• The Journal of Korean Institute of Communications and Information Sciences
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• v.33 no.10B
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• pp.946-961
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• 2008

This study aims to provide guidelines on future policy for restructuring the scheme of aid programs associated with If small and medium-sized enterprises (i.e. SME) in Korea. For this purpose, we investigate an empirical dataset of recent aid programs deployed by Ministry of Information and Communication (i.e. MIC) for the last four years First, it is examined that the programs are practiced in accordance with their own policy objective by comparing matching samples between two groups such as program beneficiary and non-beneficiary companies. Second, positioning transition of programs within a same category is visualized in terms of two business portfolio analysis matrices. Third, an affiliation network matrix of (he programs is newly developed and then we attempt to analyze the programs relationship by the application of multidimensional scaling method to the affiliation network matrix. The empirical dataset is composed of two different kinds of corporate datasets. One is a corporate dataset of 8,994 beneficiary companies that are aided by MIC during the year of '03-'06. The other is also a corporate dataset of 18,354 non-beneficiary companies that have no records of the program supports during the years at all. Particularly, the matching samples of non-beneficiary companies are prepared in order to have comparable corporate age years (i.e. CAY) against beneficiary companies' CAY. Results show that; 1) up-to-date, the programs are properly assigned to IT SME conforming to their own policy objective; 2) however, as the year goes on, the following two distinct positioning transitions are revealed such as (1) both CAY and corporate sales (i.e. SAL) are increased simultaneously, (2) ratio of intangible assets (i.e. RIA) is decreased and ratio of operating gain to revenue (i.e. ROR) is increased. Hence, the role of the programs gets weakened with regard to providing seed money to technology innovation-typed IT SME so that a managerial adjustment of the programs is required consequently; 3) even though the model adequacy is not satisfactory through the analysis of multidimensional scaling method, the relationship of indirect-typed programs can relatively be stronger than that of direct-typed programs.

• Management & Information Systems Review
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• v.39 no.2
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• pp.39-60
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• 2020

Block chain technology is one of the core elements for realizing the 4^th industrial revolution, and many efforts have been made by government and companies to provide services based on block chain technology. In this study we analyzed the benefits of block chain technology for EVMS and designed EVMS block chain platform with increased data security and work efficiency for project management data, which are important assets in monitoring progress, foreseeing future events, and managing post-completion. We did the case studies on the benefits of block chain technology and then conducted the survey study on security, reliability, and efficiency of block chain technology, targeting 18 block chain experts and project developers. And then, we interviewed EVMS system operator on the compatibility between block chain technology and EVM Systems. The result of the case studies showed that block chain technology can be applied to financial, logistic, medical, and public services to simplify the insurance claim process and to improve reliability by distributing transaction data storage and applying security·encryption features. Also, our research on the characteristics and necessity of block chain technology in EVMS revealed the improvability of security, reliability, and efficiency of management and distribution of EVMS data. Finally, we designed a network model, a block structure, and a consensus algorithm model and combined them to construct a conceptual block chain model for EVM system. This study has the following contribution. First, we reviewed that the block chain technology is suitable for application in the defense sector and proposed a conceptual model. Second, the effect that can be obtained by applying block chain technology to EVMS was derived, and the possibility of improving the existing business process was derived.

• Management & Information Systems Review
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• v.36 no.1
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• pp.233-249
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• 2017

This study investigates the relation of managerial ability and firm performance in case of Chaebol in Korea. We employ non-financing firms at Korean markets for the period 2000-2015. Most important decision is made by the head of Chaebol which increases firm value eventually and he has such a strong dominant power that managers belongs to Chaebol have to follow mother firm's decision directions. So it is expected that managers belongs to Chaebol have to focus on long term performance rather than short term profits, which means they concentrate their managerial ability much on the firm value. Otherwise, managers in which non-Chaebol focus their ability on periodic accounting earnings. Thus, this study examines an empirical analysis on the relation of managerial ability and firm performance and the effect of Chaebol on the relation of managerial ability and firm performance. Empirical results are as follows: First, there exists a statistically significant positive relation between managerial ability and firm performance either short- or long-term. Second, we extend this relationship into Chaebol condition and find that managerial ability of Chaebol positively influences on the firm value which is long-term performance, rather than return on assets which is short-term performance. These results imply that managers belongs to Chaebol much concentrate their ability on long-term value which is differenciated from the case of non-Chaebol samples. Chaebol is an important issue in Korea because it dominates most of Korean local economy so its' impact from small changes on our economy is big enough. Our study examining the relationships between managerial ability of Chaebol and firm performance is meaningful and it is a good signal that they concentrate their ability much on the long-term value rather than short-term profits. We expect that the results of this study will provide the academic and practical references. This study will contribute to the future research in accounting through an analysis of managerial ability which is a new measure, Chaebol, and firm value.

