• KDI Journal of Economic Policy
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• v.38 no.3
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• pp.17-35
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• 2016

In many advanced countries, most outside directors are executives, active or retired, at other firms; in other words, executives from other companies make executive compensation decisions. This situation may hinder the board of directors (BOD) in their efforts to optimize executive compensation levels objectively. Using a panel data analysis of the S&P 1500 companies, we provide supplemental evidence of whether, and to what extent, the concurrent executive employment of outside directors distorts the executive pay decisions at a given company. An unbiased fixed-effect estimation confirms that a $1.00 increase in CEO pay at outside directors' primary companies results in an approximate increase of $0.22 in CEO pay at the given company. From a policy perspective, this added agency problem - caused by the BOD and not by management - is noted as difficult to control; although a firm may establish board independence, the inherent concurrent employment of directors on a board continues to exist.

• Health Policy and Management
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• v.16 no.3
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• pp.1-18
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• 2006

The organizational effectiveness of hospital in various environmental fluctuations is a large and complex problem. Hospital CEO leadership characteristics may be a critical determinant of employees' job satisfaction and turnover intention. Several empirical studies on transformational leadership found that transformational leadership behaviors were positively related to workers' job satisfaction and turnover intention. Very little research related to this subject has been done in health care settings in Korea. The author explores the relationship between hospital CEO leadership style and its effect on job satisfaction and turnover intention among the all staffs of general hospital. The relationship of hospital CEO leadership style to employees' job satisfaction was investigated using the Bass's leadership paradigm of transformational and transactional leadership. The Multifactor Leadership Questionnaire(MLQ) and the index of job satisfaction and turnover intention were completed by 493 hospital employees(doctors, nurses, hospital administrators, technicians, and assistants). The findings show a similar trend to the previous studies. Hospital CEO leadership behaviors and employee outcomes were significantly correlated. Correlations showed a significant positive relationship between those hospital CEO exhibiting a transformational leadership style and the job satisfaction of their staffs. The results of multiple regression analysis indicate that the effect of charisma in transformational leadership behaviors is more higher than other variables. Transformational leadership style may be a more effective strategy and have a greater effect on staff outcomes, attitudes and behaviors. The findings of this study reveal implications for efficient hospital management and the importance of understanding relationship between hospital CEO's leadership style and subordinate behaviors in the context of CEO's desirable role and function for hospital strategy planning and future direction.

• Management & Information Systems Review
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• v.35 no.3
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• pp.155-171
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• 2016

Separation of management with ownership induces the agency problems between CEO and shareholders of Chinese firms. To solve this problem Chinese government has enforced the "stock incentive management law for stock listed companies" since 2006. However, it has not been clear that this law is beneficial to reduce the agency cost and thus to increase the performance of Chinese firms. This study aims to answer this question. It is specifically designed to explore the effects of CEO's stock incentive on the performance of Chinese firms. It also examines the moderating effects of the characteristics of the board of directors on this relationship. Using a multi-year sample (2008-2014), we found that CEO's stock incentive is positively related to firm's performance. We also found that the equity stakes of board members strengthens the positive relations between CEO's equity incentives and firms' performance. On the other hand, contrary to expectations, the independency of the board of directors does not significantly moderate the relationship between CEO's equity incentives and firms' performance. Based on the findings, this study provides valuable implication for theory and practice.

• Journal of Distribution Science
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• v.13 no.6
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• pp.105-118
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• 2015

