• Proceedings of the Korean Operations and Management Science Society Conference
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• 2005.05a
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• pp.1072-1082
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• 2005

This study develops a contingency fit between client IT capability and vendor competence in IS outsourcing relationship by integrating both the contingency theory in organization and the relationship theory in IS outsourcing. By adopting a fit as a moderation, the relationship intensity of IS outsourcing is hypothesized to be influenced by the fit between client IT capability and vendor competence, thereby leading to the success of outsourcing. The testing data was obtained from 20 IS outsourcing projects from both clients and vendors in Korea. The research model proposed in this study was then tested using the structural equation model (SEM). As expected, the result shows that when there is a fit between client IT capability and vendor competence, higher level of relationship intensity and outsourcing success exhibits. The findings have significant impactions for further research and practice.

• Journal of Information Technology Applications and Management
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• v.11 no.2
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• pp.65-80
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• 2004

The primary purpose of this study is to investigate ASP (Application Service Provider) vendor attributes that affect ASP client satisfaction. From the relevant literature, ASP vendor attributes that might affect the ASP client satisfaction were derived from which the survey questions were formulated. The survey was conducted among the companies that have adopted ASP. Through the factor analysis of the survey results, the following vendor attributes - vendor's IT infra structure, service reliability, service flexibility, vendor stability, IS maturity, information sharing - were derived ; and the relationships between those attributes and ASP client satisfaction were explored. The result of this study revealed that IT infra, service flexibility, vendor stability are related to ASP client satisfaction. The customer satisfaction factors in the traditional outsourcing -- reliability, IS maturity, information sharing were proved to be not applied in ASP environment. This study provides ASP vendors with guidelines on how to improve their ASP strategies to satisfy clients. The results of this study can also be used by client companies as a decision basis for ASP vendor selection.

• Industrial Engineering and Management Systems
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• v.9 no.2
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• pp.97-106
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• 2010

Can eBay.com's fee structure coordinate the channel? It's a critical strategic problem in e-commerce operations and an interesting research hypothesis as well. eBay's fees include three parts: monthly subscription fee, insertion fee, and final value fee (i.e., a revenue sharing portion), which represent a generic form of revenue sharing fee structure between the retailer and the vendor in a supply chain. This research deals with such a channel consisting of a price-setting vendor who sells products through eBay's marketplace exclusively to the end customers. The up- and down-stream channel relationship is consignment-based revenue sharing. We use a game-theoretic approach with assumption of the retailer (i.e., eBay.com) being a Stackelberg-leader and the vendor being a follower. The Stackelberg-leader decides on the terms of revenue sharing contract (i.e., fee structure), and the follower (vendor) decides on how many units to sell and the items' selling price. This study formulates several profit-maximization models by considering the effects of the retail price on the demand function. Under such settings, we show that eBay's fee structure can improve the channel efficiency; yet it cannot coordinate the channel optimally.

• Korean Management Science Review
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• v.25 no.1
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• pp.107-121
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• 2008

As to more efficiently manage the inventory in the retail supply chain and to meet the customer demand in a timely manner, vendor-managed inventory (VMI) has been widely accepted, which manages inventory in the retail supply chain via sharing information and collaborating with the retailers. Applying VMI generates vendor-managed inventory/distribution problem (VMIDP), which involves inventory management for both the vendor and the retailers, and the design of vehicle routes for delivery, to minimize the total operating cost in the supply chain. In this paper, we suggest a mixed integer programming (MIP) model to obtain the optimal solution for VMIDP in a two-echelon retail supply chain, and develop an efficient heuristic based on the operating principles of the MIP model. To evaluate the performance of the heuristic, its solution was compared with the one of the MIP model on a total of twenty seven test problems. As a result, the heuristic found optimal solutions on seven problems in a significantly reduced time, and generated a 4.3% error rate of total cost in average for all problems. The heuristic is applied to the case problem of the local famous franchise company together with GIS, showing that it is capable of providing a solution efficiently in a relatively short time even in the real world situation.

• Proceedings of the Korean Society for Quality Management Conference
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• 2007.04a
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• pp.76-82
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• 2007

Upon the basis at the end of March 2005, we have the 38.91 million cellular phone subscribers over the country and the total diffusion rate of the cellular phone is reached up to 76.1%. At this moment, it can be said the most people use it since the demand is still going on. Turning to the operation company, this is serviced by the SK Telecom, LG Telecom, and KTF, and there are at least 7 manufactures producing it including Samsung, LG, KTF ever, Motorola, SKY, Pantac and Curitel, Most users periodically change the service vendor to the others for buying new model or changing the service vendor. It is understood the customer's action occurred by the differences of the brand cognition. In this study, along with some parameters including the difference of the vendor's brand cognition, difference of satisfaction (mobile telecommunication, product), and the possibility to buy the product again, I am going to find out the relationship between the satisfaction of the provider's service

