• Title/Summary/Keyword: industrial structure

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Ecological Network on Benthic Diatom in Estuary Environment by Bayesian Belief Network Modelling (베이지안 모델을 이용한 하구수생태계 부착돌말류의 생태 네트워크)

  • Kim, Keonhee;Park, Chaehong;Kim, Seung-hee;Won, Doo-Hee;Lee, Kyung-Lak;Jeon, Jiyoung
    • Korean Journal of Ecology and Environment
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    • v.55 no.1
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    • pp.60-75
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    • 2022
  • The Bayesian algorithm model is a model algorithm that calculates probabilities based on input data and is mainly used for complex disasters, water quality management, the ecological structure between living things or living-non-living factors. In this study, we analyzed the main factors affected Korean Estuary Trophic Diatom Index (KETDI) change based on the Bayesian network analysis using the diatom community and physicochemical factors in the domestic estuarine aquatic ecosystem. For Bayesian analysis, estuarine diatom habitat data and estuarine aquatic diatom health (2008~2019) data were used. Data were classified into habitat, physical, chemical, and biological factors. Each data was input to the Bayesian network model (GeNIE model) and performed estuary aquatic network analysis along with the nationwide and each coast. From 2008 to 2019, a total of 625 taxa of diatoms were identified, consisting of 2 orders, 5 suborders, 18 families, 141 genera, 595 species, 29 varieties, and 1 species. Nitzschia inconspicua had the highest cumulative cell density, followed by Nitzschia palea, Pseudostaurosira elliptica and Achnanthidium minutissimum. As a result of analyzing the ecological network of diatom health assessment in the estuary ecosystem using the Bayesian network model, the biological factor was the most sensitive factor influencing the health assessment score was. In contrast, the habitat and physicochemical factors had relatively low sensitivity. The most sensitive taxa of diatoms to the assessment of estuarine aquatic health were Nitzschia inconspicua, N. fonticola, Achnanthes convergens, and Pseudostaurosira elliptica. In addition, the ratio of industrial area and cattle shed near the habitat was sensitively linked to the health assessment. The major taxa sensitive to diatom health evaluation differed according to coast. Bayesian network analysis was useful to identify major variables including diatom taxa affecting aquatic health even in complex ecological structures such as estuary ecosystems. In addition, it is possible to identify the restoration target accurately when restoring the consequently damaged estuary aquatic ecosystem.

Analysis of Tourism Popularity Using T-map Search andSome Trend Data: Focusing on Chuncheon-city, Gangwon-province (T맵 검색지와 썸트랜드 데이터를 이용한 관광인기도분석: 강원도 춘천을 중심으로)

  • TaeWoo Kim;JaeHee Cho
    • Journal of Service Research and Studies
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    • v.12 no.1
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    • pp.25-35
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    • 2022
  • Covid-19, of which the first patient in Korea occurred in January 2020, has affected various fields. Of these, the tourism sector might havebeen hit the hardest. In particular, since tourism-based industrial structure forms the basis of the region, Gangwon-province, and the tourism industry is the main source of income for small businesses and small enterprises, the damage is great. To check the situation and extent of such damage, targeting the Chuncheon region, where public access is the most convenient among the Gangwon regions, one-day tours are possible using public transportation from Seoul and the metropolitan area, with a general image that low expense tourism is recognized as possible, this study conducted empirical analysis through data analysis. For this, the general status of the region was checked based on the visitor data of Chuncheon city provided by the tourist information system, and to check the levels ofinterest in 2019, before Covid-19, and in 2020, after Covid-19, by comparing keywords collected from the web service sometrend of Vibe Company Inc., a company specializing in keyword collection, with SK Telecom's T-map search site data, which in parallel provides in-vehicle navigation service and communication service, this study analyzed the general regional image of Chuncheon-city. In addition, by comparing data from two years by developing a tourism popularity index applying keywords and T-map search site data, this study examined how much the Covid-19 situation affected the level of interest of visitors to the Chuncheon area leading to actual visits using a data analysis approach. According to the results of big data analysis applying the tourism popularity index after designing the data mart, this study confirmed that the effect of the Covid-19 situation on tourism popularity in Chuncheon-city, Gangwon-provincewas not significant, and confirmed the image of tourist destinations based on the regional characteristics of the region. It is hoped that the results of this research and analysis can be used as useful reference data for tourism economic policy making.

