• Asia Marketing Journal
• /
• v.15 no.3
• /
• pp.53-77
• /
• 2013

As advertising and promotions are categorized as operating expenses, managers tend to reduce marketing budget to improve their short term profitability. Gauging the value and accountability of marketing spending is therefore considered as a major research priority in marketing. To respond this call, recent studies have documented that financial market reacts positively to a firm's marketing activity or marketing related outcomes such as brand equity and customer satisfaction. However, prior studies focus on the relation of marketing variable and financial market variables. This study suggests a channel about how marketing activity increases firm valuation. Specifically, we propose that a firm's marketing activity increases the level of the firm's product market information and thereby the dispersion in financial analysts' earnings forecasts decreases. With less uncertainty about the firm's future prospect, the firm's managers and shareholders have less information asymmetry, which reduces the firm's cost of capital and thereby increases the valuation of the firm. To our knowledge, this is the first paper to examine how informational benefits can mediate the effect of marketing activity on firm value. To test whether marketing activity contributes to increase in firm value by mitigating information asymmetry, this study employs a longitudinal data which contains 12,824 firm-year observations with 2,337 distinct firms from 1981 to 2006. Firm value is measured by Tobin's Q and one-year-ahead buy-and-hold abnormal return (BHAR). Following prior literature, dispersion in analysts' earnings forecasts is used as a proxy for the information gap between management and shareholders. For model specification, to identify mediating effect, the three-step regression approach is adopted. All models are estimated using Markov chain Monte Carlo (MCMC) methods to test the statistical significance of the mediating effect. The analysis shows that marketing intensity has a significant negative relationship with dispersion in analysts' earnings forecasts. After including the mediator variable about analyst dispersion, the effect of marketing intensity on firm value drops from 1.199 (p < .01) to 1.130 (p < .01) in Tobin's Q model and the same effect drops from .192 (p < .01) to .188 (p < .01) in BHAR model. The results suggest that analysts' forecast dispersion partially accounts for the positive effect of marketing on firm valuation. Additionally, the same analysis was conducted with an alternative dependent variable (forecast accuracy) and a marketing metric (advertising intensity). The analysis supports the robustness of the main results. In sum, the results provide empirical evidence that marketing activity can increase shareholder value by mitigating problem of information asymmetry in the capital market. The findings have important implications for managers. First, managers should be cognizant of the role of marketing activity in providing information to the financial market as well as to the consumer market. Thus, managers should take into account investors' reaction when they design marketing communication messages for reducing the cost of capital. Second, this study shows a channel on how marketing creates shareholder value and highlights the accountability of marketing. In addition to the direct impact of marketing on firm value, an indirect channel by reducing information asymmetry should be considered. Potentially, marketing managers can justify their spending from the perspective of increasing long-term shareholder value.

• Journal of Venture Innovation
• /
• v.6 no.3
• /
• pp.165-184
• /
• 2023

Since municipal welfare institutions operate for different purposes from general companies or public enterprises, ESG practice items and model construction should be conducted through various and comprehensive social welfare studies. Since there are not many studies available in domestic welfare institutions yet and there are no suitable ESG management utilization indicators, the Cheonan Welfare Foundation's strategy and management strategy system were established to spread the model to other welfare institutions and become a leading foundation through education and training. The foundation and front-line welfare institutions selected issues identification and key issues through the foundation's empirical analysis and criticality analysis, focusing on understanding ESG management and ways to establish a practice model that positively affects institutional image and business performance. Based on this, the promotion system was examined by establishing a performance management plan after deriving appropriate strategies and establishing a strategic system for social welfare institutions. Environmental and social responsibility, transparent management, safety management system establishment, emergency and prevention, user (customer) satisfaction system establishment, anti-corruption prevention and integrity ethics monitoring and evaluation, responsible supply chains, and community contribution programs. This study attempted to specifically present efforts to settle ESG management through the consideration of the Cheonan Welfare Foundation. Therefore, it is considered to be useful data for developing ESG management by referring to the systematic development process of the Cheonan City Restoration Foundation to develop ESG measurement indicators.

