• Journal of Digital Convergence
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• v.19 no.5
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• pp.153-161
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• 2021

This study examined whether the probability of a tax investigation by the general construction industry could reduce the entertainment expenses in order to confirm whether a tax investigation can reduce excessive discretionary expenses of firms. Among the general construction industry listed on the KOSPI and KOSDAQ from 2011 to 2018, 274 firms with sales exceeding 10 billion won in the previous year were targeted at the tax audit selection rate and the tax audit detection rate, which is a proxy for the possibility of a tax investigation. The effect of the ratio of entertainment expenses to sales and the increase rate of entertainment expenses was verified. As a result of the analysis, both the selection rate and the detection rate of the tax investigation have a significant negative effect on the proxy variable of the discretionary expenses measured as the proportion of entertainment expenses and the increase rate of entertainment expenses. The results of this study showed that the tax investigation is a means to curb the excessive expenditure of the firm's discretionary expenses, thus suggesting the direction for the taxation policy and the effectiveness of the tax investigation.

• The Journal of the Korea Contents Association
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• v.19 no.4
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• pp.423-431
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• 2019

This study examines the effect of the liability limitation provision (LLP) adoption on firm's cost behavior. In April 2011, Korea introduced the LLP with the purpose of improving the management efficiency by mitigating the risks caused by the manager's failure to make decisions related to business operation. However, there are concerns that the adoption of LLP may lead the manager's moral hazard, so the need for empirical research to verify the effect of the LLP adoption is emphasized. In this study, we analyze the effect of the LLP adoption empirically, focusing on the cost behavior that is affected by the manager's decision making. From the empirical result, we find that LLP adopted companies have strengthened the cost stickiness of selling, general, and administrative costs rather than non-adopted companies. This suggests that the manager of LLP adopted company makes a more active decision to consider adjusting costs in order to prepare for future recovery in sales when sales is reduced. This study presents empirical evidence to prove the policy validity of the adoption of LLP, and we expect that our results can contribute to the capital market and academia.

• Journal of Service Research and Studies
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• v.13 no.1
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• pp.176-185
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• 2023

This study is a study to develop a model to measure the economic performance when introducing industrial safety design, which is emerging as a necessity for industrial accident prevention measures due to the increase in the industrial site nursing accident rate and the enforcement of the Serious Accident Punishment Act. To this end, studies on the concept of industrial safety management and industrial safety design and economic performance measurement in the field of industrial safety were conducted in terms of theoretical background. Based on the theoretical background, opinions on drafts of related indicators were collected through user opinion surveys, and focus group interviews and Delphi techniques were conducted with experts, and research was conducted to advance the model. In order to secure objectivity, the causal relationship between the introduction of industrial safety design, cost reduction effect, and sales increase effect was tested through regression analysis. After going through these steps, two models of economic performance measurement of industrial safety design were finally developed: a model based on the first-stage disaster loss cost reduction effect and a second-stage sales increase effect. In order to be applied to actual industrial sites, it should be able to be presented as a standard for the degree of service level agreement of industrial safety design beyond a simple checklist.

• Korean small business review
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• v.41 no.2
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• pp.25-50
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• 2019

Although Korean government has implemented size-dependent policy, so called "the designation of SMEs-suitable industry", promoting SMEs growth, our understanding in the effectiveness of the policy is limited. We investigate the effect of the policy on SMEs performance in food product and beverages industry, which accounts for the majority in the SMEs-suitable industry. From the perspective of sales, profitability, and R&D intensity, which is regarded as indigenous effort for growth, we find the heterogeneity in the effectiveness of the policy across the sub-sectors in the industry. However, overall the policy does not significantly contribute to the growth of sales, profitability, and facilitation of R&D activity for indigenous innovative efforts of SMEs. Our study advances the theoretical discussion on the effect of the policy with the disaggregated level of analysis, i.e, sub-sector level. Our findings also contribute to the resolution of social and political conflicts between pros and cons of the policy. Our study suggests that policy makers should develop more sophisticated policy that incorporate the specific characteristics of individual sub-sectors. They also need to invest more resources in enhancing the effectiveness of the policy and accelerating SMEs innovative efforts.

• Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
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• v.6 no.5
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• pp.367-377
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• 2016

The purpose of the projects for strengthening the Service Business Competitiveness, which had been sponsored by the Ministry of Trade, Industry and Energy, and managed by the NIPA, is to support for combining the whole business process of the SMEs with the business model considering the scientific aspects of the services, to enhance the productivity of them and to add the values of their activities. 5 organizations are selected in 2014, and 4 in 2015 as leading organizations for these projects. This study analyzed the efficiency of these projects using DEA. Throughout the analysis of the prior researches, this study used the amount of government-sponsored money as the input variable, and the number of new customer business, the sales revenue, and the number of new employment as the output variables. And the result of this analysis showed that the decision making unit 12, 15, and 21 was efficient. And from this study, we found out two more performance indicators such as, the number of new employment and the amount of sales revenue, besides the number of new customer businesses.

• Journal of Venture Innovation
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• v.6 no.3
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• pp.241-263
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• 2023

Recently, the aging of SME managers has emerged as a major issue in business succession. The smooth succession of small and medium-sized enterprises (SMEs), which are the industrial base of Korea, is becoming an important issue for enhancing the vitality of the national economy, such as job creation, beyond mere discussion of inheritance. At this point, this study conducted an empirical analysis on the factors affecting corporate succession intention. As independent variables, corporate Capability consisting of employee competency, marketing competency, and digital competency, human factors such as managers, successors, and third-party stakeholders, and institutional factors such as legislation, taxation, and trust were set. In addition, the effect of adjusting the sales scale was verified. To this end, a survey was conducted targeting representatives who are currently running small and medium-sized enterprises (SMEs). The total number of valid questionnaires was 315. Based on this, an empirical analysis was conducted using the hierarchical regression method. The results of the empirical analysis are as follows. First, marketing competency and digital competency, managerial competency and successor competency, taxation and trust had a significant positive (+) effect on corporate succession intention. However, a significant influence relationship between the third stakeholder, employee competency, and corporate succession intention was not tested. Among the factors that have a significant impact, the size of the influence was in the order of taxation, successor competency, executive competency, trust, marketing competency, and digital competency. Second, the size of sales was found to moderate the relationship between the variables that had a significant effect on corporate succession intention, that is, management competency, successor competency, marketing competency, digital competency, taxation and trust, and corporate succession intention. Based on these research results, academic, practical, and institutional implications for smooth business succession are presented.

• Information Systems Review
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• v.24 no.2
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• pp.1-20
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• 2022

Researchers are making contradictory claims through the concept of superstars and long tails about how the development of IT technology affects demand distribution. Unlike previous studies that focused on changes in demand from a macro point of view, this study explored whether the relationship between a company's marketing activities and consumer response differs depending on the product location (i.e., superstar vs. long tail) from a micro point of view. Based on the marketing mix framework, hypotheses were developed based on the relevant literature. In the case of empirical analysis, 2,835 daily data from 63 Korean films were tested using the quantile regression method. As a result of the analysis, it was found that the influence of marketing mix factors on sales varies depending on the location of the product. Specifically, the appeal breadth of the film and the effect of owned media are enhanced in superstar products, and the effect of acquisition media in long-tail products is enhanced and the negative effects of competition are mitigated. Unlike previous studies that focused on macroscopic changes in demand distribution, this study suggested marketing activities suitable for practitioners through microscopic analysis.

• Journal of Industrial Convergence
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• v.22 no.1
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• pp.1-20
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• 2024

Regarding the discourse on the correlation between governmental financial support and firm performance, much emphasis has been placed on the role of individual corporate characteristics as well as spatial features. However, there is a notable scarcity of empirical research examining the integrated impact of corporate and cluster characteristics on managerial performance. This study addresses this gap by empirically analyzing the financial and non-financial outcomes resulting from specific allocations of governmental financial support. Additionally, it explores corporate and cluster characteristics predicted to moderate the influence between governmental financial support and firm performance. The analysis employs a two-level hierarchical linear model (HLM) at individual and group levels. The data, reorganized based on business registration numbers at the firm and cluster levels, ultimately utilized panel data from 83,395 firms and 641 clusters. The research findings indicate that governmental financial support demonstrates a positive effect (+) on both sales and patents for firms, suggesting its effectiveness in complementing market failures. Results from the hierarchical linear model analysis show that when combined with human capital capacity, absorptive capacity, and cluster network density, governmental financial support exhibits significant positive effects on sales. This study contributes theoretical and practical insights by analyzing the relationship between governmental financial support and firm performance using a two-level hierarchical linear model. It highlights the role of corporate characteristics such as human capital and absorptive capacity, along with cluster characteristics like cluster network density, in moderating the effects of governmental financial support on firm performance.