A Servicism Model of the New Economy System (서비스주의 경제시스템의 구조와 운용 연구)

  • Hyunsoo Kim
    • Journal of Service Research and Studies
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    • v.11 no.1
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    • pp.1-20
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    • 2021
  • This study was conducted to derive a model of a sustainable economic system for humanity in the era of service economy that requires a paradigm shift. A new long-term sustainable development model has been built on the basis of thousands of years of economic operation experience. Currently, the world is operating the capitalism as the main economic system because there is no better alternative, and the changing economic and social environment such as the advent of the 4th Industrial Revolution is exacerbating the problems of the capitalism, such as job shortages and inequality. In this study, we analyzed the economic management system experienced by human society, and derived an economic system model that is ideal for the modern and future society and is sustainable in the long term. The conditions for a long-term sustainable economic system were presented first. It must be a model that can solve the problems of the current economic system. It must be a model that is faithful to the characteristics of the modern economic society and the nature of the economy itself. And since the new economic system is for humanity, it must be based on the common principles of human society. It should be a model that continuously guarantees core values such as equality and freedom required by human society. After analyzing the problems of the current economic system and analyzing the conditions required for the new system, the basic axioms that the new economic system should be based on were presented, and a desirable model was derived based on this. The structure of the derived model and the specific operation model were presented. In the future, research is needed to specify the operational model so that this model can be settled well in different environments for each country.

Proposal for the Hourglass-based Public Adoption-Linked National R&D Project Performance Evaluation Framework (Hourglass 기반 공공도입연계형 국가연구개발사업 성과평가 프레임워크 제안: 빅데이터 기반 인공지능 도시계획 기술개발 사업 사례를 바탕으로)

  • SeungHa Lee;Daehwan Kim;Kwang Sik Jeong;Keon Chul Park
    • Journal of Internet Computing and Services
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    • v.24 no.6
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    • pp.31-39
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    • 2023
  • The purpose of this study is to propose a scientific performance evaluation framework for measuring and managing the overall outcome of complex types of projects that are linked to public demand-based commercialization, such as information system projects and public procurement, in integrated national R&D projects. In the case of integrated national R&D projects that involve multiple research institutes to form a single final product, and in the case of demand-based demonstration and commercialization of the project results, the existing evaluation system that evaluates performance based on the short-term outputs of the detailed tasks comprising the R&D project has limitations in evaluating the mid- and long-term effects and practicality of the integrated research products. (Moreover, as the paradigm of national R&D projects is changing to a mission-oriented one that emphasizes efficiency, there is a need to change the performance evaluation of national R&D projects to focus on the effectiveness and practicality of the results.) In this study, we propose a performance evaluation framework from a structural perspective to evaluate the completeness of each national R&D project from a practical perspective, such as its effectiveness, beyond simple short-term output, by utilizing the Hourglass model. In particular, it presents an integrated performance evaluation framework that links the top-down and bottom-up approaches leading to Tool-System-Service-Effect according to the structure of R&D projects. By applying the proposed detailed evaluation indicators and performance evaluation frame to actual national R&D projects, the validity of the indicators and the effectiveness of the proposed performance evaluation frame were verified, and these results are expected to provide academic, policy, and industrial implications for the performance evaluation system of national R&D projects that emphasize efficiency in the future.

Analysis of the Effect of the Etching Process and Ion Injection Process in the Unit Process for the Development of High Voltage Power Semiconductor Devices (고전압 전력반도체 소자 개발을 위한 단위공정에서 식각공정과 이온주입공정의 영향 분석)

