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An Empirical Study on the Determinants of Supply Chain Management Systems Success from Vendor's Perspective (참여자관점에서 공급사슬관리 시스템의 성공에 영향을 미치는 요인에 관한 실증연구)

  • Kang, Sung-Bae;Moon, Tae-Soo;Chung, Yoon
    • Asia pacific journal of information systems
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    • v.20 no.3
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    • pp.139-166
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    • 2010
  • The supply chain management (SCM) systems have emerged as strong managerial tools for manufacturing firms in enhancing competitive strength. Despite of large investments in the SCM systems, many companies are not fully realizing the promised benefits from the systems. A review of literature on adoption, implementation and success factor of IOS (inter-organization systems), EDI (electronic data interchange) systems, shows that this issue has been examined from multiple theoretic perspectives. And many researchers have attempted to identify the factors which influence the success of system implementation. However, the existing studies have two drawbacks in revealing the determinants of systems implementation success. First, previous researches raise questions as to the appropriateness of research subjects selected. Most SCM systems are operating in the form of private industrial networks, where the participants of the systems consist of two distinct groups: focus companies and vendors. The focus companies are the primary actors in developing and operating the systems, while vendors are passive participants which are connected to the system in order to supply raw materials and parts to the focus companies. Under the circumstance, there are three ways in selecting the research subjects; focus companies only, vendors only, or two parties grouped together. It is hard to find researches that use the focus companies exclusively as the subjects probably due to the insufficient sample size for statistic analysis. Most researches have been conducted using the data collected from both groups. We argue that the SCM success factors cannot be correctly indentified in this case. The focus companies and the vendors are in different positions in many areas regarding the system implementation: firm size, managerial resources, bargaining power, organizational maturity, and etc. There are no obvious reasons to believe that the success factors of the two groups are identical. Grouping the two groups also raises questions on measuring the system success. The benefits from utilizing the systems may not be commonly distributed to the two groups. One group's benefits might be realized at the expenses of the other group considering the situation where vendors participating in SCM systems are under continuous pressures from the focus companies with respect to prices, quality, and delivery time. Therefore, by combining the system outcomes of both groups we cannot measure the system benefits obtained by each group correctly. Second, the measures of system success adopted in the previous researches have shortcoming in measuring the SCM success. User satisfaction, system utilization, and user attitudes toward the systems are most commonly used success measures in the existing studies. These measures have been developed as proxy variables in the studies of decision support systems (DSS) where the contribution of the systems to the organization performance is very difficult to measure. Unlike the DSS, the SCM systems have more specific goals, such as cost saving, inventory reduction, quality improvement, rapid time, and higher customer service. We maintain that more specific measures can be developed instead of proxy variables in order to measure the system benefits correctly. The purpose of this study is to find the determinants of SCM systems success in the perspective of vendor companies. In developing the research model, we have focused on selecting the success factors appropriate for the vendors through reviewing past researches and on developing more accurate success measures. The variables can be classified into following: technological, organizational, and environmental factors on the basis of TOE (Technology-Organization-Environment) framework. The model consists of three independent variables (competition intensity, top management support, and information system maturity), one mediating variable (collaboration), one moderating variable (government support), and a dependent variable (system success). The systems success measures have been developed to reflect the operational benefits of the SCM systems; improvement in planning and analysis capabilities, faster throughput, cost reduction, task integration, and improved product and customer service. The model has been validated using the survey data collected from 122 vendors participating in the SCM systems in Korea. To test for mediation, one should estimate the hierarchical regression analysis on the collaboration. And moderating effect analysis should estimate the moderated multiple regression, examines the effect of the government support. The result shows that information system maturity and top management support are the most important determinants of SCM system success. Supply chain technologies that standardize data formats and enhance information sharing may be adopted by supply chain leader organization because of the influence of focal company in the private industrial networks in order to streamline transactions and improve inter-organization communication. Specially, the need to develop and sustain an information system maturity will provide the focus and purpose to successfully overcome information system obstacles and resistance to innovation diffusion within the supply chain network organization. The support of top management will help focus efforts toward the realization of inter-organizational benefits and lend credibility to functional managers responsible for its implementation. The active involvement, vision, and direction of high level executives provide the impetus needed to sustain the implementation of SCM. The quality of collaboration relationships also is positively related to outcome variable. Collaboration variable is found to have a mediation effect between on influencing factors and implementation success. Higher levels of inter-organizational collaboration behaviors such as shared planning and flexibility in coordinating activities were found to be strongly linked to the vendors trust in the supply chain network. Government support moderates the effect of the IS maturity, competitive intensity, top management support on collaboration and implementation success of SCM. In general, the vendor companies face substantially greater risks in SCM implementation than the larger companies do because of severe constraints on financial and human resources and limited education on SCM systems. Besides resources, Vendors generally lack computer experience and do not have sufficient internal SCM expertise. For these reasons, government supports may establish requirements for firms doing business with the government or provide incentives to adopt, implementation SCM or practices. Government support provides significant improvements in implementation success of SCM when IS maturity, competitive intensity, top management support and collaboration are low. The environmental characteristic of competition intensity has no direct effect on vendor perspective of SCM system success. But, vendors facing above average competition intensity will have a greater need for changing technology. This suggests that companies trying to implement SCM systems should set up compatible supply chain networks and a high-quality collaboration relationship for implementation and performance.

