A Design of Authentication Mechanism for Secure Communication in Smart Factory Environments (스마트 팩토리 환경에서 안전한 통신을 위한 인증 메커니즘 설계)
-
- Journal of Industrial Convergence
- /
- v.22 no.4
- /
- pp.1-9
- /
- 2024
Smart factories represent production facilities where cutting-edge information and communication technologies are fused with manufacturing processes, reflecting rapid advancements and changes in the global manufacturing sector. They capitalize on the integration of robotics and automation, the Internet of Things (IoT), and the convergence of artificial intelligence technologies to maximize production efficiency in various manufacturing environments. However, the smart factory environment is prone to security threats and vulnerabilities due to various attack techniques. When security threats occur in smart factories, they can lead to financial losses, damage to corporate reputation, and even human casualties, necessitating an appropriate security response. Therefore, this paper proposes a security authentication mechanism for safe communication in the smart factory environment. The components of the proposed authentication mechanism include smart devices, an internal operation management system, an authentication system, and a cloud storage server. The smart device registration process, authentication procedure, and the detailed design of anomaly detection and update procedures were meticulously developed. And the safety of the proposed authentication mechanism was analyzed, and through performance analysis with existing authentication mechanisms, we confirmed an efficiency improvement of approximately 8%. Additionally, this paper presents directions for future research on lightweight protocols and security strategies for the application of the proposed technology, aiming to enhance security.
The concept of social stratification and hierarchy among human dates back to the origin of human race. Presently, the growing reputation of social networks has given us with an opportunity to analyze these well-studied phenomena over different networks at different scales. Generally, a social network could be defined as a collection of actors and their interactions. In this work, we concern ourselves with a particular type of social networks, known as trust networks. In this type of networks, there is an explicit show of trust (positive interaction) or distrust (negative interaction) among the actors. In other words, an actor can designate others as friends or foes. Trust networks are typically modeled as signed networks. A signed network is a directed graph in which the edges carry an edge weight of +1 (indicating trust) or -1 (indicating distrust). Examples of signed networks include the Slashdot Zoo network, the Epinions network and the Wikipedia adminship election network. In a social network, actors tend to connect with each other on the basis of their perceived social hierarchy. The emergence of such a hierarchy within a social community shows the manner in which authority manifests in the community. In the case of signed networks, the concept of social hierarchy can be interpreted as the emergence of a tree-like structure comprising of actors in a top-down fashion in the order of their ranks, describing a specific parent-child relationship, viz. child trusts parent. However, owing to the presence of positive as well as negative interactions in signed networks, deriving such "trust hierarchies" is a non-trivial challenge. We argue that traditional notions (of unsigned networks) are insufficient to derive hierarchies that are latent within signed networks In order to build hierarchies in signed networks, we look at two interpretations of trust namely presence of trust (or "good") and lack of distrust (or "not bad"). In order to develop a hierarchy signifying both trust and distrust effectively, the above interpretations are combined together for calculating the overall trustworthiness (termed as deserve) of actors. The actors are then arranged in a hierarchical fashion based on these aggregate deserve values, according to the following hypothesis: actor v is assigned as a child of actor u if: (i) v trusts u, and (ii) u has a higher deserve value than v. We describe this hypothesis with additional qualifiers in this thesis.
