• Journal of Korea Technology Innovation Society
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• v.18 no.2
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• pp.264-291
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• 2015

This research is to empirically analyze the effects of governmental policy including R&D subsidiary and tax reduction, which are both direct and indirect financial supports, during the examination period (2007~2009). The analysis was based on 2,751 firms that received governmental support via both R&D subsidiary and tax reduction with 7,038 panel events during the economic recession (2008~2009) and found that governmental support drives R&D investment of firms during the recession. The contribution of this research is that investigation of policy effectiveness categorized by firm sizes, particularly during the economic crisis. The result of the study is that during the recession, large firms had more elasticity increase towards tax reduction whereas smaller firms and ventures had it towards direct financial subsidiary. The elasticity increase of both large and small firms was in positive association with firms' R&D investment. The result indicates that government support obviously has positive influence on R&D investment of firms during the crisis, even enforcing the investment.

• Asia pacific journal of information systems
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• v.22 no.1
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• pp.53-77
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• 2012

Financial firms, especially large scaled firms such as KB bank, NH bank, Samsung Card, Hana SK Card, Hyundai Capital, Shinhan Card, etc. should be securely dealing with the personal financial information. Indeed, people have tended to believe that those big financial companies are relatively safer in terms of information security than typical small and medium sized firms in other industries. However, the recent incidents of personal information privacy invasion showed that this may not be true. Financial firms have increased the investment of information protection and security, and they are trying to prevent the information privacy invasion accidents by doing all the necessary efforts. This paper studies how effectively a financial firm will be able to avoid personal financial information privacy invasion that may be deliberately caused by internal staffs. Although there are several literatures relating to information security, to our knowledge, this is the first study to focus on the behavior of internal staffs. The big financial firms are doing variety of information security activities to protect personal information. This study is to confirm what types of such activities actually work well. The primary research model of this paper is based on Theory of Planned Behavior (TPB) that describes the rational choice of human behavior. Also, a variety of activities to protect the personal information of financial firms, especially credit card companies with the most customer information, were modeled by the four-step process Security Action Cycle (SAC) that Straub and Welke (1998) claimed. Through this proposed conceptual research model, we study whether information security activities of each step could suppress personal information abuse. Also, by measuring the morality of internal staffs, we checked whether the act of information privacy invasion caused by internal staff is in fact a serious criminal behavior or just a kind of unethical behavior. In addition, we also checked whether there was the cognition difference of the moral level between internal staffs and the customers. Research subjects were customer call center operators in one of the big credit card company. We have used multiple regression analysis. Our results showed that the punishment of the remedy activities, among the firm's information security activities, had the most obvious effects of preventing the information abuse (or privacy invasion) by internal staff. Somewhat effective tools were the prevention activities that limited the physical accessibility of non-authorities to the system of customers' personal information database. Some examples of the prevention activities are to make the procedure of access rights complex and to enhance security instrument. We also found that 'the unnecessary information searches out of work' as the behavior of information abuse occurred frequently by internal staffs. They perceived these behaviors somewhat minor criminal or just unethical action rather than a serious criminal behavior. Also, there existed the big cognition difference of the moral level between internal staffs and the public (customers). Based on the findings of our research, we should expect that this paper help practically to prevent privacy invasion and to protect personal information properly by raising the effectiveness of information security activities of finance firms. Also, we expect that our suggestions can be utilized to effectively improve personnel management and to cope with internal security threats in the overall information security management system.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.2
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• pp.31-46
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• 2019

As the importance of venture firms has increased as a new growth engine, the South Korea government makes various efforts to establish healthy ecosystems for ventures and start-ups. Especially in order to foster the competitiveness of venture firms, various support policies such as financial and R&D expenses are being expanded and promoted. In this study, the author analyzed the impact of government funding on venture firms' internal competencies and management performance by using the resource-based theory. Moreover, this study tested the moderation effect of firm's growth stages. Unlike previous studies, this study focused on qualitative rather than quantitative aspects of internal competencies and the financial and non-financial performance are used to measure the management performance of the ventures to examine the effects of government funding for venture firms in more details. For the purpose of verifying the hypothesis of this research, "The Research On The Precision Status Of Venture Firms" in 2017 from the Ministry of Small and Medium Business was utilized, which has been compiled since 1999. According to the results of this study, the government funding experience did not significantly affect the company's internal competencies and financial performance, but had a significant impact on the non-financial performance, which in turn seemed to have a significant effect on the financial performance. In addition, it was found that the technology, price, design, and quality competencies affected non-financial performance, while the organizational management and marketing competencies did not. However, the price, design, organizational management, and marketing competencies affected financial performance, while the technology competency was not. Finally, there were no differences in the effectiveness of government funding, depending on the growth stages.