The meaning based on Yin-Yang and Five Elements Principle in Semantic Landscape Composition of 'the Forty Eight Poems of Soswaewon' ('소쇄원(瀟灑園) 48영'의 의미경관 구성에 있어서 음양오행론적(陰陽五行論的) 의미(意味))

  • Jang, Il-Young;Shin, Sang-Sup
    • Journal of the Korean Institute of Traditional Landscape Architecture
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    • v.31 no.2
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    • pp.43-57
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    • 2013
  • The purpose of this study is to identify potential semantic landscape makeup of "the Forty Eight Poems of Soswaewon" according to Yin-Yang and Five Elements Principle(陰陽五行論). that speculation system between human's nature and cosmical universal order. Existing academic discussions made so far concerning this topic can be summed up as follows: 1. Among Yin-Yang-based landscape makeups of the Forty Eight Poems of Soswaewon, poetic writings for embodiment of interactions between nature and human behaviors focused on depicting dynamic aspects of a poetic narrator when he appreciates or explores hills and streams as of to live free from worldly cares. Primarily, many of those writings were created on the east and south primarily through assignment of yang. On the other hand, poetic writings for embodiment of nature and seasonal scenery - as static landscape makeup of yin - were often created on or near the north and west for many times. Those writings focusing on embodiment of nature and artificial scenery as a work are divided into two categories: One category refers to author Kim In-hu's expression of semantic landscape from seasonal scenery in nature. The other refers to his depiction of realistic garden images as they are. In the Forty Eight Poems of Soswaewon, the poetic writings show that author Kim focused on embodying seasonal scenery rather than expressing human behaviors. In addition, both Poem No. 1 and Poem No. 48(last poem; titled 'Jangwon Jeyeong') were created in a same place, which author Kim sought to understand the place as a space of beginning and end where yin and yang - i.e. the principle of natural cycle - are inherent. 2. According to construction about landscape in the Forty Eight Poems of Soswaewon on the basis of Ohaeng-ron (five natural element principle), it was found that tree(木) and fire(火) are typical examples of a world combined by emanation. First, many of poetic writings depicting the sentiments of tree focused on embodying seasonal scenery and were located in the place of Ogogmun(五曲門) area in the east, from overall perspective of Soswaewon. The content of these poems shows generation and curve / straightness in flexibility and simplicity. Many of poems depicting the sentiments of fire(火) focused on embodying human behaviors, and they were created in Aeyangdan area on the south of Soswaewon over which sun rises at noon. These poems are all on a status of side movement that is characterized by emanation and ascension which belong to attributes of yang. 3. With regard to Ohaeng-ron's interpretation about landscape in the Forty Eight Poems of Soswaewon, it was found that metal(金) and water(水) are typical examples of world combined by convergence. First, it was found that all of poems depicting sentiments of metal focused on embodying seasonal scenery, and were created in a bamboo grove area on the west from overall perspective of Soswaewon. They represent scenery of autumn among 4 seasons to symbolize faithfulness vested in a man of virtue(seonbi) with integrity and righteousness. Poems depicting sentiments of water were created in vicinity of Jewoldang on the north, possibly topmost of Soswaewon. They were divided into two categories: One category refers to poems embodying actions of welcoming the first full moon deep in the night after sunset, and the other refers to poems embodying natural scenery of snowscape. All of those poems focused on expressing any atmosphere of turning into yin via convergence. 4. With regard to Ohaeng-ron's interpretation of landscape in the Forty Eight Poems of Soswaewon, it was found that poems depicting sentiments of earth(土), a complex body of convergence and emanation, were created in vicinity of mountain stream around Gwangpunggak which is located in the center of Soswaewon. These poems focused on carrying actions of author Kim by way of natural phenomena and artificial scenery.

Relationships Among Employees' IT Personnel Competency, Personal Work Satisfaction, and Personal Work Performance: A Goal Orientation Perspective (조직구성원의 정보기술 인적역량과 개인 업무만족 및 업무성과 간의 관계: 목표지향성 관점)

