• Title/Summary/Keyword: Korean Executives

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A Study on Perceived Government Support and Small and Medium-sized Ventures Performance: The Mediating Role of Entrepreneurial Persistence (중소벤처기업 정책지원의 인식이 성과에 미치는 영향에 관한 연구: 기업가 끈기의 매개효과를 중심으로)

  • Kim, Young Jin;Yang, Dong Woo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.18 no.6
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    • pp.105-116
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    • 2023
  • While there have been studies on the impact of government financial support on the performance of these enterprises, there is limited research on how entrepreneurs' perceptions of such policies affect business performance. Additionally, there is scarce domestic research on the role of entrepreneurial persistence in achieving and sustaining entrepreneurial goals and its impact on business performance. Therefore, the aim of this study is to analyze how entrepreneurs' perceptions of government policy support affect business performance and to explore the mediating effect of entrepreneurial persistence, shedding light on the significance of perceptions and deepening the understanding of entrepreneurial persistence. This study utilizes entrepreneurs' perceptions of government support for South Korean small and venture enterprises, and entrepreneurship as independent variables, with entrepreneurial persistence as a mediating variable and non-financial performance of businesses as the dependent variable. Data was collected through surveys targeting founders, CEOs, and executives of small and venture enterprises. After excluding incomplete responses, a total of 205 survey responses were used for hypothesis testing. The results of this study are as follows. First, it was verified that the perception of SME policy support and entrepreneurship have a significant positive impact on business performance. Second, it was verified that entrepreneurial persistence partially mediates the relationship between the perception of SME policy support and entrepreneurship and business performance. The theoretical implications of this study are twofold. First, it highlights the significant positive impact of entrepreneurs' perceptions of policy support on the non-financial performance of small and venture enterprises. This contributes to the theoretical understanding by demonstrating that entrepreneurs' perceptions play a role in affecting business performance, in contrast to previous research that focused on the impact of policy financial support on business performance. Second, this study extends the theoretical understanding of entrepreneurial persistence, a relatively understudied concept in domestic research, by demonstrating its mediating role in the relationship between entrepreneurs' perceptions of government support and, entrepreneurship, and business performance. Practically, the study suggests that to enhance the performance of small and venture enterprises, the government should not only expand policy support but also seek ways to increase entrepreneurs' perceptions of such support.

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A Study on the Goal-Orientation of QI Performers in the Medical Centers (의료기관 QI 담당자의 목표추구몰입에 관한 연구)

  • Kim, Mi-Sook;Park, Jae-Sung
    • The Korean Journal of Health Service Management
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    • v.2 no.1
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    • pp.105-124
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    • 2008
  • The purpose of this research is to provide the data base for the activation of Quality Improvement operation through investigating the status of Quality Improvement operation, and finding out factors influencing on the goal-orientation of QI performers in the medical centers of more than one hundred beds where are practicing Quality Improvement operation. In order to reach the purpose, document study was carried out grounded on the proceeding researches and formulated statistical data in relation with the status of Quality Improvement performers, and proof study was carried out through questionnaire survey. The subjects of the survey were the Quality Improvement performers working in seventy three medical centers in Pusan-Gyeongnam, Daegu-Gyeongbuk, and Ulsan. Among eighty three Quality Improvement performers, fifty, five were questionnaire surveyed, on the result of which Reliability Analysis, Factor Analysis, and Multiple Regression Analysis were made, using statistical program. The the results of the proof analysis on this research are as follows. First, in the factors influencing the devoting to goal pursuit of QI performers, organization-goal contribution(0.44) had significant positive effects, while organization conflict(-0.25) had significant negative effects. In other words, the higher the organization-goal contribution was, the higher the devoting to goal pursuit was, while the less the organization conflict was, the higher the devoting to goal pursuit was, which was statistically significant.(p<0.05). Second, in the aspect of goal performance types of QI performers, the process-centered type showed high level of the devoting to goal pursuit, which was statistically significant.(p<0.05). Third, in the aspect of QI performance degree, the higher the devoting to goal pursuit was, the higher the QI performance degree was, which was statistically significant.(p<0.05). In addition, the performers who perceived their workplaces organic structure showed much higher QI performance degree, which statistically significant.(p<0.05). Generalizing the results of this research, it is possible to offer a few suggestions as follows. First, as the competition among the medical centers is more severe recently owing to medical center evaluation system, medical centers are practicing various Quality Improvement operation in all of medical services such as clinical performance and management performance, to reach the purpose of both cost-cutting and medical quality improvement. Thus in order to practice Quality Improvement operation more efficiently in medical centers, it is essential to nuke use of problem-solving methods and statistical members. This as the willingness of chief executives and positive attitude and recognition of organization members. This requires the installation of divisions in charge and disposition of persons in charge, not to speak of persistent training of Quality Improvement. Second, the divisions in charge of QI carry out Quality Improvement operation at the medical center level, and take the role of generalizing and adjusting QI performances of various departments. Owing to this role, the division in charge of QI is considered indispensable organization in the QI operation of medical centers along with medical QI committee, while it contributes to the government's goal of reducing quality level gaps among medical centers. Therefore it is necessary for government and QI organizations to give institutional support and resources for the sake of QI operation of medical centers, besides to supply systematic trainning and informations to the divisions and persons in charge of QI. Third, it is certain that disposition of persons in charge should be determined in view of the scale and the scope of QI operation in medical centers.

