• Journal of Distribution Science
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• v.10 no.2
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• pp.29-41
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• 2012

This paper undertakes a conceptual review of transaction cost to broaden the understanding of the transaction cost analysis (TCA) approach. More than 40 years have passed since Coase's fundamental insight that transaction, coordination, and contracting costs must be considered explicitly in explaining the extent of vertical integration. Coase (1937) forced economists to identify previously neglected constraints on the trading process to foster efficient intrafirm, rather than interfirm, transactions. The transaction cost approach to economic organization study regards transactions as the basic units of analysis and holds that understanding transaction cost economy is central to organizational study. The approach applies to determining efficient boundaries, as between firms and markets, and to internal transaction organization, including employment relations design. TCA, developed principally by Oliver Williamson (1975,1979,1981a) blends institutional economics, organizational theory, and contract law. Further progress in transaction costs research awaits the identification of critical dimensions in which transaction costs differ and an examination of the economizing properties of alternative institutional modes for organizing transactions. The crucial investment distinction is: To what degree are transaction-specific (non-marketable) expenses incurred? Unspecialized items pose few hazards, since buyers can turn toalternative sources, and suppliers can sell output intended for one order to other buyers. Non-marketability problems arise when specific parties' identities have important cost-bearing consequences. Transactions of this kind are labeled idiosyncratic. The summarized results of the review are as follows. First, firms' distribution decisions often prompt examination of the make-or-buy question: Should a marketing activity be performed within the organization by company employees or contracted to an external agent? Second, manufacturers introducing an industrial product to a foreign market face a difficult decision. Should the product be marketed primarily by captive agents (the company sales force and distribution division) or independent intermediaries (outside sales agents and distribution)? Third, the authors develop a theoretical extension to the basic transaction cost model by combining insights from various theories with the TCA approach. Fourth, other such extensions are likely required for the general model to be applied to different channel situations. It is naive to assume the basic model appliesacross markedly different channel contexts without modifications and extensions. Although this study contributes to scholastic research, it is limited by several factors. First, the theoretical perspective of TCA has attracted considerable recent interest in the area of marketing channels. The analysis aims to match the properties of efficient governance structures with the attributes of the transaction. Second, empirical evidence about TCA's basic propositions is sketchy. Apart from Anderson's (1985) study of the vertical integration of the selling function and John's (1984) study of opportunism by franchised dealers, virtually no marketing studies involving the constructs implicated in the analysis have been reported. We hope, therefore, that further research will clarify distinctions between the different aspects of specific assets. Another important line of future research is the integration of efficiency-oriented TCA with organizational approaches that emphasize specific assets' conceptual definition and industry structure. Finally, research of transaction costs, uncertainty, opportunism, and switching costs is critical to future study.

• Land and Housing Review
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• v.12 no.3
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• pp.11-26
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• 2021

With the increasing demand for office space, there have been questions on how office rent distribution produces a change in the urban spatial structure in Seoul. The purpose of this paper is to investigate a relative price gradient and to present a time-series model that can quantitatively explain the dynamic changes in the urban spatial structure. The analysis was dealt with office rent above 3,306 m² for the past 10 years from 1Q 2010 to 4Q 2019 within Seoul. A modified repeat sales model was employed. The main findings are briefly summarized as follows. First, according to the estimates of the office price gradient in the three major urban centers of Seoul, the CBD remained at a certain level with little change, while those in the GBD and the YBD continued to increase. This result reveals that the urban form of Seoul has shifted from monocentric to polycentric. This shows that the spatial distribution of companies has gradually accelerated decentralized concentration implying that the business networks have become significant. Second, contrary to small and medium-sized office buildings that have undertaken no change in the gradient, large office buildings have seen an increase in the gradient. The relative price gradients in small and medium-sized buildings were inversely proportional among the CBD, the GBD, and the YBD, implying their heterogeneous submarkets by office rent movements. Presumably, those differences in the submarkets were attributed to investment attraction, industrial competition, and the credit and preference of tenants. The findings are consistent with the hierarchical system identified in the Seoul 2030 Plan as well as the literature about Seoul's urban form. This research claims that the proposed method, based on the modified repeat sales model, is useful in understanding temporal dynamic changes. Moreover, the findings can provide implications for urban growth strategies under rapidly changing market conditions.