• Proceedings of the Safety Management and Science Conference
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• 2008.04a
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• pp.401-415
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• 2008

Upon the basis at the end of March 2005, we have the 38.91 million cellular phone subscribers over the country and the total diffusion rate of the cellular phone is reached up to 76.1%. At this moment, it can be said the most people use it since the demand is still going on. Turning to the operation company, this is serviced by the SK Telecom, LG Telecom, and KTF, and there are at least 6 manufactures producing it including Samsung, LG, KTF ever, Motorola an d SKY. Most users periodically change the service vendor to the others for buying new model or changing the service vendor. It is understood the customer's action occurred by the differences of the brand cognition. In this study, along with some parameters including the difference of the vendor's difference of satisfaction (mobile telecommunication, product), and the possibility to buy the product again, I am going to find out the relationship between the satisfaction of the provider's service.

• Journal of Convergence for Information Technology
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• v.8 no.5
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• pp.237-242
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• 2018

Researchers have suggested successful risk management as a key factor in successful IT outsourcing projects implementation. The documented investigations, however, have mainly addressed risk management only from a single perspective of either clients or IT vendors. This study explored the potential perception inconsistency regarding the risks between the client and the vendor for IT outsourcing projects by using a quasi-Delphi approach. The analysis results indicated some inconsistencies in the risks perceived by the two parties: (1) the clients regarded (a) lack of vendor commitment to the project and (b) poor vendor selection criteria and process as top critical risks but the vendors didn't; and (2) on the other hand, the vendors perceived (a) unclear requirements and (b) lack of experience and expertise with project activities as significant risks but the clients didn't. Insights into how the client and the vendor perceive risks may help both parties determine how to partner and manage project risks collaboratively to succeed in outsourcing.

• Information Systems Review
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• v.19 no.1
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• pp.147-168
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• 2017

We investigated perceptual similarity and the difference between client and vendor in information technology (IT) outsourcing projects. Specifically, we focused on each player's perception of how the fit of governance and peripheral knowledge affects the performance of IT project outsourcing. For 107 IT projects, we surveyed both client and vendor in the same IT projects and compared the responses of each side. Through a dyadic analysis, we first found that both client and vendor put more weight on the vendor's peripheral knowledge than that of the client as a positive influencer of project performance. However, regarding the governance style of an IT project, client and vendor showed completely different perspectives. The client believed that the vendor's peripheral knowledge positively contributes to the performance of IT project under the governance of outcome control. However, the vendor showed that its peripheral knowledge creates synergy effects under the governance of process control. Our interpretation of the perceptual similarity and difference between client and vendor delivers managerial implications for businesses that process IT projects.

• Journal of Digital Convergence
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• v.13 no.9
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• pp.77-87
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• 2015

Vendor Managed Inventory(VMI) is a distribution channel system where the inventory at the retailer is monitored and managed by the manufacturer or vendor. By pushing the decision making responsibility further up the supply chain and centralizing the replenishment decision, the vendor can help the entire supply chain be more competitive. The purpose of this research is to explore the factors influencing the adoption of VMI by Korean manufacturers. This research proposes the IT readiness, operating cost, and information sharing as antecedents of burden for VMI, and collected the survey responses from the small-to-medium manufacturers. The statistical results indicate that only the operating cost has a significant impact on the adoption of VMI. However it has also been found that the IT readiness and information sharing have a significant effect on the operating cost. Thus indirectly influence the adoption of VMI. As a conclusion, the academic and practical implications of these findings are discussed.

• Information Systems Review
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• v.18 no.1
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• pp.177-197
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• 2016

Information technology (IT) outsourcing is considered an effective strategy to manage and maintain organizational technologies in a rapidly changing business environment. In particular, to meet diverse market needs, many organizations that outsource their IT functions practice a multi-vendor approach as their main outsourcing strategy. Although a few studies have been conducted about the multi-vendor approach, most previous works primarily emphasized conceptual arguments and normative prescriptions. In addition, scant attention has been directed toward the relational structure between the client and multiple vendors in the multi-vendor approach and its implications for outsourcing success. This study proposes a model from the transaction cost perspective by conceptualizing two dominant relational structures of the multi-vendor approach, namely, single-vendor dominant model and the multi-vendor dominant model, and hypothesizing their relationships with two outsourcing outcomes, project success and user satisfaction. The proposed model is examined using the data collected from 246 companies that have implemented multi-vendor outsourcing. As expected, results indicate that the single-vendor dominant model has a more significant impact on project success, whereas the multi-vendor dominant model has a more significant impact on user satisfaction. The study concludes with the theoretical implications and directions for future research.