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An Empirical Analysis of the Effects of Startup' Activities of Preparatory Stage and Early Stage on Performance (창업기업의 준비 및 초기단계 활동들이 기업 성과에 미치는 영향에 관한 연구)

  • Yoon, Byeong seon;Seo, Young wook
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.11 no.4
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    • pp.1-15
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    • 2016
  • Startups in Korea are experiencing for themselves the laws of survival through competition in the local and international market, and are performing active business movements based on these. Korea's economic growth rate is 2.6% due to the slump in the domestic demand and reduced exports brought by the MERSC incident in 2015. The Korea Development Institute has estimated the economic growth rate in 2016 to be around 3.0%. South Korea's economy is facing the crisis of low-growth solidification due to the decrease in economic growth, and it is forecasted that growth without employment and polarization will worsen. Startups in the high-tech industrial generation of a particular field wherein the market environment is rapidly changing must maintain a competitive advantage with the capabilities and functions exclusive to them. It is very important that they maintain a competitive edge by utilizing the capabilities exclusive to startup companies. Likewise, the accumulation of resources is also crucial in determining the success of a startup business. In a poor local startup ecosystem, majority of the startup companies are performing their business activities while striving for survival, rather than success. About 80% are struggling to survive and are failing to overcome the "Death Valley" faced 3-5 years after establishing the company. Since majority of the startups fail to achieve results during the initial stages of foundation, the importance of research on business activities and achievement during the early stages of establishment is being raised. In accordance to this, this research has performed an actual analysis on how the activities of startups during their preparation phase and early stages affect their achievements. A survey was done on the CEOs or executives (people in a position to make decisions) of local small and medium-sized enterprises that are considered start-ups, and 203 valid data were collected and analyzed. Results showed that the discoveries and utilized activities necessary for the businesses of startups have a significant impact on their achievement through the entrepreneur resources and external partners' cooperation; additionally, the related implications were discussed.

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The Impact of Entrepreneurship on Corporate Performance: Focusing on the Effects of Technological Innovation and Marketing Competence (기업가정신과 기업성과간 관계에서 기술혁신성과 마케팅역량의 영향)

