Organizational Factors Facilitating the Internationalization of Korean Franchising Companies (해외진출 국내 프랜차이즈기업의 조직특성)
- Lim, Young-Kun;Lee, Dong-Whuy;Kim, Hee-Jung
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- Journal of Global Scholars of Marketing Science
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- v.19 no.2
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- pp.40-52
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- 2009
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Franchising is one of the fastest growing types of business. It is already popular and well-known in the U.S., and has been growing in many other countries including Korea. Furthermore, many Korean franchising companies have expanded their business overseas actively. According to the data by the Ministry of Industry and Resource, 82 companies out of a sample of 500 franchising companies are already operating in many foreign countries and 48% of them have started their foreign business since 2006. This clearly indicates the fast growing current trend of foreign operation by Korean franchising companies. In spite of the fast growing trend of foreign expansion in the industry, academic research on internationalization of franchising companies is extremely difficult to find. Accordingly, academic research on the issue is necessary and urgent in Korea. Among the various research questions on internationalization of franchising business, this study intends to investigate the difference in organizational factors between the franchising companies doing foreign operation and those doing business only domestically. More specifically, this research has the following purposes. First, considering the lack of theoretical basis of previous studies, resource-based theory and agency theory are employed as the theoretical bases. Second, this study explains the difference in internationalization based on organizational factors such as company size, history and growth rate. Third, the five hypotheses regarding the difference in organizational factors are presented and tested empirically, which is the first attempt in the area of this topic. Finally, the study attempts to clarify the conflicting implications among theories regarding some organizational factos such as growth rate. As the theoretical background, resource-based theory and agency theory are discussed. According to resource-based theory, a firm can grow continuously when it has competence and resource, and also the ability to develop them. The competence and resource can include capital, human resource, management skill, market information, ability to manage risk, etc. Meanwhile, agency theory views the relationship between franchisor and franchisee as an agency relationship. In agency theory, bonding capability and monitoring capability are the two key factors which promote internationalization of franchising companies. Based on the two theories, a conceptual model is designed. The model consists of two groups of variables. One is organizational factors including size, history, growth rate, price bonding and geographic dispersion. The other is whether a franchising company is operating overseas or not. We developed the following five research hypotheses basically describing the relationship between organizational factors and internationalization of franchising companies. H1: The size of franchising companies operating overseas is larger than that of franchising companies operating domestically. H2: The history of franchising companies operating overseas is longer than that of franchising companies operating domestically. H3: The growth rate of franchising companies operating overseas is higher than that of franchising companies operating domestically. H4: The price bonding of franchising companies operating overseas is higher than that of franchising companies operating domestically. H5: The geographic dispersion of franchising companies operating overseas is wider than that of franchising companies operating domestically. Data for the analyses are obtained from 2005 Korea Franchise Survey data co-generated by Ministry of Industry and Resource, GS1 Korea, and Korea Franchise Association. Out of 2,804 population companies, 2,489 companies are excluded for various reasons and 315 companies are selected as the final sample. Prior to hypotheses tests, validity and reliability of the measures of size, history, growth rate and price bonding are examined for further analyses. Geographic dispersion is not validated since it is measured using nominal data. A series of independent sample T-tests is used to find out whether there exists any significant difference between the companies internationalized and those operating only domestically for each organizational factor. Among the five factors, size and geographic dispersion show significant difference, growth rate and price bonding do not reveal any difference and, finally, history factor shows conflicting results in the difference depending on how to measure it.
shows the summary statistics for hypotheses testing. In conclusion, the results show that the size and history, which are the key variables in resource-based theory, have a significant relationship with internationalization and that geographic area, which belongs to agency theory, also has a strong relationship with internationalization. The results support the findings of extant research and, therefore, prove the usefulness of resource-based theory and agency theory in explaining internationalization of franchising companies. However, growth rate and price-bonding do not show a clear difference between the two types of companies. Accordingly, these two factors need further attention in the future research. Although this study shows meaningful findings theoretically and practically, it has several limitations. First, only organizational factors are considered even if there are various environmental factors influencing franchising firm's internationalization. Second, only being internationalized or not is considered. That is, modes of entry and the size of foreign operations are not included in the study. Third, internationalization strategy is often determined based on the desire for business expansion and higher profitability and egoistical reasons of the CEOs. However, this type of factors belonging to behavioral science is not discussed in the study. Finally, organizational ecology perspective is usefully applicable in explaining the survival and performance of internationally operating companies. Accordingly, research propositions based on this perspective need to be developed and tested.