• Journal of Distribution Science
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• v.11 no.5
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• pp.43-53
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• 2013

Purpose - The purpose of this study is to analyze the effectiveness of customer relationship management (CRM) support policies for facilitating traditional markets, especially with respect to customer acquisition and maintenance, and to investigate the factors affecting CRM. Research design, data, and methodology - We analyzed the CRM efficiency of traditional markets in 16 cities and provinces in Korea on the basis of DEA analysis and Malmquist productivity analysis. The DEA model calculates a ratio of the weighted mean of various inputs to the weighted mean of various outputs and measures the efficiency of a specific decision making unit (DMU), which is compared to the reference group that has a similar input-output structure. The input variables are coupon, event, parcel service, premiums, while is the number of customers per day. Further, through regression analysis, we analyzed CRM-related factors affecting traditional markets' customer appeal and revenue growth. Results - We obtained the results of the efficiency of traditional markets in 16 provinces. The traditional markets in Seoul, Busan, and Jeju were found to be efficient in a model CCR that used the number of customers per day as an output variable, while Chungbuk, Jeonbuk Province, and According to the results of the DEA analysis and Malmquist productivity analysis, large cities such as Seoul, Busan, and Jeju showed efficiency in CRM-related investment businesses in traditional markets for attracting customers. The Malmquist analysis results confirmed that the productivity of traditional markets increased from 2008 to 2010. The results of the regression analysis revealed that the "customer acquisition/maintenance factor" and the "offering of customer convenience facility factor" were significant to the daily average number of customers, which is a dependent variable. The results of the test with the mediating variable, "number of customers," and the final dependent variable, "sales revenue," were rejected. However, the variable "customer acquisition /maintenance" was found to affect sales revenue positively. Conclusions - It is necessary to enhance the business not only for promotional activities to attract customers, but also to strengthen customer relationships among CRM businesses, such as through the management of key customers. The regression analysis results showed that CRM businesses have yet to produce an increase in sales revenues in traditional markets. Therefore, to help customers who visit traditional markets to keep buying products, it is necessary to prepare various investment methods and provide support to improve "customer loyalty." This study has a limitation in terms of CRM-related statistics. Therefore, in the future, it is necessary to conduct a survey of customers who use traditional markets to analyze the markets by type and size as well as the CRM-related factors. Based on the analysis, we will try to perform a variety of statistical analyses, including structural equations.

• Journal of Distribution Science
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• v.14 no.12
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• pp.141-151
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• 2016

Purpose - Salesperson perceptions of the fairness and accuracy of a performance evaluation system were examined by managerial and professional employees of large organization. The performance evaluation process is central to many personal decisions such as attitude for job and sales performance. This study investigates the relationship between perceived evaluation fairness, job satisfaction, organizational commitment, and sales performance. The main purpose of this study is to develop and empirically test a comprehensive model of salespersons' perceived evaluation fairness on sales performance. For this purpose, we identified the structural relationship between perceived evaluation fairness, job satisfaction, organizational commitment, and sales performance. Also we investigate the mediating effects on job satisfaction and organizational commitment between perceived evaluation fairness and sales performance. Research design, data, and methodology - To empirically test these relationships, data were collected by in-depth interviews from sales managers and questionnaire surveys from 300 salespersons who work for sales area (credit card company, insurance company). Demographically, the overall sample was 91.6% female, 77.9% 30s and 40s, and 34% college educated, with an average tenure with their present organizations of 4 years. The questionnaire was composed of total 20 items dealing with frequency, quality, and consequences of perceived evaluation fairness, job satisfaction, organizational commitment, and sales performance. To test the research hypotheses, collected data analyzed by confirmatory factor analysis (CFA) and structure equation model (SEM). Results - Through extensive and rigorous literature review process of related literature(Perceived evaluation fairness, Job satisfaction, Organizational commitment, Sales performance), research model and research hypothesis was set up. This study obtains the following research results. First, perceived evaluation fairness has a positive effect on job satisfaction, whereas the effects of perceived evaluation fairness on organizational commitment and sales performance did not show statistically significant result. Second, job satisfaction and organizational commitment have complete mediating roles to the relationship between perceived evaluation fairness and organizational commitment, and relationship between perceived evaluation fairness and sales performance. Conclusions - Based on the results, salespersons' perceived evaluation fairness is one of the key independent variable for making high job satisfaction, organizational commitment, and sales performance. Finally the theoretical, managerial implication and research limitations are mentioned in the discussion.