• Korea Trade Review
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• v.41 no.4
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• pp.61-90
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• 2016

This study aims to identify the sources of productivity change in export manufacturing firms. After estimating the Malmquist productivity index, a panel regression was used to calculate the source of productivity change. Upon conducting a literature review of this field, six variables were selected as explanatory variables. The results of an analysis of 355 export manufacturing firms operating from 2009 through 2015 are as follows: First, both innovation activity and total assets had a positive impact on productivity change. However, employment cost intensity, equity ratio, and current ratio had a negative impact on productivity change in export manufacturing firms. Second, innovation activity and intangible assets had a positive impact on productivity change, but employment cost intensity, selling expense intensity, and equity ratio had a negative impact on productivity change in large export manufacturing firms. Third, innovation activity had a positive impact on productivity change, but employment cost intensity and equity ratio had a negative impact on productivity change in small and medium export manufacturing firms. Fourth, intangible assets had a positive impact on productivity change, but employment cost intensity, selling expense intensity, and current ratio had a negative impact on productivity change in export manufacturing firms listed on the Korea Composite Stock Price Index. Fifth, innovation activity and total assets had a positive impact on productivity change, but employment cost intensity and equity ratio had a negative impact on productivity change in manufacturing firms listed on the Korean Securities Dealers Automated Quotations. The managerial implications of this study are also discussed.

• Journal of the Korean Geographical Society
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• v.28 no.2
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• pp.148-162
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• 1993

There is much speculation that modern capi-talist society is undergoing fundamental and qualitative chnge towards flexible specialization. The purpose of this study is to examine this hypothesis. This paper focusses on: the idea of flexible specialization; the significance of this transition; industrial district; and the implicati-ons of this new production system for Korean industrial space. Main arguments of this study are as follows: First, as all different groups of researchers apply the idea of flexible specialization according to their own specifications, the current debate on this topic is not much fruitful. Not surpri-singly, the concept of flexible specialization has overlapped with subocontracting. This intergration of subcontracting into flexible specialization systems, however, is inappropriate because the two concepts have different historical contexts. The other cause of this controversy is its inherent weekness, conceptual ambiguity. Thus, today's flexibility becomes tomorrow's rigidity. Secondly, transition towards flexible speciali-zation has only been partially achieved even in advanced capitalist countries. The application of dualistic explanatory framework, such as rigidity versus flexibiity, mass production versus small-lot multi-product production, and de-skilling versus re-skilling, has resulted in great exaggeration of the transformation, from Fordism to post-Fordism. There is no intermediary part between two places. Considering that the workers allocated to the Fordist mass production assembly line are not as large as one might imagine, the shift from mass to flexible production has only limited implications for the transformation of capitalist economy. Thirdly, 'industrial district' contorversy has contributed to highlighting the importance of small firms and areas as production space. The agglomeration of small firms in specific areas is common in Korea, but it is quite different from the industrial district based on flexible specialization. The Korean phenomenon stems from close interactions with its major parent firm rather than interactions between flexible, specialized, autonomous and technology-intensive smll firms. Most Korean subcontractors are still low-skilled, labour-intensive, and heavily dependent on their mojor parent firms. Thus, the assertion that the Seoul Metropolitan Area adopts flexible specialization has no base. Fourthly, the main concern of flexible speciali zation is small firms. However, the corporate organization that needs product diversification and technological specialization is oligopolistic large corporations typified by multinational corporations. It is because of this that most of these organizations are adoptiong Fordist mass production methods. The problem of product diversification will be resolved naturally if economic internationalization progresses further. What is more important for business success is the quality and price competitiveness of firms rather than product diversification. Lastly, in order to dispel further misunderst-anding on this issue, it is imparative that the conceptual ambiguity is resolved most urgently. This study recommends adoption of more speci-fied and direct terminology (such as, factory automation, computer design, out-sourcing, the exploitation of part-time labor, job redesign) rather than that of ideological ones (such as, Taylorism, Fordism, neo-Taylorism, neo-Fordism, post-fordism, flexible specialization, peripheral post-Fordism). As the debates on this topic just started, we still have long way to go until consensus is reached.

• Korean small business review
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• v.31 no.1
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• pp.73-88
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• 2009

This study examines the characteristics of 24 Korean hidden champions such as key success factors, core competences, strategic problems, and desirable future directions. The study categorized them into 8 types with Danny Miller's four trajectories and top manager's decision making style(rationality and passion). Danny Miller argued in his book, Icarus paradox, that outstanding firms will extend their orientations until they reach dangerous extremes and their momentum will result in common trajectories of decline. He suggested four very common success types: Craftsmen, Builders, Pioneers, Salesmen. He also suggested common trajectories of decline:Focusing(from Craftsmen to Tinkers), Venturing(from Builders to Imperialists), Inventing(from Pioneers to Escapists), Decoupling(from Salesmen to Drifts). In Korea, successful startups appear to possess three kinds of drive: Technology-drive, Vision-drive, Market-drive. Successful technology-driven firms tend to grow as craftsmen or pioneers. Successful vision-driven and market-driven ones tend to grow as builders and salesmen respectively. Korean top managers or founders seem to have two kinds of decision making style: Passion-based and Rationality-bases. Passion-based(passionate) entrepreneurs are biased towards action or proactiveness in competing and getting things done. Rationality- based ones tend to emphasis the effort devoted to scanning and analysing information to better understand a company's threats, opportunities and options. Consequently this study suggested 4*2 types of Korean hidden champions: (1) passionate craftsmen, (2) rational craftsmen, (3) passionate builders, (4) rational builders, (5) passionate pioneers, (6) rational pioneers, (7) passionate salesmen, (8) rational salesmen. These 8 type firms showed different success stories and appeared to possess different trajectories of decline. These hidden champions have acquired competitive advantage within domestic or globally niche markets in spite of the weak market power and lack of internal resources. They have maintained their sustainable competitiveness by utilizing three types of growth strategy; (1) penetrating into the global market, (2) exploring new service market, (3) occupying the domestic market. According to the types of growth strategy, these firms showed different financial outcomes and possessed different issues for maintaining their competitiveness. This study found that Korean hidden champions were facing serious challenges from the transforming economic structure these days and possessed the decline potential from their success momentum or self-complacence. It argues that they need to take a new growth engine not to decline in the turbulent environment. It also discusses how firms overcome the economic crisis and find a new business area in promising industries for the future. It summarized the recent policy of Korean government called as "Green Growth" and discussed how small firms utilize such benefits and supports from the government. Other implications for firm strategies and governmental policies were discussed.