The Differences in Strategic Behaviors and Economic Performances Between Serial and Novice Entrepreneurs (연쇄창업의 행태와 성과에 대한 실증연구: ICT 창업초기 벤처기업을 대상으로)
- Jo, Yuri
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- Asia-Pacific Journal of Business Venturing and Entrepreneurship
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- v.11 no.3
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- pp.17-25
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- 2016
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This study aims to empirically examine serial entrepreneurship in Korea. Using the ICT startups survey data, I compare serial entrepreneurs with their novice counterparts in terms of business behaviors and performances. I found that serial entrepreneurs are more likely than novice ones to co-found a business with other entrepreneurs, enter a market with relatively large assets and expand their business into overseas market. They tend to put more importance on large-scale production and expansion strategy than first-time entrepreneurs. They are more likely to cooperate with suppliers and customers but less likely with the governments. From their experience of founding and operating businesses, the findings suggest that serial entrepeneurs are more market-oriented and more capable of managing internal human relations and external network of supply chain. Consequently, serial entrepreneurs show stronger early financial performance than novice entrepreneurs especially when they team up to found a business.
TRIZ-based Improvement of Glass Thermal Deformation in OLED Deposition Process (트리즈 기반 OLED 증착 공정의 글래스 열 변형 개선)
- Lee, Woo-Sung;Choi, Jin Young
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- Journal of Korean Society of Industrial and Systems Engineering
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- v.40 no.1
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- pp.114-123
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- 2017
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The global small and mid-sized display market is changing from thin film transistor-liquid crystal display to organic light emitting diode (OLED). Reflecting these market conditions, the domestic and overseas display panel industry is making great effort to innovate OLED technology and incease productivity. However, current OLED production technology has not been able to satisfy the quality requirement levels by customers, as the market demand for OLED is becoming more and more diversified. In addition, as OLED panel production technology levels to satisfy customers' requirement become higher, product quality problems are persistently generated in OLED deposition process. These problems not only decrease the production yield but also cause a second problem of deteriorating productivity. Based on these observations, in this study, we suggest TRIZ-based improvement of defects caused by glass pixel position deformation, which is one of quality deterioration problems in small and medium OLED deposition process. Specifically, we derive various factors affecting the glass pixel position shift by using cause and effect diagram and identify radical reasons by using XY-matrix. As a result, it is confirmed that glass heat distortion due to the high temperature of the OLED deposition process is the most influential factor in the glass pixel position shift. In order to solve the identified factors, we analyzed the cause and mechanism of glass thermal deformation. We suggest an efficient method to minimize glass thermal deformation by applying the improvement plan of facilities using contradiction matrix in TRIZ. We show that the suggested method can decrease the glass temperature change by about 23% through an experiment.