  • Jeon, In-oh
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.12 no.3
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    • pp.87-105
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    • 2017
  • This study investigates the effect of entrepreneurship on corporate performance highlighting the mediating role of technological innovation and the moderating role of marketing competence. By identifying the role of technological innovation and marketing competence within the relationship between the entrepreneurship and corporate's business performance, this study aims to improve SMBs' competence. Special attention was given to the fact that while there are some technology-based SMBs which have achieved positive outcomes through innovation, there are some other firms which have not been able to deliver expected outcomes despite of their technological competence. The data used in this study came from CEO or chief research executives of SMBs. Results of the data analysis show that the innovative sprit which is an important factor of entrepreneurship has an positive effect on technological performance, financial performance and non-financial performance. However, risk- taking tendency has an positive effect on technological performance but negative effects on financial and non- financial performance of the firms. This study also has examined the mediating effect of technological innovation on the relationship between entrepreneurship and corporate's performance and the result reveals that technological innovation plays a mediating role within the relationship. Specially, innovative spirit plays a full mediating role within the relationship between technological commercialization capacity and financial and non-financial performances of SMEs'. Also, risk taking tendency has a full mediating effect on the positive relationship between strategic planning capability and both financial and non-financial performance. Regarding the moderating role of marketing capability within the relationship between the entrepreneurship and the performance of the firms, results of data analysis shows as follows. Marketing professional capability plays a moderating role between risk taking tendency and performance of the firm and marketing structural capability plays a moderating role between innovative spirit and the performance of the firms. Based on these results, this study confirms that SMEs' business performance is effected by entrepreneurship. Innovative spirit plays a mediating role within the relationship entrepreneurship and business performance. However, Marketing capability has a partial moderating effect on the relationship between the entrepreneurship and the business performance.

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A Study on Hyangcheong and Jakcheong's Official Duties and Personnel Practices of Anbyeon of Hamgyeong Province in the 19th century - Focusing on an article of 'a list of Hyangcheong and Jakcheong's officials' - (19세기(世紀) 함경도(咸鏡道) 안변(安邊)의 향청(鄕廳)·작청(作廳) 직임(職任)과 인사관행(人事慣行) - '향청·작청 직임 명단' 문서를 중심으로 -)

  • Park, Kyoung ha
    • Journal of Korean Historical Folklife
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    • no.44
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    • pp.145-176
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    • 2014
  • This study analyzed official duties and personnel practices of Hyangcheong(鄕廳), administrative organization in which sajok(士族) participate this office, and Jakcheong(作廳), hyangree(鄕吏)'s office, of Anbyeon of Hamgyeong Province in the 19th century. Although there have beeen somewhat of case study of Gyeongsang, Honam, etc., study on Hamgyeong Province has been almost nonexistent because of the limitation of materials. Hence, this paper specifically examined Hyangcheong and Jakcheong's official duties and personnel practices through an article of 'a list of Hyangcheong and Jakcheong's officials' of Anbyeon, newly found, which is in the possession of this writer. Especially, this study virtually traced individual ststus and family by analyzing Hyangcheong and Jakcheong's 40-official duties and a list of 330-ofiicial duties for sixs years. And then by comparing it against Jokbo(族譜), I have grasped 19-Famlily of them. Executives of Hyangcheong could be grasped as they were status of Yangban(兩班), but members of Jakcheong were hardly identified because they were status of hyangree, thus most of them were not enscrolled in Jokbo. Hyangcheong and Jakcheong's official duties could be found by compare it with other area in Ehubgi(邑誌) Hamgyeong Province. the features of officiak duties are as in the following. On general administrative organization, Sajok's Hayngcheong, Jakcheong as general administrative organization and Jangcheong(將廳) as police work existed. As Pyeongando and Hamgyeongdo were border areas, Jangcheong was independent and led other institutions. However, in Anbyeon, Hojang(戶長) of Hayngcheong and Jakcheong divided dudies and commanded. Hojang'role was higher than any other areas, Because Hojang is in charge of Jangcheong's functions. Jakcheong was centrally operated by Hojang, Eebang(吏房), and Hyeongbang(刑房), so-called 'Samgonghyeong(三公兄)', Whereas Anbyeon was operated by Hojang, Eebang, Chunchong(千摠). In the general areas, While Juasu(座首) Byeolgam(別監), Executive of Hyangcheong, manages each warehouse(倉) where the nation's tax revenues are kept, In Anbyeon besides Joasu, Hyangso(鄕所). The principle of Hyangcheong and Jakcheong's personnel practices was one-period, but there were many consecutive terms, every other year terms, or tranference into other area. Police work was assumed by specific persons because it was relatively specialized job, However in case of Ghamsaek(監色) of each warehouse(倉), Hyangso(鄕所) of Hyangcheong or Hojang of Jakcheong had held plural offices, and was solely responsible it. On the overall features of its operation, Hyangcheong held plural offices, but rotation was made only within Hyangcheong. On the other hand, in the case of Jakcheong, Hojang, Eebang, and even Buriebang circulated their positions, but the other Hyangree rotated each Saek(色) and Guamguan of each warehouse(倉). This writer confirmed that unlike Gyeongsang and Hamgyeong, Hyangcheoung or duties of Hyangree were not handed from generation to generation by several families and, many families shared their work by circulating positions.

