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Research Framework for International Franchising (국제프랜차이징 연구요소 및 연구방향)

  • Kim, Ju-Young;Lim, Young-Kyun;Shim, Jae-Duck
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.4
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    • pp.61-118
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    • 2008
  • The purpose of this research is to construct research framework for international franchising based on existing literature and to identify research components in the framework. Franchise can be defined as management styles that allow franchisee use various management assets of franchisor in order to make or sell product or service. It can be divided into product distribution franchise that is designed to sell products and business format franchise that is designed for running it as business whatever its form is. International franchising can be defined as a way of internationalization of franchisor to foreign country by providing its business format or package to franchisee of host country. International franchising is growing fast for last four decades but academic research on this is quite limited. Especially in Korea, research about international franchising is carried out on by case study format with single case or empirical study format with survey based on domestic franchise theory. Therefore, this paper tries to review existing literature on international franchising research, providing research framework, and then stimulating new research on this field. International franchising research components include motives and environmental factors for decision of expanding to international franchising, entrance modes and development plan for international franchising, contracts and management strategy of international franchising, and various performance measures from different perspectives. First, motives of international franchising are fee collection from franchisee. Also it provides easier way to expanding to foreign country. The other motives including increase total sales volume, occupying better strategic position, getting quality resources, and improving efficiency. Environmental factors that facilitating international franchising encompasses economic condition, trend, and legal or political factors in host and/or home countries. In addition, control power and risk management capability of franchisor plays critical role in successful franchising contract. Final decision to enter foreign country via franchising is determined by numerous factors like history, size, growth, competitiveness, management system, bonding capability, industry characteristics of franchisor. After deciding to enter into foreign country, franchisor needs to set entrance modes of international franchising. Within contractual mode, there are master franchising and area developing franchising, licensing, direct franchising, and joint venture. Theories about entrance mode selection contain concepts of efficiency, knowledge-based approach, competence-based approach, agent theory, and governance cost. The next step after entrance decision is operation strategy. Operation strategy starts with selecting a target city and a target country for franchising. In order to finding, screening targets, franchisor needs to collect information about candidates. Critical information includes brand patent, commercial laws, regulations, market conditions, country risk, and industry analysis. After selecting a target city in target country, franchisor needs to select franchisee, in other word, partner. The first important criteria for selecting partners are financial credibility and capability, possession of real estate. And cultural similarity and knowledge about franchisor and/or home country are also recognized as critical criteria. The most important element in operating strategy is legal document between franchisor and franchisee with home and host countries. Terms and conditions in legal documents give objective information about characteristics of franchising agreement for academic research. Legal documents have definitions of terminology, territory and exclusivity, agreement of term, initial fee, continuing fees, clearing currency, and rights about sub-franchising. Also, legal documents could have terms about softer elements like training program and operation manual. And harder elements like law competent court and terms of expiration. Next element in operating strategy is about product and service. Especially for business format franchising, product/service deliverable, benefit communicators, system identifiers (architectural features), and format facilitators are listed for product/service strategic elements. Another important decision on product/service is standardization vs. customization. The rationale behind standardization is cost reduction, efficiency, consistency, image congruence, brand awareness, and competitiveness on price. Also standardization enables large scale R&D and innovative change in management style. Another element in operating strategy is control management. The simple way to control franchise contract is relying on legal terms, contractual control system. There are other control systems, administrative control system and ethical control system. Contractual control system is a coercive source of power, but franchisor usually doesn't want to use legal power since it doesn't help to build up positive relationship. Instead, self-regulation is widely used. Administrative control system uses control mechanism from ordinary work relationship. Its main component is supporting activities to franchisee and communication method. For example, franchisor provides advertising, training, manual, and delivery, then franchisee follows franchisor's direction. Another component is building franchisor's brand power. The last research element is performance factor of international franchising. Performance elements can be divided into franchisor's performance and franchisee's performance. The conceptual performance measures of franchisor are simple but not easy to obtain objectively. They are profit, sale, cost, experience, and brand power. The performance measures of franchisee are mostly about benefits of host country. They contain small business development, promotion of employment, introduction of new business model, and level up technology status. There are indirect benefits, like increase of tax, refinement of corporate citizenship, regional economic clustering, and improvement of international balance. In addition to those, host country gets socio-cultural change other than economic effects. It includes demographic change, social trend, customer value change, social communication, and social globalization. Sometimes it is called as westernization or McDonaldization of society. In addition, the paper reviews on theories that have been frequently applied to international franchising research, such as agent theory, resource-based view, transaction cost theory, organizational learning theory, and international expansion theories. Resource based theory is used in strategic decision based on resources, like decision about entrance and cooperation depending on resources of franchisee and franchisor. Transaction cost theory can be applied in determination of mutual trust or satisfaction of franchising players. Agent theory tries to explain strategic decision for reducing problem caused by utilizing agent, for example research on control system in franchising agreements. Organizational Learning theory is relatively new in franchising research. It assumes organization tries to maximize performance and learning of organization. In addition, Internalization theory advocates strategic decision of direct investment for removing inefficiency of market transaction and is applied in research on terms of contract. And oligopolistic competition theory is used to explain various entry modes for international expansion. Competency theory support strategic decision of utilizing key competitive advantage. Furthermore, research methodologies including qualitative and quantitative methodologies are suggested for more rigorous international franchising research. Quantitative research needs more real data other than survey data which is usually respondent's judgment. In order to verify theory more rigorously, research based on real data is essential. However, real quantitative data is quite hard to get. The qualitative research other than single case study is also highly recommended. Since international franchising has limited number of applications, scientific research based on grounded theory and ethnography study can be used. Scientific case study is differentiated with single case study on its data collection method and analysis method. The key concept is triangulation in measurement, logical coding and comparison. Finally, it provides overall research direction for international franchising after summarizing research trend in Korea. International franchising research in Korea has two different types, one is for studying Korean franchisor going overseas and the other is for Korean franchisee of foreign franchisor. Among research on Korean franchisor, two common patterns are observed. First of all, they usually deal with success story of one franchisor. The other common pattern is that they focus on same industry and country. Therefore, international franchise research needs to extend their focus to broader subjects with scientific research methodology as well as development of new theory.