  • Heo, Myung-Sook;Cheon, Myun-Joong
    • Asia pacific journal of information systems
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    • v.21 no.4
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    • pp.63-104
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    • 2011
  • The study examines the relationships among employee's goal orientation, IT personnel competency, personal effectiveness. The goal orientation includes learning goal orientation, performance approach goal orientation, and performance avoid goal orientation. Personal effectiveness consists of personal work satisfaction and personal work performance. In general, IT personnel competency refers to IT expert's skills, expertise, and knowledge required to perform IT activities in organizations. However, due to the advent of the internet and the generalization of IT, IT personnel competency turns out to be an important competency of technological experts as well as employees in organizations. While the competency of IT itself is important, the appropriate harmony between IT personnel's business capability and technological capability enhances the value of human resources and thus provides organizations with sustainable competitive advantages. The rapid pace of organization change places increased pressure on employees to continually update their skills and adapt their behavior to new organizational realities. This challenge raises a number of important questions concerning organizational behavior? Why do some employees display remarkable flexibility in their behavioral responses to changes in the organization, whereas others firmly resist change or experience great stress when faced with the need to alter behavior? Why do some employees continually strive to improve themselves over their life span, whereas others are content to forge through life using the same basic knowledge and skills? Why do some employees throw themselves enthusiastically into challenging tasks, whereas others avoid challenging tasks? The goal orientation proposed by organizational psychology provides at least a partial answer to these questions. Goal orientations refer to stable personally characteristics fostered by "self-theories" about the nature and development of attributes (such as intelligence, personality, abilities, and skills) people have. Self-theories are one's beliefs and goal orientations are achievement motivation revealed in seeking goals in accordance with one's beliefs. The goal orientations include learning goal orientation, performance approach goal orientation, and performance avoid goal orientation. Specifically, a learning goal orientation refers to a preference to develop the self by acquiring new skills, mastering new situations, and improving one's competence. A performance approach goal orientation refers to a preference to demonstrate and validate the adequacy of one's competence by seeking favorable judgments and avoiding negative judgments. A performance avoid goal orientation refers to a preference to avoid the disproving of one's competence and to avoid negative judgements about it, while focusing on performance. And the study also examines the moderating role of work career of employees to investigate the difference in the relationship between IT personnel competency and personal effectiveness. The study analyzes the collected data using PASW 18.0 and and PLS(Partial Least Square). The study also uses PLS bootstrapping algorithm (sample size: 500) to test research hypotheses. The result shows that the influences of both a learning goal orientation (${\beta}$ = 0.301, t = 3.822, P < 0.000) and a performance approach goal orientation (${\beta}$ = 0.224, t = 2.710, P < 0.01) on IT personnel competency are positively significant, while the influence of a performance avoid goal orientation(${\beta}$ = -0.142, t = 2.398, p < 0.05) on IT personnel competency is negatively significant. The result indicates that employees differ in their psychological and behavioral responses according to the goal orientation of employees. The result also shows that the impact of a IT personnel competency on both personal work satisfaction(${\beta}$ = 0.395, t = 4.897, P < 0.000) and personal work performance(${\beta}$ = 0.575, t = 12.800, P < 0.000) is positively significant. And the impact of personal work satisfaction(${\beta}$ = 0.148, t = 2.432, p < 0.05) on personal work performance is positively significant. Finally, the impacts of control variables (gender, age, type of industry, position, work career) on the relationships between IT personnel competency and personal effectiveness(personal work satisfaction work performance) are partly significant. In addition, the study uses PLS algorithm to find out a GoF(global criterion of goodness of fit) of the exploratory research model which includes a mediating variable, IT personnel competency. The result of analysis shows that the value of GoF is 0.45 above GoFlarge(0.36). Therefore, the research model turns out be good. In addition, the study performs a Sobel Test to find out the statistical significance of the mediating variable, IT personnel competency, which is already turned out to have the mediating effect in the research model using PLS. The result of a Sobel Test shows that the values of Z are all significant statistically (above 1.96 and below -1.96) and indicates that IT personnel competency plays a mediating role in the research model. At the present day, most employees are universally afraid of organizational changes and resistant to them in organizations in which the acceptance and learning of a new information technology or information system is particularly required. The problem is due' to increasing a feeling of uneasiness and uncertainty in improving past practices in accordance with new organizational changes. It is not always possible for employees with positive attitudes to perform their works suitable to organizational goals. Therefore, organizations need to identify what kinds of goal-oriented minds employees have, motivate them to do self-directed learning, and provide them with organizational environment to enhance positive aspects in their works. Thus, the study provides researchers and practitioners with a matter of primary interest in goal orientation and IT personnel competency, of which they have been unaware until very recently. Some academic and practical implications and limitations arisen in the course of the research, and suggestions for future research directions are also discussed.

Retail Product Development and Brand Management Collaboration between Industry and University Student Teams (산업여대학학생단대지간적령수산품개발화품패관리협작(产业与大学学生团队之间的零售产品开发和品牌管理协作))

  • Carroll, Katherine Emma
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.3
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    • pp.239-248
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    • 2010
  • This paper describes a collaborative project between academia and industry which focused on improving the marketing and product development strategies for two private label apparel brands of a large regional department store chain in the southeastern United States. The goal of the project was to revitalize product lines of the two brands by incorporating student ideas for new solutions, thereby giving the students practical experience with a real-life industry situation. There were a number of key players involved in the project. A privately-owned department store chain based in the southeastern United States which was seeking an academic partner had recognized a need to update two existing private label brands. They targeted middle-aged consumers looking for casual, moderately priced merchandise. The company was seeking to change direction with both packaging and presentation, and possibly product design. The branding and product development divisions of the company contacted professors in an academic department of a large southeastern state university. Two of the professors agreed that the task would be a good fit for their classes - one was a junior-level Intermediate Brand Management class; the other was a senior-level Fashion Product Development class. The professors felt that by working collaboratively on the project, students would be exposed to a real world scenario, within the security of an academic learning environment. Collaboration within an interdisciplinary team has the advantage of providing experiences and resources beyond the capabilities of a single student and adds "brainpower" to problem-solving processes (Lowman 2000). This goal of improving the capabilities of students directed the instructors in each class to form interdisciplinary teams between the Branding and Product Development classes. In addition, many universities are employing industry partnerships in research and teaching, where collaboration within temporal (semester) and physical (classroom/lab) constraints help to increase students' knowledge and experience of a real-world situation. At the University of Tennessee, the Center of Industrial Services and UT-Knoxville's College of Engineering worked with a company to develop design improvements in its U.S. operations. In this study, Because should be lower case b with a private label retail brand, Wickett, Gaskill and Damhorst's (1999) revised Retail Apparel Product Development Model was used by the product development and brand management teams. This framework was chosen because it addresses apparel product development from the concept to the retail stage. Two classes were involved in this project: a junior level Brand Management class and a senior level Fashion Product Development class. Seven teams were formed which included four students from Brand Management and two students from Product Development. The classes were taught the same semester, but not at the same time. At the beginning of the semester, each class was introduced to the industry partner and given the problem. Half the teams were assigned to the men's brand and half to the women's brand. The teams were responsible for devising approaches to the problem, formulating a timeline for their work, staying in touch with industry representatives and making sure that each member of the team contributed in a positive way. The objective for the teams was to plan, develop, and present a product line using merchandising processes (following the Wickett, Gaskill and Damhorst model) and develop new branding strategies for the proposed lines. The teams performed trend, color, fabrication and target market research; developed sketches for a line; edited the sketches and presented their line plans; wrote specifications; fitted prototypes on fit models, and developed final production samples for presentation to industry. The branding students developed a SWOT analysis, a Brand Measurement report, a mind-map for the brands and a fully integrated Marketing Report which was presented alongside the ideas for the new lines. In future if the opportunity arises to work in this collaborative way with an existing company who wishes to look both at branding and product development strategies, classes will be scheduled at the same time so that students have more time to meet and discuss timelines and assigned tasks. As it was, student groups had to meet outside of each class time and this proved to be a challenging though not uncommon part of teamwork (Pfaff and Huddleston, 2003). Although the logistics of this exercise were time-consuming to set up and administer, professors felt that the benefits to students were multiple. The most important benefit, according to student feedback from both classes, was the opportunity to work with industry professionals, follow their process, and see the results of their work evaluated by the people who made the decisions at the company level. Faculty members were grateful to have a "real-world" case to work with in the classroom to provide focus. Creative ideas and strategies were traded as plans were made, extending and strengthening the departmental links be tween the branding and product development areas. By working not only with students coming from a different knowledge base, but also having to keep in contact with the industry partner and follow the framework and timeline of industry practice, student teams were challenged to produce excellent and innovative work under new circumstances. Working on the product development and branding for "real-life" brands that are struggling gave students an opportunity to see how closely their coursework ties in with the real-world and how creativity, collaboration and flexibility are necessary components of both the design and business aspects of company operations. Industry personnel were impressed by (a) the level and depth of knowledge and execution in the student projects, and (b) the creativity of new ideas for the brands.