• Management & Information Systems Review
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• v.37 no.1
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• pp.103-122
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• 2018

This paper expands the results of previous studies indicating that manager's ability positively affects business performance to analyze whether the degree to which the role of manager's ability improves business performance appears differently according to the characteristics of enterprises. As for the characteristics of enterprises, whether enterprises correspond to enterprises with high levels of funding constraints or late movers in the market is considered. Enterprises with high levels of funding constraints greatly require managers' roles not only for efficient use of funds but also for smooth financing. Late movers require more judgments of professional managers to overcome insufficient resources held and low profitability. In the case of enterprises with corporate characteristics with high dependency on the manager, the business performance is expected to greatly vary with the ability of the manager. The empirical analysis was conducted with listed companies from 2010 to 2014, manager's ability was measured by first measuring the efficiency of the entire enterprise through data envelopment analysis (DEA) using the methodology of Demerjian et al.(2012) and removing enterprise characteristics factors thereafter. Business performance was measured by the return on industrial fixed assets. The results of the empirical analysis indicated that the degree to which manager's ability improves business performance was higher in managerial competence enhances managerial performance in enterprises with high levels of funding constraints and late movers. Business performance is considered to have been improved further in cases where manager's ability is high because investments were made more efficiently through smooth funding. In addition, in the case of late movers in relatively poor environments, business performance was improved further because high manager's ability induced efficient decision making. In this paper, we extend the precedent study that the manager's ability improves the management performance, and confirm that the manager's ability to improve the managerial performance can be different according to the situation of the company. In addition, it is meaningful to analyze empirically whether a company's managerial ability is more important. This paper expanded the results of previous studies indicating that manager's ability improves performance to identify that the degree to which manager's ability improves business performance may appear differently according to situations in which enterprises are placed. In addition, this paper is meaningful in that it empirically analyzed what enterprises require manager's ability more importantly.

• Management & Information Systems Review
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• v.37 no.2
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• pp.187-207
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• 2018

This study examines the negative relationship between accounting conservatism and excess executive compensation and examines whether their relationship increases as managerial incentive compensation intensity increases. For this purpose, a total of 2,755 company-years were selected for the analysis of the companies listed on the Korea Stock Exchange from December 2012 to 2016 as the final sample. The results of this study are as follows. First, there is a statistically significant negative relationship between accounting conservatism and manager overpayment. This implies that managers' incentives to distort future cash flow estimates by over booking assets or accounting profits in order to maximize their compensation when manager compensation is linked to firm performance. In this sense, accounting conservatism can reduce opportunistic behavior by restricting managerial accounting choices, which can be interpreted as a reduction in overpayment to managers. Second, we found that the relationship between accounting conservatism and excess executive compensation increases with the incentive compensation for accounting performance. The higher the managerial incentive compensation intensity of accounting performance is, the more likely it is that the manager has the incentive to make earnings adjustments. Therefore, the high level of incentive compensation for accounting performance means that the ex post settling up problem due to over-compensation can become serious. In this case, the higher the managerial incentive compensation intensity for accounting performance, the greater the role and utility of conservatism in manager compensation contracts. This study is based on the fact that it presents empirical evidence on the usefulness of accounting conservatism in managerial compensation contracts theoretically presented by Watts (2003) and the additional basis that conservatism can be used as a useful tool for investment decision.