Suggestion of Community Design for the Efficiency of CPTED - Focused on Community Furniture - (범죄예방환경설계(CPTED)의 효율성 증대를 위한 커뮤니티디자인 제안 - 커뮤니티퍼니쳐를 중심으로 -)

  • Lee, Ho Sang
    • Korea Science and Art Forum
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    • v.29
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    • pp.305-318
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    • 2017
  • The need for recognizing the crime in the urban spaces as a social problem and finding out specific approaches such as the study of space design and various guidelines for crime prevention is increasing. In this regard, "Crime Prevention Through Environmental Design" (marked as "CPTED") is actively underway. Yeomri-dong Salt Way is the first place to which the Seoul Crime Prevention Design Project was appled. The business objective of improving the local environment has been implemented rationally through cooperation and voluntary participation between subject of the project executives and community members. Since its efficiency has been proven, the sites have been expanded since then and becomes a benchmarking example of each local government.This kind of problem solving effort has the same context in purpose and direction of the 'Village Art Project' which has been implemented since 2009 with the aim of promoting the culture of the underdeveloped area and encouraging the participation of the residents by introducing the public art. It is noteworthy that this trend is centered around the characteristics of community functions and values. The purpose of this study is to propose the application method of community furniture as a way to increase the efficiency of CPTED to improve the 'quality of life' of residents. To do this, we reviewed CPTED, community design, public art literature and prior research, and identified the problems and implications based on the site visit Yeomri-dong of Seoul and Gamcheon Village of Pusan which is the successful model of "Seoul Root out Crime by Design" and 'Maeulmisul Art Project' respectively. The common elements of the two case places identified in this study are as follows: First, the 'lives' of community residents found its place in the center through the activation of community by collaborative activities in addition to the physical composition of the environment. Second, community design and introduction of public art created a new space, and thereby many people came to visit the village and revitalize the local economy. Third, it strengthened the natural monitoring, the territoriality and control, and the activity increase among the CPTED factors. The psychological aspect of CPTED and the emotional function of public art are fused with the 'community furniture', thereby avoiding a vague or tremendous approach to the public space through a specific local context based on the way of thinking and emotion of local people and it will be possible to create an environment beneficial for all. In this way, the possibility and implication of the fusion of CPTED and public art are expected to be able to reduce the social cost through the construction of the crime prevention infrastructure such as expansion of the CPTED application space, and to suggest a plan to implement the visual amenity as a design strategy to regenerate city.

The Effects of Organization's Entrepreneurial Orientation on Creative Behavior: The Role of Knowledge Sharing Behavior and Leader-Member Exchange (조직의 창업지향성이 창의적 행동에 미치는 영향: 지식공유행동과 리더-구성원 교환관계의 역할)

  • Sang-Jun Lee;Jong-Keon Lee
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.18 no.2
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    • pp.157-169
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    • 2023
  • This study examined the effect of entrepreneurial orientation on creative behavior and the mediating effect of knowledge sharing behavior in the relationship between entrepreneurial orientation and creative behavior. In particular, this study examined the moderating effect of leader-member exchange (LMX) in the relationship between entrepreneurial orientation and creative behavior. In this study, after distributing 500 questionnaires to executives and employees working at small and medium-sized companies in Seoul and Gyeonggi-do, 259 questionnaires were used for hypothesis verification, excluding 38 unfaithful or missing responses. The analysis results are as follows. First, it was found that entrepreneurial orientation had a significant positive (+) effect on creative behavior. Second, it was found that entrepreneurial orientation had a significant positive (+) effect on knowledge sharing behavior. Third, knowledge sharing behavior was found to have a significant positive (+) effect on creative behavior. Fourth, knowledge sharing behavior was found to play a partial mediating role in the relationship between entrepreneurial orientation and creative behavior. Finally, it was found that LMX strengthened the positive (+) relationship between entrepreneurial orientation and creative behavior. The theoretical implications of this study are as follows. First, this study makes a theoretical contribution in that it revealed the mediating effect of knowledge-sharing behavior in the relationship between entrepreneurial orientation and creative behavior through empirical analysis of corporate members. Next, this study has theoretical implications in that it revealed that LMX strengthens the positive (+) relationship between entrepreneurial orientation and creative behavior. On the other hand, the practical implications of this study are as follows. First, companies need to find ways to strengthen the entrepreneurial orientation. Next, companies need to find ways to improve the quality of LMX between bosses and subordinates. Finally, this study discussed research limitations and future research directions.