A challenge in fostering virtual communities is the continuous supply of knowledge, namely members' willingness to contribute knowledge to their communities. Previous research argues that giving away knowledge eventually causes the possessors of that knowledge to lose their unique value to others, benefiting all except the contributor. Furthermore, communication within virtual communities involves a large number of participants with different social backgrounds and perspectives. The establishment of mutual understanding to comprehend conversations and foster knowledge contribution in virtual communities is inevitably more difficult than face-to-face communication in a small group. In spite of these arguments, evidence suggests that individuals in virtual communities do engage in social behaviors such as knowledge contribution. It is important to understand why individuals provide their valuable knowledge to other community members without a guarantee of returns. In virtual communities, knowledge is inherently rooted in individual members' experiences and expertise. This personal nature of knowledge requires social interactions between virtual community members for knowledge transfer. This study employs the social capital theory in order to account for interpersonal relationship factors and identity theory for individual and group factors that may affect knowledge contribution. First, social capital is the relationship capital which is embedded within the relationships among the participants in a network and available for use when it is needed. Social capital is a productive resource, facilitating individuals' actions for attainment. Nahapiet and Ghoshal (1997) identify three dimensions of social capital and explain theoretically how these dimensions affect the exchange of knowledge. Thus, social capital would be relevant to knowledge contribution in virtual communities. Second, existing research has addressed the importance of identity in facilitating knowledge contribution in a virtual context. Identity in virtual communities has been described as playing a vital role in the establishment of personal reputations and in the recognition of others. For instance, reputation systems that rate participants in terms of the quality of their contributions provide a readily available inventory of experts to knowledge seekers. Despite the growing interest in identities, however, there is little empirical research about how identities in the communities influence knowledge contribution. Therefore, the goal of this study is to better understand knowledge contribution by examining the roles of social capital and identity in virtual communities. Based on a theoretical framework of social capital and identity theory, we develop and test a theoretical model and evaluate our hypotheses. Specifically, we propose three variables such as cohesiveness, reciprocity, and commitment, referring to the social capital theory, as antecedents of knowledge contribution in virtual communities. We further posit that members with a strong identity (self-presentation and group identification) contribute more knowledge to virtual communities. We conducted a field study in order to validate our research model. We collected data from 192 members of virtual communities and used the PLS method to analyse the data. The tests of the measurement model confirm that our data set has appropriate discriminant and convergent validity. The results of testing the structural model show that cohesion, reciprocity, and self-presentation significantly influence knowledge contribution, while commitment and group identification do not significantly influence knowledge contribution. Our findings on cohesion and reciprocity are consistent with the previous literature. Contrary to our expectations, commitment did not significantly affect knowledge contribution in virtual communities. This result may be due to the fact that knowledge contribution was voluntary in the virtual communities in our sample. Another plausible explanation for this result may be the self-selection bias for the survey respondents, who are more likely to contribute their knowledge to virtual communities. The relationship between self-presentation and knowledge contribution was found to be significant in virtual communities, supporting the results of prior literature. Group identification did not significantly affect knowledge contribution in this study, inconsistent with the wealth of research that identifies group identification as an important factor for knowledge sharing. This conflicting result calls for future research that examines the role of group identification in knowledge contribution in virtual communities. This study makes a contribution to theory development in the area of knowledge management in general and virtual communities in particular. For practice, the results of this study identify the circumstances under which individual factors would be effective for motivating knowledge contribution to virtual communities.
Collaboration strategies entail information sharing and other varied forms of cooperation that are mutually beneficial to the company and stakeholder groups. This study addresses the specific types of collaboration used in the fashion industry while also examining strategies that have been most successful for fashion companies and perceived benefits of collaboration from the customer perspective. In the present study we define fashion companies and brands as collaborators and their partners or stakeholders as collaboratees. We define collaboration as a cooperative relationship where more than two companies, brands or individuals provide customers with beneficial outcomes utilizing their own competitive advantages on an equal basis. Collaboration strategies entail information sharing and other varied forms of cooperation that are mutually beneficial to the company and stakeholder groups. Through collaboration, fashion companies have pursued both tangible differentiation, such as design and technology applications, and intangible differentiation such as emotional and psychological benefits to customers. As a result, collaboration within the fashion industry has become an important, value creating concept. This qualitative study utilized case studies and in-depth interview methodologies to examine customers' attitudes concerning collaboration in the fashion industry. A total of 173 collaboration cases were identified in Korean and international markets from 1998 through December 2008, focusing on fashion companies. Cases were collected from documented data including websites and industry data bases and top ranked portal search sites such as: Rankey.com; Naver, Daum, and Nate; and representative fashion information websites, Samsungdesignnet and Firstviewkorea. Cases were collected between November 2008 and February 2009. Cases were selected for the analysis where one or more partners were associated with the production of fashion products (excluding textile production), retail fashion products, or designer services. Additional collaboration case information was obtained from news articles, periodicals, internet portal sites and fashion information sites as conducted in prior studies (Jeong and Kim 2008; Park and Park 2004; Yoon 2005). In total, 173 cases were selected for analysis that clearly exhibited the benefits and outcomes of collaboration efforts and strategies between fashion companies and stakeholders. Findings show that the overall results show that for both partners (collaborator and collaboratee) participating in collaboration, that the major benefits are reduction of costs and risks by sharing resource such as design power, image, costs, technology and targets, and creation of synergy. Regarding types of collaboration outcomes, product/design was most important (55%), followed by promotion (21%), price (20%), and place (4%). This result shows that collaboration plays an important role in giving life to products and designs, particularly in the fashion industry which seeks for creative and newness. To be successful in collaboration efforts, results of the depth interviews in this study confirm that fashion companies should have a clear objective on why they are doing the collaboration. After setting the objective, they should select collaboratees that match their brand image and target market, make quality co-products that have definite concepts and differentiating factors, and also pay attention to increasing brand awareness. Based on depth interviews with customers, customer benefits were categorized into six factors: pursuit for individual character; pursuit for brand; pursuit for scarcity; pursuit for fashion; pursuit for economic efficiency; and pursuit for sociality. Customers also placed more importance on image, reputation, and trust of brands regarding the cases shown in the interviews. They also commented that strong branding should come first before other marketing strategies. However, success factors recognized by experts and customers in this study showed different results by subcategories. Thus, target customers and target market should be studied from various dimensions to develop appropriate strategies for successful collaboration.