• Asia pacific journal of information systems
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• v.18 no.4
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• pp.57-81
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• 2008

Knowledge is an essential strategic weapon for sustaining competitive advantage and is the key determinant for organizational growth. When knowledge is shared and disseminated throughout the organization, it increases an organization's value by providing the ability to respond to new and unusual situations. The growing importance of knowledge as a critical resource has forced executives to pay attention to their organizational knowledge. Organizations are increasingly undertaking knowledge management initiatives and making significant investments. Knowledge sourcing is considered as the first important step in effective knowledge management. Most firms continue to make an effort to realize the benefits of knowledge management by using various knowledge sources effectively. Appropriate knowledge sourcing strategies enable organizations to create, acquire, and access knowledge in a timely manner by reducing search and transfer costs, which result in better firm performance. In response, the knowledge management literature has devoted substantial attention to the analysis of knowledge sourcing strategies. Many studies have categorized knowledge sourcing strategies into intemal- and external-oriented. Internal-oriented sourcing strategy attempts to increase firm performance by integrating knowledge within the boundary of the firm. On the contrary, external-oriented strategy attempts to bring knowledge in from outside sources via either acquisition or imitation, and then to transfer that knowledge across to the organization. However, the extant literature on knowledge sourcing strategies focuses primarily on large organizations. Although many studies have clearly highlighted major differences between large and small firms and the need to adopt different strategies for different firm sizes, scant attention has been given to analyzing how knowledge sourcing strategies affect firm performance in small firms and what are the differences between small and large firms in the patterns of knowledge sourcing strategies adoption. This study attempts to advance the current literature by examining the impact of knowledge sourcing strategies on small firm performance from a holistic perspective. By drawing on knowledge based theory from organization science and complementarity theory from the economics literature, this paper is motivated by the following questions: (1) what are the adoption patterns of different knowledge sourcing strategies in small firms (i,e., what sourcing strategies should be adopted and which sourcing strategies work well together in small firms)?; and (2) what are the performance implications of these adoption patterns? In order to answer the questions, this study developed three hypotheses. First hypothesis based on knowledge based theory is that internal-oriented knowledge sourcing is positively associated with small firm performance. Second hypothesis developed on the basis of knowledge based theory is that external-oriented knowledge sourcing is positively associated with small firm performance. The third one based on complementarity theory is that pursuing both internal- and external-oriented knowledge sourcing simultaneously is negatively or less positively associated with small firm performance. As a sampling frame, 700 firms were identified from the Annual Corporation Report in Korea. Survey questionnaires were mailed to owners or executives who were most erudite about the firm s knowledge sourcing strategies and performance. A total of 188 companies replied, yielding a response rate of 26.8%. Due to incomplete data, 12 responses were eliminated, leaving 176 responses for the final analysis. Since all independent variables were measured using continuous variables, supermodularity function was used to test the hypotheses based on the cross partial derivative of payoff function. The results indicated no significant impact of internal-oriented sourcing strategies while positive impact of external-oriented sourcing strategy on small firm performance. This intriguing result could be explained on the basis of various resource and capital constraints of small firms. Small firms typically have restricted financial and human resources. They do not have enough assets to always develop knowledge internally. Another possible explanation is competency traps or core rigidities. Building up a knowledge base based on internal knowledge creates core competences, but at the same time, excessive internal focused knowledge exploration leads to behaviors blind to other knowledge. Interestingly, this study found that Internal- and external-oriented knowledge sourcing strategies had a substitutive relationship, which was inconsistent with previous studies that suggested complementary relationship between them. This result might be explained using organizational identification theory. Internal organizational members may perceive external knowledge as a threat, and tend to ignore knowledge from external sources because they prefer to maintain their own knowledge, legitimacy, and homogeneous attitudes. Therefore, integrating knowledge from internal and external sources might not be effective, resulting in failure of improvements of firm performance. Another possible explanation is small firms resource and capital constraints and lack of management expertise and absorptive capacity. Although the integration of different knowledge sources is critical, high levels of knowledge sourcing in many areas are quite expensive and so are often unrealistic for small enterprises. This study provides several implications for research as well as practice. First this study extends the existing knowledge by examining the substitutability (and complementarity) of knowledge sourcing strategies. Most prior studies have tended to investigate the independent effects of these strategies on performance without considering their combined impacts. Furthermore, this study tests complementarity based on the productivity approach that has been considered as a definitive test method for complementarity. Second, this study sheds new light on knowledge management research by identifying the relationship between knowledge sourcing strategies and small firm performance. Most current literature has insisted complementary relationship between knowledge sourcing strategies on the basis of data from large firms. Contrary to the conventional wisdom, this study identifies substitutive relationship between knowledge sourcing strategies using data from small firms. Third, implications for practice highlight that managers of small firms should focus on knowledge sourcing from external-oriented strategies. Moreover, adoption of both sourcing strategies simultaneousiy impedes small firm performance.

