• Title/Summary/Keyword: Practical Management

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A PLS Path Modeling Approach on the Cause-and-Effect Relationships among BSC Critical Success Factors for IT Organizations (PLS 경로모형을 이용한 IT 조직의 BSC 성공요인간의 인과관계 분석)

  • Lee, Jung-Hoon;Shin, Taek-Soo;Lim, Jong-Ho
    • Asia pacific journal of information systems
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    • v.17 no.4
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    • pp.207-228
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    • 2007
  • Measuring Information Technology(IT) organizations' activities have been limited to mainly measure financial indicators for a long time. However, according to the multifarious functions of Information System, a number of researches have been done for the new trends on measurement methodologies that come with financial measurement as well as new measurement methods. Especially, the researches on IT Balanced Scorecard(BSC), concept from BSC measuring IT activities have been done as well in recent years. BSC provides more advantages than only integration of non-financial measures in a performance measurement system. The core of BSC rests on the cause-and-effect relationships between measures to allow prediction of value chain performance measures to allow prediction of value chain performance measures, communication, and realization of the corporate strategy and incentive controlled actions. More recently, BSC proponents have focused on the need to tie measures together into a causal chain of performance, and to test the validity of these hypothesized effects to guide the development of strategy. Kaplan and Norton[2001] argue that one of the primary benefits of the balanced scorecard is its use in gauging the success of strategy. Norreklit[2000] insist that the cause-and-effect chain is central to the balanced scorecard. The cause-and-effect chain is also central to the IT BSC. However, prior researches on relationship between information system and enterprise strategies as well as connection between various IT performance measurement indicators are not so much studied. Ittner et al.[2003] report that 77% of all surveyed companies with an implemented BSC place no or only little interest on soundly modeled cause-and-effect relationships despite of the importance of cause-and-effect chains as an integral part of BSC. This shortcoming can be explained with one theoretical and one practical reason[Blumenberg and Hinz, 2006]. From a theoretical point of view, causalities within the BSC method and their application are only vaguely described by Kaplan and Norton. From a practical consideration, modeling corporate causalities is a complex task due to tedious data acquisition and following reliability maintenance. However, cause-and effect relationships are an essential part of BSCs because they differentiate performance measurement systems like BSCs from simple key performance indicator(KPI) lists. KPI lists present an ad-hoc collection of measures to managers but do not allow for a comprehensive view on corporate performance. Instead, performance measurement system like BSCs tries to model the relationships of the underlying value chain in cause-and-effect relationships. Therefore, to overcome the deficiencies of causal modeling in IT BSC, sound and robust causal modeling approaches are required in theory as well as in practice for offering a solution. The propose of this study is to suggest critical success factors(CSFs) and KPIs for measuring performance for IT organizations and empirically validate the casual relationships between those CSFs. For this purpose, we define four perspectives of BSC for IT organizations according to Van Grembergen's study[2000] as follows. The Future Orientation perspective represents the human and technology resources needed by IT to deliver its services. The Operational Excellence perspective represents the IT processes employed to develop and deliver the applications. The User Orientation perspective represents the user evaluation of IT. The Business Contribution perspective captures the business value of the IT investments. Each of these perspectives has to be translated into corresponding metrics and measures that assess the current situations. This study suggests 12 CSFs for IT BSC based on the previous IT BSC's studies and COBIT 4.1. These CSFs consist of 51 KPIs. We defines the cause-and-effect relationships among BSC CSFs for IT Organizations as follows. The Future Orientation perspective will have positive effects on the Operational Excellence perspective. Then the Operational Excellence perspective will have positive effects on the User Orientation perspective. Finally, the User Orientation perspective will have positive effects on the Business Contribution perspective. This research tests the validity of these hypothesized casual effects and the sub-hypothesized causal relationships. For the purpose, we used the Partial Least Squares approach to Structural Equation Modeling(or PLS Path Modeling) for analyzing multiple IT BSC CSFs. The PLS path modeling has special abilities that make it more appropriate than other techniques, such as multiple regression and LISREL, when analyzing small sample sizes. Recently the use of PLS path modeling has been gaining interests and use among IS researchers in recent years because of its ability to model latent constructs under conditions of nonormality and with small to medium sample sizes(Chin et al., 2003). The empirical results of our study using PLS path modeling show that the casual effects in IT BSC significantly exist partially in our hypotheses.