Research Trend Analysis Using Bibliographic Information and Citations of Cloud Computing Articles: Application of Social Network Analysis (클라우드 컴퓨팅 관련 논문의 서지정보 및 인용정보를 활용한 연구 동향 분석: 사회 네트워크 분석의 활용)

  • Kim, Dongsung;Kim, Jongwoo
    • Journal of Intelligence and Information Systems
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    • v.20 no.1
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    • pp.195-211
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    • 2014
  • Cloud computing services provide IT resources as services on demand. This is considered a key concept, which will lead a shift from an ownership-based paradigm to a new pay-for-use paradigm, which can reduce the fixed cost for IT resources, and improve flexibility and scalability. As IT services, cloud services have evolved from early similar computing concepts such as network computing, utility computing, server-based computing, and grid computing. So research into cloud computing is highly related to and combined with various relevant computing research areas. To seek promising research issues and topics in cloud computing, it is necessary to understand the research trends in cloud computing more comprehensively. In this study, we collect bibliographic information and citation information for cloud computing related research papers published in major international journals from 1994 to 2012, and analyzes macroscopic trends and network changes to citation relationships among papers and the co-occurrence relationships of key words by utilizing social network analysis measures. Through the analysis, we can identify the relationships and connections among research topics in cloud computing related areas, and highlight new potential research topics. In addition, we visualize dynamic changes of research topics relating to cloud computing using a proposed cloud computing "research trend map." A research trend map visualizes positions of research topics in two-dimensional space. Frequencies of key words (X-axis) and the rates of increase in the degree centrality of key words (Y-axis) are used as the two dimensions of the research trend map. Based on the values of the two dimensions, the two dimensional space of a research map is divided into four areas: maturation, growth, promising, and decline. An area with high keyword frequency, but low rates of increase of degree centrality is defined as a mature technology area; the area where both keyword frequency and the increase rate of degree centrality are high is defined as a growth technology area; the area where the keyword frequency is low, but the rate of increase in the degree centrality is high is defined as a promising technology area; and the area where both keyword frequency and the rate of degree centrality are low is defined as a declining technology area. Based on this method, cloud computing research trend maps make it possible to easily grasp the main research trends in cloud computing, and to explain the evolution of research topics. According to the results of an analysis of citation relationships, research papers on security, distributed processing, and optical networking for cloud computing are on the top based on the page-rank measure. From the analysis of key words in research papers, cloud computing and grid computing showed high centrality in 2009, and key words dealing with main elemental technologies such as data outsourcing, error detection methods, and infrastructure construction showed high centrality in 2010~2011. In 2012, security, virtualization, and resource management showed high centrality. Moreover, it was found that the interest in the technical issues of cloud computing increases gradually. From annual cloud computing research trend maps, it was verified that security is located in the promising area, virtualization has moved from the promising area to the growth area, and grid computing and distributed system has moved to the declining area. The study results indicate that distributed systems and grid computing received a lot of attention as similar computing paradigms in the early stage of cloud computing research. The early stage of cloud computing was a period focused on understanding and investigating cloud computing as an emergent technology, linking to relevant established computing concepts. After the early stage, security and virtualization technologies became main issues in cloud computing, which is reflected in the movement of security and virtualization technologies from the promising area to the growth area in the cloud computing research trend maps. Moreover, this study revealed that current research in cloud computing has rapidly transferred from a focus on technical issues to for a focus on application issues, such as SLAs (Service Level Agreements).