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A Development of Automated Design and Structural Analysis Aided-Program based on GUI environment for Aluminum Extrusion Carbody Structures of Railway Vehicle for Design Engineers (설계자를 위한 GUI 환경기반 알루미늄 압출재 철도차량 차체구조물의 자동화 설계 및 구조해석 지원 프로그램 개발)

  • Kim, Jun-Hwan;Kang, Seung-Gu;Shin, Kwang-Bok;Lee, Young-Ju
    • Journal of the Korean Society for Railway
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    • v.15 no.4
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    • pp.323-328
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    • 2012
  • The purpose of this study is to develop automated structural design and analysis aided-program of aluminum extrusion carbody structures for railway vehicle. This developed program is called "AUTO-RAP" and could perform simultaneously structural design and verification for railway carbody structures made of aluminum extrusion independent of expertise and experience of design engineers. Design engineers are able to conduct the knowledge-based design by providing database of existing aluminum extrusion or user-defined function. The design verification is automatically programmed to evaluate its structural integrity according to Korean Railway Safety Law or Urban Transit Safety Law. In addition, this program could automatically generate an executable file of various commercial finite element programs such as ANSYS and ABAQUS and CAD files such as .stp and .iges by GUI environment applications using MFC(Microsoft Foundation Classes). In conclusion, it is expected to contribute to reduce product design cost and time of carbody structures aluminum extrusions in railway industry.

