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Value of Information Technology Outsourcing: An Empirical Analysis of Korean Industries (IT 아웃소싱의 가치에 관한 연구: 한국 산업에 대한 실증분석)

  • Han, Kun-Soo;Lee, Kang-Bae
    • Asia pacific journal of information systems
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    • v.20 no.3
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    • pp.115-137
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    • 2010
  • Information technology (IT) outsourcing, the use of a third-party vendor to provide IT services, started in the late 1980s and early 1990s in Korea, and has increased rapidly since 2000. Recently, firms have increased their efforts to capture greater value from IT outsourcing. To date, there have been a large number of studies on IT outsourcing. Most prior studies on IT outsourcing have focused on outsourcing practices and decisions, and little attention has been paid to objectively measuring the value of IT outsourcing. In addition, studies that examined the performance of IT outsourcing have mainly relied on anecdotal evidence or practitioners' perceptions. Our study examines the contribution of IT outsourcing to economic growth in Korean industries over the 1990 to 2007 period, using a production function framework and a panel data set for 54 industries constructed from input-output tables, fixed-capital formation tables, and employment tables. Based on the framework and estimation procedures that Han, Kauffman and Nault (2010) used to examine the economic impact of IT outsourcing in U.S. industries, we evaluate the impact of IT outsourcing on output and productivity in Korean industries. Because IT outsourcing started to grow at a significantly more rapid pace in 2000, we compare the impact of IT outsourcing in pre- and post-2000 periods. Our industry-level panel data cover a large proportion of Korean economy-54 out of 58 Korean industries. This allows us greater opportunity to assess the impacts of IT outsourcing on objective performance measures, such as output and productivity. Using IT outsourcing and IT capital as our primary independent variables, we employ an extended Cobb-Douglas production function in which both variables are treated as factor inputs. We also derive and estimate a labor productivity equation to assess the impact of our IT variables on labor productivity. We use data from seven years (1990, 1993, 2000, 2003, 2005, 2006, and 2007) for which both input-output tables and fixed-capital formation tables are available. Combining the input-output tables and fixed-capital formation tables resulted in 54 industries. IT outsourcing is measured as the value of computer-related services purchased by each industry in a given year. All the variables have been converted to 2000 Korean Won using GDP deflators. To calculate labor hours, we use the average work hours for each sector provided by the OECD. To effectively control for heteroskedasticity and autocorrelation present in our dataset, we use the feasible generalized least squares (FGLS) procedures. Because the AR1 process may be industry-specific (i.e., panel-specific), we consider both common AR1 and panel-specific AR1 (PSAR1) processes in our estimations. We also include year dummies to control for year-specific effects common across industries, and sector dummies (as defined in the GDP deflator) to control for time-invariant sector-specific effects. Based on the full sample of 378 observations, we find that a 1% increase in IT outsourcing is associated with a 0.012~0.014% increase in gross output and a 1% increase in IT capital is associated with a 0.024~0.027% increase in gross output. To compare the contribution of IT outsourcing relative to that of IT capital, we examined gross marginal product (GMP). The average GMP of IT outsourcing was 6.423, which is substantially greater than that of IT capital at 2.093. This indicates that on average if an industry invests KRW 1 millon, it can increase its output by KRW 6.4 million. In terms of the contribution to labor productivity, we find that a 1% increase in IT outsourcing is associated with a 0.009~0.01% increase in labor productivity while a 1% increase in IT capital is associated with a 0.024~0.025% increase in labor productivity. Overall, our results indicate that IT outsourcing has made positive and economically meaningful contributions to output and productivity in Korean industries over the 1990 to 2007 period. The average GMP of IT outsourcing we report about Korean industries is 1.44 times greater than that in U.S. industries reported in Han et al. (2010). Further, we find that the contribution of IT outsourcing has been significantly greater in the 2000~2007 period during which the growth of IT outsourcing accelerated. Our study provides implication for policymakers and managers. First, our results suggest that Korean industries can capture further benefits by increasing investments in IT outsourcing. Second, our analyses and results provide a basis for managers to assess the impact of investments in IT outsourcing and IT capital in an objective and quantitative manner. Building on our study, future research should examine the impact of IT outsourcing at a more detailed industry level and the firm level.

