetical monopoly are compared with observed prices in an oligopolistic market. Such analyses would typically assume static decision making by consumers and firms and thus have been applied mostly to data obtained from consumer packed goods such as cereal and soft drinks. However such static modeling approach is not suitable when decision makers are forward looking. When it comes to the markets for durable products with indirect network effects, consumer purchase decisions and firm pricing decisions are inherently dynamic as they take into account future states when making purchase and pricing decisions. Researchers need to take into account the dynamic aspects of decision making both in the consumer side and in the supplier side for such markets. Firms in a two-sided market typically subsidize one side of the market to exploit the indirect network effect. Such pricing behaviors would be more prevalent in competitive markets where firms would try to win over the battle for standard. While such qualitative expectation on the relationship between pricing behaviors and competitive structures could be easily formed, little empirical studies have measured the extent to which the distinct pricing structure in two-sided markets depends on the competitive structure of the market. This paper develops an empirical model to measure the impact of competition on optimal pricing of durable products under indirect network effects. In order to measure the impact of exogenously determined competition among firms on pricing, we compare the equilibrium prices in the observed oligopoly market to those in a hypothetical monopoly market. In computing the equilibrium prices, we account for the forward looking behaviors of consumers and supplier. We first estimate a demand function that accounts for consumers' forward-looking behaviors and indirect network effects. And then, for the supply side, the pricing equation is obtained as an outcome of the Markov Perfect Nash Equilibrium in pricing. In doing so, we utilize numerical dynamic programming techniques. We apply our model to a data set obtained from the U.S. video game console market. The video game console market is considered a prototypical case of two-sided markets in which the platform typically subsidizes one side of market to expand the installed base anticipating larger revenues in the other side of market resulting from the expanded installed base. The data consist of monthly observations of price, hardware unit sales and the number of compatible software titles for Sony PlayStation and Nintendo 64 from September 1996 to August 2002. Sony PlayStation was released to the market a year before Nintendo 64 was launched. We compute the expected equilibrium price path for Nintendo 64 and Playstation for both oligopoly and for monopoly. Our analysis reveals that the price level differs significantly between two competition structures. The merged monopoly is expected to set prices higher by 14.8% for Sony PlayStation and 21.8% for Nintendo 64 on average than the independent firms in an oligopoly would do. And such removal of competition would result in a reduction in consumer value by 43.1%. Higher prices are expected for the hypothetical monopoly because the merged firm does not need to engage in the battle for industry standard. This result is attributed to the distinct property of a two-sided market that competing firms tend to set low prices particularly at the initial period to attract consumers at the introductory stage and to reinforce their own networks and eventually finally to dominate the market.