NFC-based Smartwork Service Model Design (NFC 기반의 스마트워크 서비스 모델 설계)

  • Park, Arum;Kang, Min Su;Jun, Jungho;Lee, Kyoung Jun
    • Journal of Intelligence and Information Systems
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    • v.19 no.2
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    • pp.157-175
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    • 2013
  • Since Korean government announced 'Smartwork promotion strategy' in 2010, Korean firms and government organizations have started to adopt smartwork. However, the smartwork has been implemented only in a few of large enterprises and government organizations rather than SMEs (small and medium enterprises). In USA, both Yahoo! and Best Buy have stopped their flexible work because of its reported low productivity and job loafing problems. In addition, according to the literature on smartwork, we could draw obstacles of smartwork adoption and categorize them into the three types: institutional, organizational, and technological. The first category of smartwork adoption obstacles, institutional, include the difficulties of smartwork performance evaluation metrics, the lack of readiness of organizational processes, limitation of smartwork types and models, lack of employee participation in smartwork adoption procedure, high cost of building smartwork system, and insufficiency of government support. The second category, organizational, includes limitation of the organization hierarchy, wrong perception of employees and employers, a difficulty in close collaboration, low productivity with remote coworkers, insufficient understanding on remote working, and lack of training about smartwork. The third category, technological, obstacles include security concern of mobile work, lack of specialized solution, and lack of adoption and operation know-how. To overcome the current problems of smartwork in reality and the reported obstacles in literature, we suggest a novel smartwork service model based on NFC(Near Field Communication). This paper suggests NFC-based Smartwork Service Model composed of NFC-based Smartworker networking service and NFC-based Smartwork space management service. NFC-based smartworker networking service is comprised of NFC-based communication/SNS service and NFC-based recruiting/job seeking service. NFC-based communication/SNS Service Model supplements the key shortcomings that existing smartwork service model has. By connecting to existing legacy system of a company through NFC tags and systems, the low productivity and the difficulty of collaboration and attendance management can be overcome since managers can get work processing information, work time information and work space information of employees and employees can do real-time communication with coworkers and get location information of coworkers. Shortly, this service model has features such as affordable system cost, provision of location-based information, and possibility of knowledge accumulation. NFC-based recruiting/job-seeking service provides new value by linking NFC tag service and sharing economy sites. This service model has features such as easiness of service attachment and removal, efficient space-based work provision, easy search of location-based recruiting/job-seeking information, and system flexibility. This service model combines advantages of sharing economy sites with the advantages of NFC. By cooperation with sharing economy sites, the model can provide recruiters with human resource who finds not only long-term works but also short-term works. Additionally, SMEs (Small Medium-sized Enterprises) can easily find job seeker by attaching NFC tags to any spaces at which human resource with qualification may be located. In short, this service model helps efficient human resource distribution by providing location of job hunters and job applicants. NFC-based smartwork space management service can promote smartwork by linking NFC tags attached to the work space and existing smartwork system. This service has features such as low cost, provision of indoor and outdoor location information, and customized service. In particular, this model can help small company adopt smartwork system because it is light-weight system and cost-effective compared to existing smartwork system. This paper proposes the scenarios of the service models, the roles and incentives of the participants, and the comparative analysis. The superiority of NFC-based smartwork service model is shown by comparing and analyzing the new service models and the existing service models. The service model can expand scope of enterprises and organizations that adopt smartwork and expand the scope of employees that take advantages of smartwork.

The Effect of Franchisor's On-going Support Services on Franchisee's Relationship Quality and Business Performance in the Foodservice Industry (외식 프랜차이즈 가맹본부의 사후 지원서비스가 가맹점의 관계품질과 경영성과에 미치는 영향)

  • Lee, Jae-Han;Lee, Yong-Ki;Han, Kyu-Chul
    • Journal of Distribution Research
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    • v.15 no.3
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    • pp.1-34
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    • 2010
  • Introduction The purpose of this research is to develop overall model which involves the effect of ongoing support services by franchisor on franchisee's relationship quality(trust, satisfaction, and commitment) and business performance(financial and non-financial performance), and to investigate the relationships among trust, satisfaction, commitment, financial and non-financial performance. This study also suggests franchise business or franchise system should be based on long-term orientation between franchisor and franchisee rather than short-term orientation, or transactional relationship, and proposes the most effective way of providing on-going support services by franchisor with franchisee thru symbiotic relationship among franchisor and franchisee Research Model and Hypothesis The research model as Figure 1 shows the variables on-going support services which affect the relationship quality between franchisor and franchisee such as trust, satisfaction, and commitment, and also analyze the effects of relationship quality on business performance including financial and non-financial performance We established 12 hypotheses to test as follows; Relationship between on-going support services and trust H1: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's trust. Relationship between on-going support services and satisfaction H2: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's satisfaction. Relationship between on-going support services and commitment H3: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's commitment. Relationship among relationship quality: trust, satisfaction, and commitment H4: Franchisee's trust has positive effect on franchisee's satisfaction. H5: Franchisee's trust has positive effect on franchisee's commitment. H6: Franchisee's satisfaction has positive effect on franchisee's commitment. Relationship between relationship quality and business performance H7: Franchisee's trust has positive effect on franchisee's financial performance. H8: Franchisee's trust has positive effect on franchisee's non-financial performance. H9: Franchisee's satisfaction has positive effect on franchisee's financial performance. H10: Franchisee's satisfaction has positive effect on franchisee's non-financial performance. H11: Franchisee's commitment has positive effect on franchisee's financial performance. H12: Franchisee's commitment has positive effect on franchisee's non-financial performance. Method The on-going support services were defined as an organized system of continuous supporting services by franchisor for the purpose of satisfying the expectation of franchisee based on long-term orientation and classified into six constructs such as product category & price, logistics service, promotion, providing information & problem solving capability, supervisor's support, and education & training support. The six constructs were measured agreement using a 7-point Likert-type scale (1 = strongly disagree to 7 = strongly agree)as follows. The product category & price was measured by four items: menu variety, price of food material provided by franchisor, and support for developing new menu. The logistics service was measured by six items: distribution system of franchisor, return policy for provided food materials, timeliness, inventory control level of franchisor, accuracy of order, and flexibility of emergency order. The promotion was measured by five items: differentiated promotion activities, brand image of franchisor, promotion effect such as customer increase, long-term plan of promotion, and micro-marketing concept in promotion. The providing information & problem solving capability was measured by information providing of new products, information of competitors, information of cost reduction, and efforts for solving problems in franchisee's operations. The supervisor's support was measured by supervisor operations, frequency of visiting franchisee, support by data analysis, processing the suggestions by franchisee, diagnosis and solutions for the franchisee's operations, and support for increasing sales in franchisee. Finally, the of education & training support was measured by recipe training by specialist, service training for store people, systemized training program, and tax & human resources support services. Analysis and results The data were analyzed using Amos. Figure 2 and Table 1 present the result of the structural equation model. Implications The results of this research are as follows: Firstly, the factors of product category, information providing and problem solving capacity influence only franchisee's satisfaction and commitment. Secondly, logistic services and supervising factors influence only trust and satisfaction. Thirdly, continuing education and training factors influence only franchisee's trust and commitment. Fourthly, sales promotion factor influences all the relationship quality representing trust, satisfaction, and commitment. Fifthly, regarding relationship among relationship quality, trust positively influences satisfaction, however, does not directly influence commitment, but satisfaction positively affects commitment. Therefore, satisfaction plays a mediating role between trust and commitment. Sixthly, trust positively influence only financial performance, and satisfaction and commitment influence positively both financial and non-financial performance.