• IE interfaces
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• v.25 no.1
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• pp.1-12
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• 2012

The challenges facing manufacturing companies today span across the industry, independent of company size or product. Especially, big manufacturers must overcome these challenges, and information technology (IT) collaboration with small and medium enterprises (SMEs) will play a major role in this effort. In this research, the strategy and way to promote IT collaboration between SMEs and large firms in heavy industries are proposed. A pre-consultation was performed to derive the strategy and way for the collaboration, and an IT collaboration system was developed reflection the results of pre-consultation. The IT collaboration system consists of two parts. One is ERP based on BPM for SMEs to standardize and visualize the entire business process from order placement to release. This system also provides their parent company with visibility into the status of orders and user can easily access the system on the web at a low price through cloud computing service. The other is interface part for data changes between large firms and SMEs. Thus far, this paper demonstrates the importance of strategy for the collaboration, and the applicability of IT collaboration system to elevate the speed and efficiency of business.

• Proceedings of the Culinary Society of Korean Academy Conference
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• 2004.11a
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• pp.41-54
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• 2004

The restaurant industry in the United States can serve as a model to executives in other countries. Over the past fifty years it has developed from a fragmented industry dominated by small firms operating locally to a huge, mature industry dominated by national and international firms. 1 anticipate that this scenario will be carried throughout the globe as nations expand their economic growth and local consumers become more affluent and sophisticated. The restaurant companies able to develop superior strategies while taking advantage of the opportunities in the business environment will succeed while less sophisticated firms will be hampered by their inability to understand the strategic issues of the marketplace.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2000.10a
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• pp.95-98
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• 2000

The rapid expansion of the WWW is well known and has huge potential for enabling companies, large and small, to gain new marketplaces globally at low cost, or to be disintermediated by others doing so. A totally new competitive environment opening up new opportunities is upon us. As a result, the electronic commerce is growing quickly and the importance of electronic marketplace is emphasized. From the view of SCM, applying the business-to-business electronic commerce to the relationship between firms is expected to make major changes. This study focuses on the effects of the introduction of web-based purchasing systems on the buyer-supplier relationship. We conduct a case study on the Korean firms The major findings of this study are summarized as follows. First, in introductory phase, some buying firms fail to design the appropriate mechanism for business relationships. It can weaken the cooperation between buyers and suppliers. Second, for critical or customized parts, it is possible to gather the information about potential suppliers and to make business relations using it. Third, using web-based purchasing systems, capable suppliers can take more opportunities to leverage its competence for business relations. So we can expect the positive feedback.

• Proceedings of the Korean Professional Engineer Association Conference
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• 1987.12a
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• pp.65-71
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• 1987

All Korean professional engineer′s great joy Is to welcome the Japanese professional engineers and relevant guests to the 1987 Japan-Korea Professional Engineers Joint Convention organized by the Korean Professional Engineers Association. As there exists an effort of blood, sweat and tear behind a succeeded theatrical stage, so an exquisite devotion with drawing up a master plan, investigation, supervision and etc by engineering firms is soaked through every part of huge construction projects and large unit factory buildings. It is over 14 years that the Engineering Service Promotion Law has been enacted by the Ministry of Science and Technology. In the meantime, the domestic engineering (engineering service) have reached a remarkable higher level while the number of engineering firms participating in overseas market has gradually been increasing. From a small scale of under water investigation to a large scale planning of atomic reactor or petrochemical plant, engineering service business can be said "The Software of Total Industry." Engineering service is what is called a higher business which offers specialized engineering know-how and experience. Engineering service compaines offer Its specialized knowledge and experience to government, industry and commerce. Whether the task is to modernize plant equipment, to design a building or to manage construction, an engineering company will develop and implement the most appropriate and cost effective solution. Clients use the engineering service of firm knowing that the engineer′s professional judgement is not influenced or biased by other commercial affiliations. While benefiting from the diverse experience that professional engineers can apply to a specific problem, government and industry also reduce the need for permanent in-house engineering staff. Engineering firms may be specialized or multi-disciplinary.