Recommending Core and Connecting Keywords of Research Area Using Social Network and Data Mining Techniques (소셜 네트워크와 데이터 마이닝 기법을 활용한 학문 분야 중심 및 융합 키워드 추천 서비스)

  • Cho, In-Dong;Kim, Nam-Gyu
    • Journal of Intelligence and Information Systems
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    • v.17 no.1
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    • pp.127-138
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    • 2011
  • The core service of most research portal sites is providing relevant research papers to various researchers that match their research interests. This kind of service may only be effective and easy to use when a user can provide correct and concrete information about a paper such as the title, authors, and keywords. However, unfortunately, most users of this service are not acquainted with concrete bibliographic information. It implies that most users inevitably experience repeated trial and error attempts of keyword-based search. Especially, retrieving a relevant research paper is more difficult when a user is novice in the research domain and does not know appropriate keywords. In this case, a user should perform iterative searches as follows : i) perform an initial search with an arbitrary keyword, ii) acquire related keywords from the retrieved papers, and iii) perform another search again with the acquired keywords. This usage pattern implies that the level of service quality and user satisfaction of a portal site are strongly affected by the level of keyword management and searching mechanism. To overcome this kind of inefficiency, some leading research portal sites adopt the association rule mining-based keyword recommendation service that is similar to the product recommendation of online shopping malls. However, keyword recommendation only based on association analysis has limitation that it can show only a simple and direct relationship between two keywords. In other words, the association analysis itself is unable to present the complex relationships among many keywords in some adjacent research areas. To overcome this limitation, we propose the hybrid approach for establishing association network among keywords used in research papers. The keyword association network can be established by the following phases : i) a set of keywords specified in a certain paper are regarded as co-purchased items, ii) perform association analysis for the keywords and extract frequent patterns of keywords that satisfy predefined thresholds of confidence, support, and lift, and iii) schematize the frequent keyword patterns as a network to show the core keywords of each research area and connecting keywords among two or more research areas. To estimate the practical application of our approach, we performed a simple experiment with 600 keywords. The keywords are extracted from 131 research papers published in five prominent Korean journals in 2009. In the experiment, we used the SAS Enterprise Miner for association analysis and the R software for social network analysis. As the final outcome, we presented a network diagram and a cluster dendrogram for the keyword association network. We summarized the results in Section 4 of this paper. The main contribution of our proposed approach can be found in the following aspects : i) the keyword network can provide an initial roadmap of a research area to researchers who are novice in the domain, ii) a researcher can grasp the distribution of many keywords neighboring to a certain keyword, and iii) researchers can get some idea for converging different research areas by observing connecting keywords in the keyword association network. Further studies should include the following. First, the current version of our approach does not implement a standard meta-dictionary. For practical use, homonyms, synonyms, and multilingual problems should be resolved with a standard meta-dictionary. Additionally, more clear guidelines for clustering research areas and defining core and connecting keywords should be provided. Finally, intensive experiments not only on Korean research papers but also on international papers should be performed in further studies.

A Study on the Nursing Performance of the Home Care Nurses in Seoul (서울지역 가정간호사의 업무수행능력 실태조사)