The emergence of the internet technology and SNS has increased the information flow and has changed the way people to communicate from one-way to two-way communication. Users not only consume and share the information, they also can create and share it among their friends across the social network service. It also changes the Social Media behavior to become one of the most important communication tools which also includes Social TV. Social TV is a form which people can watch a TV program and at the same share any information or its content with friends through Social media. Social News is getting popular and also known as a Participatory Social Media. It creates influences on user interest through Internet to represent society issues and creates news credibility based on user's reputation. However, the conventional platforms in news services only focus on the news recommendation domain. Recent development in SNS has changed this landscape to allow user to share and disseminate the news. Conventional platform does not provide any special way for news to be share. Currently, Social News Service only allows user to access the entire news. Nonetheless, they cannot access partial of the contents which related to users interest. For example user only have interested to a partial of the news and share the content, it is still hard for them to do so. In worst cases users might understand the news in different context. To solve this, Social News Service must provide a method to provide additional information. For example, Yovisto known as an academic video searching service provided time dependent metadata from the video. User can search and watch partial of video content according to time dependent metadata. They also can share content with a friend in social media. Yovisto applies a method to divide or synchronize a video based whenever the slides presentation is changed to another page. However, we are not able to employs this method on news video since the news video is not incorporating with any power point slides presentation. Segmentation method is required to separate the news video and to creating time dependent metadata. In this work, In this paper, a time dependent metadata-based framework is proposed to segment news contents and to provide time dependent metadata so that user can use context information to communicate with their friends. The transcript of the news is divided by using the proposed story segmentation method. We provide a tag to represent the entire content of the news. And provide the sub tag to indicate the segmented news which includes the starting time of the news. The time dependent metadata helps user to track the news information. It also allows them to leave a comment on each segment of the news. User also may share the news based on time metadata as segmented news or as a whole. Therefore, it helps the user to understand the shared news. To demonstrate the performance, we evaluate the story segmentation accuracy and also the tag generation. For this purpose, we measured accuracy of the story segmentation through semantic similarity and compared to the benchmark algorithm. Experimental results show that the proposed method outperforms benchmark algorithms in terms of the accuracy of story segmentation. It is important to note that sub tag accuracy is the most important as a part of the proposed framework to share the specific news context with others. To extract a more accurate sub tags, we have created stop word list that is not related to the content of the news such as name of the anchor or reporter. And we applied to framework. We have analyzed the accuracy of tags and sub tags which represent the context of news. From the analysis, it seems that proposed framework is helpful to users for sharing their opinions with context information in Social media and Social news.
With the advent of a wide variety of Internet shopping malls, consumers can choose a best appealing shopping mall from among the Bricks-and-Clicks and Pure-Player malls. Pure-Players launched their operation grandiosely with the early stage of Internet use in 1995. However, after the burst of Dot-com company bubbles in 1997, Pure-Players introduce various types of business models to meet potential needs of consumers. While Pure-Players suffer skeptical views from market analysts as well as consumers, traditional offline companies learned important lessons from Dot-com companies collapse phenomena, and expanded their business channels into online in the name of Bricks-and-Clicks. Nowadays, Bricks-and-Clicks successfully establish in the market as one of reliable business partners among consumers. Therefore, it is no surprise that recent competitions between Bricks-and Clicks and Pure-Players become fiercer than ever to attract potential customers to their websites. In this situation, consumers can choose a shopping mall to their best satisfaction. Consumers can enjoy both offline and online options for shopping because Bricks-and Clicks provide both offline and online channels to consumers, which is compared with Pure-Players offering only online channel. Offline channel is unique in providing consumers with chances to touch and feel target products and services. Meanwhile, online channel is considered very viable and convenient shopping options for consumers. In this respect, it is easily assumed that consumers will show different online shopping behavior when they have to choose either Bricks-and-Clicks mall or Pure-Player mall for the sake of shopping. Remaining research issue in this case is how much consumers' schema would influence online shopping behavior between Bricks-and-Clicks and Pure-Players. Basically, schema is a framework for synthetic information recognition that individual consumers have and is very characteristic in that it focuses not on fragmentary facts but on the combination of various causes affecting results. Consumers' schema is closely represented by trust, structural assurance, and perceived relative advantage towards a specific type of shopping mall. In literature, there exist a lot of studies comparing Bricks-and-Clicks and Pure-Players. However, there is no study to pursue the analysis of consumer behaviors comparing Bricks-and Clicks and Pure-Players from the schema perspective. Therefore, this study aims to investigate this research gap. Empirical analysis is adopted by garnering valid questionnaires from 514 Internet shopping mall users. 