• Management & Information Systems Review
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• v.38 no.4
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• pp.61-78
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• 2019

When calculating gains from transfers of assets inherited or donated, the value recognized at the market price as of the date of inheritance or acquisition is recognized as the actual transaction value at the time of acquisition. However, Precedents for the appeal for review by the NTS, the request for adjudgment by the Tax Tribunal(TT) and the request of examination by the Board of Audit and Inspection of Korea(BAI) and the cases of the lawsuit have not shown a consistent results on how much such a the actual transaction value will be measured. This study investigates the operating state of the current tax appeal system using the statistical data of the TT, NTS, and BAI and cases of the lawsuit from 2008 to 2017, and suggests the Improvement of Capital Gains Tax Act on the transfer of inherited and donated property. As a result, total number of requested cases has diminished because cases of the pre-assessment review and the reconsideration appeal by the NTS have decreased steadily over the past decade, while the cases of the lawsuit and the administrative trials(the request for adjudgment by the TT, the appeal for review by the NTS, and the request of examination by the BAI) have been steadily increasing. Also This study found that more than 40% of the complainants proceeded with the cases of the lawsuit proceedings in disagreement with the disposition of tax dissatisfaction under the administrative trials. In addition, Even though the retrospective appraisal price is not recognized as the market price due to the strict interpretation of the tax regulations, it can be seen that it is interpreted as a more expanded concept in the application of the market price than the government office or the tax judge. Therefore, according to the precedents of the cases lawsuit, it is necessary to establish a regulation on the recognition of retroactive appraisal value.

• Management & Information Systems Review
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• v.38 no.2
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• pp.67-81
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• 2019

In accordance with K-IFRS 1109, financial instruments are classified to amortized cost (AC), fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVPL). And disposal gains are prohibited to be recirculated for net income when FVOCI financial instruments would be sold in the future, so-called recirculation prohibition. This research investigates whether accumulated other comprehensive income of available-for sale financial assets(AFS) under K-IFRS 1039, could affect reclassified amounts to the FVPL securities from the AFS securities. Also, this study investigates the effects of the reported income on the reclassified FVPL, because CEOs are likely to try earnings management when net income is predicted to be less than target or is low, comparing other firms. As a result of empirical analysis, first, I find that accumulated other comprehensive income of the AFS has a positive impact on the reclassified FVPL. Second, level of reporting income has no significant impact on the reclassified FVPL. Third, interaction effects are significantly positive on the firms which have more other comprehensive income and less level of reported income. Fourth, the effects of the bank and securities are more distinct than those of the manufactures. This study is the first research to investigate earnings management through AFS at the timing of the first adoption of K-IFRS 1109. Empirical results of this study provide evidence of earnings management on the reclassification of FVPL which gives meaningful implications to regulators, academic researchers and auditors.

