• Title/Summary/Keyword: Firm practices

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Organisational Change, Learning and the Usage of Space: the Case of Samsung Electronics Company (기업의 조직변화와 학습의 공간성: 삼성전자의 사례)

  • Lee, Jong-Ho
    • Journal of the Korean association of regional geographers
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    • v.8 no.3
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    • pp.396-411
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    • 2002
  • This paper aims to explore organisational change and learning involving spatial processes and outcomes. In particular, it focuses on the context specific nature of corporate learning and organisational change that can be found in the case of a large Korean firm facing radical economic change. Drawing on the case study of a large Korean firm, the Samsung Electronics Company, three main claims can be followed. First, territorial sources of learning influence the way in which the firm makes use of space/place. Second, corporate learning practices, however, are not based merely on specific localised sources or geographical proximity but on bringing together the local and the global sources by harnessing the properties of relational proximities. It reveals that firms are concerned less on specialising specific local knowledge than promoting organisational knowledge and competences by integrating a variety of knowledge distributed in and out of the boundaries of the firm. Finally, to learn and innovate in a continual basis, firms would attempt to combine codified knowledge with tacit knowledge.

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The Role of Proximity in the Internalization of Corporate Social Responsibility: Lessons from the U.S Corporations' Participation in the B-Corp Movement (기업의 사회적 책임 확산과정에서의 근접성의 역할: 미국 기업들의 비콥 무브먼트 참여과정을 중심으로)

  • Lee, Jiun;Lee, Yeowon;Kim, Sang-Joon
    • Korean small business review
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    • v.43 no.2
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    • pp.31-57
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    • 2021
  • This study delves into a question as to how the concept of corporate social responsibility (CSR) is internalized across corporations. CSR internalization refers to the process where a corporation incorporates CSR practices into its business practices. Drawn from the institutionalization process of knowledge adoption under environmental pressure, we pay attention to the roles of proximity, defined as the distance between environmental characteristics and organizational characteristics of corporations. And we argue that the extent to which a given firm is situated in the environment knowledgeable will make the firm likely to adopt CSR practices. To test this idea, we figure out when and how corporations participate in the B-Corporation Movement in the U.S., through the lens of proximity. Specifically, we subdivide proximity into geographical proximity, organizational proximity, and overlapped proximity and examine whether proximity can increase the likelihood of adopting CSR practices. With a sample of 536 start-ups which had participated in the B-Corporation Movement between 2007 and 2017, we find that the three types of proximity consistently increase the likelihood of becoming a certified B-Corp. This suggests that a corporation is highly likely to accept the concept of CSR under external pressures, along with its intrinsic motivation, which provide theoretical and practical implications on CSR internalization.

Similarities of Firm's HR System: Explanations from New Institutional Perspectives (기업 인적자원관리시스템의 유사성: 신제도주의적 관점의 분석)

  • Lee, Jeong Eon
    • The Journal of the Korea Contents Association
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    • v.13 no.2
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    • pp.412-419
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    • 2013
  • Firm's competitive advantage and profitability can be gained over competitors by human resources and human resource management that are characterized by idiosyncrasies or differentiation. Yet, the results of previous studies have been a emerging consensus that the isomorphism and homogeneity of HRM and HR practices among firms regardless of thoese industrial areas, size, organizational settings, etc. are universal. Based on the previous studies of similarities of HRM, the paper theoretically investigates the background and reasons of introducing similar HR practices among firms. The paper shows the dynamism of HR system in Korean firms, adapting a new HR system. Three types of reasons are found, coercive isomorphism, mimetic isomorphism, and normative isomorphism. However, it is also discussed that there is an important gap in the theoretical and empirical research. More empirical research is suggested in order for gaining meaningful results on HR studies.

Dynamic Limit and Predatory Pricing Under Uncertainty (불확실성하(不確實性下)의 동태적(動態的) 진입제한(進入制限) 및 약탈가격(掠奪價格) 책정(策定))