237 were mainly using Bricks-and-Clicks for shopping, while 277 were found to visit Pure-Players for shopping. PLS was applied to analyze the survey data to verify the proposed research hypotheses. Findings from the empirical test results are as follows. First, consumers perceive more trust and relative advantage in Pure-Players, comparing with Bricks-and-Clicks. This result is against widely-accepted perception that Bricks-and-Clicks would be perceived by consumers as more trustworthy and relatively advantageous because they have offline reputation and stores. Therefore, it becomes more obvious that Internet is becoming daily necessaries, and consumers increasingly feel very comfortable in using the Internet for their own personal purposes. Second, consumers have firm faith in transaction safety, regardless Bricks-and-Clicks and Pure-Players. This seems due to the fact that most of shopping malls showing dubious transaction safety have no place in the market. In a nutshell, empirical results tell us that Pure-Players will grow very much in the future, to the extent that consumers perceive no difference in comparison with Bricks-and-Clicks. Besides, consumers' schema accumulated through trust and perceived relative advantage plays crucial role in determining consumer behavior.
Open Source Software Development (OSSD) differentiates itself from traditional closed software development in that it reveals its source codes online and allows anyone to participate in projects. Even though its success was in doubt, many of the open collaborative working models produced successful results. Academia started to get interested in how developers are willing to participate even when there are no extrinsic rewards for their efforts. Many studies tried to explain developers' motivations, and the pursuit of ideology, reputation, and altruism are found to be the answers. Those studies, however, focused mostly on how the first contribution is made out of a certain motivation. Nowadays, OSSD reaches at its maturity and 70% of professional developers have used or utilized open source software or code in their works. As the proportion of people experiencing OSS, the accounts from previous studies are expected to be weakened. Also, extant literature fails to explain how the motivation of participating in OSS evolves over time and experiences. Given that changing over time or over experiences is the natural in the perception of motivation, studies in an attempt to understand how the motivation changes or evolves are in need. In this study, we aimed to explain how the perception about OSS from past usage or related experiences leads to the intention to sustain OSS participations. By doing so, we try to bridge the gap between previous studies and the actual phenomenon. We argued that perceived instrumentality about OSS learned from past experiences will first affect the formation of organizational identity towards general OSS community. And once the organizational identity is formed, it will affect the one's following behaviors related to OSS development, most likely to sustain the favoring stance toward OSS community. Our research distinguishes itself from previous one in that it divides the paths from organizational identity formed to the intention to sustain the voluntary helping behaviors, by altruistic and conforming intentions. Drawing on this structural model, we could explain how organizational identity engages in forming the sustaining intention from past experiences, and that the intention to help at individual level and organizational level works at different level in OSS community. We grounded our arguments on Social identity theory and Organizational Citizenship theory. We examined our assumption by constructing a structural equation model (SEM) and had 88 developers to answer our online surveys. The result is analyzed by PLS (partial least square) method. Consequently, all paths but one in our model are supported, the one which assumed the association between perceived instrumentality and altruistic intention. Our results provide directions in designing online collaborative platforms where open access collaboration is meant to occur. Theoretically, our study suggests that organizational citizenship behavior can occur from organizational identity, even in bottom-up organizational settings. More specifically, we also argue to consider both organizational level and individual level of motivation in inducing sustained participations within the platforms. Our result can be interpreted to indicate the importance of forming organizational identity in sustaining the participatory behaviors. It is because there was no direct association between perceived instrumentality from past experiences and altruistic behavior, but the perception of organizational identity bridges the two constructs. This means that people with no organizational identity can sustain their participations through conforming intention from only the perception of instrumentality, but it needs little more than that for the people to feel the intention to directly help someone in the community-first to form the self-identity as a member of the given community.
