• Korea Trade Review
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• v.45 no.6
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• pp.1-22
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• 2020

This paper analyzes the influence of entrepreneurial orientation, international market orientation, and investment performance of Korean SMEs in Vietnam on sequential investment. As a result of analyzing the research model using PLS SEM, it was found that Korean SMEs make sequential investments based on investment performance rather than entrepreneurial orientation or international market orientation. In addition, entrepreneurial orientation increased internationa market orientation and had a positive effect on investment performance, which was found to have a positive effect on sequential investment. Through this study, it was clarified that there is a difference between the determinants of initial investment and sequential investment, and it was confirmed that Korean companies show stable and strategic sequential investment tendency rather than proactive and bold investment in Vietnam. In addition, the mediating effect of international market orientation and investment performance in sequential investment was confirmed. In addition, it was confirmed that entrepreneurial orientation was a valid factor in the indirect effect of sequential investment. In the future, for high entrepreneurial orientation Korean companies entered the Vietnamese market, there will be a need for policy support to provide information on Global Value Chain in Vietnam and establish networks on the country.

• Journal of the Economic Geographical Society of Korea
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• v.19 no.3
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• pp.550-565
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• 2016

The size of Korean and global cosmetic industry market are consistently growing and the domestic cosmetic industry's rate of total production increase is higher than GDP in Korea. In addition, the Korean Wave has strengthened not only this phenomenon but also the increase of exports. For these reasons, the purpose of this paper is to analyze Korean cosmetic industry regarded as a new growth engine. For this study, Porter's Value Chain theory, Mudambi's Smile of Value Creation, Cosmetic GMP by ISO, and the production process on cosmetic industry are used as tools. As a result, Korean cosmetic industry comprises five nodes value chains: R&D, Raw Material Manufacture, Container Manufacture, Cosmetic Manufacture, and Marketing. And then, based on this result, the spatial analysis is conducted to identify spatial distribution characteristics of each node.

• Journal of the Korean Geographical Society
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• v.51 no.5
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• pp.667-690
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• 2016

This paper reviews the evolution process of global production network(GPN) discourse, from its origin to the recent theorization, namely GPN 2.0. In so doing, the discursive formation of global production networks is introduced in comparison with a competing discourse global commodity/value chains, with particular attention to conceptual and analytical lacunae in the latter. This article also outlines how the global production network perspective has become a useful discursive and practical tool that allows the examination of the nexus of global economy, transnational corporations, and regional development. Subsequently, a theoretical dearth in the approach is discussed in reference to key critiques, and in this context Yeung and Coe's recent theorization GPN 2.0, which is centered on casual mechanisms and network configurations is reviewed. This paper suggests that the theory adequately addresses the problem of casuality lacking in its precedented conceptual framework, and that it helps exploring the formation and evolution processes of varied production networks(including intrafirm coordination, interfirm control, strategic partnership, and extrafirm bargaining) in connection with competitive dynamics and risky environments. As a result of the theorization, the difference between GPN and the chain approaches has become more apparent, and the idea of extrafirm bargaining is particularly important in the differentiation. Extrafirm bargaining is seen to be a comprehensive networking form inclusive of such GPN 1.0 analytical concepts as value, embeddeness, and power, and research attentive to, and engaging with, the extrafirm networks is expected to help transcending the chain governance approaches' analytical excess of interfirm linkages and industry-centeredness.