Following Firms on Twitter: Determinants of Continuance and Word-of-Mouth Intentions (트위터를 통한 기업과 고객과의 소통: 지속적인 팔로윙과 구전 의도에 영향을 미치는 요인에 대한 연구)

  • Kim, Hongki;Son, Jai-Yeol;Suh, Kil-Soo
    • Asia pacific journal of information systems
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    • v.22 no.3
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    • pp.1-27
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    • 2012
  • Many companies have recently become interested in using social networking sites such as Twitter and Facebook as a new channel to communicate with their customers. For example, companies often offer "special deals" (e.g., coupons, discounts, free samples, etc.) to their customers who participate in promotions or events on social networking sites. Companies often make important announcements on their products or services on social networking sites. By doing so, customers are encouraged to continue to have relationships with companies on social networking sites and to recommend the companies' presence on social networking sites to other potential customers. Moreover, customers who keep close relationships with companies on social networking sites often provide the companies with valuable suggestions and feedback. For instance, Starbucks has more than 2 million followers on Twitter, and often receive suggestions and feedback for their product offerings and services from the followers on Twitter. Although companies realize potential benefits of using social networking sites as a channel to communicate with their customers, it appears that many companies have difficulty forging long-lasting relationships with customers on social networking sites. It is often reported that many customers who had followed companies on Twitter later stopped following them for various reasons. Therefore, it is an important issue to understand what motivates customers to continue to keep relationships with companies on social networking sites. Nonetheless, due attention has yet paid to this issue until recently. This study intends to contribute to our understanding on customers' intention to continue to follow companies on Twitter and to spread positive word-of-mouth about companies on Twitter. Specifically, we identify seven potential factors that customers perceive as important in evaluating their experience with companies on Twitter. The seven factors include similarity, receptivity, interactivity, ubiquitous connectivity, enjoyment, usefulness and transparency. We posit that the seven perception factors can affect the two types of satisfaction, emotional and cognitive, which can in turn influence on customers' intention to follow companies on Twitter and to spread positive word-of-mouth about companies on Twitter. Research hypotheses formulated in this study were tested with data collected from a questionnaire survey administered to customers who had been following companies on Twitter. The data was analyzed with the partial least square (PLS) approach to structural equation modeling. The results of data analysis based on 177 usable responses were generally supportive of our predictions for the effects of the seven factors identified and the two types of satisfaction. In particular, out results suggest that emotional satisfaction was strongly influenced by perceived similarity, perceived receptivity, perceived enjoyment, and perceived transparency. Cognitive satisfaction was significantly influenced by perceived similarity, perceived interactivity, perceived enjoyment, and perceived transparency. While cognitive satisfaction was found to have significant and positive effects on both continued following and word-of-mouth intentions, emotional satisfaction had a significant and positive effect only on word-of-mouth intention.

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Reexamining the Performance Effects of Entrepreneurial Orientation : A Study on Korean Small and Medium-sized Business Ventures (기업가적 지향성의 성과 효과 재검토 : 중소 벤처기업을 대상으로)

  • Yoon, Hyunjoong
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.9 no.5
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    • pp.103-114
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    • 2014
  • The concept of entrepreneurial orientation has been recognized as a key driver for success of business ventures. Since small and medium-sized business ventures usually lack in business experience, firm level entrepreneurship seems to play an important role in generating firm performance. Following those logics, traditional approaches assumed that the relationship between entrepreneurial orientation and firm performance is linear, but recently studies start to report non-linear relationships. However, only a few researches examines and compares the performance effects of entrepreneurial orientation with diverse performance indicators. Current study explores the effects of entrepreneurial orientation both on financial and innovative performance with 1,497 Korean small and medium-sized business ventures. This study finds that there is a linear relationship between entrepreneurial orientation and financial performance, but inverted U-shaped relationships between entrepreneurial orientation and innovative performance, measured by product novelty and patent issued. Also those relationship patterns are consistent with different measurement of entrepreneurial orientation. Based on these results, theoretical implications with some limitations are discussed.

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Consumer Response Change according to the Level of Personalization of Internet Shopping Mall (인터넷 쇼핑몰의 개인화 수준에 따른 소비자의 반응 변화)