  • Suh, Moon-Ja;Park, Ho-Ran;Kang, Hyun-Sook;Kim, So-Sun;Shin, Kyung-Lim;Kim, Keun-Soon;Kim, Hae-Sook
    • Journal of Home Health Care Nursing
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    • v.6
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    • pp.46-58
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    • 1999
  • The purpose of this research was to find out the state of the nursing performance of the home care nurses in Seoul in order to provide the data for the practical work guide. The data were collected from fifty home care nurses working in 22 institutions located in Seoul. The research tool used for this research was modified and tested by Song Jong-Rye(1999) which was originally modified the standard tool of American Nurses Association (1998) and was partly supplement and adjusted for this research. The reliability of this tool was Cronbach's $\alpha$=.0982. The collected data were statistically processed using SAS for t-test, ANOVA. $Scheff\'{e}$ test. Among the surveyees, 50% have been working as a home care nurse more than three years and 74.0% of them were married. And 52% have B.S degree with certification of home care nurse from the certification program for Home Care Nurses affiliated at nursing schools. Half of the home care nursing organizations were based on the general hospitals, and most(78%) of the responsible senior personnels of those organizations were nurses. The following results are drawn from this research. 1) The level of nursing performance by the task sectors General performance level of home care nurses was relatively high in grade of 3.06 from total 4.00. Among the task sectors. the ethical field scored the highest points, and the next were nursing intervention, professional training, and data gathering, and the research sector scored the lowest point. 2) The level of nursing performance by general features of home care nurses Statistically relevant correlation between performance according to the duration of working experience as a nurse(p=0.8951) and performance according to the duration of working as home care nurse(p=0.2263) did not emerge. Also, performance by marriage status(p=0.2218), education(p=0.5733), and taking the certification program for home card nurse(p =0.1560) has no statistically meaningful correlation. 3) The level of nursing performance by the type of home care nursing organizations There exists a significant difference(p=0.002) between performances by the types of organizations. Most of the responsible senior personnels of the home care nursing organization were nurses. The level of nursing performance of the home care nursing organization under nurse management was relatively higher than that of home care nursing organizations led by medical doctors or non-medical professional, but this was not proved as statistically meaningful(p =0.3617). 4) The level of nursing performance by task sectors according to the characteristic of home care nursing service organization There exists a significant difference between nursing performances by task sectors according to the characteristics of home care nursing organization(p=0.002). In case of model research center of one College of Nursing, the nursing performance in the sectors of organization, theory, and data gathering were lower than that of in hospital based home care nursing service. And in case of local home care centers, performances in sectors of organization, theory, data gathering, nursing intervention. professional training, and research sectors were significantly low. Based on the obtained results, overall performance of home care nurses can be appraised as relatively good. Especially, performances in sectors of the nursing intervention, nursing plan. and data gathering including the in direct nursing were recorded high scores. From this, it can be concluded that high quality of nursing is relatively practicing for home patients at these days. Since the high quality of nursing for patients was directly related to the level of nursing performances of home care nurses, it is required to improve practical performance level of them by making constant evaluation and running continual education program and supplementing curriculum for the sectors with low scores.

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The Quality Characteristics of American Sauce Prepared with Different Amounts of Salt (소금 첨가량에 따른 아메리칸소스의 품질 특성)

  • Kim, Dong-Seok;Lee, Se-Hee;Seoung, Tae-Jong
    • Culinary science and hospitality research
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    • v.18 no.3
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    • pp.163-179
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    • 2012
  • This study was prepared to develop American sauce with different amounts of salt through high pressure extraction and examined difference in its mechanical and sensory characteristics. Furthermore, it aimed to provide practical materials for the mass production of American sauce and other crustacean sauce products and to contribute to the development of products with superior quality and functionality by standardizing traditional cooking techniques in the food service industry. In American sauce, salt content did not have a significant effect on water content and ash content but had a significant effect on color, pH and salinity. Na and K contents increased with increasing salt content. In addition, Mg and P contents were highest in J4 containing 0.4% of salt, but they did not show any regular tendency according to salt content. For total free amino acids, 29 kinds were detected in J0 and J1, 30 in J2, 31 in J3, and 33 in J4. Detection was highest in J3 containing 0.3% of salt, and the content level was highest particularly for arginine among essential amino acids, for glutamic acid, alanine, serine, ${\beta}$-alanine and ${\alpha}$-aminoadipic acid among flavor enhancing amino acids, and for ${\gamma}$-Aminoisobutyric acid among other amino acids. We measured lipid peroxidation in American sauce using lipid extracted from a mouse brain and confirmed that the amount of antioxidant substances extracted was largest in J0 containing no salt. The results of measuring lipid peroxidation and DPPH showed that the antioxidant effect was high when salt was not contained. In the results of the sensory test, overall quality was highest in J3 containing 0.3% of salt, showing that the addition of salt affects the evaluation of overall quality. Summing up the presents of this study as presented above, we cannot expect an effect of antioxidant functionality; however, according to the results of the mechanical quality evaluation and the sensory test, American sauce containing 0.3% of salt is considered the optimal product in terms of quality. Using these results as practical materials for the mass production of crustacean sauce products, we expect to standardize traditional cooking techniques in the food service industry and to develop products with high quality and functionality.