The objective of this paper is to think about what structural reforms of the Korean government S&T development management system might be. Korean society is currently experiencing a drastic socio-economic transformation. The results of this transformation should be reflected on the determining process of the directions and breadths of structural reforms of government S&T development management system. Because the government system design will be based on the premises of socio-economic conditions under which administrative activities perform and also this socio-economic changes can influence on changes of the premises of government management system design. Moreover, S&T development management system is a subsystem of government system so that the directions of structural reform of those subsystems should be considered in the broad framework changes in the development management system of the government. For the last forty years, the Korean government S&T development management system has been based on the premises including transformation from an agrarian society to an industrial society, authoritarianism and centrally controlled institutions, and exteremely small portions of private investments for science and thechonology R & D of the total. Recently, however, the premises of Korean government S&T development management system have rapidly changed. the characteristics of these changes are including tranformation from an industrial society to a knowledge and information intensive society, globalization, localization, and relatively large portion of private investments for science and technology R & C of the total. The basis of government reforms in Korea was the realization of the performances and values through the enhancement of national competitive capacity, attainment of lean government, decentralization and autonomy. However, the Korean government has attached a symbolic value of strategic organizations representing strong policy intentions of government for the science and technology based development. Most problems associated with the Korean government S&T development management system have grown worse during 1990s. Many people perceive that considerable part of this problem was generated because the government could not properly adapt itself to new administrative environment and the paradigm shift in its role. First of all, the Korean government S&T development management system as a whole failed to develop an integrated vision under which processes in formulating science and thechology development goals and developing consistent government plans concerning science and technology development are guided. Second, most of the local governments have little organizational capacity and manpowers to handle localized activities to promote science and technology in their regions. Third, the measure to coordinate and set priorities to invest resources for the development of science and technology was not effective. Fourth, the Most has been losing its reputation as the symbol of ideological commitment of the top policy maker to promote science and technology. Various ideas to reform government S&T development management system have been suggested recently. Most frequently cited ideas are as follow : (ⅰ)strengthen the functions of MoST by supplementing the strong incentive and regulatory measures; (ⅱ)create a new Ministry of Education, Science & Technology and Research by merging the Ministry of Education and the MoST; (ⅲ)create a new Ministry of Science & Technology and Industry ; and(ⅳ)create a National Science and Technology Policy Council under the chairmanship of the President. Four alternatives suggested have been widely discussed among the interested parties and they each have merits as well as weaknesses. The first alternative could be seen as an alternative which cannot resolve current conflicts among various ministries concerning priority setting and resource allocation. However, this alternatives can be seen as a way of showing the top policymaker's strong intention to emphasize science and technology based development. Second alternative is giving a strategic to emphasize on the training and supplying qualified manpower to meet knowledge and information intensive future society. This alternative is considered to be consistent with the new administrative paradigm emphasizing lean government and decentralization. However, opponents are worrying about the linkages and cooperative research between university and industry could be weakening. The third alternative has been adopted mostly in nations which have strong basic science research but weak industrial innovation traditions. Main weakness of this alternative for Korea is that Korean science and technology development system has no strong basic science and technology research traditions. The fourth alternative is consistent with new administrative paradigms and government reform bases. However, opponents to this alternative are worried that the intensive development of science and technology because of Korea's low potential research capabilities in science and technology development. Considerning the present Korean socio-economic situation which demands highly qualified human resources and development strategies which emphasizes the accumulations of knowledge-based stocks, I would like to suggest the route of creating a new Ministry of Education, Science & Technology and Research by intergrating education administration functions and science & technology development function into one ministry.
This study is to empirically examine the primary dimensions of visual merchandising (VMD) of internet shopping mall, namely store design, merchandise, and merchandising cues, to be a attractive virtual store to the shoppers. The authors reviewed the literature related to the major components of VMD from the perspective of the AIDA model, which has been mainly applied to the offline store settings. The major purposes of the study are as follows; first, tries to derive the variables related with the components of visual merchandising through reviewing the existing literatures, establish the hypotheses, and test it empirically. Second, examines the relationships between the components of VMD and the attitude toward the VMD, however, putting more emphasis on finding out the component structure of the VMD. VMD needs to be examined with the perspective that an online shopping mall is a virtual self-service or clerkless store, which could reduce the number of employees, help the shoppers search, evaluate and purchase for themselves, and to be explored in terms of the in-store persuasion processes of customers. This study reviewed the literatures related to store design, merchandise, and merchandising cues which might be relevant to the store, product, and promotion respectively. VMD is a total communication tool, and AIDA model could explain the in-store consumer behavior of online shopping. Store design has to do with triggering a consumer attention to the online mall, merchandise with a product related interest, and merchandising cues with promotions such as recommendation and links that induce the desire to pruchase. These three steps