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A Study on Medium-Sized Enterprises of Japan (일본의 중견기업에 관한 연구 : 현황과 특징, 정책을 중심으로)

  • Kang, Cheol Gu;Kim, Hyun Sung;Kim, Hyun Chul
    • Korean small business review
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    • v.32 no.2
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    • pp.209-223
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    • 2010
  • Korea's business is composed of a few large-sized enterprises (which can be abbreviated as LSE) and a majority of small-sized enterprises (SSE). Although there has been a growing recognition of the need for the development of medium-sized enterprises (MSE) which can serve as a link between SSE and LSE, as yet there has not yet been a consensus on the definition, characteristics and the function of the MSE in Korea. Nowadays, the world is being globalized, and Japan and China are in competition to ne a great economic power. While East Asia is experiencing rapid changes, promoting MSE which can secure flexibility and efficiency through covering up the limitation of LSE and SSE is needed in order to respond the global market which is being specialized. The features of MSE in Japan can be listed as follows. First, the MSE in Japan is developing the company through getting into niche markets which are hard for major companies to enter rather than developing markets in order to compete against major companies directly. While MSEs are endeavoring to build the business firmly in the domestic market, they can possess special and competitive technical skills through trials and errors; so that they can get a chance develop their business through independent business system rather than putting their effort to compete against major companies. Second, from the MSEs with competitive edge in the market, there are many contributions to the national exportation. Those MSEs produce in domestic and maintain the quality of high price products which need cutting-edge technology, while they relocate the low and middle priced goods to the country where manufacturing costs are low, so that they can maintain the price competitiveness. Third, the industrial structure in Japan is formed from dual structure between major companies and small sized companies. In other words, in Japan's industrial structure which are composed of subcontract structure, this dual structure has taken a major role of small sized companies' growth and manufacturing businesses' international competitive power. Forth, MSE in Japan adopt a strategy of putting their value on qualitative scale growth rather than quantitative scale growth. In this paper, the case of Japanese MSE is analyzed. Along with its long history of Industrialization, Japan has a corporate environment where the SSEs can develop as a MSE and later a LSE through a full-support system. Among its SSEs, there are a number of world class corporations equipped with a large domestic market, win-win cooperation with the LSEs and an independent technology development. It can also be observed that these SSEs develop into MSEs with sustainable growth potentials. This study will focus on the condition under which the MSEs of Japan have been developed, and how they have survived the competition between SSEs and LSEs. Through this study, this paper attempts to offer solutions to Korea's polarization between the SSE and LSE, while providing the basis for SSEs revitalization. In general, if both extremities phenomenon deepen between LSE and SSE, there are possible fears of occurring disutility in national economy by the monopolization of LSE. For that reason, enterprise group, which can make SSE or MSE compete LSE in some area and ease the monopoly and oligopoly problem, is needed. This awareness has been shared for ages long. Nevertheless, there is no legal definition for MSE in Japan, and there is no definition about the enterprise size or unified view of MSE between scholars, but it is defined differently by each of academical person or research institution and study meeting. For that reason, this paper will organize the definition of MSE in Japan, and then will propose the characteristics of the background which has made MSE secure competitiveness and sustainable growth in global market. This study focus on that because through this process, the positive change to the awareness of MSE can be proposed in Korea and to seek the policy direction for building institutional framework which can make SSE become MES. Through this way, the fundamentals for SSE to become MSE can be managed and some appropriate suggestions which will be able to make MSE enter the global market in the future can also be proposed. Due to these facts, this study is very important and well timed task. In a sense of this way, this study will examine the definition and role of MSE in Japan. after this examination, this study will deal with the status, special feature, and promotion policy for MSE. Through this analysis of MSE in Japan, the foundation which be able to set the desirable role model for MSE in Korea can be proposed. Also, the political implication which is needed to push ahead to contribute to creating employment and economic growth through sustainable growth of MSEs in economic system of Korea can be offered through this study. It has been found that Japan's MSE functions as an indispensable link among various industrial structures by holding a significant position in employment rate, production and value added. Although the MSEs took up less than 1% of the entire number of businesses with 2700 manufacturing firms and 7000 non-manufacturing firms, its employment ratios are about 15%, while taking about 25% of the manufacturing industry's exports. In industries such as machinery and electronics which is considered Japan's major industry, the MSEs showed a higher than average ratio of manufacturing exports and employment rate. It can be analyzed that behind Japan's advantageous industries, close and deeply knit MSEs exist. Although there are no clearly stated policies geared towards the MSEs by the Japanese government, various political measures exist such as the R&D Project and the inducement of cooperation between enterprises which gives room for MSEs to participate in the SSE policies. In relation to these findings, the following practical measures can be considered in order to revitalize Korea's MSEs: First, there is a need for a legal definition of MSE and the incentives to provide legal support for its growth. Second, if a law to support the MSEs is established, it could provide a powerful inducement for the SSE to grow as a MSE, rather than stay as a SSE. Third, there is a need for a strategy of MSEs to establish a stable base in the domestic market and then advance to the global market with the accumulated trial and error and competitiveness. Fourth, the SSE themselves need the spirit of entrepreneurship in order to make the leap to a MSE. Because if nothing is to be changed about the system on the firms that grew, and the parts of the past custom was left to be managed alone, confusion and absence of management can take place. No matter how much tax favors the government will give and no matter how much incentive there could be through the policies, there are limits for industries to higher the ability to propagate. And because of that it is a period where industries need their own innovative skills to reform their firms.