• Journal of Intelligence and Information Systems
• /
• v.29 no.4
• /
• pp.207-228
• /
• 2023

After COVID-19, organizations have widely adopted platforms such as zoom or developed their proprietary online real-time systems for remote work, with recent forays into incorporating the metaverse for meetings and publicity. While ongoing studies investigate the impact of avatar customization, expansive virtual environments, and past virtual experiences on participant satisfaction within virtual reality or metaverse settings, the utilization of the metaverse as a dedicated workspace is still an evolving area. There exists a notable gap in research concerning the factors influencing the performance of the metaverse as a workspace, particularly in non-immersive work-type metaverses. Unlike studies focusing on immersive virtual reality or metaverses emphasizing immersion and presence, the majority of contemporary work-oriented metaverses tend to be non-immersive. As such, understanding the factors that contribute to the success of these existing non-immersive metaverses becomes crucial. Hence, this paper aims to empirically analyze the factors impacting personal outcomes in the non-immersive metaverse workspace and derive implications from the results. To achieve this, the study adopts the Embodied Social Presence (ESP) model as a theoretical foundation, modifying and proposing a research model tailored to the non-immersive metaverse workspace. The findings validate that the impact of presence on task engagement and task involvement exhibits a moderating effect based on the metaverse platform used. Following interviews with participants engaged in non-immersive metaverse workplaces (specifically Gather Town and Ifland), a survey was conducted to gather comprehensive insights.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.17 no.4
• /
• pp.45-55
• /
• 2022

Accelerator is a private investment institution that provides startups with comprehensive solutions to solve various difficulties such as startup facilities, funds, commercialization, securing a market etc. In addition to the role of an investor as a new startup support model, accelerators have contributed much to improvement of business ability of startups through intensive mentoring. Considering that previous studies gave weight to the determinants of investment from the perspective of investors, this study made a comparative analysis on the relative importance of determinants of investment in startups among accelerators, investors and entrepreneurs through the method of AHP. Results show that accelerators and investors regard "managerial characteristics" of startups as of the highest importance, whereas entrepreneurs think that "market characteristics" of startups are the most important. The result stems from an empirical judgment from the perspective of investors that success of startups depends on the ability of entrepreneur, and it is considered that investors evaluated marketability of startups as the most important factor in consideration of investment payback period. The result is similar to the result of previous studies on the determinants of investment determinants of angel investors and venture capitals. This paper is expected to make a contribution to the advancement of investment decision-making model for accelerators to discover startups with high possibility to grow and achieve more in incubation and investment.

• Information Systems Review
• /
• v.24 no.2
• /
• pp.1-20
• /
• 2022

Researchers are making contradictory claims through the concept of superstars and long tails about how the development of IT technology affects demand distribution. Unlike previous studies that focused on changes in demand from a macro point of view, this study explored whether the relationship between a company's marketing activities and consumer response differs depending on the product location (i.e., superstar vs. long tail) from a micro point of view. Based on the marketing mix framework, hypotheses were developed based on the relevant literature. In the case of empirical analysis, 2,835 daily data from 63 Korean films were tested using the quantile regression method. As a result of the analysis, it was found that the influence of marketing mix factors on sales varies depending on the location of the product. Specifically, the appeal breadth of the film and the effect of owned media are enhanced in superstar products, and the effect of acquisition media in long-tail products is enhanced and the negative effects of competition are mitigated. Unlike previous studies that focused on macroscopic changes in demand distribution, this study suggested marketing activities suitable for practitioners through microscopic analysis.