might be seen as the processes for purchase actions. The theoretical rationale for the relationship between VMD and AIDA could be found in Tyagi(2005) that the three steps of consumer-oriented merchandising are a store, a product assortment, and placement, in Omar(1999) that three types of interior display are a architectural design display, commodity display, and point-of-sales(POS) display, and in Davies and Ward(2005) that the retail store interior image is related to an atmosphere, merchandise, and in-store promotion. Lee et al(2000) suggested as the web merchandising components a merchandising cues, a shopping metaphor which is an assistant tool for search, a store design, a layout(web design), and a product assortment. The store design which includes differentiation, simplicity and navigation is supposed to be related to the attention to the virtual store. Second, the merchandise dimensions comprising product assortments, visual information and product reputation have to do with the interest in the product offerings. Finally, the merchandising cues that refer to merchandiser(MD)'s recommendation of products and providing the hyperlinks to relevant goods for the shopper is concerned with attempt to induce the desire to purchase. The questionnaire survey was carried out to collect the data about the consumers who would shop at internet shopping malls frequently. To select the subject malls, the mall ranking data announced by a mall rating agency was used to differentiate the most popular and least popular five mall each. The subjects was instructed to answer the questions after navigating the designated mall for five minutes. The 300 questionnaire was distributed to the consumers, 166 samples were used in the final analysis. The empirical testing focused on identifying and confirming the dimensionality of VMD and its subdimensions using a structural equation modeling method. The confirmatory factor analysis for the endogeneous and exogeneous variables was carried out in four parts. The second-order factor analysis was done for a store design, a merchandise, and a merchandising cues, and first-order confirmatory factor analysis for the attitude toward the VMD. The model test results shows that the chi-square value of structural equation is 144.39(d.f 49), significant at 0.01 level which means the proposed model was rejected. But, judging from the ratio of chi-square value vs. degree of freedom, the ratio was 2.94 which smaller than an acceptable level of 3.0, RMR is 0.087 which is higher than a generally acceptable level of 0.08. GFI and AGFI is turned out to be 0.90 and 0.84 respectively. Both NFI and NNFI is 0.94, and CFI 0.95. The major test results are as follows; first, the second-order factor analysis and structural equational modeling reveals that the differentiation, simplicity and ease of identifying current status of the transaction are confirmed to be subdimensions of store design and to be a significant predictors of the dependent variable. This result implies that when designing an online shopping mall, it is necessary to differentiate visually from other malls to improve the effectiveness of the communications of store design. That is, the differentiated store design raise the contrast stimulus to sensory organs to promote the memory of the store and to have a favorable attitude toward the VMD of a store. The results that navigation which means the easiness of identifying current status of shopping affects the attitude to VMD could be interpreted that the navigating processes via the hyperlinks which is characteristics of an internet shopping is a complex and cognitive process and shoppers are likely to lack the sense of overall structure of the store. Consequently, shoppers are likely to be alost amid shopping not knowing where to go. The orientation tool enhance the accessibility of information to raise the perceptive power about the store environment.(Titus & Everett 1995) Second, the primary dimension of merchandise and its subdimensions was confirmed to be unidimensional respectively, have a construct validity, and nomological validity which the VMD dimensions supposed to have a positive correlation with the dependent variable. The subdimensions of product assortment, brand fame and information provision proved to have a positive effect on the attitude toward the VMD. It could be interpreted that the more plentiful the product and brand assortment of the mall is, the more likely the shoppers to favor it. Brand fame and information provision as well affect the VMD attitude, which means that the more famous the brand, the more likely the shoppers would trust and feel familiar with the mall, and the plentifully and visually presented information could have the shopper have a favorable attitude toward the store VMD. Third, it turned out to be that merchandising cue of product recommendation and hyperlinks affect the VMD attitude. This could be interpreted that recommended products could reduce the uncertainty related with the purchase decision, and the hyperlinks to relevant products would help the shopper save the cognitive effort exerted into the information search and gathering, which could lead to a favorable attitude to the VMD. This study tried to sheds some new light on the VMD of online store by reviewing the variables mentioned to be relevant with offline VMD in the existing literatures, and tried to link the VMD components from the perspective of AIDA model. The effect size of the VMD dimensions on the attitude was in the order of the merchandise, the store design and the merchandising cues.It is said that an internet has an unlimited place for display, however, the virtual store is not unlimited since the consumer has a limited amount of cognitive ability to process the external information and internal memory. Particularly, the shoppers are likely to face some difficulties in decision making on account of too many alternative and information overloads. Therefore, the internet shopping mall manager should take into consideration the cost of information search on the part of the consumer, to establish the optimal product placements and search routes. An efficient store composition would be possible by reducing the psychological burdens and cognitive efforts exerted to information search and alternatives evaluation. The store image is in most part determined by the product category and its brand it deals in. The results of this study support this proposition that the merchandise is most important to the VMD attitude than other components, the manager is required to take a strategic approach to VMD. The internet users are getting more accustomed and more knowledgeable about the internet media and more likely to accept the internet as a shopping channel as the period of time during which they use the internet to shop become longer. The web merchandiser should be aware that the product introduction using a moving pictures and a bulletin board become more important in order to present the interactive product information visually and communicate with customers more actively, therefore leading to making the quantity and quality of product information more rich.