The lesson From Korean War (한국전쟁의 교훈과 대비 -병력수(兵力數) 및 부대수(部隊數)를 중심으로-)

  • Yoon, Il-Young
    • Journal of National Security and Military Science
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    • s.8
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    • pp.49-168
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    • 2010
  • Just before the Korean War, the total number of the North Korean troops was 198,380, while that of the ROK(Republic of Korea) army troops 105,752. That is, the total number of the ROK army troops at that time was 53.3% of the total number of the North Korean army. As of December 2008, the total number of the North Korean troops is estimated to be 1,190,000, while that of the ROK troops is 655,000, so the ROK army maintains 55.04% of the total number of the North Korean troops. If the ROK army continues to reduce its troops according to [Military Reform Plan 2020], the total number of its troops will be 517,000 m 2020. If North Korea maintains the current status(l,190,000 troops), the number of the ROK troops will be 43.4% of the North Korean army. In terms of units, just before the Korean War, the number of the ROK army divisions and regiments was 80% and 44.8% of North Korean army. As of December 2008, North Korea maintains 86 divisions and 69 regiments. Compared to the North Korean army, the ROK army maintains 46 Divisions (53.4% of North Korean army) and 15 regiments (21.3% of North Korean army). If the ROK army continue to reduce the military units according to [Military Reform Plan 2020], the number of ROK army divisions will be 28(13 Active Division, 4 Mobilization Divisions and 11 Local Reserve Divisions), while that of the North Korean army will be 86 in 2020. In that case, the number of divisions of the ROK army will be 32.5% of North Korean army. During the Korean war, North Korea suddenly invaded the Republic of Korea and occupied its capital 3 days after the war began. At that time, the ROK army maintained 80% of army divisions, compared to the North Korean army. The lesson to be learned from this is that, if the ROK army is forced to disperse its divisions because of the simultaneous invasion of North Korea and attack of guerrillas in home front areas, the Republic of Korea can be in a serious military danger, even though it maintains 80% of military divisions of North Korea. If the ROK army promotes the plans in [Military Reform Plan 2020], the number of military units of the ROK army will be 32.5% of that of the North Korean army. This ratio is 2.4 times lower than that of the time when the Korean war began, and in this case, 90% of total military power should be placed in the DMZ area. If 90% of military power is placed in the DMZ area, few troops will be left for the defense of home front. In addition, if the ROK army continues to reduce the troops, it can allow North Korea to have asymmetrical superiority in military force and it will eventually exert negative influence on the stability and peace of the Korean peninsular. On the other hand, it should be reminded that, during the Korean War, the Republic of Korea was attacked by North Korea, though it kept 53.3% of troops, compared to North Korea. It should also be reminded that, as of 2008, the ROK army is defending its territory with the troops 55.04% of North Korea. Moreover, the national defense is assisted by 25,120 troops of the US Forces in Korea. In case the total number of the ROK troops falls below 43.4% of the North Korean army, it may cause social unrest about the national security and may lead North Korea's misjudgement. Besides, according to Lanchester strategy, the party with weaker military power (60% compared to the party with stronger military power) has the 4.1% of winning possibility. Therefore, if we consider the fact that the total number of the ROK army troops is 55.04% of that of the North Korean army, the winning possibility of the ROK army is not higher than 4.1%. If the total number of ROK troops is reduced to 43.4% of that of North Korea, the winning possibility will be lower and the military operations will be in critically difficult situation. [Military Reform Plan 2020] rums at the reduction of troops and units of the ground forces under the policy of 'select few'. However, the problem is that the financial support to achieve this goal is not secured. Therefore, the promotion of [Military Reform Plan 2020] may cause the weakening of military defence power in 2020. Some advanced countries such as Japan, UK, Germany, and France have promoted the policy of 'select few'. However, what is to be noted is that the national security situation of those countries is much different from that of Korea. With the collapse of the Soviet Unions and European communist countries, the military threat of those European advanced countries has almost disappeared. In addition, the threats those advanced countries are facing are not wars in national level, but terrorism in international level. To cope with the threats like terrorism, large scaled army trops would not be necessary. So those advanced European countries can promote the policy of 'select few'. In line with this, those European countries put their focuses on the development of military sections that deal with non-military operations and protection from unspecified enemies. That is, those countries are promoting the policy of 'select few', because they found that the policy is suitable for their national security environment. Moreover, since they are pursuing common interest under the European Union(EU) and they can form an allied force under NATO, it is natural that they are pursing the 'select few' policy. At present, NATO maintains the larger number of troops(2,446,000) than Russia(l,027,000) to prepare for the potential threat of Russia. The situation of japan is also much different from that of Korea. As a country composed of islands, its prime military focus is put on the maritime defense. Accordingly, the development of ground force is given secondary focus. The japanese government promotes the policy to develop technology-concentrated small size navy and air-forces, instead of maintaining large-scaled ground force. In addition, because of the 'Peace Constitution' that was enacted just after the end of World War II, japan cannot maintain troops more than 240,000. With the limited number of troops (240,000), japan has no choice but to promote the policy of 'select few'. However, the situation of Korea is much different from the situations of those countries. The Republic of Korea is facing the threat of