• Journal of Technology Innovation
• /
• v.31 no.3
• /
• pp.75-110
• /
• 2023

This paper aims at discussing the evolution of innovation theory from the beginning of the last century to present. Innovation theory has begun by Joseph Schumpeter in the beginning of the last century and his theory had not attained much attention compared to the mainstream economic theory. In the 1960s, some neo-classical economists analyzed the effect of technological change on economic growth and emphasized the role of demand in innovation process. However, in the beginning of the 1970s, Schumpeter's innovation theory, which emphasized the role of innovation and entrepreneurship in economic and social development, attained enormous attention by many liberal economists. They were called neo-Schumpeterians as they followed the theories and ideas of Schumpeter. In the middle of the 1980s, neo-Schumpeterians identified the concept of national innovation system(NIS), which is the total mobilization system of innovation resources for generating, appropriating and diffusing technological innovations. Soon this theory diffused very quickly at regional and sectoral level. As a result, there have been very active empirical studies on innovation systems in the world. Since the beginning of the 2000s the transition study have been actively carried out mainly in European countries. This study emphasizes the transition of existing innovation systems into more sustainable ones. In Korea we need to activate transition study, because there have been only few studies in this new theory.

• Information Systems Review
• /
• v.25 no.3
• /
• pp.199-220
• /
• 2023

Projects to deploy and diffuse smart factories in South Korea are aimed at enhancing national manufacturing competitiveness. However, a significant portion of deployed companies remain at the basic stage and struggle to utilize smart factories regularly. Existing studies have primarily focused on the technical aspects of smart factories, using data analytics and case studies, leading to a gap in empirical research on continuous use and upgrade intentions. This study identifies key factors influencing smart factory usage and user satisfaction, drawing on the Information Systems Success Model (ISSM) and previous research. It empirically examines the impact of these factors on continuous use intention, management performance, and advancement acceptance intention through smart factory usage and user satisfaction. A structural equation model is employed to validate the research hypotheses, using survey data from 287 small and medium-sized manufacturing enterprises (SMEs) that have adopted smart factories. Results demonstrate that system quality, information quality, service quality, and government support significantly affect smart factory usage, while service quality and government support influence user satisfaction. Furthermore, smart factory usage and user satisfaction have positive effects on management performance, continuous use intention, and subsequently advancement acceptance intention. This study provides novel insights by demonstrating the specific impact mechanisms of smart factory user satisfaction on the business and the intentions of manufacturing SMEs regarding continuous use and advancement acceptance, leveraging the ISSM.

• Information Systems Review
• /
• v.20 no.2
• /
• pp.21-37
• /
• 2018

Under ubiquitous work environment, innovative changes occur in work process with ICT. The work process for collaboration through mobile devices and network should be investigated. The research model consists of two major antecedents: autonomy and interdependence as a task characteristic and job satisfaction as ultimate consequence followed by work design theory. To elaborate work design theory, smartwork application (app) use, communication extent, and work-life balance were reviewed from the literature. Data were collected from three ICT firms, which adopted certain smartwork app, and a partial least squares analysis was made on 175 data points. The analysis results show that task interdependence exerts a statistically significant effect on the level of smartwork app usage. Communication extent directly affects job satisfaction and work-life balance. The remarkable point is that smartwork app usage does not affect employees' work-life balance; the former can only affect the latter indirectly by increasing communication extent. This study attempts to explain the organizational impact by considering smartwork app and the effects simultaneously. We proposed and empirically tested the extended work design theory including information technology and its environment. Based on the results, other theoretical and practical contributions are discussed at the end with limitations and further studies.

• The Journal of the Convergence on Culture Technology
• /
• v.10 no.3
• /
• pp.61-67
• /
• 2024

Soldiers serving in military units and institutions are subject to strict security policies and technologies because they handle sensitive and confidential information related to national security, so they are likely to experience security stress. The purpose of this study is to recognize the need to manage the security stress of military personnel and to suggest management measures. To this end, a literature study was conducted on 12 KCI(Korean Journal Citation Index) journals dealing with security stress. Since 2016, research on security stress has been conducted mainly through empirical analysis through surveys. Studies related to security stress were divided into studies dealing with factors that affect stress, the relationship between security stress and security compliance intentions, and factors that reduce security stress. In particular, it was confirmed that factors such as organizational justice, organizational technical support, and security feedback can alleviate security stress. Next, by applying the results of this literature study to the defense security environment, we presented security stress management measures for military personnel in terms of improving security-related organizational justice awareness, technical support, and security feedback. The significance of this study is that we recognized the need to manage military personnel's security stress and reviewed practical measures related to this.