• Journal of Technology Innovation
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• v.28 no.4
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• pp.127-150
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• 2020

The World Health Organization (WHO) declared the third pandemic in history after the Hong Kong flu and swine flu. The outbreak of Corona 19 dramatically reduced exchanges between countries, while rapid contagion created a time gap in economic fluctuations by country. In January 2020, the trade dispute between the US and China entered into a consensus phase, but the economic decoupling phenomenon caused by Corona 19 made it difficult for China to balance trade with the US and made it difficult to comply with the terms of the trade dispute agreement between the US and China. President Trump attributed the responsibility for the spread of Corona 19 to China, and pointed out that the cause of the economic downturn was the infringement of Chinese trade secrets and illegal copies, and protectionism arose. As a result, China protested fiercely, and the conflict with the United States deepened. The US has declared trade sanctions on Huawei and SMIC, which are key companies in China's semiconductor industry, and is predicting the risk of a disconnection of the semiconductor value chain between the US and China. The separation of the value chain of the semiconductor industry has the potential to have a big impact on the semiconductor industry, a structure that is highly specialized and monopolized by certain countries and companies in the value chain. This paper aims to deal with the risk of disconnection in the semiconductor value chain between the US and China reignited by Corona 19, the impact and change of the global semiconductor industry value chain, and the response strategies of Korean semiconductor companies.

• Journal of Information Technology Services
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• v.15 no.4
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• pp.153-174
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• 2016

On account of multiple causes, including prolonged global economic crisis, addressing environmental pollution and the advent of hyper-connected society, a new paradigm called 'sharing economy' has rapidly emerged. Many startups have attempted to build promising business model based on the sharing economy concept. Nevertheless, successful cases are still very rare in the global level, except for Uber and Airbnb cases. Therefore, this study analyzes necessary causes and sufficient causes for successful settlements in the market through a comparative case analysis on digital matching firms in the sharing economy businesses. For the case study, we compare five successful cases (Uber, Airbnb, Kickstarter, TaskRabbit and DogVacay), three failure cases (Homejoy, Ridejoy and Tuterspree) and a platform cooperativism case (Juno) in accordance with six value attributes of business model including value proposition, market segment, value chain, cost structure and profit potential, value network and competitive strategy. We apply Boolean method to support controlled comparison and eliminate unnecessary attributes. The Boolean analysis result shows that value proposition, cost structure and profit potential, value network and competitive strategy are the essential attributes. Furthermore, the result indicates that each attribute is a necessary condition, where all four conditions should be met simultaneously in order to be successful. With this result, we discuss essential consideration for those who are planning startup based on the sharing economy business model.

• Journal of Korea Trade
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• v.26 no.3
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• pp.45-62
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• 2022

Purpose - Using unexpected changes in geopolitical tensions on the Korean peninsula as a quasi-natural experimental setting, we examine whether and how geopolitical risks travel across borders through firm-level imports and exports linkages. We also test whether the effects are driven by either imports or exports and assess whether firms can effectively hedge themselves against geopolitical risks. Design/methodology - We focus on a series of unanticipated geopolitical events taken place in Korea in 2018. Making use of the shocks to geopolitical climate, we identify five milestone events toward peace talks. We employ the event studies methodology. We examine heterogenous firm-level stock price reactions around key event dates depending on firms' exposure to geopolitical risks. As a measure of firms' exposure to geopolitical risks in Korea, we utilize a text-based measure of firm-level trade links. When a firm announces and discusses its purchase of inputs from Korea or sales of outputs to Korea in their annual disclosure filings, we define a firm to have a trade relationship with Korea and have exposure to Korean geopolitical risks. Similarly, we use a measure of a firm's hedging policies based on a firm's textual mention of the use of foreign exchange derivatives in their annual disclosure. Findings - We find that U.S. firms that have direct trade links to Korea gained significantly more value when the intensity of geopolitical risks drops compared to firms without such trade links to Korea. The effects are pronounced for firms purchasing inputs from or selling outputs to Korea. We find that the effectiveness of foreign exchange hedging against geopolitical risks is limited. Originality/value - We document the international transmission of geopolitical uncertainty through trade linkages. Export links as well as import links serve as important nexus of transmission of geopolitical risks across borders. Hedging strategies involving foreign-exchanges derivatives do not seem to insulate firms again geopolitical risks. With the recent movements of localization and reshuffling of the global value chain, our results suggest a significant impact of geopolitical risks in Korea on the construction of the global value chain.