• Journal of Distribution Science
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• v.14 no.6
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• pp.107-118
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• 2016

Purpose - Over 90% of Domestic logistics industry is small enterprise and they are experiencing growth stagnation due to price-based competition structure rather than constructing logistics service of high added value. In order to get over this situation and pursue the development of logistics industry, strengthening its competitiveness, through inter-enterprise cooperative network build-up, would be a key alternative. Therefore, in this study, an index for measuring inter-enterprise cooperation level of Joint logistics business will be developed as a typical collaborative business model in logistics industry. Moreover, a strengthening competitiveness method suggests a developmental step and a key management index to mature in logistics industry. Research Design, Data, Methodology - This study is an index development research for measuring inter-enterprise cooperation level of logistics industry. Such a level was measured by performing a survey by targeting enterprises that participated in Joint logistics business. The targeting enterprises are typical cooperative models in logistics industry. Measurement items were developed which were based on the presented items in existing research. Question items were composed of selection type questions as answering Yes/No. They measures implementation status of corporate activity and detailed activity items measuring qualitative level. Total samples were based on 116 enterprise samples including 90 logistics enterprises and 26 shippers. In addition, by evaluating the importance for Joint logistics business recognition with personnel working level, the weight of measuring variable was extracted. This study has built an assessment tools (LPCI) on Joint logistics business cooperation level in a situation where there are no previous studies on joint logistics business, this study is meaningful for other studies. Results - As a result of analyzing LPCI presented in this study, the score of logistics enterprise was represented as 59.9 points based on full score of 100 points and that of shippers as 47.2 points and cooperation level among enterprises participated in Joint logistics business was revealed to be very low. In particular, as a result of measuring the importance between logistics enterprise and shippers, the difference by each measurement standard was represented among those enterprises. This difference is considered to be a key factor that cooperative operational conformity between logistics enterprises and shippers is represented to be low. Conclusions - As most joint logistics business, being promoted at present, is sharing facility and information with joint logistics business, it is hard to find such a joint logistics business in reality based on cooperative business model in main cooperation agents. Therefore, competitiveness of logistics industry could be strengthened by promoting joint logistics business based on their mutual cooperation among enterprises. In other words, it is to secure sustainable competitiveness of joint logistics business together with creation of new market by inter-enterprise cooperation based on integration of basic logistics business.

• Journal of Distribution Science
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• v.13 no.6
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• pp.105-118
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• 2015