Purpose - Currently, strengthening small and medium-sized enterprises (SME) in terms of competitiveness is a key economic issue. However, the problem is that many SMEs lack the internal competence required to cope with a rapidly changing market structure. Such problems can act as an obstacle to economic development, yet most SMEs in Korea are dealing with this problem today. A company's source of competitive advantage is changing from quantity to quality, facility to knowledge, and hardwork to creativity. Under such circumstances, a company should place learning and sharing of knowledge and continuously creating new knowledge as its priority. This study aims to identify the effect of a chief executive officer's (CEO) compassion and forgiveness - positive factors in organizational emotion - on learning organization activities and organizational performance, through a theoretical comparison. Research design, data, and methodology - For this study, SMEs based in Daejeon and Chungcheong area were selected. To secure credibility of the data, the subjects were selected among those who have been working at the business for six months or longer. The survey was conducted for 30 days from March 5, 2015 to April 5, 2015. Both offline and online surveys were conducted. Fifty companies were chosen and 700 questionnaires were distributed, with 506 used for analysis. Fifty subject companies (25 from Daejeon, 10 from Chungnam, 10 from Chungbuk, and five from Sejong) were selected and the objective, target, and survey content were explained to a manager at each company either face-to-face or on the phone. Of the total of 700 questionnaires distributed via mail or e-mail, 78.6% or 550 copies were returned. Excluding 44 insufficient questionnaires, the remainder, 506 questionnaires, were used for analysis. Results - This study analyzed how the CEO's compassion and forgiveness affects learning organization activities and organizational performance. First, compassion of the CEO at the SMEs directly affected the learning organization activities and indirectly affected the organizational performance. Second, forgiveness of the CEO at the SMEs did not affect the learning organization activities and organizational performance directly or indirectly. Conclusions - The study conclusions are as follows. First, CEO compassionate behavior at the SMEs was a significant variable that directly and indirectly affected learning organization activities and organizational performance. Therefore, the CEO of an SME can create a positive organizational atmosphere through compassionate behaviors in the organization. Second, the forgiving behavior of the CEO did not have direct or indirect effects on learning organization activities and organizational performance. However, the reason for a CEO to continue his or her forgiving behavior is because it strengthens employee resilience, commitment, and self-efficacy to protect the organization from negative influences such as layoffs, risks, and wrongdoings. The action of forgiveness does not have direct or indirect effects. However, the CEO shall continue such behavior to strengthen members' physiological resilience, commitment, and self - effectiveness, and to protect the organization from risks including layoff and external negative factors.

• Journal of Digital Convergence
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• v.18 no.4
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• pp.177-191
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• 2020

This study examines the effect of the self-overviewing attributes derived from agency problem on the cost behavior in franchise industry. To solve the research problem, we developed the proxies for self-overviewing attributes of domestic franchise CEO and used Anderson et al. (2003)'s cost behavior model to test hypothesis. Moreover, we grouped the self-overviewing variables for additional test. We find that operating costs are more sticky for firms which present higher CEO's self-overviewing attributes in franchise industry. Second, we find that the greater the self-overviewing tendency, more strengthened cost stickiness when sales decrease. This study is meaningful in that we developed proxies for self-overviewing propensity, such as the hypodermic behaviors of franchise CEO, which have not been performed in previous studies, to enhance future studies of franchise CEO. Futhermore, we empirically provide the effects of CEO's self-overviewing attributes on the operating costs behaviors, suggesting useful information to franchise stakeholders such as prospective start-ups, franchisee and investors.

• Journal of Distribution Science
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• v.20 no.4
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• pp.65-75
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• 2022

Purpose: Environmental pollution problems have become more and more serious, how to effectively protect the environment has become a hot spot of concern to all sectors of society. The way to solve this problem is environmentally friendly management. However, theoretical perspectives and research frameworks of existing research on environmentally friendly management are still unclear. This study aims to examine how the CEO's beliefs for SMEs of Chinese distribution industry affect the environmentally friendly management based on institutional theory. Research design, data, and methodology: This paper collected data from 215 SMEs in China distribution industry and conducted a series of data analysis and hypothesis testing based on an institutional theory perspective using Amos and SPSS to verify the effects of regulatory pressure, normative pressure, and imitation pressure on firms' environmentally friendly management. Results: Through the analysis, this paper tests that normative pressure and imitative pressure have a positive effect on CEO's beliefs. However, regulatory pressure did not have a significant effect on beliefs of CEO. Meanwhile, the degree of CEO's beliefs has a positive effect on environmentally friendly management in Chinese distribution SMEs. Conclusions: Theoretical contributions, practical implications, and future research directions are discussed.

