Organizational Factors Facilitating the Internationalization of Korean Franchising Companies (해외진출 국내 프랜차이즈기업의 조직특성)
- Lim, Young-Kun;Lee, Dong-Whuy;Kim, Hee-Jung
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- Journal of Global Scholars of Marketing Science
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- v.19 no.2
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- pp.40-52
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- 2009
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Franchising is one of the fastest growing types of business. It is already popular and well-known in the U.S., and has been growing in many other countries including Korea. Furthermore, many Korean franchising companies have expanded their business overseas actively. According to the data by the Ministry of Industry and Resource, 82 companies out of a sample of 500 franchising companies are already operating in many foreign countries and 48% of them have started their foreign business since 2006. This clearly indicates the fast growing current trend of foreign operation by Korean franchising companies. In spite of the fast growing trend of foreign expansion in the industry, academic research on internationalization of franchising companies is extremely difficult to find. Accordingly, academic research on the issue is necessary and urgent in Korea. Among the various research questions on internationalization of franchising business, this study intends to investigate the difference in organizational factors between the franchising companies doing foreign operation and those doing business only domestically. More specifically, this research has the following purposes. First, considering the lack of theoretical basis of previous studies, resource-based theory and agency theory are employed as the theoretical bases. Second, this study explains the difference in internationalization based on organizational factors such as company size, history and growth rate. Third, the five hypotheses regarding the difference in organizational factors are presented and tested empirically, which is the first attempt in the area of this topic. Finally, the study attempts to clarify the conflicting implications among theories regarding some organizational factos such as growth rate. As the theoretical background, resource-based theory and agency theory are discussed. According to resource-based theory, a firm can grow continuously when it has competence and resource, and also the ability to develop them. The competence and resource can include capital, human resource, management skill, market information, ability to manage risk, etc. Meanwhile, agency theory views the relationship between franchisor and franchisee as an agency relationship. In agency theory, bonding capability and monitoring capability are the two key factors which promote internationalization of franchising companies. Based on the two theories, a conceptual model is designed. The model consists of two groups of variables. One is organizational factors including size, history, growth rate, price bonding and geographic dispersion. The other is whether a franchising company is operating overseas or not. We developed the following five research hypotheses basically describing the relationship between organizational factors and internationalization of franchising companies. H1: The size of franchising companies operating overseas is larger than that of franchising companies operating domestically. H2: The history of franchising companies operating overseas is longer than that of franchising companies operating domestically. H3: The growth rate of franchising companies operating overseas is higher than that of franchising companies operating domestically. H4: The price bonding of franchising companies operating overseas is higher than that of franchising companies operating domestically. H5: The geographic dispersion of franchising companies operating overseas is wider than that of franchising companies operating domestically. Data for the analyses are obtained from 2005 Korea Franchise Survey data co-generated by Ministry of Industry and Resource, GS1 Korea, and Korea Franchise Association. Out of 2,804 population companies, 2,489 companies are excluded for various reasons and 315 companies are selected as the final sample. Prior to hypotheses tests, validity and reliability of the measures of size, history, growth rate and price bonding are examined for further analyses. Geographic dispersion is not validated since it is measured using nominal data. A series of independent sample T-tests is used to find out whether there exists any significant difference between the companies internationalized and those operating only domestically for each organizational factor. Among the five factors, size and geographic dispersion show significant difference, growth rate and price bonding do not reveal any difference and, finally, history factor shows conflicting results in the difference depending on how to measure it.
shows the summary statistics for hypotheses testing. In conclusion, the results show that the size and history, which are the key variables in resource-based theory, have a significant relationship with internationalization and that geographic area, which belongs to agency theory, also has a strong relationship with internationalization. The results support the findings of extant research and, therefore, prove the usefulness of resource-based theory and agency theory in explaining internationalization of franchising companies. However, growth rate and price-bonding do not show a clear difference between the two types of companies. Accordingly, these two factors need further attention in the future research. Although this study shows meaningful findings theoretically and practically, it has several limitations. First, only organizational factors are considered even if there are various environmental factors influencing franchising firm's internationalization. Second, only being internationalized or not is considered. That is, modes of entry and the size of foreign operations are not included in the study. Third, internationalization strategy is often determined based on the desire for business expansion and higher profitability and egoistical reasons of the CEOs. However, this type of factors belonging to behavioral science is not discussed in the study. Finally, organizational ecology perspective is usefully applicable in explaining the survival and performance of internationally operating companies. Accordingly, research propositions based on this perspective need to be developed and tested.