• Journal of Korea Trade
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• v.26 no.6
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• pp.96-117
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• 2022

Purpose - Considering the recent instability of world economy and its heavy dependence on foreign, Korea must formulate breakthrough approaches to proactively cope with these adverse global developments. As such, this study aims to ascertain how participation in global value chains (GVCs) relates to corporate productivity and derive policy implications. Design/methodology - This study utilizes the microdata of Korean manufacturers to develop indicators of GVC participation at the enterprise level and analyzes the effects of GVC participation on the firm's total factor productivity by using fixed effect model. Findings - Enterprises with highest rates of export-side GVC participation see their productivity grow as their export-side GVC participation rates increase. In addition, when companies are classified by their export-side GVC participation rates, increasing export values improves all firm's productivity. In particular, those with low participation rates are analyzed to achieve higher productivity by increasing their imports, not only exports, which implies that companies with lower export-side GVC participation can boost productivity by reinforcing their export and import activities. Originality/value - This research paper distinguishes itself from others in that it makes a novel attempt to design the indicators of GVC participation at the enterprise level, not at the national or industry level. In addition, this study contributes to the existing literature by dividing companies into subgroups depending on their GVC participation rates for each of export and import and identifying variances in the effect of GVC participation on productivity growth among subgroups.

• Korea Trade Review
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• v.46 no.3
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• pp.45-63
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• 2021

This paper investigates the effects of China's participation in global value chains (GVC) on the productivities focusing on the manufacturing industries. In this study, several indicators of participation in global value chains were used. These include GVC participation, forward GVC participation, backward GVC participation and GVC position index. In particular, we used the data obtained from 18 manufacturing industries in China during 15 years from 2000 to 2014. The main results of the analysis are as follows. First, the higher the degree of total participation in GVC, the higher the productivity. This means that with the increase in exports and imports of intermediate goods, productivity has increased through technology spillover effects or competition effects, and so on. Second, the backward participation does not increase the productivities significantly while forward participation leads higher productivity. Third, the productivity improvement effects of GVC participation was larger in the high-tech industries than in the low-tech industries. These results show that GVC participation was helpful for the economic growth of China and the efforts for moving toward upstream production stage in GVC is necessary for the improvement of international competitiveness in Chinese manufacturing industry.

• Journal of the Economic Geographical Society of Korea
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• v.22 no.4
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• pp.488-512
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• 2019

This study examines the 'Asia Decoupling' hypothesis, focusing on changes in trade patterns between regions and countries, based on the latest value added trade statistics. As an analytical tool, indicators that can directly measure the degree of distribution of actual value added were used. Main findings are: Firstly, creating potential at regional level which used to be the growth engine of East Asia until the mid-2000s declined sharply after the global financial crisis. Secondly, in the development pattern of the value added distribution network, no positive change has been detected in the give-out or gain capacity of emerging countries that can generate future growth in East Asia through GVC development. Lastly, China's value added contributing capacity, as different from the hub countries in other regions such as US and Germany, has declined significantly since the mid 2000s, while its capability to benefit greatly increased, and the gain potential of advanced group countries in competition with China is decreasing. We suggest the establishment of intra-regional economic cooperation mechanism including all countries in East Asia for expanding the value creating capacity in the region.

• Journal of Aerospace System Engineering
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• v.15 no.6
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• pp.26-32
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• 2021

The global aircraft-manufacturing industry ecosystem is characterized by the international division of labor through the worldwide supply chain and by the concentration of value added at the top of the supply chain. As a result, the competition for entry into the top supply chain and for order expansion is becoming increasingly intensive. To increase their orders, domestic aircraft manufacturing enterprises need to enhance their competitiveness by evaluating and analyzing it. However, most domestic aircraft manufacturing companies are unaware of the need to quantitatively evaluate their competitiveness. It is challenging to perform such an evaluation, and there are few research cases. In this study, we quantitatively evaluated and analyzed the competitiveness of domestic aircraft manufacturers by using data mining techniques. Thereby, implications for enhancing their competitiveness could be identified.