Trust has been studied extensively in psychology, economics, and sociology, and its importance has been emphasized not only in marketing, but also in business disciplines in general. Unlike past relationships between suppliers and buyers, which take considerable advantage of private networks and may involve unethical business practices, partnerships between suppliers and buyers are at the core of success for industrial marketing amid intense global competition in the 21st century. A high level of mutual cooperation occurs through an exchange relationship based on trust, which brings long-term benefits, competitive enhancements, and transaction cost reductions, among other benefits, for both buyers and suppliers. In spite of the important role of trust, existing studies in buy-supply situations overlook the role of trust and do not systematically analyze the effect of trust on relational performance. Consequently, an in-depth study that determines the relation of trust to the relational performance between buyers and suppliers of business services is absolutely needed. Business services in this study, which include those supporting the manufacturing industry, are drawing attention as the economic growth engine for the next generation. The Korean government has selected business services as a strategic area for the development of manufacturing sectors. Since the demands for opening business services markets are becoming fiercer, the competitiveness of the business service industry must be promoted now more than ever. The purpose of this study is to investigate the effect of the mutual trust between buyers and suppliers on relational performance. Specifically, this study proposed a theoretical model of trust-relational performance in the transactions of business services and empirically tested the hypotheses delineated from the framework. The study suggests strategic implications based on research findings. Empirical data were collected via multiple methods, including via telephone, mail, and in-person interviews. Sample companies were knowledge-based companies supplying and purchasing business services in Korea. The present study collected data on a dyadic basis. Each pair of sample companies includes a buying company and its corresponding supplying company. Mutual trust was traced for each pair of companies. This study proposes a model of trust-relational performance of buying-supplying for business services. The model consists of trust and its antecedents and consequences. The trust of buyers is classified into trust toward the supplying company and trust toward salespersons. Viewing trust both at the individual level and the organizational level is based on the research of Doney and Cannon (1997). Normally, buyers are the subject of trust, but this study supposes that suppliers are the subjects. Hence, it uniquely focused on the bilateral perspective of perceived risk. In other words, suppliers, like buyers, are the subject of trust since transactions are normally bilateral. From this point of view, suppliers' trust in buyers is as important as buyers' trust in suppliers. The suppliers' trust is influenced by the extent to which it trusts the buying companies and the buyers. This classification of trust using an individual level and an organization level is based on the suggestion of Doney and Cannon (1997). Trust affects the process of supplier selection, which works in a bilateral manner. Suppliers are actively involved in the supplier selection process, working very closely with buyers. In addition, the process is affected by the extent to which each party trusts its partners. The selection process consists of certain steps: recognition, information search, supplier selection, and performance evaluation. As a result of the process, both buyers and suppliers evaluate the performance and take corrective actions on the basis of such outcomes as tangible, intangible, and/or side effects. The measurement of trust used for the present study was developed on the basis of the studies of Mayer, Davis and Schoorman (1995) and Mayer and Davis (1999). Based on their recommendations, the three dimensions of trust used for the study include ability, benevolence, and integrity. The original questions were adjusted to the context of the transactions of business services. For example, a question such as "He/she has professional capabilities" has been changed to "The salesperson showed professional capabilities while we talked about our products." The measurement used for this study differs from those used in previous studies (Rotter 1967; Sullivan and Peterson 1982; Dwyer and Oh 1987). The measurements of the antecedents and consequences of trust used for this study were developed on the basis of Doney and Cannon (1997). The original questions were adjusted to the context of transactions in business services. In particular, questions were developed for both buyers and suppliers to address the following factors: reputation (integrity, customer care, good-will), market standing (company size, market share, positioning in the industry), willingness to customize (product, process, delivery), information sharing (proprietary information, private information), willingness to maintain relationships, perceived professionalism, authority empowerment, buyer-seller similarity, and contact frequency. As a consequential variable of trust, relational performance was measured. Relational performance is classified into tangible effects, intangible effects, and side effects. Tangible effects include financial performance; intangible effects include improvements in relations, network developing, and internal employee satisfaction; side