the North Korean Army that aims at keeping a large-scale military force. In addition, the countries surrounding Korea are also super powers containing strong military forces. Therefore, to cope with the actual threat of present and unspecified threat of future, the importance of maintaining a carefully calculated large-scale military force cannot be denied. Furthermore, when considering the fact that Korea is in a peninsular, the Republic of Korea must take it into consideration the tradition of continental countries' to maintain large-scale military powers. Since the Korean War, the ROK army has developed the technology-force combined military system, maintaining proper number of troops and units and pursuing 'select few' policy at the same time. This has been promoted with the consideration of military situation in the Koran peninsular and the cooperation of ROK-US combined forces. This kind of unique military system that cannot be found in other countries can be said to be an insightful one for the preparation for the actual threat of North Korea and the conflicts between continental countries and maritime countries. In addition, this kind of technology-force combined military system has enabled us to keep peace in Korea. Therefore, it would be desirable to maintain this technology-force combined military system until the reunification of the Korean peninsular. Furthermore, it is to be pointed out that blindly following the 'select few' policy of advanced countries is not a good option, because it is ignoring the military strategic situation of the Korean peninsular. If the Republic of Korea pursues the reduction of troops and units radically without consideration of the threat of North Korea and surrounding countries, it could be a significant strategic mistake. In addition, the ROK army should keep an eye on the fact the European advanced countries and Japan that are not facing direct military threats are spending more defense expenditures than Korea. If the ROK army reduces military power without proper alternatives, it would exert a negative effect on the stable economic development of Korea and peaceful reunification of the Korean peninsular. Therefore, the desirable option would be to focus on the development of quality of forces, maintaining proper size and number of troops and units under the technology-force combined military system. The tableau above shows that the advanced countries like the UK, Germany, Italy, and Austria spend more defense expenditure per person than the Republic of Korea, although they do not face actual military threats, and that they keep achieving better economic progress than the countries that spend less defense expenditure. Therefore, it would be necessary to adopt the merits of the defense systems of those advanced countries. As we have examined, it would be desirable to maintain the current size and number of troops and units, to promote 'select few' policy with increased defense expenditure, and to strengthen the technology-force combined military system. On the basis of firm national security, the Republic of Korea can develop efficient policies for reunification and prosperity, and jump into the status of advanced countries. Therefore, the plans to reduce troops and units in [Military Reform Plan 2020] should be reexamined. If it is difficult for the ROK army to maintain its size of 655,000 troops because of low birth rate, the plans to establish the prompt mobilization force or to adopt drafting system should be considered for the maintenance of proper number of troops and units. From now on, the Republic of Korean government should develop plans to keep peace as well as to prepare unexpected changes in the Korean peninsular. For the achievement of these missions, some options can be considered. The first one is to maintain the same size of military troops and units as North Korea. The second one is to maintain the same level of military power as North Korea in terms of military force index. The third one is to maintain the same level of military power as North Korea, with the combination of the prompt mobilization force and the troops in active service under the system of technology-force combined military system. At present, it would be not possible for the ROK army to maintain such a large-size military force as North Korea (1,190,000 troops and 86 units). So it would be rational to maintain almost the same level of military force as North Korea with the combination of the troops on the active list and the prompt mobilization forces. In other words, with the combination of the troops in active service (60%) and the prompt mobilization force (40%), the ROK army should develop the strategies to harmonize technology and forces. The Korean government should also be prepared for the strategic flexibility of USFK, the possibility of American policy change about the location of foreign army, radical unexpected changes in North Korea, the emergence of potential threat, surrounding countries' demand for Korean force for the maintenance of regional stability, and demand for international cooperation against terrorism. For this, it is necessary to develop new approaches toward the proper number and size of troops and units. For instance, to prepare for radical unexpected political or military changes in North Korea, the Republic of Korea should have plans to protect a large number of refugees, to control arms and people, to maintain social security, and to keep orders in North Korea. From the experiences of other countries, it is estimated that 115,000 to 230,000 troops, plus ten thousands of police are required to stabilize the North Korean society, in the case radical unexpected military or political change happens in North Korea. In addition, if the Republic of Korea should perform the release of hostages, control of mass destruction weapons, and suppress the internal wars in North Korea, it should send 460,000 troops to North Korea. Moreover, if the Republic of Korea wants to stop the attack of North Korea and flow of refugees in DMZ area, at least 600,000 troops would be required. In sum, even if the ROK army maintains 600,000 troops, it may need additional 460,000 troops to prepare for unexpected radical changes in North Korea. For this, it is necessary to establish the prompt mobilization force whose size and number are almost the same as the troops in active service. In case the ROK army keeps 650,000 troops, the proper number of the prompt mobilization force would be 460,000 to 500,000.

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