Analysis of Characteristics of the Abandoned Tumulus Site Located at the East Side of the Silla Era Hwang Bok Sa (皇福寺) Site (신라 황복사지(皇福寺址) 동편 폐고분지(廢古墳址)의 성격)

  • Jang, Hojin;Kang, Ryangji
    • Korean Journal of Heritage: History & Science
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    • v.53 no.1
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    • pp.88-105
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    • 2020
  • This study examined existing theories of the characteristics of the abandoned tumulus site located at the east side of the Silla era Hwang Bok Sa (皇福寺) site and attempted an archaeological approach based on the derived facts, combining both the results of this study and those of a recently conducted excavation survey. The results of this investigation exhibited the following outcomes. First, the excavation survey revealed that the huge rounded stones discovered on the surface of a rice paddy field located at the east side of the Silla era Hwang Bok Sa were all protecting stones, processed on the front side in the form of a bow, designating a royal tomb. Most of these protecting stones had deviated from their original positions due to subsequent farming practices and some had been re-cycled for construction purposes as fences or foundations for structures built in the Silla era. Considering the prevailing belief in the concept of reincarnation, the bone rank system, and royal authority in the Silla era at that time, it would seem likely that the royal tombs were not intentionally destroyed. Therefore, it is speculated that the stones in this royal tomb were abandoned during construction of the tomb of the King at that time and then naturally re-cycled as building components used in construction sites in later years. Second, this study comparatively analyzed the scale and quality of the supporting stones at the royal tomb site in Guhwang-dong. The analysis results verified that those supporting stones were the same stones from the royal tomb used as supporting stones for statues symbolizing the twelve earthly branch spirits that were restored at the site of the tower at the royal tomb. This confirmed that the statues of the twelve earthly branches spirits sitting at the Hwang Bok Sa site were the protecting stones from a different royal tomb. Accordingly, the conclusion that has been generally accepted to date-that the protecting stones of the statues of twelve earthly branches spirits sitting at Hwang Bok Sa site were probably moved from the royal tomb site in Guhwang-dong-must inevitably be modified. Third, based on the structure of the protecting stones and type of the royal tomb, it is speculated that the individual buried in the royal tomb at Guhwang-dong is one of the kings who followed King Heungdeok and similar times of the buried person of the tomb that was considered as King Gyeongdeok, and who was before the buried person of the tomb that was considered as Kim Yu-sin. In addition, when considering the historical art patterns on the supporting stones of the statues that symbolize the twelve earthly branches spirits, which were moved to the site of the tower at the royal tomb, it is reasonable to believe that the person buried at the royal tomb at Guhwang-dong is likely one of the Kings of the late Silla era of the 9th century.

The Brand Personality Effect: Communicating Brand Personality on Twitter and its Influence on Online Community Engagement (브랜드 개성 효과: 트위터 상의 브랜드 개성 전달이 온라인 커뮤니티 참여에 미치는 영향)

  • Cruz, Ruth Angelie B.;Lee, Hong Joo
    • Journal of Intelligence and Information Systems
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    • v.20 no.1
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    • pp.67-101
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    • 2014
  • The use of new technology greatly shapes the marketing strategies used by companies to engage their consumers. Among these new technologies, social media is used to reach out to the organization's audience online. One of the most popular social media channels to date is the microblogging platform Twitter. With 500 million tweets sent on average daily, the microblogging platform is definitely a rich source of data for researchers, and a lucrative marketing medium for companies. Nonetheless, one of the challenges for companies in developing an effective Twitter campaign is the limited theoretical and empirical evidence on the proper organizational usage of Twitter despite its potential advantages for a firm's external communications. The current study aims to provide empirical evidence on how firms can utilize Twitter effectively in their marketing communications using the association between brand personality and brand engagement that several branding researchers propose. The study extends Aaker's previous empirical work on brand personality by applying the Brand Personality Scale to explore whether Twitter brand communities convey distinctive brand personalities online and its influence on the communities' level or intensity of consumer engagement and sentiment quality. Moreover, the moderating effect of the product involvement construct in consumer engagement is also measured. By collecting data for a period of eight weeks using the publicly available Twitter application programming interface (API) from 23 accounts of Twitter-verified business-to-consumer (B2C) brands, we analyze the validity of the paper's hypothesis by using computerized content analysis and opinion mining. The study is the first to compare Twitter marketing across organizations using the brand personality concept. It demonstrates a potential basis for Twitter strategies and discusses the benefits of these strategies, thus providing a framework of analysis for Twitter practice and strategic direction for companies developing their use of Twitter to communicate with their followers on this social media platform. This study has four specific research objectives. The first objective is to examine the applicability of brand personality dimensions used in marketing research to online brand communities on Twitter. The second is to establish a connection between the congruence of offline and online brand personalities in building a successful social media brand community. Third, we test the moderating effect of product involvement in the effect of brand personality on brand community engagement. Lastly, we investigate the sentiment quality of consumer messages to the firms that succeed in communicating their brands' personalities on Twitter.