• Journal of Industrial Convergence
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• v.20 no.11
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• pp.113-126
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• 2022

In Small and Medium-sized Enterprises(SMEs) compared to major, competence of CEO relatively has a large impact on management performance, so the biggest factor to strengthen the competitiveness is the competence of CEO. Meanwhile, a consultant is defined as a subject of execution that directly and indirectly participates in management by inducing objective and rational decision-making on various management issues and problems facing companies. The management expertise, problem-solving skills, communication skills, insights, and leadership that a consultant must have in order to perform his or her duties are the same as the role and capabilities that the CEO must have in enhancing the company's performance and competitiveness. Therefore, through previous studies, this study divided consultant competences of CEO into job competence, communication competence, learning competence, and innovation competence and tried to understand whether those competences affect corporate's innovation performance and management performance. The survey was conducted on SMEs and the analysis techniques were reliability and validity analysis, confirmatory factor analysis, and structural equation analysis. As a result, it was found that the CEO's job competence, communication competence, learning competence, and innovation competence had a significant effect on innovation performance of the company, and second, innovation performance had a significant effect on the management performance. Through, this study derived a common factor of consultant competences of SMEs CEO, and derived implications for the competence characteristics of the CEO necessary to improve the performance of SMEs.

• The Journal of Korean Institute for Practical Engineering Education
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• v.3 no.2
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• pp.158-165
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• 2011

The purpose of this study is to develop competency model in preparation for training programs for CEO of vocational training institutes in terms of needs assessment. This study collected data from 230 public and designated vocational training institutes including commercial learning facilities and life-long training centers using questionnaire by web mail. The frame of assessing training needs of competency applied to this study was based on the model with three components, namely importance, proficiency and learning desires of job skill and task needed to CEO of vocational training institutes. The methodologies of this study used were survey, FGI and case study. The major results proved that the higher priorities of training needs for vocational training institute CEO competency were as followings: (1) Competency for attaining talent of training teachers (2) Needs assessing competency for labor market change and trainee (3) Problem solving competency (4) Leadership skills and so on.

• Journal of Navigation and Port Research
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• v.28 no.2
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• pp.129-133
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• 2004

Column subtraction, originally proposed by Harche and Thompson(1994), is an exact method for solving large set covering, packing and partitioning problems. Since the constraint set of ship scheduling problem(SSP) have a special structure, most instances of SSP can be solved by LP relaxation This paper aim, at applying the column subtraction method to solve SSP which am not be solved by LP relaxation For remained instances of unsolvable ones, we subtract columns from the finale simplex table to get another integer solution in an iterative manner. Computational results having up to 10,000 0-1 variables show better performance of the column subtraction method solving the remained instances of SSP than complex branch and-bound algorithm by LINDO.

• Knowledge Management Research
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• v.17 no.3
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• pp.93-116
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• 2016

Knowledge, as a source of firm's competitive edges, has been drawing attention, while numerous enterprises are investing huge amount of assets to foster the right environments for executing knowledge management (KM). As a practical way of such KM, knowledge management systems (KMS) support the creation, diffusion, and utilization of knowledge, which are the tools for practicing such management style. Recently, the customer centers which make the closest contact with the customers are being concerned about the establishment of KMS. Considering the characteristics of real-time problem solving in customer centers during the consultation with the customers, the importance of KMS is paramount to the centers. This study analyzes major factors influencing the success and utilization of the customer center KMS's reestablishment, as an exploratory case study of the reestablishment of KMS in the customer center of K insurance company. First, the characteristic differences between the customer center's KMS and the traditional KMS are discussed, and the triangulation technique is applied to secure objectivity of this case study's findings. Major results of the case study state that, for the success of KMS and improvement of utilization, the followings should be considered preferentially: excellent system quality (accessibility, user convenience, easy searching, speed/menus); high information quality (accuracy, usefulness, timeliness, task-relevance, diversity, degree of specification); appropriate operation strategy and process for the utilization of system (education, training opportunity, appropriate personnel, speed and procedure of approval, compensation/evaluation); and change management via the support from the CEO's level (concern and participation of CEO, will to propel the project, investment, advertisement, etc.). This study provides practical suggestions with respect to factors which should be more carefully dealt with, since still many customer centers have hard time establishing and operating KMS due to lack of previous studies.