• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.3
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• pp.337-345
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• 2018

The purpose of this study is to analyze the relationship between the characteristics of Korean family firms and the impact of debt financing. The analysis period was 10 years from 2004 to 2013, and the sample consisted of 4,008 non-financial firms listed on the Korea Exchange. For the analysis, the unbalanced panel data with time - series, cross - section data were formed and analyzed using panel data regression analysis. The results are as follows. First, Korean family firms use relatively less debt than non - family firms. It can be understood that family firms in which the dominant family owns and dominates the corporation are less likely to increase their debt because the agent problem is alleviated and the need for the control effect of Jensen (1986) is lowered. Second, in the verification of the packing order theory using the model proposed by Shyam-Sunder and Myers (1999), family firms have higher compliance with the packing order theory than non-family firms do. When financing is needed, debt is preferred over equity issuance. However, for Korean family firms, 24.38% of the deficit funds are financed through the issuance of net debt, which is relatively low compared to the 75% shown in the analysis of Shyam-Sunder and Myers (1999). These results reveal the limit to the strong claim that the Korean family firms follow the packing order theory.

• Journal of the Korea Society of Computer and Information
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• v.28 no.7
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• pp.155-164
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• 2023

In this paper, we examine the influence of Environmental, Social, and Governance (ESG)-related content on the success of online crowdfunding proposals. Along with the increasing significance of ESG standards in business, investment proposals incorporating ESG concepts are now commonplace. Due to the ESG trend, conventional wisdom holds that the majority of proposals with ESG concepts will have a higher rate of success. We investigate by analyzing over 9000 online business presentations found in a Kickstarter dataset to determine which characteristics of these proposals led to increased investment. We first utilized lexicon-based measurement and Feature Engineering to determine the relationship between environment and society scores and financial indicators. Next, Logistic Regression is utilized to determine the effect of including environmental and social terms in a project's description on its ability to obtain funding. Contrary to popular belief, our research found that microentrepreneurs were less likely to succeed with proposals that focused on ESG issues. Our research will generate new opportunities for research in the disciplines of information science and crowdfunding by shedding new light on the environment of online micro-entrepreneurship.

• Journal of Intelligence and Information Systems
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• v.27 no.4
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• pp.23-48
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• 2021

The Korean economy has achieved continuous economic growth for the past several decades thanks to the government's export strategy policy. This increase in exports is playing a leading role in driving Korea's economic growth by improving economic efficiency, creating jobs, and promoting technology development. Traditionally, the main factors affecting Korea's exports can be found from two perspectives: economic factors and industrial structural factors. First, economic factors are related to exchange rates and global economic fluctuations. The impact of the exchange rate on Korea's exports depends on the exchange rate level and exchange rate volatility. Global economic fluctuations affect global import demand, which is an absolute factor influencing Korea's exports. Second, industrial structural factors are unique characteristics that occur depending on industries or products, such as slow international division of labor, increased domestic substitution of certain imported goods by China, and changes in overseas production patterns of major export industries. Looking at the most recent studies related to global exchanges, several literatures show the importance of cultural aspects as well as economic and industrial structural factors. Therefore, this study attempted to develop a forecasting model by considering cultural factors along with economic and industrial structural factors in calculating the import volume of each country from Korea. In particular, this study approaches the influence of cultural factors on imports of Korean products from the perspective of PUSH-PULL framework. The PUSH dimension is a perspective that Korea develops and actively promotes its own brand and can be defined as the degree of interest in each country for Korean brands represented by K-POP, K-FOOD, and K-CULTURE. In addition, the PULL dimension is a perspective centered on the cultural and psychological characteristics of the people of each country. This can be defined as how much they are inclined to accept Korean Flow as each country's cultural code represented by the country's governance system, masculinity, risk avoidance, and short-term/long-term orientation. The unique feature of this study is that the proposed final prediction model can be selected based on Design Principles. The design principles we presented are as follows. 1) A model was developed to reflect interest in Korea and cultural characteristics through newly added data sources. 2) It was designed in a practical and convenient way so that the forecast value can be immediately recalled by inputting changes in economic factors, item code and country code. 3) In order to derive theoretically meaningful results, an algorithm was selected that can interpret the relationship between the input and the target variable. This study can suggest meaningful implications from the technical, economic and policy aspects, and is expected to make a meaningful contribution to the export support strategies of small and medium-sized enterprises by using the import forecasting model.