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A Study on the Acceptance of Convergence System of Broadcasting, and Telecommunication, and Their Relative Efficiency Focusing on IPFV (방송과 통신 융합시스템의 수용 및 상대적 효능에 관한 연구: IPTV를 중심으로)

  • Um, Myoung-Yong;Lee, Sang-Ho;Kim, Jai-Beam
    • Asia pacific journal of information systems
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    • v.19 no.3
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    • pp.25-49
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    • 2009
  • Advances in technology have resulted in the emergence of new information systems. The convergence of IT and manufacturing sectors has blurred the boundaries among industries. Also, such convergence has become established as a paradigm to build a new area. Especially the convergence of broadcasting and telecommunication, notably in the case of IPTV (Internet Protocol Television), is among the most salient examples of its kind in recent years as a major case of disruptive technology innovation. Despite its much fanfare, such convergence, however, has not fulfilled the expectation; it has not produced positive economic effects while negatively affecting the growth of IPIV. Stakeholders in and around IPIV including telecommunication companies, broadcasting corporations, and government bodies wish to gain control of IPTV under their wings. IPTV has drifted in the midst of conflicts among the stakeholders in and around IPTV, particularly telecommunication and broadcasting organizations in a broad sense. Our empirical research intends to deal with how audiences accept IPTV and how firms provide IPTV services to utilize their resources. Three research questions in this paper include, first, whether Technology Acceptance Model (TAM) can sufficiently explain the acceptance of IPTV as an information system. The second question concerns with empirically testing the playful aspect of IPTV to increase its audience acceptance. Last, but not least, this paper deals with how firms can efficiently and effectively allocate their limited resources to increase IPTV viewers. To answer those three main questions of our study, we collect data from 197 current subscribers of high speed internet service and/or cable/satellite television. Empirical results show that 'perceived usefulness (PU) $\rightarrow$ Intention to use' and 'perceived ease of use (PEU) $\rightarrow$ Intention to use' are significant. Also, 'perceived ease of use' is significantly related to 'perceived usefulness.' Perceived ease of handling IPTV without much effort can positively influence the perceived value of IPTV. In this regard, engineers and designers of IPTV should pay more attention to the user-friendly interface of IPTV. In addition, 'perceived playfulness (PP)' of IPTV is positively related to 'intention to use'. Flow, fun and entertainment have recently gained greater attention in the research concerned with information systems. Such attention is due to the changing features of information systems in recent years that combine the functional and leisure attributes. These results give practical implications to the design of IPTV that reflects not just leisure but also functional elements. This paper also investigates the relationship between 'perceived ease of use (PEU)' and 'perceived playfulness (PP).' PEU is positively related to pp. Audiences without fear can be attracted more easily to the user-friendly IPTV, thereby perceiving the fun and entertainment with ease. Practical implications from this finding are that, to attract more interest and involvement from the audience, IPTV needs to be designed with similar or even more user friendly interface. Of the factors related to 'intention to use', 'perceived usefulness (PU)' and 'perceived ease of use (PEU)' have greater impacts than 'perceived playfulness (PP).' Between PU and PEU, their impacts on 'intention to use' are not significantly different statistically. Managerial implications of this finding are that firms in preparation for the launch of IPTV service should prioritize the functions and interface of IPTV. This empirical paper also provides further insight into the ways in which firms can strategically allocate their limited resources so as to appeal to viewers, both current and potential, of IPTV.