The Collection of Paintiongs and Calligraphy at Jipgyeong-dang Hall during King Gojong's Reign(1897~1907) (고종연간 집경당(緝敬當)의 운용과 궁중(宮中) 서화수장(書畵收藏))

  • Hwang, Jung-yon
    • Korean Journal of Heritage: History & Science
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    • v.40
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    • pp.207-241
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    • 2007
  • This paper investigates the royal collection of paintings and calligraphy during King Gojong's (高宗) reign (1897~1907) based on the function of the Jipgyeong-dang Hall (緝敬堂), situated at "sleeping realm (寢殿)," Gyeongbok Palace. Using the surviving palace records and art works this study argues that the date of building the hall is approximately confined to the year of 1890. Not being matched with the general opinion that the Jipgyeong-dang Hall was used for the official meeting with envoys, this hall functioned as the main place for royal audience and the storehouse for archives. The role of Gojong as collector and patron was essential not only to the maintenance of the collection but also to the strengthening of royal authority just before the Japanese annexation in 1910. The specific titles of the collection at this hall can be verified through the Catalogue of the Books, Paintings, and Calligraphy Exposed to the Sun at Jipgyeong-dang Hall (緝敬堂曝曬書目) dating to the nineteenth century. The records of the catalogue inform us that more than 1,000 paintings and pieces of calligraphy, inkrubbings from old steles, manuals for painting, and encyclopedia concerning art theories from Korea, China, and Japan were preserved there. The collection of Jipgyeong-dang Hall resulted from Gojong's policy to foster the collection of contemporary Chinese and Japanese art works and various catalogues. Standing behind the Gyeongbok Palace, the Jibok-jae Hall (集玉齋) also preserved the diverse sources of practical learning, as did the Jipgyong-dang Hall for Gojong. The enormous royal collections by Gojong might have been constructed in accordance with the royal artistic taste and the artistic milieu of the late Joseon period. The surviving royal catalogues confirm this assumption as documentary evidence.

A Study on the Development of Educational Smart App. for Home Economics Classes(1st): Focusing on 'Clothing Preparation Planning and Selection' (가정과수업을 위한 교육용 스마트 앱(App) 개발연구(제1보): 중1 기술·가정 '의복 마련 계획과 선택'단원을 중심으로)

  • Kim, Gyuri;Wee, Eunhah
    • Journal of Korean Home Economics Education Association
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    • v.35 no.3
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    • pp.47-66
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    • 2023
  • The purpose of this study was to develop an educational smart app for classes by reconstructing some of the teaching-learning contents of the clothing preparation planning within the 'clothing preparation planning and selection' curriculum unit. To this end, a teaching-learning process plan was planned for the classes, a smart app was developed for classes, and feedback from home economics teachers and app development experts was received for the developed app. The main composition of the developed app consists of five steps. The first step is to set up a profile using a real photo, ZEPETO or Galaxy emoji, or iPhone Memoji. In the second step, students make a list of clothes by figuring out the types, quantities and conditions of their exisitng wardrobe items. Each piece of clothing is assigned an individual registration number, and stduents can take pictures of the front and back, along with describing key attributes such as type, color, season-appropriateness, purchase date, and current status. Step three guides students in deciding which garments to retain and which to discard. Building on the clothing inventory from the previous step, students classify items to keep and items to dispose of. In Step 4, Deciding How to Arrange Clothing, students decide how to arrange clothing by filling out an alternative scorecard. Through this process, students can learn in advance the subsection of resource management and self-reliance, laying the foundationa for future learning in 'Practice of Rational Consumption Life'. Lastly, in the fifth stage of determining the disposal method, this stage is to develop practical problem-oriented classes on how to dispose of the clothes to be discarded in the thirrd stage by exploring various disposal methods, engaging in group discussions, and sharing opinions. This study is meaningful as a case study as an attempt to develop a smart app for education by an instructor to align teaching plans and educational content with achievement standards for the class. In the future, upgrades will have to be made through user application.

The Effect of Brand Extension of Private Label on Consumer Attitude - a focus on the moderating effect of the perceived fit difference between parent brands and an extended brand - (PL의 브랜드확장이 소비자태도에 미치는 영향에 관한 연구 : 모브랜드 적합도 인식 차이의 조절효과를 중심으로)