Prospect of FTA and Trade of Agricultural Products between Korea and China (한.중 FTA 추진에 따른 농산물교역의 과제와 대응방안)
- Bae, Ki-Hyung;Cho, Sung-Je
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- International Commerce and Information Review
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- v.12 no.3
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- pp.167-195
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- 2010
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The global financial crisis, the instability of the global economy since the beginning of the growing economic interests of the countries to adjust to establish a new economic system was set up on occasion. Meanwhile, standing in the international trade environment, multilateral system of international trade for the country as the cumulative fatigue of open markets and trade liberalization as an alternative to lead the free trade agreements between countries. Currently in Korea and China, in addition to the geographical proximity in all areas, including economic exchanges and mutually dependent relationship that is deepening the world's No. 1 exporter in China and overseas investors have become partners. FTA with China by promoting the growth of emerging economies in the Chinese market by securing a stable economic growth of China as a driver of economic growth in the country to utilize the plan is being promoted from. This study is currently being promoted, in a discussion of the FTA's agricultural trade measures to address the challenges and poems. Agricultural trade with other goods to be different from the specificity of the discussion of market opening and liberalization of trade has been recognized in the main essentially nothing. We promote an FTA, according to one review and discuss the background and trends of the agricultural trade in a market, through the analysis of the status and trends and present problems for future bilateral trade negotiations with Korea for agricultural markets and propose countermeasures for. Agricultural trade, during a discussion of the FTA is essentially nothing in the review is expected to expand the bilateral trade in agricultural products, while protecting its agricultural markets to be trying to policy implications.
An Empirical Study on Existence of Arbitrage Opportunities in the KOSPI 200 Futures Market (KOSPI 200 주가지수선물시장에서의 차익거래에 관한 실증연구)
- Rhieu, Sang-Yup;Kim, Jae-Mahn
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- Korean Business Review
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- v.16
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- pp.145-168
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- 2003
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This study is mainly aimed at analyzing the influence of the divergency(mispricing) between KOSPI 200 theoretical prices and its real prices of KOSPI 200 spot index, considering the existence of arbitrage opportunity from the mispricing. The data in this study are the daily prices of 1262 days, from 3 May 1996 to 14 December 2000. The results of our empirical study represent that the real prices in KOSPI 200 Stock Index Futures are continuously undervalued relative to their corresponding theoretical prices. Our study reconfirms the results from previous studies conducted at the domestic and overseas markets. We conclude that the undervaluation, especially in the market opening period, could come from fear of investors, whose experiences in the stock index futures market are limited, chiefly because of loss and uncertainty of prediction toward interest rates and dividends. Our study also represents that KOSPI 200 index shows more volatilities during days with mispricing relative to days without mispricing.
A Study of the Design Improvement Measure for the Globalization of Domestic Online Shopping Malls (국내 온라인 쇼핑몰의 글로벌화를 위한 디자인 개선방안 연구)
- Choi, Yun-Hee;Jo, Seong-Hwan
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- The Journal of the Korea Contents Association
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- v.15 no.12
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- pp.73-80
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- 2015
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Starting the popularity of Korean dramas exported to China in 1996, the Korean wave started around the world market. Afterwards, as the Korean culture itself as well as dramas rapidly emerged as contents of the Korean market, the foreign direct sale consumers who want to buy Korean goods directly online are increasing at an alarming rate. This study each selected 4 domestic shopping malls and 4 foreign famous shopping malls which were conducting a global marketing currently and compared/researched them in the design aspect in order to apprehend if domestic online shopping malls were properly meeting the consumer environment of the foreign market. As a result, it was revealed that domestic online shopping malls conducting the global marketing could not fully understand the internet environment by countries and were going through a limit of the information delivery by SMS, and could not use the visual signs actively which were useful to the meaning delivery. Accordingly, this thesis suggested a plan to actively utilize the variable element considering various screens to the design, plan to efficiently design the text for solving the language problem by countries, and plan to design using the developing IT technology as a solution to those problems.
Emerging Digital Technology as a Window of Opportunity and Technological Leapfrogging: Catch-up in Digital TV by the Korean Firms
- Lee, Geun;Lim, Chai-Sung;Song, Wi-Chin
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- Proceedings of the Technology Innovation Conference
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- 2004.02a
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- pp.288-315
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- 2004
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This paper has examined the leapfrogging thesis with the case of catch-up in digital TV by the Korean firms. Despite the disadvantages implied by the technological regime of digital TV and the risks facing early entrants in trajectory choice and initial market formation, the Korean firms had achieved a 'path-creating catch-up' in the sense they chose a different path from the Japanese forerunning firms. As they have been closely watching the technological trends and the standard setting process, there was less risk of choosing the right or wrong technological trajectory. Also, despite the lack of sufficient capability and core knowledge base, the Korean firms had some complementary asset, such as the experience of producing analogue TV, and were able to develop the prototype digital TV and the ASIC chips, given the accesses to the foreign knowledge via overseas R&D posts and acquisition of a foreign company. To secure the initial market size, the Korean targeted the US market from the beginning, and their sources for competitive advantages were the speedy setting up the production system for mass production of products at the initial stage. The initial failure of the Japanese firms and the success of the Korean firms do suggest that the period of paradigm shift, like this toward digital technology, can serve as a window of opportunity for late-comers while penalizing the forerunner.