Knowledge Management Resource, Strategy, and Performance: A Test of Contingency Model (지식경영 자원, 전략, 그리고 성과: 상황모형의 검증)
- Cheon, Myun Joong;Heo, Myung Sook
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- Knowledge Management Research
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- v.7 no.2
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- pp.35-52
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- 2006
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Increasing competitive pressure, the constantly accelerating transformation of the economy, and a stronger focus on value creation have initiated the search for sustainable sources of competitive advantage in organizations. In this context, the concept of treating organizational knowledge as a valuable strategic resource has become quite popular recently. Knowledge has become the most critical component in the struggle for sustained competitive advantage and knowledge management (KM) has also been described for its possible role in creating sustainable competitive advantage. In order to examine the contingency between KM resources, KM strategies, and KM performance of organizations, a contingency model of KM, which is based on resource-based theory as well as knowledge-based theory, is developed from the information systems and strategic management literature in order to assess the following questions: (i) What KM resources affect the organization's KM strategies? (ii) Is there a relationship between KM strategies and organizational performance enhanced by KM? A detailed exploratory analysis of survey responses from 79 Korean companies provides the following significant findings: (i) This study found support for the proposed contingency model of KM; (ii) The organization's KM strategies are determined by social resources and its capabilities; (iii) An organization with a culture-based KM strategy is more likely to enhance organizational KM performance than an organization with a technology-based KM strategy.
Adaptive Resource Management Method base on ART in Cloud Computing Environment (클라우드 컴퓨팅 환경에서 빅데이터 처리를 위한 ART 기반의 적응형 자원관리 방법)
- Cho, Kyucheol;Kim, JaeKwon
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- Journal of the Korea Society for Simulation
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- v.23 no.4
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- pp.111-119
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- 2014
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The cloud environment need resource management method that to enable the big data issue and data analysis technology. Existing resource management uses the limited calculation method, therefore concentrated the resource bias problem. To solve this problem, the resource management requires the learning-based scheduling using resource history information. In this paper, we proposes the ART (Adaptive Resonance Theory)-based adaptive resource management. Our proposed method assigns the job to the suitable method with the resource monitoring and history management in cloud computing environment. The proposed method utilizes the unsupervised learning method. Our goal is to improve the data processing and service stability with the adaptive resource management. The propose method allow the systematic management, and utilize the available resource efficiently.
The Study on Evolutionary Process of Online-Game Companies' Alliance Strategy for Product Diversification (온라인 게임 기업의 제품 다원화를 위한 제휴 전략 진화에 관한 연구)
- Chang, Yong-Ho;Joung, Won-Jo
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- Journal of Korea Game Society
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- v.11 no.2
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- pp.57-68
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- 2011
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This study approaches how newly emerged game companies has implemented strategies for product diversification according to market growth cycle(beginninggrowing-mature) by empirical case study through evolutionary theory and resource based theory approach. At the beginning, online game companies had grown with different strategies(technology based, service based) by initial condition(genre, technological level, user attribute). After market growth, for product diversification, these companies carried out path-dependent alliance strategy(complementary, competitive) depending on resource base(technology capacity, service capacity based). As online game market getting mature, these companies has adapted flexibly in responding to market growth cycle by integrated strategy(naturally selected to mobilize every possible resource capability). By analyzing the alliance strategies pattern of online game companies in newly emerged game industry according to market growth cycle through combination of resource based theory and evolutionary theory, these results suggest that new industrial, theoretical, policy model is required.
Short Term Spectrum Trading in Future LTE Based Cognitive Radio Systems
- Singh, Hiran Kumar;Kumar, Dhananjay;Srilakshmi, R.
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- KSII Transactions on Internet and Information Systems (TIIS)
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- v.9 no.1
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- pp.34-49
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- 2015
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Market means of spectrum trading have been utilized as a vital method of spectrum sharing and access in future cognitive radio system. In this paper, we consider the spectrum trading with multiple primary carrier providers (PCP) leasing the spectrum to multiple secondary carrier providers (SCP) for a short period of time. Several factors including the price of the resource, duration of leasing, and the spectrum quality guides the proposed model. We formulate three trading policies based on the game theory for dynamic spectrum access in a LTE based cognitive radio system (CRS). In the first, we consider utility function based resource sharing (UFRS) without any knowledge of past transaction. In the second policy, each SCP deals with PCP using a non-cooperative resource sharing (NCRS) method which employs optimal strategy based on reinforcement learning. In variation of second policy, third policy adopts a Nash bargaining while incorporating a recommendation entity in resource sharing (RERS). The simulation results suggest overall increase in throughput while maintaining higher spectrum efficiency and fairness.
Modeling of Demand Side Bidding in Demand Resource Market using Game Theory (수요자원시장의 입찰경쟁 모형화 및 게임 이론적 해석)
- Lee, Kwang-Ho;Cho, Sung-Wi
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- The Transactions of The Korean Institute of Electrical Engineers
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- v.59 no.12
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- pp.2143-2149
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- 2010
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Market price and curtailment amounts of the Demand Resource Market(DRM) are determined by competition between electricity consumers. An important aspect of the DRM involves the assessment of strategic behavior of participants for maximizing their profits. This paper presents economic equilibrium models for simulating imperfect competition among electricity consumers in the DRM and analyzes the models at Nash Equilibrium of Game Theory. The proposed demand functions and supply functions of DRM are based on the Demand Resource Market Rules in Korean electricity market. Simulation results show that the models are adequate for obtaining Nash Equilibrium of consumers' competitive curtailment.