  • Kim, Jong-Keun;Kim, Hyang-Mi;Lee, Jong-Ho
    • Journal of Distribution Research
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    • v.16 no.4
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    • pp.1-27
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    • 2011
  • Introduction: Sales of private labels(PU have been growing m recent years. Globally, PLs have already achieved 20% share, although between 25 and 50% share in most of the European markets(AC. Nielson, 2005). These products are aimed to have comparable quality and prices as national brand(NB) products and have been continuously eroding manufacturer's national brand market share. Stores have also started introducing premium PLs that are of higher-quality and more reasonably priced compared to NBs. Worldwide, many retailers already have a multiple-tier private label architecture. Consumers as a consequence are now able to have a more diverse brand choice in store than ever before. Since premium PLs are priced higher than regular PLs and even, in some cases, above NBs, stores can expect to generate higher profits. Brand extensions and private label have been extensively studied in the marketing field. However, less attention has been paid to the private label extension. Therefore, this research focuses on private label extension using the Multi-Attribute Attitude Model(Fishbein and Ajzen, 1975). Especially there are few studies that consider the hierarchical effect of the PL's two parent brands: store brand and the original PL. We assume that the attitude toward each of the two parent brands affects the attitude towards the extended PL. The influence from each parent brand toward extended PL will vary according to the perceived fit between each parent brand and the extended PL. This research focuses on how these two parent brands act as reference points to one another in the consumers' choice consideration. Specifically we seek to understand how store image and attitude towards original PL affect consumer perceptions of extended premium PL. How consumers perceive extended premium PLs could provide strategic suggestions for retailer managers with specific suggestions on whether it is more effective: to position extended premium PL similarly or dissimilarly to original PL especially on the quality dimension and congruency with store image. There is an extensive body of research on branding and brand extensions (e.g. Aaker and Keller, 1990) and more recently on PLs(e.g. Kumar and Steenkamp, 2007). However there are no studies to date that look at the upgrading and influence of original PLs and attitude towards store on the premium PL extension. This research wishes to make a contribution to this gap using the perceived fit difference between parent brands and extended premium PL as the context. In order to meet the above objectives, we investigate which factors heighten consumers' positive attitude toward premium PL extension. Research Model and Hypotheses: When considering the attitude towards the premium PL extension, we expect four factors to have an influence: attitude towards store; attitude towards original PL; perceived congruity between the store image and the premium PL; perceived similarity between the original PL and the premium PL. We expect that all these factors have an influence on consumer attitude towards premium PL extension. Figure 1 gives the research model and hypotheses. Method: Data were collected by an intercept survey conducted on consumers at discount stores. 403 survey responses were attained (total 59.8% female, across all age ranges). Respondents were asked to respond to a series of Questions measured on 7 point likert-type scales. The survey consisted of Questions that measured: the trust towards store and the original PL; the satisfaction towards store and the original PL; the attitudes towards store, the original PL, and the extended premium PL; the perceived similarity of the original PL and the extended premium PL; the perceived congruity between the store image and the extended premium PL. Product images with specific explanations of the features of premium PL, regular PL and NB we reused as the stimuli for the Question response. We developed scales to measure the research constructs. Cronbach's alphaw as measured each construct with the reliability for all constructs exceeding the .70 standard(Nunnally, 1978). Results: To test the hypotheses, path analysis was conducted using LISREL 8.30. The path analysis for verification of the model produced satisfactory results. The validity index shows acceptable results(${\chi}^2=427.00$(P=0.00), GFI= .90, AGFI= .87, NFI= .91, RMSEA= .062, RMR= .047). With the increasing retailer use of premium PLBs, the intention of this research was to examine how consumers use original PL and store image as reference points as to the attitude towards premium PL extension. Results(see table 1 & 2) show that the attitude of each parent brand (attitudes toward store and original pL) influences the attitude towards extended PL and their perceived fit moderates these influences. Attitude toward the extended PL was influenced by the relative level of perceived fit. Discussion of results and future direction: These results suggest that the future strategy for the PL extension needs to consider that positive parent brand attitude is more strongly associated with the attitude toward PL extensions. Specifically, to improve attitude towards PL extension, building and maintaining positive attitude towards original PL is necessary. Positioning premium PL congruently to store image is also important for positive attitude. In order to improve this research, the following alternatives should also be considered. To improve the research model's predictive power, more diverse products should be included in study. Other attributes of product should also be included such as design, brand name since we only considered trust and satisfaction as factors to build consumer attitudes.