effects include those not included either in the tangible or intangible effects. Three hundred fifty pairs of companies were contacted, and one hundred five pairs of companies responded. After deleting five company pairs because of incomplete responses, one hundred five pairs of companies were used for data analysis. The response ratio of the companies used for data analysis is 30% (105/350), which is above the average response ratio in industrial marketing research. As for the characteristics of the respondent companies, the majority of the companies operate service businesses for both buyers (85.4%) and suppliers (81.8%). The majority of buyers (76%) deal with consumer goods, while the majority of suppliers (70%) deal with industrial goods. This may imply that buyers process the incoming material, parts, and components to produce the finished consumer goods. As indicated by their report of the length of acquaintance with their partners, suppliers appear to have longer business relationships than do buyers. Hypothesis 1 tested the effects of buyer-supplier characteristics on trust. The salesperson's professionalism (t=2.070, p<0.05) and authority empowerment (t=2.328, p<0.05) positively affected buyers' trust toward suppliers. On the other hand, authority empowerment (t=2.192, p<0.05) positively affected supplier trust toward buyers. For both buyers and suppliers, the degree of authority empowerment plays a crucial role in the maintenance of their trust in each other. Hypothesis 2 tested the effects of buyerseller relational characteristics on trust. Buyers tend to trust suppliers, as suppliers make every effort to contact buyers (t=2.212, p<0.05). This tendency has also been shown to be much stronger for suppliers (t=2.591, p<0.01). On the other hand suppliers trust buyers because suppliers perceive buyers as being similar to themselves (t=2.702, p<0.01). This finding confirmed the results of Crosby, Evans, and Cowles (1990), which reported that suppliers and buyers build relationships through regular meetings, either for business or personal matters. Hypothesis 3 tested the effects of trust on perceived risk. It has been found that for both suppliers and buyers the lower is the trust, the higher is the perceived risk (t=-6.621, p<0.01 for buyers; t=-2.437, p<0.05). Interestingly, this tendency has been shown to be much stronger for buyers than for suppliers. One possible explanation for this higher level of perceived risk is that buyers normally perceive higher risks than do suppliers in transactions involving business services. For this reason, it is necessary for suppliers to implement risk reduction strategies for buyers. Hypothesis 4 tested the effects of trust on information searching. It has been found that for both suppliers and buyers, contrary to expectation, trust depends on their partner's reputation (t=2.929, p<0.01 for buyers; t=2.711, p<0.05 for suppliers). This finding shows that suppliers with good reputations tend to be trusted. Prior experience did not show any significant relationship with trust for either buyers or suppliers. Hypothesis 5 tested the effects of trust on supplier/buyer selection. Unlike buyers, suppliers tend to trust buyers when they think that previous transactions with buyers were important (t=2.913 p<0.01). However, this study did not show any significant relationship between source loyalty and the trust of buyers in suppliers. Hypothesis 6 tested the effects of trust on relational performances. For buyers and suppliers, financial performance reportedly improved when they trusted their partners (t=2.301, p<0.05 for buyers; t=3.692, p<0.01 for suppliers). It is interesting that this tendency was much stronger for suppliers than it was for buyers. Similarly, competitiveness was reported to improve when buyers and suppliers trusted their partners (t=3.563, p<0.01 for buyers; t=3.042, p<0.01 for suppliers). For suppliers, efficiency and productivity were reportedly improved when they trusted buyers (t=2.673, p<0.01). Other performance indices showed insignificant relationships with trust. The findings of this study have some strategic implications. First and most importantly, trust-based transactions are beneficial for both suppliers and buyers. As verified in the study, financial performance can be improved through efforts to build and maintain mutual trust. Similarly, competitiveness can be increased through the same kinds of effort. Second, trust-based transactions can facilitate the reduction of perceived risks inherent in the purchasing situation. This finding has implications for both suppliers and buyers. It is generally believed that buyers perceive higher risks in a highly involved purchasing situation. To reduce risks, previous studies have recommended that suppliers devise risk-reducing tactics. Moving beyond these recommendations, the present study uniquely focused on the bilateral perspective of perceived risk. In other words, suppliers are also susceptible to perceived risks, especially when they supply services that require very technical and sophisticated manipulations and maintenance. Consequently, buyers and suppliers must solve problems together in close collaboration. Hence, mutual trust plays a crucial role in the problem-solving process. Third, as found in this study, the more authority a salesperson has, the more he or she can be trusted. This finding is very important with regard to tactics. Building trust is a long-term assignment; however, when mutual trust has not been developed, suppliers can overcome the problems they encounter by empowering a salesperson with the authority to make certain decisions. This finding applies to suppliers as well.