• Management & Information Systems Review
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• v.37 no.4
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• pp.1-20
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• 2018

This study aimed to examine earnings quality of firms selected as Global Champs project which has been promoted by the government since 2013 to support small and medium sized enterprises, for the screening year(t-1) and selected year(t). Earing quality is measured as the value of discretionary accruals estimated by Dechow et al.(1995) adjusted Jones model and Kothari et al.(2005) model, respectively. I analyze the differences of earning quality between the Global Champ firms and the paired firms selected through criteria of the similar total assets and the same industry in the screening year and the selected year. This study is motivated by the needs of measurement of the performance of the Project from the accounting transparent point of view. As the results of this study, major findings are summarized as follows. Firstly the earnings quality of the selected firms was lower than that of the paired firms. This can be explained as a result of motivation of earnings management by companies eager to meet the requirements to be selected for the Project. Secondly, in the selected year, the earnings quality was proved to improve, comparing to the screening year. This can be explained by the efforts of companies to reinforce management innovation and transparent management, which in turn led to positive effects on the earnings quality. These findings were found to be consistent in the additional analyses, where the earning quality of the reconstructed sample with only selected companies was compared for the screening year and the selected year, based on the year before the screening year(t-2).

• Asia Marketing Journal
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• v.12 no.4
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• pp.1-25
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• 2011

Brand names are often considered as a part of product and important extrinsic cues of product evaluation, when consumers make purchasing decisions. For a company, brand names are also important assets. Building a strong brand name in the Chinese commonwealth is a main challenge for many global companies. One of the first problem global company has to face is how to translate English brand name into Chinese brand name. It is very difficult decision because of cultural and linguistic differences. Western languages are based on an alphabet phonetic system, whereas Chinese are based on ideogram. Chinese speakers are more likely to recall stimuli presented as brand names in visual rather than spoken recall, whereas English speakers are more likely to recall the names in spoken rather than in visual recall. We interpret these findings in terms of the fact that mental representations of verbal information in Chinese are coded primarily in a visual manner, whereas verbal information in English is coded by primarily in a phonological manner. A key linguistic differences that would affect the decision to standardize or localize when transferring English brand name to Chinese brand name is the writing system. Prior Chinese brand naming research suggests that popular Chinese naming translations foreign companies adopt are phonetic, semantic, and phonosemantic translation. The phonetic translation refers to the speech sound that is produced, such as the pronunciation of the brand name. The semantic translation involves the actual meaning of and association made with the brand name. The phonosemantic translation preserves the sound of the brand name and brand meaning. Prior brand naming research has dealt with word-level analysis in examining English brand name that are desirable for improving memorability. We predict Chinese brand name suggestiveness with different translation methods lead to different levels of consumers' evaluations. This research investigates the structural linguistic characteristics of the Chinese language and its impact on the brand name evaluation. Otherwise purpose of this study is to examine the effect of brand concept on the evaluation of brand name. We also want to examine whether the evaluation is moderated by Chinese translation types. 178 Taiwanese participants were recruited for the research. The following findings are from the empirical analysis on the hypotheses established in this study. In the functional brand concept, participants in Chinese translation by semantic were likely to evaluate positively than Chinese translation by phonetic. On the contrary, in the symbolic brand concept condition, participants in Chinese translation by phonetic evaluated positively than by semantic. And then, we found Chinese translation by phonosemantic was most favorable evaluations regardless of brand concept. The implications of these findings are discussed for Chinese commonwealth marketers with respect to brand name strategies. The proposed model helps companies to effectively select brand name, making it highly applicable for academia and practitioner. name and brand meaning. Prior brand naming research has dealt with word-level analysis in examining English brand name that are desirable for improving memorability. We predict Chinese brand name suggestiveness with different translation methods lead to different levels of consumers' evaluations. This research investigates the structural linguistic characteristics of the Chinese language and its impact on the brand name evaluation. Otherwise purpose of this study is to examine the effect of brand concept on the evaluation of brand name. We also want to examine whether the evaluation is moderated by Chinese translation types. 178 Taiwanese participants were recruited for the research. The following findings are from the empirical analysis on the hypotheses established in this study. In the functional brand concept, participants in Chinese translation by semantic were likely to evaluate positively than Chinese translation by phonetic. On the contrary, in the symbolic brand concept condition, participants in Chinese translation by phonetic evaluated positively than by semantic. And then, we found Chinese translation by phonosemantic was most favorable evaluations regardless of brand concept. The implications of these findings are discussed for Chinese commonwealth marketers with respect to brand name strategies. The proposed model helps companies to effectively select brand name, making it highly applicable for academia and practitioner.