• Journal of Distribution Science
• /
• v.9 no.2
• /
• pp.111-122
• /
• 2011

The purpose of this study is to survey the successful cases of small and medium Business Systematization Cognition by examining their entrepreneurial characteristics and analysing the factors affecting their success. To that end, previous studies on the association types of small businesses were studied. A research model was developed, and research hypotheses for an empirical analysis were established upon it. Suh et al. (2010) insist on the importance of Small Business Systematization in Korea but also show that small business performance is suffering: they are too small to stand alone. That is why association is so crucial for them: they must stand together. Unfortunately, association is difficult, as they have few specific links and little motivation. Even in franchising networks, association tends to be initiated by big franchisers, not small ones. In that sense, association among small businesses is crucial for their long-term survival. With this in mind, this study examines how they think and feel about the issue of 'Industrial Classification', how important Industrial Classification is to their business success, and what kinds of problems it raises in the markets. This study seeks the different cognitions among the association types of small businesses from the perspectives of participation motivation, systematization expectation, policy demand level, and management performance. We assume that different industrial classification types of small businesses will have different cognitions concerning these factors. There are four basic industrial classification types of small businesses: retail sales, restaurant, service, and manufacturing. To date, most of the studies in this area have focused on collecting data on the external environments of small businesses or performing statistical analyses on their status. In this study, we surveyed 4 market areas in Busan, Masan, and Changwon in Korea, where business associations consist of merchants, shop owners, and traders. We surveyed 330 shops and merchants by sending a questionnaire or visiting. Finally, 268 questionnaires were collected and used for the analysis. An ANOVA, T-test, and regression analyses were conducted to test the research hypotheses. The results demonstrate that there are differences in cognition depending upon the industrial classification type. Restaurants generally have a higher cognition concerning job offer problems and a lower cognition concerning their competitiveness. Restaurants also depend more on systematization expectation than do the other industrial classification types. On the policy demand level, restaurants have a higher cognition. This study identifies several factors that are contributing to management performance through differences in cognition that depend upon association type: systematization expectation and policy demand level have positive effects on management performance; participation motivation has a negative effect on management performance. We confirm also that the image factors of different cognitions are linked to an awareness of the value of systematization and that these factors show sequential and continual patterns in the course of generating performances. In conclusion, this study carries significant implications in its classifying of small businesses into the four different associational types (retail sales, restaurant, services, and manufacturing). We believe our study to be the first one to conduct an empirical survey in this subject area. More studies in this area will likely use our research frameworks. The data show that regionally based industrial classification associations such as those in rural cities or less developed areas tend to suffer more problems than those in urban areas. Moreover, restaurants suffer more problems than the norm. Most of the problems raised in this study concern the act of 'associating itself'. Most associations have serious difficulties in associating. On the other hand, the area where they have the least policy demand is that of service types. This study contributes to the argument that associating, rather than financial assistance or management consulting, promotes the start-up and managerial performance of small businesses. This study also has some limitations. The main limitation is the number of questionnaires. We could not survey all the industrial classification types across the country because of budget and time limitations. If we had, we could have produced many more useful results and enhanced the precision of our analysis. The history of systemization is very short and the number of industrial classification associations is relatively low in Korea. We should keep in mind, though, that this is very crucial to systemization entrepreneurs starting their businesses, as it can heavily affect their chances of success. Being strongly associated with each other might be critical to the business success of industrial classification members. Thus, the government needs to put more effort and resources into supporting the drive of industrial classification members to become more strongly associated.