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A study on The U.S.-Korean Trade Friction Prevention and Settlement in the Fields of Information and Telecommunication Industries (한미간(韓美間) 정보통신분야(情報通信分野) 통상마찰예방(通商摩擦豫防)과 해소방안(解消方案)에 관한 연구(硏究))

  • Jung, Jay-Young
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.13
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    • pp.869-895
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    • 2000
  • The US supports the Information and Communication (IC) industry as a strategic one to wield a complete power over the World Market. However, several other countries are also eager to have the support for the IC industry because the industry produces a high added value and has a significant effect on other industries. Korea is not an exception. Korea recently succeeded in the commercialization of CDMA for the first time in the world, after the successful development of TDX. Hence, it is highly likely to get tracked by the US. Although the IC industry is a specific sector of IT, there is a concern that there might be a trade friction between the US and Korea due to a possible competition. It will be very important to prepare a solution in advance so that Korea could prevent the friction and at the same time increase its share domestically and globally. It will be our important task to solve the problem with the minimum cost if the conflict arises unfortunately in the IT area. The parties that have a strong influence on the US trade policy are the think tank group and the IT-related interest group. Therefore, it would be important to have a close relationship with them. We found some implications by analyzing the case of Japan, which has experienced trade frictions with the US over the long period of time in the high tech industry. In order to get rid of those conflicts with the US, the Japanese did the following things : (1) The Japanese government developed supporting theories and also resorted to international support so that the world could support the Japanese theories. (2) Through continual dialogue with the US business people, the Japanese business people sought after solutions to share profits among the Japanese and the US both in the domestic and in the worldwide markets. They focused on lobbying activities to influence the US public opinion to support the Japanese. The specific implementation plan was first to open culture lobby toward opinion leaders who were leaders about the US opinion. The institution, Japan Society, were formed to deliver a high quality lobbying activities. The second plan is economic lobby. They have established Japanese Economic Institute at Washington. They provide information about Japan regularly or irregularly to the US government, research institution, universities, etc., that are interested in Japan. The main objective behind these activities though is to advertise the validity of Japanese policy. Japanese top executives, practical interest groups on international trade, are trying to justify their position by direct contact with the US policy makers. The third one is political lobby. Japan is very careful about this political lobby. It is doing its best not to give impression that Japan is trying to shape the US policy making. It is collecting a vast amount of information to make a correct judgment on situation. It is not tilted toward one political party or the other, and is rather developing a long-term network of people who understand and support the Japanese policy. The following implications were drawn from the experience of Japan. First, the Korean government should develop a long-term plan and execute it to improve the Korean image perceived by American people. Second, the Korean government should begin public relation activities toward the US elite group. It is inevitable to make an effort to advertise Korea to this elite group because this group leads public opinion in the USA. Third, the Korean government needs the development of a relevant policy to elevate the positive atmosphere for advertising toward the US. For example, we need information about to whom and how to about lobbying activities, personnel network who immediately respond to wrong articles about Korea in the US press, and lastly the most recent data bank of Korean support group inside the USA. Fourth, the Korean government should create an atmosphere to facilitate the advertising toward the US. Examples include provision of incentives in tax on the expenses for the advertising toward the US and provision of rewards to those who significantly contribute to the advertising activities. Fifth, the Korean government should perform the role of a bridge between Korean and the US business people. Sixth, the government should promptly analyze the policy of IT industry, a strategic area, and timely distribute information to industries in Korea. Since the Korean government is the only institution that has formal contact with the US government, it is highly likely to provide information of a high quality. The followings are some implications for business institutions. First, Korean business organization should carefully analyze and observe the business policy and managerial conditions of US companies. It is very important to do so because all the trade frictions arise at the business level. Second, it is also very important that the top management of Korean firms contact the opinion leaders of the US. Third, it is critically needed that Korean business people sent to the USA do their part for PR activities. Fourth, it is very important to advertise to American employees in Korean companies. If we cannot convince our American employees, it would be a lot harder to convince regular American. Therefore, it is very important to make the American employees the support group for Korean ways. Fifth, it should try to get much information as early as possible about the US firms policy in the IT area. It should give an enormous effort on early collection of information because by doing so it has more time to respond. Sixth, it should research on the PR cases of foreign enterprise or non-American companies inside the USA. The research needs to identify the success factors and the failure factors. Finally, the business firm will get more valuable information if it analyzes and responds to, according to each medium.