Purpose - Currently, strengthening small and medium-sized enterprises (SME) in terms of competitiveness is a key economic issue. However, the problem is that many SMEs lack the internal competence required to cope with a rapidly changing market structure. Such problems can act as an obstacle to economic development, yet most SMEs in Korea are dealing with this problem today. A company's source of competitive advantage is changing from quantity to quality, facility to knowledge, and hardwork to creativity. Under such circumstances, a company should place learning and sharing of knowledge and continuously creating new knowledge as its priority. This study aims to identify the effect of a chief executive officer's (CEO) compassion and forgiveness - positive factors in organizational emotion - on learning organization activities and organizational performance, through a theoretical comparison. Research design, data, and methodology - For this study, SMEs based in Daejeon and Chungcheong area were selected. To secure credibility of the data, the subjects were selected among those who have been working at the business for six months or longer. The survey was conducted for 30 days from March 5, 2015 to April 5, 2015. Both offline and online surveys were conducted. Fifty companies were chosen and 700 questionnaires were distributed, with 506 used for analysis. Fifty subject companies (25 from Daejeon, 10 from Chungnam, 10 from Chungbuk, and five from Sejong) were selected and the objective, target, and survey content were explained to a manager at each company either face-to-face or on the phone. Of the total of 700 questionnaires distributed via mail or e-mail, 78.6% or 550 copies were returned. Excluding 44 insufficient questionnaires, the remainder, 506 questionnaires, were used for analysis. Results - This study analyzed how the CEO's compassion and forgiveness affects learning organization activities and organizational performance. First, compassion of the CEO at the SMEs directly affected the learning organization activities and indirectly affected the organizational performance. Second, forgiveness of the CEO at the SMEs did not affect the learning organization activities and organizational performance directly or indirectly. Conclusions - The study conclusions are as follows. First, CEO compassionate behavior at the SMEs was a significant variable that directly and indirectly affected learning organization activities and organizational performance. Therefore, the CEO of an SME can create a positive organizational atmosphere through compassionate behaviors in the organization. Second, the forgiving behavior of the CEO did not have direct or indirect effects on learning organization activities and organizational performance. However, the reason for a CEO to continue his or her forgiving behavior is because it strengthens employee resilience, commitment, and self-efficacy to protect the organization from negative influences such as layoffs, risks, and wrongdoings. The action of forgiveness does not have direct or indirect effects. However, the CEO shall continue such behavior to strengthen members' physiological resilience, commitment, and self - effectiveness, and to protect the organization from risks including layoff and external negative factors.

• Journal of Distribution Science
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• v.13 no.12
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• pp.73-84
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• 2015

Purpose - Various social issues have arisen since the beginning of the 21st century therefore, enterprises that disregarded social issues have become unsustainable, and social enterprises have appeared to address these issues. A social enterprise is a social mission-focused organization that uses a market-based strategy and has a vulnerable business structure. To be self-sustainable, a social enterprise should make consumers aware of the value that it provides and secure its profitability through consumer consumption. From this perspective, this study investigates the relationship between perceived value (utilitarian and hedonic) and loyalty, and examines how memory and attitudes play mediating roles between perceived value and loyalty. For these purposes, the author developed a structural model consisting of several variables. In this model, perceived value, which was utilitarian and hedonic, was proposed to affect the memory and attitudes toward social enterprise products, thus increasing loyalty. Therefore, memory and attitudes were proposed as core mediating variables between perceived value and loyalty. Research design, data, and methodology - To analyze the proposed model, data were collected from 582 respondents and analyzed using SPSS 21.0 and AMOS 21.0. To test unidimensionality and the nomological validity of the measures of each construct, we employed a scale refinement procedure. The results of the reliability test with Cronbach's α and confirmatory factor analysis warranted the unidimensionality of the measures for each construct. In addition, the nomological validity of the measures was warranted from the results of the correlation analysis. The result of the overall model analysis demonstrated a good fit (χ²=529.881, df=144, χ²/df=3.680, p-value=0.000, GFI=0.905, NFI=0.948, CFI=0.961, RMR=0.036, RMSEA=0.068). Results - The findings are summarized as follows. First, the hedonic and utilitarian value of social enterprise products had positive effects on memory and attitudes. Second, the hedonic value of social enterprise products more strongly affects memory and attitudes than utilitarian value. Third, memory and attitudes had positive effects on loyalty. Lastly, memory had a stronger effect on loyalty than attitudes. Conclusions - The purchase rate of social enterprises' products increases only if the products are included in the "information search" and "alternative evaluation" processes in consumers' purchase decision-making processes. Therefore, a social enterprise must actively promote the fact that it pursues a social value, and shares both the hedonic and utilitarian values of its products. Accordingly, because hedonic value has a more significant impact on a company and attitudes, a social enterprise should develop hedonic values for product consumption, thereby leading consumers who care about value consumption to purchase its products. Moreover, a social enterprise must maintain good memories and attitudes for consumers because memory does not change over time, although attitude does. The limitations of this study and suggestions for future research are as follows. This study viewed "consumer loyalty" as the success factor of social enterprises, thereby considers an "increase in sales" as the success factor. Therefore, in future studies, diverse factors, including social contribution and word-of-mouth intention, should be regarded. In addition, future studies need to thoroughly review and make assurances about the relationship between memory and attitude.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.8 no.1
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• pp.127-136
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• 2013