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Critical Success Factor of Noble Payment System: Multiple Case Studies (새로운 결제서비스의 성공요인: 다중사례연구)

  • Park, Arum;Lee, Kyoung Jun
    • Journal of Intelligence and Information Systems
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    • v.20 no.4
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    • pp.59-87
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    • 2014
  • In MIS field, the researches on payment services are focused on adoption factors of payment service using behavior theories such as TRA(Theory of Reasoned Action), TAM(Technology Acceptance Model), and TPB (Theory of Planned Behavior). The previous researches presented various adoption factors according to types of payment service, nations, culture and so on even though adoption factors of identical payment service were presented differently by researchers. The payment service industry relatively has strong path dependency to the existing payment methods so that the research results on the identical payment service are different due to payment culture of nation. This paper aims to suggest a successful adoption factor of noble payment service regardless of nation's culture and characteristics of payment and prove it. In previous researches, common adoption factors of payment service are convenience, ease of use, security, convenience, speed etc. But real cases prove the fact that adoption factors that the previous researches present are not always critical to success to penetrate a market. For example, PayByPhone, NFC based parking payment service, successfully has penetrated to early market and grown. In contrast, Google Wallet service failed to be adopted to users despite NFC based payment method which provides convenience, security, ease of use. As shown in upper case, there remains an unexplained aspect. Therefore, the present research question emerged from the question: "What is the more essential and fundamental factor that should takes precedence over factors such as provides convenience, security, ease of use for successful penetration to market". With these cases, this paper analyzes four cases predicted on the following hypothesis and demonstrates it. "To successfully penetrate a market and sustainably grow, new payment service should find non-customer of the existing payment service and provide noble payment method so that they can use payment method". We give plausible explanations for the hypothesis using multiple case studies. Diners club, Danal, PayPal, Square were selected as a typical and successful cases in each category of payment service. The discussion on cases is primarily non-customer analysis that noble payment service targets on to find the most crucial factor in the early market, we does not attempt to consider factors for business growth. We clarified three-tier non-customer of the payment method that new payment service targets on and elaborated how new payment service satisfy them. In case of credit card, this payment service target first tier of non-customer who can't pay for because they don't have any cash temporarily but they have regular income. So credit card provides an opportunity which they can do economic activities by delaying the date of payment. In a result of wireless phone payment's case study, this service targets on second of non-customer who can't use online payment because they concern about security or have to take a complex process and learn how to use online payment method. Therefore, wireless phone payment provides very convenient payment method. Especially, it made group of young pay for a little money without a credit card. Case study result of PayPal, online payment service, shows that it targets on second tier of non-customer who reject to use online payment service because of concern about sensitive information leaks such as passwords and credit card details. Accordingly, PayPal service allows users to pay online without a provision of sensitive information. Final Square case result, Mobile POS -based payment service, also shows that it targets on second tier of non-customer who can't individually transact offline because of cash's shortness. Hence, Square provides dongle which function as POS by putting dongle in earphone terminal. As a result, four cases made non-customer their customer so that they could penetrate early market and had been extended their market share. Consequently, all cases supported the hypothesis and it is highly probable according to 'analytic generation' that case study methodology suggests. We present for judging the quality of research designs the following. Construct validity, internal validity, external validity, reliability are common to all social science methods, these have been summarized in numerous textbooks(Yin, 2014). In case study methodology, these also have served as a framework for assessing a large group of case studies (Gibbert, Ruigrok & Wicki, 2008). Construct validity is to identify correct operational measures for the concepts being studied. To satisfy construct validity, we use multiple sources of evidence such as the academic journals, magazine and articles etc. Internal validity is to seek to establish a causal relationship, whereby certain conditions are believed to lead to other conditions, as distinguished from spurious relationships. To satisfy internal validity, we do explanation building through four cases analysis. External validity is to define the domain to which a study's findings can be generalized. To satisfy this, replication logic in multiple case studies is used. Reliability is to demonstrate that the operations of a study -such as the data collection procedures- can be repeated, with the same results. To satisfy this, we use case study protocol. In Korea, the competition among stakeholders over mobile payment industry is intensifying. Not only main three Telecom Companies but also Smartphone companies and service provider like KakaoTalk announced that they would enter into mobile payment industry. Mobile payment industry is getting competitive. But it doesn't still have momentum effect notwithstanding positive presumptions that will grow very fast. Mobile payment services are categorized into various technology based payment service such as IC mobile card and Application payment service of cloud based, NFC, sound wave, BLE(Bluetooth Low Energy), Biometric recognition technology etc. Especially, mobile payment service is discontinuous innovations that users should change their behavior and noble infrastructure should be installed. These require users to learn how to use it and cause infra-installation cost to shopkeepers. Additionally, payment industry has the strong path dependency. In spite of these obstacles, mobile payment service which should provide dramatically improved value as a products and service of discontinuous innovations is focusing on convenience and security, convenience and so on. We suggest the following to success mobile payment service. First, non-customers of the existing payment service need to be identified. Second, needs of them should be taken. Then, noble payment service provides non-customer who can't pay by the previous payment method to payment method. In conclusion, mobile payment service can create new market and will result in extension of payment market.