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The Changing Aspects of North Korea's Terror Crimes and Countermeasures : Focused on Power Conflict of High Ranking Officials after Kim Jong-IL Era (북한 테러범죄의 변화양상에 따른 대응방안 -김정일 정권 이후 고위층 권력 갈등을 중심으로)

  • Byoun, Chan-Ho;Kim, Eun-Jung
    • Korean Security Journal
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    • no.39
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    • pp.185-215
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    • 2014
  • Since North Korea has used terror crime as a means of unification under communism against South Korea, South Korea has been much damaged until now. And the occurrence possibility of terror crime by North Korean authority is now higher than any other time. The North Korean terror crimes of Kim Il Sung era had been committed by the dictator's instruction with the object of securing governing fund. However, looking at the terror crimes committed for decades during Kim Jung Il authority, it is revealed that these terror crimes are expressed as a criminal behavior because of the conflict to accomplish the power and economic advantage non powerful groups target. This study focused on the power conflict in various causes of terror crimes by applying George B. Vold(1958)'s theory which explained power conflict between groups became a factor of crime, and found the aspect by ages of terror crime behavior by North Korean authority and responding plan to future North Korean terror crime. North Korean authority high-ranking officials were the Labor Party focusing on Juche Idea for decades in Kim Il Sung time. Afterwards, high-ranking officials were formed focusing on military authorities following Military First Policy at the beginning of Kim Jung Il authority, rapid power change has been done for recent 10 years. To arrange the aspect by times of terror crime following this power change, alienated party executives following the support of positive military first authority by Kim Jung Il after 1995 could not object to forcible terror crime behavior of military authority, and 1st, 2nd Yeongpyeong maritime war which happened this time was propelled by military first authority to show the power of military authority. After 2006, conservative party union enforced censorship and inspection on the trade business and foreign currency-earning of military authority while executing drastic purge. The shooting on Keumkangsan tourists that happened this time was a forcible terror crime by military authority following the pressure of conservative party. After October, 2008, first military reign union executed the launch of Gwanmyungsung No.2 long-range missile, second nuclear test, Daechung marine war, and Cheonanham attacking terror in order to highlight the importance and role of military authority. After September 2010, new reign union went through severe competition between new military authority and new mainstream and new military authority at this time executed highly professionalized terror crime such as cyber/electronic terror unlike past military authority. After July 2012, ICBM test launch, third nuclear test, cyber terror on Cheongwadae homepage of new mainstream association was the intention of Km Jung Eun to display his ability and check and adjust the power of party/military/cabinet/ public security organ, and he can attempt the unexpected terror crime in the future. North Korean terror crime has continued since 1980s when Kim Jung Il's power succession was carried out, and the power aspect by times has rapidly changed since 1994 when Kim Il Sung died and the terror crime became intense following the power combat between high-ranking officials and power conflict for right robbery. Now South Korea should install the specialized department which synthesizes and analyzes the information on North Korean high-ranking officials and reinforce the comprehensive information-collecting system through the protection and management of North Korean defectors and secret agents in order to determine the cause of North Korean terror crime and respond to it. And South Korea should participate positively in the international collaboration related to North Korean terror and make direct efforts to attract the international agreement to build the international cooperation for the response to North Korean terror crime. Also, we should try more to arrange the realistic countermeasure against North Korean cyber/electronic terror which was more diversified with the expertise terror escaping from existing forcible terror through enactment/revision of law related to cyber terror crime, organizing relevant institute and budget, training professional manpower, and technical development.