  • Yoo, Yoon-ha
    • KDI Journal of Economic Policy
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    • v.13 no.1
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    • pp.151-166
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    • 1991
  • In this paper, a simple game-theoretic entry deterrence model is developed that integrates both limit pricing and predatory pricing. While there have been extensive studies which have dealt with predation and limit pricing separately, no study so far has analyzed these closely related practices in a unified framework. Treating each practice as if it were an independent phenomenon is, of course, an analytical necessity to abstract from complex realities. However, welfare analysis based on such a model may give misleading policy implications. By analyzing limit and predatory pricing within a single framework, this paper attempts to shed some light on the effects of interactions between these two frequently cited tactics of entry deterrence. Another distinctive feature of the paper is that limit and predatory pricing emerge, in equilibrium, as rational, profit maximizing strategies in the model. Until recently, the only conclusion from formal analyses of predatory pricing was that predation is unlikely to take place if every economic agent is assumed to be rational. This conclusion rests upon the argument that predation is costly; that is, it inflicts more losses upon the predator than upon the rival producer, and, therefore, is unlikely to succeed in driving out the rival, who understands that the price cutting, if it ever takes place, must be temporary. Recently several attempts have been made to overcome this modelling difficulty by Kreps and Wilson, Milgram and Roberts, Benoit, Fudenberg and Tirole, and Roberts. With the exception of Roberts, however, these studies, though successful in preserving the rationality of players, still share one serious weakness in that they resort to ad hoc, external constraints in order to generate profit maximizing predation. The present paper uses a highly stylized model of Cournot duopoly and derives the equilibrium predatory strategy without invoking external constraints except the assumption of asymmetrically distributed information. The underlying intuition behind the model can be summarized as follows. Imagine a firm that is considering entry into a monopolist's market but is uncertain about the incumbent firm's cost structure. If the monopolist has low cost, the rival would rather not enter because it would be difficult to compete with an efficient, low-cost firm. If the monopolist has high costs, however, the rival will definitely enter the market because it can make positive profits. In this situation, if the incumbent firm unwittingly produces its monopoly output, the entrant can infer the nature of the monopolist's cost by observing the monopolist's price. Knowing this, the high cost monopolist increases its output level up to what would have been produced by a low cost firm in an effort to conceal its cost condition. This constitutes limit pricing. The same logic applies when there is a rival competitor in the market. Producing a high cost duopoly output is self-revealing and thus to be avoided. Therefore, the firm chooses to produce the low cost duopoly output, consequently inflicting losses to the entrant or rival producer, thus acting in a predatory manner. The policy implications of the analysis are rather mixed. Contrary to the widely accepted hypothesis that predation is, at best, a negative sum game, and thus, a strategy that is unlikely to be played from the outset, this paper concludes that predation can be real occurence by showing that it can arise as an effective profit maximizing strategy. This conclusion alone may imply that the government can play a role in increasing the consumer welfare, say, by banning predation or limit pricing. However, the problem is that it is rather difficult to ascribe any welfare losses to these kinds of entry deterring practices. This difficulty arises from the fact that if the same practices have been adopted by a low cost firm, they could not be called entry-deterring. Moreover, the high cost incumbent in the model is doing exactly what the low cost firm would have done to keep the market to itself. All in all, this paper suggests that a government injunction of limit and predatory pricing should be applied with great care, evaluating each case on its own basis. Hasty generalization may work to the detriment, rather than the enhancement of consumer welfare.

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How Does Corporate Social Responsibility Affect Asymmetric Information: Evidence from Korean Retail Industry

  • Kim, Sang-Su;Lee, Jeong-Hwan
    • Journal of Distribution Science
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    • v.17 no.2
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    • pp.5-11
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    • 2019
  • Purpose - This paper examines how corporate social responsibility of the Korean retail industry affects the degree of asymmetric information. Recent theories predict that a firm's active engagement in socially responsible activities lowers the degree of asymmetric information of the firm. Research design, data, and methodology - This paper uses the sum of environmental and social scores (ES), published by the Korean Corporate Governance Service in order to proxy the degree of socially responsible management practices of Korean retail firms. This paper uses the ordinary least square method to investigate the above predictions. The publicly traded Korea retail firms listed in the Korean Exchange are analyzed from 2011 to 2016. To measure the degree of asymmetric information, this paper adopts the analyst dispersion and price impact measures. Results - This paper shows that the ES score has significantly positive relationships with these two measures of information asymmetry. The environmental score seems to increase the analyst dispersion measure and the social score appears to raise the price impact measure mores significantly. Conclusions - The results do not support the prior theory expecting a negative relationship between corporate social responsibility and the degree of asymmetric information. Environmental and social scores are found to affect the measures of information asymmetry differently.

A Study on the Effects of Total Product Liability Activities on Firm Performance (전사적 제조물책임활동이 경영성과에 미치는 영향에 관한 연구)

  • Park Byung-Kwon;Lim Chae-Kwan
    • Journal of Korea Society of Industrial Information Systems
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    • v.11 no.1
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    • pp.58-68
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    • 2006
  • The purpose of this study is to find empirical relationship between PL activities and firm performance. Five categories of PL activities and three performance measures were examined. Using a sample of 135 companies, we found that activities related to TQM practices and manufacturing defect had significant impacts on all three measures of performance. Activities related to design defect, warning defect and sales partially influenced performance measures. The result suggests that performance could be maximized by the mutual organic combination of the product safety efforts with the overall process from design to sales.