• Journal of Distribution Science
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• v.9 no.2
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• pp.111-122
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• 2011

The purpose of this study is to survey the successful cases of small and medium Business Systematization Cognition by examining their entrepreneurial characteristics and analysing the factors affecting their success. To that end, previous studies on the association types of small businesses were studied. A research model was developed, and research hypotheses for an empirical analysis were established upon it. Suh et al. (2010) insist on the importance of Small Business Systematization in Korea but also show that small business performance is suffering: they are too small to stand alone. That is why association is so crucial for them: they must stand together. Unfortunately, association is difficult, as they have few specific links and little motivation. Even in franchising networks, association tends to be initiated by big franchisers, not small ones. In that sense, association among small businesses is crucial for their long-term survival. With this in mind, this study examines how they think and feel about the issue of 'Industrial Classification', how important Industrial Classification is to their business success, and what kinds of problems it raises in the markets. This study seeks the different cognitions among the association types of small businesses from the perspectives of participation motivation, systematization expectation, policy demand level, and management performance. We assume that different industrial classification types of small businesses will have different cognitions concerning these factors. There are four basic industrial classification types of small businesses: retail sales, restaurant, service, and manufacturing. To date, most of the studies in this area have focused on collecting data on the external environments of small businesses or performing statistical analyses on their status. In this study, we surveyed 4 market areas in Busan, Masan, and Changwon in Korea, where business associations consist of merchants, shop owners, and traders. We surveyed 330 shops and merchants by sending a questionnaire or visiting. Finally, 268 questionnaires were collected and used for the analysis. An ANOVA, T-test, and regression analyses were conducted to test the research hypotheses. The results demonstrate that there are differences in cognition depending upon the industrial classification type. Restaurants generally have a higher cognition concerning job offer problems and a lower cognition concerning their competitiveness. Restaurants also depend more on systematization expectation than do the other industrial classification types. On the policy demand level, restaurants have a higher cognition. This study identifies several factors that are contributing to management performance through differences in cognition that depend upon association type: systematization expectation and policy demand level have positive effects on management performance; participation motivation has a negative effect on management performance. We confirm also that the image factors of different cognitions are linked to an awareness of the value of systematization and that these factors show sequential and continual patterns in the course of generating performances. In conclusion, this study carries significant implications in its classifying of small businesses into the four different associational types (retail sales, restaurant, services, and manufacturing). We believe our study to be the first one to conduct an empirical survey in this subject area. More studies in this area will likely use our research frameworks. The data show that regionally based industrial classification associations such as those in rural cities or less developed areas tend to suffer more problems than those in urban areas. Moreover, restaurants suffer more problems than the norm. Most of the problems raised in this study concern the act of 'associating itself'. Most associations have serious difficulties in associating. On the other hand, the area where they have the least policy demand is that of service types. This study contributes to the argument that associating, rather than financial assistance or management consulting, promotes the start-up and managerial performance of small businesses. This study also has some limitations. The main limitation is the number of questionnaires. We could not survey all the industrial classification types across the country because of budget and time limitations. If we had, we could have produced many more useful results and enhanced the precision of our analysis. The history of systemization is very short and the number of industrial classification associations is relatively low in Korea. We should keep in mind, though, that this is very crucial to systemization entrepreneurs starting their businesses, as it can heavily affect their chances of success. Being strongly associated with each other might be critical to the business success of industrial classification members. Thus, the government needs to put more effort and resources into supporting the drive of industrial classification members to become more strongly associated.

• Journal of the Korean Society for Marine Environment & Energy
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• v.16 no.1
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• pp.17-24
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• 2013

In order to have market competitiveness in local and global areas, Domestic Marine Leisure Industry business, which is a latecomer in the Marine Leisure industry, should retain a strong market adaptability by reducing time and cost that are required for work of planning, designing, and preparation for product development. To meet above requirements, it is essential that integrated system control extensive marine leisure industry. After ensuring integrated information by figuring out the systematic link between related-industries, the core of this research is to secure information classifications that are not just in the flow of simple serial order, but in that of integration and object-oriented information classifications. For this end, we examine other similar cases in industries using real information system applied to industrial production and Product Lifecycle Management (PLM), Product Data Management (PDM), Digital Manufacturing (DM) and applying the same methodology to review practical application in order to construct the information system, and Work Breakdown Structure (WBS), compared with the case studies. Through this basic task for the marine leisure industry classification system configuration (Work Breakdown Structure, WBS) and utilizing information of driving real companies of marine leisure industry, a unique area of MLWBS (Marine Leisure Work Breakdown Structure, MLWBS) is configured. This Marine Leisure Work Breakdown Structure can be used in various areas of applications like products, design information, engineering, production, purchasing, sales, marketing, AS, utilizing various forms of customer support.