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The Causes of Conflict and the Effect of Control Mechanisms on Conflict Resolution between Manufacturer and Supplier (제조-공급자간 갈등 원인과 거래조정 방식의 갈등관리 효과)

  • Rhee, Jin Hwa
    • Journal of Distribution Research
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    • v.17 no.4
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    • pp.55-80
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    • 2012
  • I. Introduction Developing the relationships between companies is very important issue to ensure a competitive advantage in today's business environment (Bleeke & Ernst 1991; Mohr & Spekman 1994; Powell 1990). Partnerships between companies are based on having same goals, pursuing mutual understanding, and having a professional level of interdependence. By having such a partnerships and cooperative efforts between companies, they will achieve efficiency and effectiveness of their business (Mohr and Spekman, 1994). However, it is difficult to expect these ideal results only in the B2B corporate transaction. According to agency theory which is the well-accepted theory in various fields of business strategy, organization, and marketing, the two independent companies have fundamentally different corporate purposes. Also there is a higher chance of developing opportunism and conflict due to natures of human(organization), such as self-interest, bounded rationality, risk aversion, and environment factor as imbalance of information (Eisenhardt 1989). That is, especially partnerships between principal(or buyer) and agent(or supplier) of companies within supply chain, the business contract itself will not provide competitive advantage. But managing partnership between companies is the key to success. Therefore, managing partnership between manufacturer and supplier, and finding causes of conflict are essential to improve B2B performance. In conclusion, based on prior researches and Agency theory, this study will clarify how business hazards cause conflicts on supply chain and then identify how developed conflicts have been managed by two control mechanisms. II. Research model III. Method In order to validate our research model, this study gathered questionnaires from small and medium sized enterprises(SMEs). In Korea, SMEs mean the firms whose employee is under 300 and capital is under 8 billion won(about 7.2 million dollar). We asked the manufacturer's perception about the relationship with the biggest supplier, and our key informants are denied to a person responsible for buying(ex)CEO, executives, managers of purchasing department, and so on). In detail, we contact by telephone to our initial sample(about 1,200 firms) and introduce our research motivation and send our questionnaires by e-mail, mail, and direct survey. Finally we received 361 data and eliminate 32 inappropriate questionnaires. We use 329 manufactures' data on analysis. The purpose of this study is to identify the anticipant role of business hazard (environmental dynamism, asset specificity) and investigate the moderating effect of control mechanism(formal control, social control) on conflict-performance relationship. To find out moderating effect of control methods, we need to compare the regression weight between low versus. high group(about level of exercised control methods). Therefore we choose the structural equation modeling method that is proper to do multi-group analysis. The data analysis is performed by AMOS 17.0 software, and model fits are good statically (CMIN/DF=1.982, p<.000, CFI=.936, IFI=.937, RMSEA=.056). IV. Result V. Discussion Results show that the higher environmental dynamism and asset specificity(on particular supplier) buyer(manufacturer) has, the more B2B conflict exists. And this conflict affect relationship quality and financial outcomes negatively. In addition, social control and formal control could weaken the negative effect of conflict on relationship quality significantly. However, unlikely to assure conflict resolution effect of control mechanisms on relationship quality, financial outcomes are changed by neither social control nor formal control. We could explain this results with the characteristics of our sample, SMEs(Small and Medium sized Enterprises). Financial outcomes of these SMEs(manufacturer or principal) are affected by their customer(usually major company) more easily than their supplier(or agent). And, in recent few years, most of companies have suffered from financial problems because of global economic recession. It means that it is hard to evaluate the contribution of supplier(agent). Therefore we also support the suggestion of Gladstein(1984), Poppo & Zenger(2002) that relational performance variable can capture the focal outcomes of relationship(exchange) better than financial performance variable. This study has some implications that it tests the sources of conflict and investigates the effect of resolution methods of B2B conflict empirically. And, especially, it finds out the significant moderating effect of formal control which past B2B management studies have ignored in Korea.

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