In 2013, the small retailer organized support service, which commenced in 2009, has been expanding its place in the policy by transforming into a small retailer cooperating support service. This support service supports two main sides. One of them is strengthening the financial aspects of the scale by organizing the small retailers in order to make the distribution efficient. The second is improving the management and enhancing the efficiency through visitation education. This research focuses on studying the effects of the visitation education which is one of the two aspects of small retailers support service. Empirical analysis on the effects of the visitation education's quality on the loyalty of support service and business performance was performed in detail by dividing the structure of the companies into chain form and combined form of small retailers. According to the results of the analysis, the visitation education's quality positively affected the support service's loyalty without any restrictions on the structures of the retailers. However in the business performances, the visitation education's quality only showed positive effects on the combined form of small retailers. Therefore, it is implied that in order to continuously receive support program by increasing the loyalty of the retailers, the quality of the visitation education must be increased and the retailer support service need to be considering the structure of the companies in order to improve small retailer's business performance.

• The Journal of the Korea Contents Association
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• v.13 no.12
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• pp.638-649
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• 2013

This study focuses on analyzing the trend of Korean movies and the issues caused by industrialization and the alternatives. The results are as follows: first, there does not exist distinctive genre movie as most of the movie producers concentrate on thoughtless genre fusion of movie, simply hoping for box office success. Second, Giant companies that has large amounts of money and distributors tend to monopolize production, distribution, and running of movie. Consequently, the development of diversity and artistry is absolutely impeded. Third, the structure of Korean movie industry make some well-known movie stars survive the film world and staff members and actors except them face economic difficulty. The solution plans for the problems mentioned above can be drawn like this; first, genre film with distinctive features should be developed. Second, the monopolistic structure of the screen should be changed. Legal organizations are required to redesign the system of unfair Korean film industry. Third, it is suggested that quantitative expansion of special theaters of diversity film be urgently needed. Fourth, appearance fees given to popular movie stars, actors, and staff members have to be provided in a balanced way. Fifth, the way for revitalization of film production should be found through the legal examination of fund for film development. Last but not least, the profit from the additional film market ought to be made.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.4
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• pp.708-720
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• 2012

The main aim of paper is to analyse relationships of objects, methods and main agents for the sustainable growth of community business (CB). Since the 1990s, Korea central-local governments have carried out a variety of policies to revitalize the rural economy, but many policies did not work effectively. The main reason for this is that those policies were simply focused on construct the hardware-based infrastructure without considerations of community capabilities. Recently, to overcome these problems, various kinds of community business policies are carried out across the country. Therefore, to avoid previous problems, the concrete and thorough analysis on the current CB has to be required. To do this analysis, four case studies on Sungmisan Village (in Mapo-Gu, Seoul) were taken and analysed in this paper. Results for this are as follows; Firstly, for the sustained growth of CB, it has to be required that the needs and demands of communities and residents are reflected. In the case of Sungmisan CB, residents were relatively satisfied with their community products, even though tastes and prices of those products were not very attractive. The reason for this is that those products were created by needs of local people. In this process, a market within the village was created and the basis of the management was established. Secondly, in order to secure a stable profit's structure that is necessary at the early stage of business settlement, creating related networks with Sungmisan CB is necessary. The CB established a stable profit structure by using mutual commodities. In particular, they linked closely and mutually so that visitors can buy their commodities. Lastly, for the sustainable management of the CB a common target local people should be set up. Furthermore, a system for income distribution has to be needed for protecting and solving potential conflicts.