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A Study on the Relationship Between e-Service Orientation and Performance of Internet Business Organization (인터넷 비즈니스 조직의 e-서비스지향성 결정요인과 성과에 관한 연구)

  • 박상규;원구현
    • Journal of the Korean Operations Research and Management Science Society
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    • v.29 no.2
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    • pp.1-18
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    • 2004
  • Due to the change to the digital environments, the offer of services on the on-tine differs from one on the on-line. This paper Identifies what functions internet business organizations should fulfill to provide on-line services of good qualify and analyzes whether these functions lead effectively to the expected performance of Internet business firms. The components of service orientation in the Internet business organizations appear to be the servant leadership, customer treatment from the Internet service encounter, Internet service failure prevention and recovery, Internet service standards communication, Internet service training, and internet service rewards. Therefore, these determinants should be incorporated in the practices, Procedures, end routines of Internet business organizations in order to create and provide excellent Internet services. Furthermore, it is demonstrated that Internet service orientation has a significant effect on satisfaction by employees and customers, the value and quality of Internet service, and the firm's performance. This implies that the service orientation is an Important factor In the on-line service organizations and that the internet business can be successful when the service orientation is diffused throughout the firm's organizations. It is also shown that the important factors, which connect Internet service orientation and its performance, are the service quality, value of Internet service and customer satisfaction. That is, the service orientation can ultimately lead to the corporate performance when customers are satisfied after confirming the value and quality of Internet service by visiting the web site.

The Role of Government Regulations in Enhancing Corporate Social Responsibility Disclosure and Firm Value

  • FAISAL, Faisal;SITUMORANG, Lilis Suryani;ACHMAD, Tarmizi;PRASTIWI, Andri
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.8
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    • pp.509-518
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    • 2020
  • This study investigates, first, whether the extent of corporate social and environmental responsibility disclosure (CSERD) differs between 2010 and 2014; second, whether government regulation affects the extent of CSERD; and, third, whether the CSERD is valued by investors. Content analysis method was used to extract 466 companies' annual reports to measure the extent of social and environmental responsibility disclosure based on the Global Reporting Initiative (GRI) checklist. Independent sample t-test and multivariate regression analysis were also conducted to test the differences of the extent of CSERD as well as determinants and consequence of CSERD. Our results show that the extent of CSERD in 2014 is 21.60 percent higher than in 2010 (13.39 percent). Government regulation has a significant effect on the extent of CSERD. This study also finds that market values positively CSER information disclosed by company. Given that government regulation has a positive impact, however, the findings of this study suggests that the extent of CSERD is still low. To enhance CSERD, government should continuously encourage companies to abide by the regulations as mandated. This study provides a more comprehensive insights of CSRED practices from an emerging country and the effect of government regulation in enhancing CSERD.

The Effect of Income and Earnings Management on Firm Value: Empirical Evidence from Indonesia

  • HERNAWATI, Retno Indah;GHOZALI, Imam;YUYETTA, Etna Nur Afri;PRASTIWI, Andri
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.4
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    • pp.105-112
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    • 2021
  • This study aims to find empirical evidence of the effect of increasing income on the potential transfer of wealth from manufacturing companies that go public to stakeholders. Earnings management with an accrual approach with the Modified Jones model is an identifier of the availability of earnings management practices, without paying attention to both positive and negative symbols. The interpretation of the results of the discretionary accrual measurement between positive and negative symbols has different meanings. Positive discretionary accruals indicate that management uses income-increasing techniques. Meanwhile, negative discretionary accruals indicate that management uses income-reducing techniques. Income-increasing techniques tend to be viewed as opportunistic behavior of managers. This study used 111 data from manufacturing companies listed on the IDX (Indonesia Stock Exchange) from 2015-2018. Path analysis is used to test the hypothesis. The results of this study are in line with the point of view of management strategy, increasing income is used as a way to transfer potential welfare from the company to stakeholders. Social welfare (tax) and managerial remuneration are proven to be mediators in increasing the effect of increasing income on future company value. Further research can complete the potential welfare transfer against the shareholders related to income-increasing strategy.

Earnings Management, Uncertainty and the Role of Conservative Financial Reporting: Empirical Evidence from Pakistan

  • FATIMA, Huma;HAQUE, Abdul;QAMMAR, Muhammad Ali Jibran
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.4
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    • pp.39-52
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    • 2022
  • This study examines whether accounting conservatism can support real earnings management by reducing accrual earnings management techniques. The net impact of conservative reporting on earnings management is also analyzed. It is assumed that moderating the role of conservative financial reporting during uncertainty can mitigate earnings management practices. For our analysis, 5354 firm-year observations for the period 2007-2020 of nonfinancial companies listed on the Pakistan Stock Exchange are applied. To measure conservatism in the non-financial sector of Pakistan, Khan and Watts' (2009) model is used to provide evidence that conservatism is a way to restrict earnings management during uncertainty. "Prospector" and "Defender" Business strategy is applied for measuring firm-level uncertainty. To measure accrual earnings management Modified Jones (1995) model and Dechow and Dichev (2002) approach and Kasznik (1999) model are applied, and for real earnings management Roychowdhury model is applied which follows three approaches to measure real earnings management i.e. cash flow manipulation, Overproduction, and discretionary expenses. The estimations support our hypothesis by providing statistically significant proof that conservative financial reporting in a developing economy like Pakistan may be used to overcome the net impact of earnings management during uncertainty. Our results provide critical and practical implications for investors, researchers, and standard setters.