Status of Fish Inhabitation and Distribution of Eight Abundant Species in Relation with Water Quality in Streams and Rivers, Ulsan City (울산 하천 및 강에서의 어류서식 현황 및 8개 대표종의 이화학적 수질 내성범위)

  • Seo, Jin-Won;Lim, In-Soo;Kim, Ho-Joon;Lee, Hye-Keun
    • Korean Journal of Ecology and Environment
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    • v.41 no.3
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    • pp.283-293
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    • 2008
  • The objectives of the study were firstly to provide fundamental data for establishment of total maximum daily load (TMDL) management in Ulsan City, and secondly to make practical application of stream health assessment with tolerance range by each species when physiochemical and fish investigations were carried out together. A total of 44 sites in Taehwa River, Hoiya River, Dong Stream, and Cheongryang Stream were selected to monitor water qualities seasonally and fish investigation was performed in August 2006. Among the parameters of water quality, biological oxygen demand (BOD) and dissolved oxygen (DO) related to respiration, total nitrogen (T-N) and total phosphorus (T-P) related to nutrient and eutrophication, and total suspended solids (TSS) and $NH_4$-N were compared with vertical box plot by 8 dominant species. According to the fish investigation, 12 families 33 species were found including endangered species (Pungitius kaibarae) and introduced species (Lepomis macrochirus, Micropterus salmoides), and appearance rate of Korean endemic species was greater in Taehwa River (29.2%) than others. As the results of tolerance range by species, Zacco koreanus, Rhynchocypris oxycephalus, Iksookimia longicorpa, and Squalidus gracilis majimae had limited low range by water quality parameters indicating preference of good water quality. Whereas, Carassius auratus and Pseudorasbora parva were found downstream and urban-streams which were exposed from frequent inflow of pollutants. It concludes that the results help distinguishing sensitive, intermediate, and tolerant species when we evaluate stream health assessment with fish, and further making practical application for conservation and restoration of aquatic ecosystem.

Policy suggestions to educate and produce outstanding paramedics in Korea (우수한 1급 응급구조사 인력 양성 및 배출을 위한 정책 제안)

  • Choi, Eun-Sook;Koh, Bong-Yeun;Park, Hee-Jin;Kim, Hyo-Sik;Kwon, Hay-Rran;Choi, Hea-Kyung;Lee, Kyoung-Youl;Yun, Jong-Geun;Hong, Sung-Gi;Cho, Keun-Ja
    • The Korean Journal of Emergency Medical Services
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    • v.22 no.1
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    • pp.7-19
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    • 2018
  • Purpose: With the purpose of educating and producing outstanding paramedics by enhancing their competencies, this study aimed to make policy suggestions to re-establish the education system and improve the national examination and the certification scheme. Methods: This study used focus group interviews and questionnaires to collect data. Totally, there were 277 subjects, including experts from the education and field. Data were collected from September 9 to 20, 2016, and analyzed using SPSS 22.0. Results: To strengthen the curriculum of paramedics, this study suggested 27 courses with 94 credits as the standardized curriculum and derived 9 core competencies of paramedics. For the national examination, this study suggested consolidating written test subjects, adding scenario questions to practical tests, and applying critical criteria to simple practical tests that performs a procedure, grading these tests on a pass/fail basis. In addition, this study suggested converting certification into license, reflecting paramedics' healthcare job characteristics. Conclusion: The quality of emergency medical services in Korea will improve when those with core competencies that originated from the standardized curriculum based on the results of this study acquire their certification through the national test scheme, and the certification management system creates a virtuous cycle to further enhance paramedics' professionalism.