A Cloud-Edge Collaborative Computing Task Scheduling and Resource Allocation Algorithm for Energy Internet Environment
- Song, Xin;Wang, Yue;Xie, Zhigang;Xia, Lin
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- KSII Transactions on Internet and Information Systems (TIIS)
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- v.15 no.6
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- pp.2282-2303
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- 2021
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To solve the problems of heavy computing load and system transmission pressure in energy internet (EI), we establish a three-tier cloud-edge integrated EI network based on a cloud-edge collaborative computing to achieve the tradeoff between energy consumption and the system delay. A joint optimization problem for resource allocation and task offloading in the threetier cloud-edge integrated EI network is formulated to minimize the total system cost under the constraints of the task scheduling binary variables of each sensor node, the maximum uplink transmit power of each sensor node, the limited computation capability of the sensor node and the maximum computation resource of each edge server, which is a Mixed Integer Non-linear Programming (MINLP) problem. To solve the problem, we propose a joint task offloading and resource allocation algorithm (JTOARA), which is decomposed into three subproblems including the uplink transmission power allocation sub-problem, the computation resource allocation sub-problem, and the offloading scheme selection subproblem. Then, the power allocation of each sensor node is achieved by bisection search algorithm, which has a fast convergence. While the computation resource allocation is derived by line optimization method and convex optimization theory. Finally, to achieve the optimal task offloading, we propose a cloud-edge collaborative computation offloading schemes based on game theory and prove the existence of Nash Equilibrium. The simulation results demonstrate that our proposed algorithm can improve output performance as comparing with the conventional algorithms, and its performance is close to the that of the enumerative algorithm.
Re-conceptualization of Business Model for Marketing Nowadays: Theory and Implications
- FIRMAN, Ahmad;PUTRA, Aditya Halim Perdana Kusuma;MUSTAPA, Zainuddin;ILYAS, Gunawan Bata;KARIM, Kasnaeny
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- The Journal of Asian Finance, Economics and Business
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- v.7 no.7
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- pp.279-291
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- 2020
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This study aims to develop the concept of innovation models with the marketing channel construct approach, marketing innovation, product segmentation, and customer insight; as well as improvements to the theory of resource-based combined with the method of service-dominant logic. This study approach is based on quantitative descriptive conducted with three stages of testing scenarios. The first test is the mapping of the innovation model construct through testing the validity and reliability with the moderation of customer orientation variables. The second scenario examines the relationship of influence between the independent variables on the dependent variable of 29 hypothetical analysis equation modeling. The unit of analysis was conducted on 497 SMEs involved in the food and beverage sectors, with the criteria being SMEs must have a rating of 4-5 points on the Go-Food applications software. The results shown that: 1) the construct used to develop an innovative model both directly and via moderation is positive and significant; 2) Through a complicated relationship that involves all components of the variable, it outlines a positive and significant effect except for the path of analysis (μ5). The theoretical and managerial implications state that the service-dominant logic approach and resource-based view theory have extreme reliability and interrelations.
A comparison of new product success factors across advanced countries: A multi-level approach (선진국 제조기업의 신제품 성공요인에 관한 비교 연구: 다수준 접근 방식)
- Lee, Youngwoo;Cho, Youngsam
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- Knowledge Management Research
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- v.21 no.2
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- pp.59-75
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- 2020
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In this paper, we investigate the influence of factors on the firm, industry, and country levels on the new product development performance (NPD) of manufacturing firms in advanced economies. The resource-based view, industrial organization theory and institutional theory have established that firm-, industry- and country-level factors are all relevant for the NPD of firms. However, little is known about the relative importance of factors at the three different levels across countries, as prior studies on firms' NPD have focused on specific countries and levels of analysis. Our analysis of survey data from 1,437 manufacturing firms in nine advanced OECD countries shows that while firm-level factors are generally better predictors of firms' innovativeness than either industry- or country-level factors, the results strongly differ across countries, indicating that the relative importance of antecedents of innovativeness is country-specific rather than universal.
Managing firm Resources to Create Value: Based on ERP Implementation (가치창조를 위한 기업자원관리: 전사적자원관리 구현을 기반으로)
- Choi, Byoung-Gu
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- Information Systems Review
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- v.10 no.3
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- pp.111-132
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- 2008
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Although there are many processes in which factors interact with each other during enterprise resource planning(ERP) implementation, factors affecting ERP implementation have been investigated in an isolated way. In order to bridge the gap, this study attempts to provide a research model to explain how these factors affect ERP implementation success from a holistic perspective. In particular, this research focuses on how bundling and leveraging processes affect ERP implementation success using resource based theory, a strategy formulation framework, and a dynamic resource management model of value creation. The model amalgamates organizational resources and capabilities via the bundling and leveraging processes to identify the effect on ERP implementation success. This paper validates the proposed model by presenting Australian aviation industry case study. Case findings will be in help to reveal the effect of resource bundling in establishing capabilities and effect of capabilities leveraging in deriving the ERP implementation success.
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