• The Korean Journal of Air & Space Law and Policy
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• v.28 no.2
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• pp.349-384
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• 2013

The Sputnik 1 launching in 1957 made the world recognize the necessity of international regulations on space development and activities in outer space. The United Nations established COPUOS the very next year, and adopted the mandate to examine legal issues concerning the peaceful uses of outer space. At the time, the military sector of the U.S.A. and the Soviet Union were in charge of the space development and they were not welcomed to discuss the prohibition of the military uses of outer space at the legal section in the COPUOS. Although both countries had common interests in securing the freedom of military uses in outer space. As the social and economic benefits derived from space activities have become more apparent, civil expenditures on space activities have continued to increase in several countries. Virtually all new spacefaring states explicitly place a priority on space-based applications to support social and economic development. Such space applications as satellite navigation and Earth imaging are core elements of almost every existing civil space program. Likewise, Moon exploration continues to be a priority for such established spacefaring states as China, Russia, India, and Japan. Recently, Companies that manufacture satellites and ground equipment have also seen significant growth. On 25 February 2012 China successfully launched the eleventh satellite for its indigenous global navigation and positioning satellite system, Beidou. Civil space activities began to grow in China when they were allocated to the China Great Wall Industry Corporation in 1986. China Aerospace Corporation was established in 1993, followed by the development of the China National Space Administration. In Japan civil space was initially coordinated by the National Space Activities Council formed in 1960. Most of the work was performed by the Institute of Space and Aeronautical Science of the University of Tokyo, the National Aerospace Laboratory, and, most importantly, the National Space Development Agency. In 2003 all this work was assumed by the Japanese Aerospace Exploration Agency(JAXA). Japan eases restrictions on military space development. On 20 June 2012 Japan passed the Partial Revision of the Cabinet Establishment Act, which restructured the authority to regulate Japanese space policy and budget, including the governance of the JAXA. Under this legislation, the Space Activities Commission of the Ministry of Education, Culture, Sports, Science, and Technology, which was responsible for the development of Japanese space program, will be abolished. Regulation of space policy and budget will be handed over to the Space Strategy Headquarter formed under the Prime Minister's Cabinet. Space Strategy will be supported by a Consultative Policy Commission as an academics and independent observers. By revoking Article 4 (Objectives of the Agency) of a law that previously governed JAXA and mandated the development of space programs for "peaceful purposes only," the new legislation demonstrates consistency with Article 2 of the 2008 Basic Space Law. In conformity with the principles laid down in the 1967 Outer Space Treaty JAXA is now free to pursue the non-aggressive military use of space. New legislation is the culmination of a decade-long process that sought ways to "leverage Japan's space development programs and technologies for security purposes, to bolster the nation's defenses in the face of increased tensions in East Asia." In this connection it would also be very important and necessary to create an Asian Space Agency(ASA) for strengthening cooperation within the Asian space community towards joint undertakings.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.2
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• pp.201-219
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• 2023

ESG (Environment, Social, Governance) is becoming the core of the interest of today's entrepreneurs concerning about the earth crisis. Numerous studies are going on these days about the importance of ESG, but most of them seem confined to the introductory level. This study concentrates on "ESG education" that will teach the learners how to put various ESG ideas into practice, knowing that the earth crisis would not be overcome without actual practice of those ideas. First, elementary and junior·senior high school, professors in university and educational consultants in the field designed educational programs and related content materials under "ESG entrepreneurship education" integrated with ESG and Entrepreneurship education, which have been implemented previously. Participatory learning methods are converged with the program. The researcher analyzed the learning effects in depth after implementing the programs in the education field. Thus, this study first examined the effects of key variables of ESG educational program i.e., ESG entrepreneurship education, student participatory learning, and team-based learning on creative problem-solving and social value recognition with an essential variant of ESG educational programs and identified the relations to creative problem-solving and social value recognition. Besides, this study investigated the moderating effects of school atmosphere, and teachers' enthusiasm, regarding traits of educational programs and social value recognition. Findings indicate that sub variants of the traits of educational programs i.e., ESG entrepreneurship education, student participatory learning, and team-based learning significantly affect creative problem-solving skills and social value recognition and that creative problem-solving impacts social value recognition. In addition, teachers' enthusiasm has moderating effects between traits of educational programs and social value recognition. This study provides content-program learning methods that can be practically applied in education, emphasizing practice in ESG in elementary and junior·senior high school education. Implications suggest that ESG entrepreneurship education and active participatory learning affect social value recognition and that teachers' enthusiasm plays a significant role in education.

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

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

• Journal of Global Scholars of Marketing Science
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• v.18 no.4
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• pp.61-118
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• 2008