  • Gyu Cheol Choi;KyungBeom Kim;Bonghwan Kim;Jong Min Kim;SangMok Chang
    • Clean Technology
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    • v.29 no.4
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    • pp.255-261
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    • 2023
  • Power semiconductors are semiconductors used for power conversion, transformation, distribution, and control. Recently, the global demand for high-voltage power semiconductors is increasing across various industrial fields, and optimization research on high-voltage IGBT components is urgently needed in these industries. For high-voltage IGBT development, setting the resistance value of the wafer and optimizing key unit processes are major variables in the electrical characteristics of the finished chip. Furthermore, the securing process and optimization of the technology to support high breakdown voltage is also important. Etching is a process of transferring the pattern of the mask circuit in the photolithography process to the wafer and removing unnecessary parts at the bottom of the photoresist film. Ion implantation is a process of injecting impurities along with thermal diffusion technology into the wafer substrate during the semiconductor manufacturing process. This process helps achieve a certain conductivity. In this study, dry etching and wet etching were controlled during field ring etching, which is an important process for forming a ring structure that supports the 3.3 kV breakdown voltage of IGBT, in order to analyze four conditions and form a stable body junction depth to secure the breakdown voltage. The field ring ion implantation process was optimized based on the TEG design by dividing it into four conditions. The wet etching 1-step method was advantageous in terms of process and work efficiency, and the ring pattern ion implantation conditions showed a doping concentration of 9.0E13 and an energy of 120 keV. The p-ion implantation conditions were optimized at a doping concentration of 6.5E13 and an energy of 80 keV, and the p+ ion implantation conditions were optimized at a doping concentration of 3.0E15 and an energy of 160 keV.

Structure of the Phytoplanktonic communities in Jeju Strait and Northern East China Sea and Dinoflagellate Blooms in Spring 2004: Analysis of Photosynthetic Pigments (봄철 제주해협과 동중국해 북부해역에서 식물플랑크톤의 광합성 색소분석을 이용한 군집 분포 특성과 dinoflagellate 적조)

  • Park, Mi-Ok;Kang, Sung-Won;Lee, Chung-Il;Choi, Tae-Seob;Lantoine, Francois
    • The Sea:JOURNAL OF THE KOREAN SOCIETY OF OCEANOGRAPHY
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    • v.13 no.1
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    • pp.27-41
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    • 2008
  • Distribution characteristics of phytoplankton community were investigated by HPLC and flow cytometry in Jeju Strait and the Northern East China Sea (NECS) in May 2004, in order to understand the relationship between physical environmental factors and distribution pattern of phytoplankton communities. Based on temperature and salinity data, three distinct water masses were identified; warm and saline Tsushima Warm Current (TWC), which is flowing from northwest of Jeju Island, warm and low saline water at the center of Jeju Strait, which is originated from China Coastal Water (CCW) and relatively cold and high saline water originated from Yellow Sea at the bottom of the Jeju Strait. At Jeju Strait, less saline water (<33 psu) of 15 km width occupied surface layer up to 20 m which located at 20 km offshore and strong thermal front between warm and saline water and cold and less saline water was found in the middle of the Jeju Strait. Vertical transect of temperature and salinity at the NECS also showed that low saline (<33 psu) water occupied the upper 20 m layer and cold and saline water was present at the eastern part. Chl a was measured as $0.06{\sim}3.07\;{\mu}g/L$. Spring bloom of phytoplankton was recognized by the high concentrations of Chl a at the low saline water masses influenced by the CCW and subsurface chlorophyll maximum layer appeared between $20{\sim}30\;m$ depth, which was at thermocline depth or below. Abundances of Synechococcus and picoeukaryote were $0.2{\sim}9.5{\times}10^4\;cells/mL$ and $0.43{\sim}4.3{\times}10^4\;cells/mL$, respectively. Dinoflagellate, diatom and prymnesiophyte were major groups and minor groups were chlorophyte+prasinophyte, chrysophyte, cryptophyte and cyanophyte. Especially high abundance of dinoflagellate was identified by high concentration (>1\;{\mu}g/L$) of peridinin at the bottom of the thermocline, which showed an outbreak of red tide by high density of dinoflagellates. Abundances of picoeukaryote in Jeju Strait were about $5{\sim}10$ times higher than abundance measured in Kuroshio water and showed a good correlation with Chl b (Pras+Viola), which implies the most of population of picoeukaryote was composed of prasinophytes. Prochlorococcus was not detected at all, which suggests that Kuroshio Current did not directly influenced on the study area. Based on the strong negative correlations between biomass of phytoplankton (Chl a) and temperature+salinity, the primary production and biomass of phytoplankton in the study area were controlled by the nutrients supply from CCW.