Benchmarking of Strategic Performance of Global Top Construction Firms (사업구조 전략 분석을 통한 세계 선진기업 선정 및 특성분석)
- Woo, Jung-Suk;Jang, Hyoun-Seung;Choi, Seok-In;Park, Chan-Sik
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- Korean Journal of Construction Engineering and Management
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- v.10 no.3
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- pp.122-129
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- 2009
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Strategic planning is an essential function of senior management in any business firm. Planning involves the firm's behavior in an competitive market and adaptation of the company's resources towards the selected market strategy. This study presents a methodological procedure for strategic planning in global top-tier construction firms. This procedure consists of the following stages. First, analyzed growth of revenue in which weight of total construction firms' revenue shown in Global Top 225 Contractors(ENR). Second, analyzed specialty of construction products. The products are General Building, Power, Water Supply, Industrial/Petroleum Process, and Transportation. Third, analyzed business the portfolio plan. The business portfolio plan includes both local/overseas market and specification/diversification of construction products. It affects the subsequent choice of a benchmarking for development of each construction company. The choice of the benchmarking firm, among several available alternatives, should follow a careful analysis of the characteristics and benefits inherent in the implementation of each.
Strategies for the Promotion of Geographic Information System Industries in the Ubiquitous Computing Age (유비쿼터스 시대의 GIS산업 발전전략)
- Kim, Jung-Hoon
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- Journal of the Korean Society of Surveying, Geodesy, Photogrammetry and Cartography
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- v.26 no.1
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- pp.9-16
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- 2008
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Korea's GIS market has been proliferating since the 1990s, but still its scale and the structure require overall rearrangements. Recently as the needs and initiatives from central and local governments go stronger to drive 'u-City(ubiquitous City)' developments, there are much more demand of spatial information from sectors like city management, construction, environment and so on. Through the merge between GIS and the advanced Information and Telecommunication Technology, the introduction of new Ubiquitous IT is swiftly changing GIS market environments, so the GIS industry is to be prepared for this trend. The pioneering developments of Ubiquitous-related GIS technologies are expected to highly boost spatial data and related industries, and the pre-occupancy of those technologies in the world would enable the expansion of overseas export market. In the context of these epoch-making chances, by looking into the actual status of GIS industry, this study is to investigate the actual accomplishments to foster the GIS industry through Korea's National GIS Master Plan. Thereby, impending issues will be discussed to provide useful problem-solving suggestions.
Russian Mineral Market Flow and Economic Direction for Securing Stable Resources (안정적 자원 확보를 위한 러시아 광물 시장 흐름 및 경제방향)
- Eom, Nu Si A;Noh, Su;Haq, Muhammad Aneeq;Lee, Bin;Lim, Kyoung Mook;Kim, Bum Sung
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- Journal of Powder Materials
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- v.26 no.4
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- pp.345-349
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- 2019
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With increasing demand for resources worldwide, Korea has been negotiating with resource-holding countries to achieve conservation of energy resources. Among them, Russia is the third largest resource-producing and exporting nation in the world and has several resource materials such as nickel, platinum group metals, gold, and other reserves. As a result, there is growing interest in cooperation between Korea and Russia. The aim of this article is to summarize the current status of market flow of Russian energy resources as well as Russia's economic cooperation with Korea. Notably, South Korea needs to focus on investing in overseas mines for a stable supply of rare metals. Nevertheless, securing rare metals is a major task by understanding the flow and policy direction of Russian material mines.
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