  • Kim, Jisu;Jin, Jooyoung;Hyun, Hyeyoung;Na, Youngjoo
    • Science of Emotion and Sensibility
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    • v.20 no.2
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    • pp.59-72
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    • 2017
  • In the flood of information, many consumers want to choose the style that is suitable for their sensibility, which is usefulness and need for personalized services have been steadily increasing. This study made a video of personalized internet shopping mall and then university students (N=170) who have been using the internet shopping mall were asked to experience this and the change in consumer response was measured. According to level of personalization, this study found difference of web-site evaluation, satisfaction/internet behavior and quality evaluations of products. With regard to preferred types of internet shopping malls and the number of access, the difference was investigated. The results are as follows. First, subjects who experienced internet shopping mall of active personalization showed higher level of active personalization. Level of passive personalization differed depending on preferred types of internet shopping malls, for example, people who prefer online apparel shopping mall were low but people who prefer complex big shopping mall and social commerce were high. Second, after experiencing internet shopping mall of active personalization, satisfaction/internet behavior and quality evaluations of products did not change but passive personalization decreased and active personalization and web-site evaluation increased. Third, the number of access to internet shopping mall positively correlated with satisfaction/internet behavior and web-site evaluation, on the other hand, active personalization negatively correlated with satisfaction/internet behavior and web-site evaluation.

Verification of safety integrity for vital data processing device through quantitative safety analysis (정량적 안전성 분석을 통한 Vital 데이터 처리장치의 안전무결성 요구사항 검증)

  • Choi, Jin-Woo;Park, Jae-Young
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.16 no.7
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    • pp.4863-4870
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    • 2015
  • Currently, as a priority to secure the safety of the railway signalling system, verification for satisfy of the safety integrity requirements(SIR) is required to the essential elements. Safety Integrity Requirements(SIR) verification is performed based on the system safety analysis. But the probability of securing basic data for system safety analysis significantly dropped because there is no experience yet performed in the country. Therefore we are had to rely on a qualitative analysis. There are methods such as qualitative risk analysis matrix, and risk graphs. The qualitative analysis is wide, the width of the accident. However, the reliability of the result is significantly less has a disadvantage. Therefore, it should be parallel quantitative safety analysis of the system/products in order to compensate for the disadvantages of the qualitative analysis. This paper presents a quantitative safety analysis method to overcome the disadvantages of the qualitative analysis. And through a result, highly reliable Safety Integrity Requirements(SIR) verification measures proposed. Verification results, the dangerous failure incidence for vital data processing device was calculated to be $1.172279{\times}10^{-9}$. The result was verified to exceed the required safety integrity targets more.

An Experimental Study on Strength Properties of Concrete Using Blast-Furnace Slag Subjected to Freezing at Early Age (초기재령에서 동결을 받은 고로슬래그 콘크리트의 강도발현특성에 관한 실험적 연구)

  • Choi, Sung-Woo;Ban, Seong-Soo;Ryu, Deuk-Hyun;Choi, Bong-Joo
    • Journal of the Korea Concrete Institute
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    • v.15 no.1
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    • pp.43-51
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    • 2003
  • Recently, to consider financial and constructive aspect usage of Admixture such as Blast-Furnace Slag and Fly-Ash, are increased. Also the use of cold-weather-concrete is increased. Blast-Furnace Slag, a by-product of steel industry, have many advantage to reduce the heat of hydration, increase in ultimate strength and etc. But it also reduces early-age strength, so it is prevented from using of Blast-Furnace Slag at cold-weather-concrete. In this study, for the purpose of increasing usage of Blast-Furnace Slag at cold-weather-concrete, it is investigated the strength properties of concrete subjected to frost damage for the cause of early age curing. The factors of this experience to give early frost damaged were Freezing temperature(-1, -10, $-15^{\circ}C$), Early curing age(0, 12, 24, 48hour), Freezing times(0, 12, 24, 48hour). According to this study, if early curing is carried out before haying frost damage, the strength of concrete used admixture, subjected to frost damage, is recovered. And that properties are considered, the effect of using admixture like blast-furnace-slag, is very high

Identifying the Causal Relationships of Appearance Management through an Analysis of One's Own Clothing and Wearing Experiences over a 10-day Period (10일 동안 선택한 자신의 의복 및 착용 경험의 분석을 통한 외모관리에 대한 관련성 연구)