A Study on the Origin of Human Governance Periods in the Hidden Stems (인원용사(人元用事)의 연원에 관한 연구)

  • Won-Ho Choi;Na-Hyun Kim;Ki-Seung Kim
    • Industry Promotion Research
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    • v.9 no.1
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    • pp.203-212
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    • 2024
  • The purpose of this study is to examine the validity of Hidden Stems (支藏干) in the Four Pillars of Destiny with regard to the use of human governance periods in the hidden stems (人元用事). First, there is a theory of assigning period of governance for designated constituents (司令論) in the Hidden Stems of the Earthly Branch. Second, there is a theory that determines the structure of the Four Pillars by the Exposed Constituent from the Hidden Stems (透出論) in the Month Earthly Branch. Since these two theories conflict with each other and cause confusions, this study examined the theory of Hidden Stems in the Four Pillars Classics and examined the historical development of governance period for constituent hidden stems and their validity. The results of the study are as follows: Firstly, the number of dates assigned to respective constituents does not correspond to the calendarical principle, and the assignment of the governance dates for each constituent does not correspond to the principles proposed in ancient books of Four Pillars. Second, though it is said in the Classics that 72 days are equally assigned to each of the Five Elements, actual distributed days for the five elements was 65 days for Wood, 55 days for Fire, 100 days for Earth, 65 days for Metal, and 65 days for Water. Third, though it is said that 7 days should be designated to Yang Earth Mu for the months of Tiger 寅, Monkey, Snake, and Pig, it is logically more legitimate to assign those days to Yin Earth Ki since the month before Tiger is Ox, and the month before Monkey is Goat. Lastly, rationale behind assigning Ki Earth only to Horse Oh as constituting Hidden Stem while disregarding months of Rat, Rabbit, and Rooster is considered not reasonable. Looking at these results comprehensively, it is concluded that the Exposed Constituent theory is logically more appropriate than Assigned Governance theory.

Burqanism from the Origin of the Pastoral Nomadic Koryo Region and the Vision of Korean Livestock Farming (고려의 원시영역 유목초지, 그 부르칸(불함)이즘과 한국축산의 비전)