The purpose of this research is to construct research framework for international franchising based on existing literature and to identify research components in the framework. Franchise can be defined as management styles that allow franchisee use various management assets of franchisor in order to make or sell product or service. It can be divided into product distribution franchise that is designed to sell products and business format franchise that is designed for running it as business whatever its form is. International franchising can be defined as a way of internationalization of franchisor to foreign country by providing its business format or package to franchisee of host country. International franchising is growing fast for last four decades but academic research on this is quite limited. Especially in Korea, research about international franchising is carried out on by case study format with single case or empirical study format with survey based on domestic franchise theory. Therefore, this paper tries to review existing literature on international franchising research, providing research framework, and then stimulating new research on this field. International franchising research components include motives and environmental factors for decision of expanding to international franchising, entrance modes and development plan for international franchising, contracts and management strategy of international franchising, and various performance measures from different perspectives. First, motives of international franchising are fee collection from franchisee. Also it provides easier way to expanding to foreign country. The other motives including increase total sales volume, occupying better strategic position, getting quality resources, and improving efficiency. Environmental factors that facilitating international franchising encompasses economic condition, trend, and legal or political factors in host and/or home countries. In addition, control power and risk management capability of franchisor plays critical role in successful franchising contract. Final decision to enter foreign country via franchising is determined by numerous factors like history, size, growth, competitiveness, management system, bonding capability, industry characteristics of franchisor. After deciding to enter into foreign country, franchisor needs to set entrance modes of international franchising. Within contractual mode, there are master franchising and area developing franchising, licensing, direct franchising, and joint venture. Theories about entrance mode selection contain concepts of efficiency, knowledge-based approach, competence-based approach, agent theory, and governance cost. The next step after entrance decision is operation strategy. Operation strategy starts with selecting a target city and a target country for franchising. In order to finding, screening targets, franchisor needs to collect information about candidates. Critical information includes brand patent, commercial laws, regulations, market conditions, country risk, and industry analysis. After selecting a target city in target country, franchisor needs to select franchisee, in other word, partner. The first important criteria for selecting partners are financial credibility and capability, possession of real estate. And cultural similarity and knowledge about franchisor and/or home country are also recognized as critical criteria. The most important element in operating strategy is legal document between franchisor and franchisee with home and host countries. Terms and conditions in legal documents give objective information about characteristics of franchising agreement for academic research. Legal documents have definitions of terminology, territory and exclusivity, agreement of term, initial fee, continuing fees, clearing currency, and rights about sub-franchising. Also, legal documents could have terms about softer elements like training program and operation manual. And harder elements like law competent court and terms of expiration. Next element in operating strategy is about product and service. Especially for business format franchising, product/service deliverable, benefit communicators, system identifiers (architectural features), and format facilitators are listed for product/service strategic elements. Another important decision on product/service is standardization vs. customization. The rationale behind standardization is cost reduction, efficiency, consistency, image congruence, brand awareness, and competitiveness on price. Also standardization enables large scale R&D and innovative change in management style. Another element in operating strategy is control management. The simple way to control franchise contract is relying on legal terms, contractual control system. There are other control systems, administrative control system and ethical control system. Contractual control system is a coercive source of power, but franchisor usually doesn't want to use legal power since it doesn't help to build up positive relationship. Instead, self-regulation is widely used. Administrative control system uses control mechanism from ordinary work relationship. Its main component is supporting activities to franchisee and communication method. For example, franchisor provides advertising, training, manual, and delivery, then franchisee follows franchisor's direction. Another component is building franchisor's brand power. The last research element is performance factor of international franchising. Performance elements can be divided into franchisor's performance and franchisee's performance. The conceptual performance measures of franchisor are simple but not easy to obtain objectively. They are profit, sale, cost, experience, and brand power. The performance measures of franchisee are mostly about benefits of host country. They contain small business development, promotion of employment, introduction of new business model, and level up technology status. There are indirect benefits, like increase of tax, refinement of corporate citizenship, regional economic clustering, and improvement of international balance. In addition to those, host country gets socio-cultural change other than economic effects. It includes demographic change, social trend, customer value change, social communication, and social globalization. Sometimes it is called as westernization or McDonaldization of society. In addition, the paper reviews on theories that have been frequently applied to international franchising research, such as agent theory, resource-based view, transaction cost theory, organizational learning theory, and international expansion theories. Resource based theory is used in strategic decision based on resources, like decision about entrance and cooperation depending on resources of franchisee and franchisor. Transaction cost theory can be applied in determination of mutual trust or satisfaction of franchising players. Agent theory tries to explain strategic decision for reducing problem caused by utilizing agent, for example research on control system in franchising agreements. Organizational Learning theory is relatively new in franchising research. It assumes organization tries to maximize performance and learning of organization. In addition, Internalization theory advocates strategic decision of direct investment for removing inefficiency of market transaction and is applied in research on terms of contract. And oligopolistic competition theory is used to explain various entry modes for international expansion. Competency theory support strategic decision of utilizing key competitive advantage. Furthermore, research methodologies including qualitative and quantitative methodologies are suggested for more rigorous international franchising research. Quantitative research needs more real data other than survey data which is usually respondent's judgment. In order to verify theory more rigorously, research based on real data is essential. However, real quantitative data is quite hard to get. The qualitative research other than single case study is also highly recommended. Since international franchising has limited number of applications, scientific research based on grounded theory and ethnography study can be used. Scientific case study is differentiated with single case study on its data collection method and analysis method. The key concept is triangulation in measurement, logical coding and comparison. Finally, it provides overall research direction for international franchising after summarizing research trend in Korea. International franchising research in Korea has two different types, one is for studying Korean franchisor going overseas and the other is for Korean franchisee of foreign franchisor. Among research on Korean franchisor, two common patterns are observed. First of all, they usually deal with success story of one franchisor. The other common pattern is that they focus on same industry and country. Therefore, international franchise research needs to extend their focus to broader subjects with scientific research methodology as well as development of new theory.