  • Moody, Wendy;Kinderman, Peter;Sinha, Pammi;You, Kyung-Sook
    • Journal of the Korean Society of Clothing and Textiles
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    • v.33 no.6
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    • pp.841-852
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    • 2009
  • The aim of the study was to quantify and explore the causal relationships of appearance management through an analysis of one's own clothing and wearing experience, namely clothing preference, personality factors, emotion and mood, newness, familiarity of one's own clothing, and social interaction. Explorative quantitative and qualitative research was carried out using a uniformly composed sample of 10 size 12 females. A personality questionnaire was completed a short while prior to the study. A 10 day ‘wearing diary’ was administered to record where and when outfits were worn. Two questionnaires were completed measure emotion and mood, prior to changing into clothing (a daily baseline), and when they were wearing or changed clothing (dynamic mood). Qualitative information was recorded and included their thoughts and feelings other than the questionnaires, along with photographs that were taken by participants. Preference, social and newness ratings for each outfit worn were recorded after the 10 day period. SPSS analysis identified relationships and linear regression analysis identified preference indicators. Thematic analysis identified 9 themes regarding the management of mood, personality and social factors when wearing one's own clothing. The results indicated strong relationships between emotion, mood, personality and preference and how much newness and different levels of social interaction influence these factors. Participants tended to match their mood and personality with their clothing choices but in some cases also compensated. This research recognises the value of consumer psychological processes involved in appearance management, and has implications for further research into product involvement, post-purchase behaviour and retail strategies for personal shoppers.

The Effect of Attribute Alignability and Certainty on Consumer Preference (제품속성의 정렬 가능성과 확실성이 제품 선호도에 미치는 영향)

  • Kim, Soo-Young;Song, Ju-Hun;Sohn, Young-Woo
    • Science of Emotion and Sensibility
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    • v.11 no.2
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    • pp.153-172
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    • 2008
  • Products can maintain a high level of market share for many years by succeeding early in the development of a market. To overcome the benefit of pioneering a market, late entrants to the market can use differentiation strategies: developing novel attributes or enhancing preexisted attributes. In general, preexisted attributes are more memorable, but novel attributes can be weighted as heavily as preexisted attributes by contextual constraints. Based on the research of appraisal-congruent judgement, certainty appraisal dimension may affect the degree to which people engage in systematic or heuristic processing. This study examines the effects of alignability (the ease with which the attributes of one object can be aligned or mapped onto another object) of product attributes and certainty on consumer preferences for late entrants. Participants were induced to experience certainty and then completed a questionnaire. As predicted, participants induced certainty were likely to engage in heuristic processing, while participants induced uncertainty were likely to engage in systematic processing. This study provides an implication that companies should additionally consider consumers' feeling of certainty when launching a new brand.

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Development of Grocery Shopping Skills Enhancement Program for Chronic Schizophrenia Using Delphi Study (만성조현병 환자를 위한 식료품 쇼핑 기술 강화 프로그램 기초연구: 델파이기법)

  • Kim, Yong-Sub;Lee, Seong-A
    • The Journal of Korean society of community based occupational therapy
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    • v.10 no.1
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    • pp.17-30
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    • 2020
  • Objective : The purpose of this study is to provide basic data for the development of a instrumental activities of daily living training program called grocery shopping for schizophrenic patients in Delphi. Methods : The final program items and contents were completed through the first and third delphi surveys from August 2018 to March 2019. The expert composition selected 26 occupational therapists related to mental health. Three surveys were conducted and 23 experts participated in the Delphi survey. The second questionnaire, which was created from an open questionnaire, was designed to indicate the degree of importance using the Likert 5-point scale. As a result of the response of the 3rd questionnaire, the level of expert consensus was reconfirmed by analyzing average, standard deviation, and content validity ratio (CVR). Results : Three rounds of Delphi research reveal four categories of questions: grocery shopping views, product purchase strategies, necessary functions, and expert knowledge and experience on how to make purchase decisions. 24 items were selected. Through the 2nd and 3rd Delphi surveys, 4 items that did not meet the criteria of goodness of fit of each item or duplicated the contents were deleted and finally 20 items were extracted. Conclusion : Experts' agreement on grocery shopping technology was drawn from an occupational therapy perspective so that patients with schizophrenia living in the community could recover and participate as a member of society.