A Study on Customer Loyalty and Word-of-Mouth Effect according to Character Trait of Patient in Dental Clinics (치과내원환자의 성격특성에 따른 고객충성도 및 구전효과 연구)

  • Yang, Hae-Young
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.12 no.12
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    • pp.5819-5826
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    • 2011
  • Recently in the dental world, competition in the medical industry has been intensified due to the prolonged economic stagnation, the quantitative expansion of medical institutions, the enhancement of medical consumers'awareness of rights, and the diversity of medical consumer needs. Dental institution management of the difficulties is the requirement for dental institution to ensure competitiveness. So Word-of-Mouth marketing, which creates high marketing effectiveness with low cost, needs to be actively utilized as a new alternative to mass communication marketing. This research is to accurately grasp the target group of dental medical marketing activities through research on the degree of customer loyalty and Word-of-Mouth effects according to character trait of the patients visiting dental clinics, and to present the basic data for Word-of-Mouth marketing strategies from a viewpoint of practical business through presenting Word-of-Mouth promotion factors. To achieve this, questionnaire survey was conducted on 10 dental clinics located in Daegu for 4 weeks from April 11, 2011 to May 6, 2011 and 612 copies of responses to the questionnaires for final data for analysis were obtained. The results of the analysis are as follows. There were no significant differences in the degree of customer loyalty according to character trait of the subjects between the introverts and the extroverts, and the subjects with high market mavens propensity were found to show high degree of customer loyalty (F=5.243, p=.006). In the differences in Word-of-Mouth effectiveness according to character trait, there were greater differences in Word-of-Mouth experiences in the extrovert subjects ($x^2$=6.738, p=.006) and the subjects with high market mavens propensity ($x^2$=17.251, p=.000). The results of this research clarifies the degree of customer loyalty according to character trait of the patients visiting dental clinics and the differentiated influences of Word-of-Mouth effectiveness, and through this, they will become basic data for presenting ways to establish strategies from the viewpoint of practical business that should be considered in establishing dental medical marketing strategies.

A Loan System of funding Research Projects for Starting Up Venture Business(A Research fund Management System Incorporating Business Concept) (벤처기업 육성을 위한 대여 연구비 관리제도(Business형 연구관리제도))

  • 강박광;황희융
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.1 no.1
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    • pp.73-82
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    • 2000
  • Conventional funding system for the university research projects is limited to a grant or subsidy type funding method which does not require an obligation of refund. Such a funding system is known as ideal one for the university research activities which in general is not a profit oriented activities. It is considered ideal in a sense that nonprofit oriented research activities gives more emphasis on creativity than on efficiency or practical value. A venture- business-start-up research activity can not be considered as a pure nonprofit oriented activities. It clearly gives more emphasis on efficiency and practical value than on creativity Recently a large portion of the venture-business-start-up research activities are carried out in the universities. When a conventional research funding system is applied to such a new type of research activities, it turned out that the success rate is much lower than expectancy. This is why a new and differentiated funding system is sought for such a new type of research activities. A funding system of loan type for a venture-business-start-up research activities is proposed herewith. A loan system naturally requires a pay back after the successful start up of the venture business. This loan system nay be considered that a business concept is grafted on a conventional funding system for the university research activities. This means that a rather loose or generous terms and conditions of the money loan case is introduced into this funding system to remedy the short comings of the intrinsic nonprofit nature of the university research activities. The point is how to improve the success rate and how to reduce the undesirable aspect of the conventional university research activities when it is practiced with the new type of research activities. After one and half year of practicing with the new funding system. it can not be asserted that a definitely positive results could be obtained. but a trend of desirable aspects could be observed such as low drop out rate. project selection efficiency, higher sense of responsibility. etc.

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The Effects of Virtual Reality Advertisement on Consumer's Intention to Purchase: Focused on Rational and Emotional Responses (가상현실(Virtual Reality) 광고가 소비자 구매의도에 미치는 영향: 이성적인 반응과 감성적인 반응의 통합)