  • Chu Chae Hyok
    • Journal of The Korean Society of Grassland and Forage Science
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    • v.25 no.1
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    • pp.71-82
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    • 2005
  • Khori(高麗) refers to the Chaabog(reindeer) that live on lichens(蘚) on Mt. Soyon(鮮) in which pastures are the cold and dry plateau of North Eurasia. Thus, the origin region of the Khori or Koguryo that are the ancestors of the reindeer-herding pastoral nomads(馴鹿 遊牧民) can be said to be the Steppe-Taiga-Tundra pastoral areas of North Eurasia and North America. When the pastoral nomads moved on to the great mountain(大山) zone of the Jangbaek(長白) to the Baekdu(白頭) Mountains, they could have been in contact with pastoral farmers or agricultural farmers living there and they became the farmers remaining on agricultural farms. They were the Koryo people, the ancestors of Korea. Staying in one place, they gradually forgot the origin of their reindeer-herding pastoral nomadic history in the Northwest area of Mt. Soyon, the small mountain(小山) zone of the Steppe-Taiga-Tundra pastoral areas. In other words, they lost their identity as reindeer-herding pastoral nomads when they entered the agricultural area after leaving the pastoral area. However, since their basic genes had already formed when they lived on the cold and dry plateau of North Eurasia, it is possible to study their pastoral nomadic history focusing on 'the minority living in the broad area(廣域少數)', by utilizing highly advanced biotechnological science and focusing on genes and information technology innovation, and removing various past hindrances in research. Therefore, it is not so difficult to restore the reindeerherding pastoral nomadic history of the Koguryo(高句麗) people and secure their pastoral nomadic identity, of which the first steps have already been taken into their historical stages. The Eurasian continent and the Korean peninsula, especially the cold and dry plateau of North Eurasia and the Korean peninsula have been closely related to each other ecologically and historically. They can never be a separate space at all. The Eurasian continent lies horizontally east to west and thus, the continent forms an isothermal zone. Also, since the time of producing their own foods, it was relatively easy for people with their technology to move to other places owing to the pastoral nomadic characteristic of mobility. Unlike the Chungyen(中原) region, western Asia and the regions covering the Siberia-Manchu-Korean peninsula where food production revolution was first made were connected to the Mongolian lichens route(蘚苔之路: Ni, ukinii jam) and steppe roads. Although the ecological conditions of nature have changed a bit throughout a long history, it was natural for the many tribes in North Asia living on the largest Steppe-Taiga-Tundra area in the world to have believed 'the legends related to animals in relation to their founders and ancestors(獸祖傳說)'. Assuming that Siberian tigers and the tigers living on Mt. Baekdu were connected ecologically and genetically because of the ecological characteristics of the animals, and their migration from plateau to plateau, we would suspect that the Chosun(朝鮮) tribe living on Mt. Baekdu were ethnically and culturally more closely connected to the farther removed Ural-Altai tribes that lived on the cold and dry plateau region than to the Han(i14;) tribe who lived in Chungyen(中原) that was close to Mt. Baekdu. More evidence is the structure of the Korean language which has the form of 'Subject + Object + Verb', which is assumed to have originated from the speedy lifestyle of the reindeer-herding pastoral nomads. The structure is quite different from that of the Han(漢) language, which is based on agricultural life. Also, it is natural for reindeer riding reindeerherding pastoral nomads or horse-riding sheep-herding pastoral nomads(騎馬, 羊遊牧民) to have held military and political power over the region and eventually to have established an ancient pastoral nomadic empire in the process of their conquest of agricultural regions. The stages for founding global empires in the history of mankind maybe largely divided into two, in terms of ecological conditions and occupations. They are the steppes and the oceans. Of course, the steppe-based empires were established based on the skills to deal with horses and the ability to shoot arrows while riding horses, along with the use of iron ware in the 8th century BC. The steppe-based empires became the foundation for an oceanic empire, which could have been established by the use of warships and warship guns since the 15th Century. Based on those facts, we know that Chosun, Puyo(夫餘), and Koguryo are the products of a developmental process of pastoral nomadic empires on the steppes. Maybe we can easily find the pastoral nomadic identity of the Koguryo more than we expected when we trace the origins and history of the Korean tribe living in the pastures located in the northwest area of Mt. Jangbaek by focusing on pastoral nomadic mobility and organization just as we have investigated the historic origins of Anglo-Saxons in America by focusing on the times before the 15th Century. In the process, we should keep in mind that English culture originated from the Industrial Revolution and was directly delivered to the American continent, although America was far from England and was not an intermediate point on long sojourns either. Further, American culture came back to England in a more advanced form later. The most important thing currently to be resolved is to cause Koreans to look back on their own history in a freer way of thinking and with diverse, profound, and sharp insight, taking away the old and existing conventional recognition that is entangled with complicated interests with Korean people and other countries. The meanings of Chosun, Khori, and Solongos have been interpreted arbitrarily without any historic evidence by the scholars who followed conventional tradition of fixed-minded aristocrats in an agricultural society. If the Siberian cultural properties of the stone age, the earthenware age, the bronze age, and the iron age are analyzed in such a way, archaeological discovery will never be able to contribute to the restoration of the Koguryo's pastoral nomadic identity. One should transcend the errors that tend to interpret the cultural properties discovered in the pastoral nomadic regions as not being differentiated from those of agricultural regions and just interpret them altogether from the agricultural point of view. A more careful intention is required in the interpretation of cultural properties of ancient Korean empires that seem to have been formed due to mutual interactions of pastoral nomadic and agricultural cultures. Also, it is required that the conventional recognition chain of 'reverse-genes' be severed, which has placed more weight on agricultural properties than pastoral nomadic ones, since their settlement on agricultural farms was made after the establishment of their ancient pastoral nomadic empires. There is no reason at all to place priority on stoneware, earthenware, bronze ware, and iron ware than on wooden ware(木器) and other ware which were made of animal skins(皮器), bones and horns(骨角器), in analyzing the history in the regions of reindeer or sheep pastures. Reading ancient Korean history from the perspective of pastoral nomadic history, one feels strongly the instinctive emotions to return to the natural 'mother place'. The reindeer-herding pastoral nomadic identity of the Koguryo people that has been accumulated in volumes in their genes and hidden deep inside and have interacted organically could be reborn with Burqanism(Burqan refers to 不咸 in Chinese), which was their religion by birth and symbolized as the red willow(紅柳=不咸). The mother place of the Koguryo's people is the endless vast green pastures of North Eurasia and North America, where we anticipated the development of Korean livestock farming following the inherent properties in the genes of the reindeer-herding pastoral nomads with Korean ancestors. We anticipate that the place would be the core resource that could contribute to the development of life of living creatures following the inherent properties of their genes and biotechnological factors. In other words, biotechnology used for a search for clues on the well-being of humans could be the fruit brought by Burqanism of the Koguryo people and the fruit of the globalization of Korean livestock farming. It is the Chosun farmer in China come from the vast nomadic reindeer pastures of North Eurasia that resolved the food problem of a billion Chinese people with lowland paddy rice seeds (水稻) by transforming Heilongjiang Province(黑龍江省) into an oceanic lowland paddy rice field(水田). Even Mao Tse-tung(毛擇東) could not resolve the food problem by his revolution campaigns for tens of years. Today is the very time that requires the development of special livestock farming following the inherent properties of the ancient Korean reindeer-herding pastoral nomads that respected the dignity of life on the cold and dry plateau of North Eurasia and the America continent. I suggest that research should be started from the pastures of the Dariganga Steppe in East Mongolia that was the homeland of Hanwoo(韓牛) and the central horse-herding steppe place(牧馬場) of Chingis Khan's Mongolia. The Dariganga Steppe is awash with an affluent natural environment for pastoral nomadic living however, the quality of life of the pastoral nomads there is still low. I suggest we Koreans, the descendents of the Koguryo, should take our first steps for our livestock farming business project and develop the Northern nomadic pastures, here at the pastures of the Dariganga Steppe, which is the Mongolian core place of state-of-the-art technology for military weapons.