  • Cha, Jae-Yol;Im, Kun-Shin
    • Asia pacific journal of information systems
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    • v.19 no.4
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    • pp.101-124
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    • 2009
  • According to Wikipedia, virtual reality (VR) is defined as a technology that allows a user to interact with a computer-simulated environment. Due to a rapid growth in information technology (IT), the cost of virtual reality has been decreasing while the utility of virtual reality advertisements has dramatically increased. Nevertheless, only a few studies have investigated the effects of virtual reality advertisement on consumer behaviors. Therefore, the objective of this study is to empirically examine the effects of virtual reality advertisement. Compared to traditional online advertisements, virtual reality advertisement enables consumers to experience products realistically over the Internet by providing high media richness, interactivity, and telepresence (Suh and Lee, 2005). Advertisements with high media richness facilitate consumers' understanding of advertised products by providing them with a large amount and a high variety of information on the products. Interactivity also provides consumers with a high level of control over the computer-simulated environment in terms of their abilities to adjust the information according to their individual interests and concerns and to be active rather than passive in their engagement with the information (Pimentel and Teixera, 1994). Through high media richness and interactivity, virtual reality advertisements can generate compelling feelings of "telepresence" (Suh and Lee, 2005). Telepresence is a sense of being there in an environment by means of a communication medium (Steuer, 1992). Virtual reality advertisements enable consumers to create a perceptual illusion of being present and highly engaged in a simulated environment, while they are in reality physically present in another place (Biocca, 1997). Based on the characteristics of virtual reality advertisements, a research model has been proposed to explain consumer responses to the virtual reality advertisements. The proposed model includes two dimensions of consumer responses. One dimension is consumers' rational response, which is based on the Information Processing Theory. Based on the Information Processing Theory, product knowledge and perceived risk are selected as antecedents of intention to purchase. The other dimension is emotional response of consumers, which is based on the Attitude-Structure Theory. Based on the Attitude-Structure Theory, arousal, flow, and positive affect are selected as antecedents of intention to purchase. Because it has been criticized to have investigated only one of the two dimensions of consumer response in prior studies, our research model has been built so as to incorporate both dimensions. Based on the Attitude-Structure Theory, we hypothesized the path of consumers' emotional responses to a virtual reality advertisement: (H1) Arousal by the virtual reality advertisement increases flow; (H2) Flow increases positive affect; and (H3) Positive affect increases intension to purchase. In addition, we hypothesized the path of consumers' rational responses to the virtual reality advertisement based on the Information Processing Theory: (H4) Increased product knowledge through the virtual reality advertisement decreases perceived risk; and (H5) Perceived risk decreases intension to purchase. Based on literature of flow, we additionally hypothesized the relationship between flow and product knowledge: (H6) Flow increases product knowledge. To test the hypotheses, we conducted a free simulation experiment [Fromkin and Streufert, 1976] with 300 people. Subjects were asked to use the virtual reality advertisement of a cellular phone on the Internet and then answer questions about the variables. To check whether subjects fully experienced the virtual reality advertisement, they were asked to answer a quiz about the virtual reality advertisement itself. Responses of 26 subjects were dropped because of their incomplete answers. Responses of 274 subjects were used to test the hypotheses. It was found that all of six hypotheses are accepted. In addition, we found that consumers' emotional response has stronger impact on their intention to purchase than their rational response does. This study sheds much light into practical implications for both IS researchers and managers. First of all, while most of previous research has analyzed only one of the customers' rational and emotional responses, we theoretically incorporated and empirically examined both of the two sides. Second, we empirically showed that mediators such as arousal, flow, positive affect, product knowledge, and perceived risk play an important role between virtual reality advertisement and customer's intention to purchase. In addition, the findings of this study can provide a basis of practical strategies for managers. It was found that consumers' emotional response is stronger than their rational response. This result indicates that advertisements using virtual reality should focus on the emotional side, and that virtual reality can be served as an appropriate advertisement tool for fancy products that require their online advertisements to give an impetus to customers' emotion. Finally, even if this study examined the effects of virtual reality advertisement of cellular phone, its findings could be applied to other products that are suited for virtual experience. However, this research has some limitations. We were unable to control different kinds of consumers and different attributes of products on consumers' intention to purchase. It is, therefore, deemed important for future research to control the consumer and product types for more reliable results. In addition to the consumer and product attributes, other variables could affect consumers' intention to purchase. Thus, the future research needs to find ways t control other variables.