A Conceptual Review of the Transaction Costs within a Distribution Channel (유통경로내의 거래비용에 대한 개념적 고찰)

  • Kwon, Young-Sik;Mun, Jang-Sil
    • Journal of Distribution Science
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    • v.10 no.2
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    • pp.29-41
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    • 2012
  • This paper undertakes a conceptual review of transaction cost to broaden the understanding of the transaction cost analysis (TCA) approach. More than 40 years have passed since Coase's fundamental insight that transaction, coordination, and contracting costs must be considered explicitly in explaining the extent of vertical integration. Coase (1937) forced economists to identify previously neglected constraints on the trading process to foster efficient intrafirm, rather than interfirm, transactions. The transaction cost approach to economic organization study regards transactions as the basic units of analysis and holds that understanding transaction cost economy is central to organizational study. The approach applies to determining efficient boundaries, as between firms and markets, and to internal transaction organization, including employment relations design. TCA, developed principally by Oliver Williamson (1975,1979,1981a) blends institutional economics, organizational theory, and contract law. Further progress in transaction costs research awaits the identification of critical dimensions in which transaction costs differ and an examination of the economizing properties of alternative institutional modes for organizing transactions. The crucial investment distinction is: To what degree are transaction-specific (non-marketable) expenses incurred? Unspecialized items pose few hazards, since buyers can turn toalternative sources, and suppliers can sell output intended for one order to other buyers. Non-marketability problems arise when specific parties' identities have important cost-bearing consequences. Transactions of this kind are labeled idiosyncratic. The summarized results of the review are as follows. First, firms' distribution decisions often prompt examination of the make-or-buy question: Should a marketing activity be performed within the organization by company employees or contracted to an external agent? Second, manufacturers introducing an industrial product to a foreign market face a difficult decision. Should the product be marketed primarily by captive agents (the company sales force and distribution division) or independent intermediaries (outside sales agents and distribution)? Third, the authors develop a theoretical extension to the basic transaction cost model by combining insights from various theories with the TCA approach. Fourth, other such extensions are likely required for the general model to be applied to different channel situations. It is naive to assume the basic model appliesacross markedly different channel contexts without modifications and extensions. Although this study contributes to scholastic research, it is limited by several factors. First, the theoretical perspective of TCA has attracted considerable recent interest in the area of marketing channels. The analysis aims to match the properties of efficient governance structures with the attributes of the transaction. Second, empirical evidence about TCA's basic propositions is sketchy. Apart from Anderson's (1985) study of the vertical integration of the selling function and John's (1984) study of opportunism by franchised dealers, virtually no marketing studies involving the constructs implicated in the analysis have been reported. We hope, therefore, that further research will clarify distinctions between the different aspects of specific assets. Another important line of future research is the integration of efficiency-oriented TCA with organizational approaches that emphasize specific assets' conceptual definition and industry structure. Finally, research of transaction costs, uncertainty, opportunism, and switching costs is critical to future study.

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Antecedents of Manufacturer's Private Label Program Engagement : A Focus on Strategic Market Management Perspective (제조업체 Private Labels 도입의 선행요인 : 전략적 시장관리 관점을 중심으로)

  • Lim, Chae-Un;Yi, Ho-Taek
    • Journal of Distribution Research
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    • v.17 no.1
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    • pp.65-86
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    • 2012
  • The $20^{th}$ century was the era of manufacturer brands which built higher brand equity for consumers. Consumers moved from generic products of inconsistent quality produced by local factories in the $19^{th}$ century to branded products from global manufacturers and manufacturer brands reached consumers through distributors and retailers. Retailers were relatively small compared to their largest suppliers. However, sometime in the 1970s, things began to slowly change as retailers started to develop their own national chains and began international expansion, and consolidation of the retail industry from mom-and-pop stores to global players was well under way (Kumar and Steenkamp 2007, p.2) In South Korea, since the middle of the 1990s, the bulking up of retailers that started then has changed the balance of power between manufacturers and retailers. Retailer private labels, generally referred to as own labels, store brands, distributors own private-label, home brand or own label brand have also been performing strongly in every single local market (Bushman 1993; De Wulf et al. 2005). Private labels now account for one out of every five items sold every day in U.S. supermarkets, drug chains, and mass merchandisers (Kumar and Steenkamp 2007), and the market share in Western Europe is even larger (Euromonitor 2007). In the UK, grocery market share of private labels grew from 39% of sales in 2008 to 41% in 2010 (Marian 2010). Planet Retail (2007, p.1) recently concluded that "[PLs] are set for accelerated growth, with the majority of the world's leading grocers increasing their own label penetration." Private labels have gained wide attention both in the academic literature and popular business press and there is a glowing academic research to the perspective of manufacturers and retailers. Empirical research on private labels has mainly studies the factors explaining private labels market shares across product categories and/or retail chains (Dahr and Hoch 1997; Hoch and Banerji, 1993), factors influencing the private labels proneness of consumers (Baltas and Doyle 1998; Burton et al. 1998; Richardson et al. 1996) and factors how to react brand manufacturers towards PLs (Dunne and Narasimhan 1999; Hoch 1996; Quelch and Harding 1996; Verhoef et al. 2000). Nevertheless, empirical research on factors influencing the production in terms of a manufacturer-retailer is rather anecdotal than theory-based. The objective of this paper is to bridge the gap in these two types of research and explore the factors which influence on manufacturer's private label production based on two competing theories: S-C-P (Structure - Conduct - Performance) paradigm and resource-based theory. In order to do so, the authors used in-depth interview with marketing managers, reviewed retail press and research and presents the conceptual framework that integrates the major determinants of private labels production. From a manufacturer's perspective, supplying private labels often starts on a strategic basis. When a manufacturer engages in private labels, the manufacturer does not have to spend on advertising, retailer promotions or maintain a dedicated sales force. Moreover, if a manufacturer has weak marketing capabilities, the manufacturer can make use of retailer's marketing capability to produce private labels and lessen its marketing cost and increases its profit margin. Figure 1. is the theoretical framework based on a strategic market management perspective, integrated concept of both S-C-P paradigm and resource-based theory. The model includes one mediate variable, marketing capabilities, and the other moderate variable, competitive intensity. Manufacturer's national brand reputation, firm's marketing investment, and product portfolio, which are hypothesized to positively affected manufacturer's marketing capabilities. Then, marketing capabilities has negatively effected on private label production. Moderating effects of competitive intensity are hypothesized on the relationship between marketing capabilities and private label production. To verify the proposed research model and hypotheses, data were collected from 192 manufacturers (212 responses) who are producing private labels in South Korea. Cronbach's alpha test, explanatory / comfirmatory factor analysis, and correlation analysis were employed to validate hypotheses. The following results were drawing using structural equation modeling and all hypotheses are supported. Findings indicate that manufacturer's private label production is strongly related to its marketing capabilities. Consumer marketing capabilities, in turn, is directly connected with the 3 strategic factors (e.g., marketing investment, manufacturer's national brand reputation, and product portfolio). It is moderated by competitive intensity between marketing capabilities and private label production. In conclusion, this research may be the first study to investigate the reasons manufacturers engage in private labels based on two competing theoretic views, S-C-P paradigm and resource-based theory. The private label phenomenon has received growing attention by marketing scholars. In many industries, private labels represent formidable competition to manufacturer brands and manufacturers have a dilemma with selling to as well as competing with their retailers. The current study suggests key factors when manufacturers consider engaging in private label production.

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