• Journal of Information Technology Services
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• v.4 no.2
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• pp.33-46
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• 2005

Small/medium software businesses are often at a disadvantage when trying to win government contracts. Rather, most of small/medium software companies work with larger companies in the form of subcontracting. In its broadest meaning, subcontracting refers to the purchase of a part of a product or process from a different company. Appropriate subcontracting system helps both large and small software firms keep in healthy. However, many problems regarding subcontracting have been reported and recognized as one of major obstacles impeding advancement of the software industry. This paper examines the current problems in subcontracting system by conducting a field survey and proposes directions to improve the system for software project. It suggests revision of 'Software Industry Promotion Act' to induce fair relationship among software firms.

• East Asian Journal of Business Economics (EAJBE)
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• v.9 no.1
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• pp.17-26
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• 2021

Purpose-This study examines how financial slack resources and subcontracting of small and medium-sized enterprises (SMEs) affect their internationalization. To identify slack resources, subcontracting, and internationalization of SMEs, 1,062 SME samples in the electronics industry are used in the logistic regression analysis to analyze their relationship with SMEs' export. Research design, data, and methodology-This study conducted the empirical analysis on 1,062 SMEs in the electronics industry using the sample survey method. The samples were based on data selected and distributed by the Ministry SMEs and Startups. The data analysis methods were descriptive, correlation analysis, and logistics regression analysis. Result-The analysis shows that only available resources are negatively related to SMEs' internationalization. It can be interpreted as a high tendency for SMEs to avoid relatively risky choices such as entering overseas markets if they have enough financial resources. Moreover, subcontracting has a negative relationship with internationalization. Conclusion-This study broadened the scope of SME research by analyzing subcontracting and slack resources together and provides practical implications for policymakers and managers.

• Korean Business Review
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• v.19 no.1
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• pp.25-34
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• 2006

This research executed research that analyze construction cost and profitability through construction example of direction and subcontracting construction based on common private construction less than 3 billion. The results of this research, is summarized as follows. (1) Analyzed profitability about construction gross and operating profit of direction and subcontracting construction. The construction gross profit rate is 15.2% direction construction, subcontracting construction was analyzed by 1.3% high by 16.5% subcontracting construction, and the operating profit rate is 9.4% direction construction, subcontracting construction was construed by 2.3% high by 11.7% subcontracting construction. (2) Analyzed profitability about operating profit before and after deduction of 4 insurance cost of direction construction. The direction construction operating profit rate is 9.4% before deduction of 4 insurance cost, after deduction was construed that is 7.3% and operating profit rate difference after and before deduction was construed that is 2.1%. Therefore, subcontracting construction (operating profit rate 11.7%) was analyzed that last operating profitability after 4 insurance cost deduction produces more 4.4% about direction construction.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2002.05a
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• pp.363-370
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• 2002

This paper presents a production planning algorithm for minimizing the costs of production and subcontracting in SCM (supply chain management) environment. In our SCM environment, the several local plants that aye dispersed geographically produce parts and products. In this environment, we have to decide the production volumes of both parts and products considering the BOM (bill-of-material) structure to meet the fixed order quantity or forecasted demand quantity. Each plant produces the specified parts of product with finite production capacity. There exist subcontracting decisions relevant to the production capacity of each plant except the core process plant, and when we use the subcontractor's capacities we should be charged for the fixed subcontracting fees. The objective of this study is to solve the production planning problem, which minimizes the total costs of production, inventory, setup, and subcontracting under constraints of production and subcontracting capacity. For this problem, an integrated production planning model based on the multi-level capacitated lot sizing problem was formulated, and efficient decomposition algorithm was proposed. The experimental investigation shows that the proposed heuristic generates quite good solutions at very low computational costs.

• Journal of the Economic Geographical Society of Korea
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• v.8 no.2
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• pp.217-236
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• 2005

This paper aims to analysis the production linkage relationships between large firm and its subcontracting firms, especially focus on the spatial network and collaboration network. For the purpose of it, the division of semiconductor in Samsung Electronics and its most important subcontracting firms are picked up for the case study. The empirical study show that the location distribution pattern of Samsung Electronic's subcontracting firms is concentrated very highly on the Kyeong-Ki Province and Chung-Nam Province in Korea, which is the location sites of Samsung Electronic's key plants as well as the best environment for business in Korea. And the major subcontracting firms seems to be in the hierarchic and vertical relationship with Samsung Electronics rather than horizontal and good collaboration network in this case.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.5
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• pp.3146-3152
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• 2014

This paper investigates the determinants for the controlling power and the concentration of the subcontracting trade between the downstream producer and the upstream supplier using a survey data for the IT industry in Gyeonggi-Do. The estimation results of the ordered logit and least square analyses are as follows. First, a firm. s controlling power across the downstream producer and the upstream supplier in the subcontracting trade would grow bigger when the company is bigger, more manufacture-oriented, and has higher ratio of export in sales. Second, the analysis for the upstream suppliers indicates that the higher dependent ratio of the subcontracting trade in the sales, the lower the concentration ratio of the R&D in the sales. Lastly, the analysis of the downstream producers indicates that the higher the dependent ratio of the subcontracting trade in the sales, the higher the concentration ratio of the R&D in the sales, which is distinctively contrast with the analysis result of the upstream suppliers. The overall estimation results are, hence, unsupporting to the transaction cost theory which predicts the increase of R&D investments in both downstream producer and upstream supplier.

• Korean Journal of Construction Engineering and Management
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• v.10 no.6
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• pp.107-116
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• 2009

As the Fundamentals of Construction Business Act was revised in December 2004 and its implementing ordinances and enforcement regulations were adjusted in June 2005, the screening system of low price subcontracting has been an obligation to the public owners, having brought about arguments for and against since it enacted in 1983. The statutes for low price subcontracting have been reinforced from this year; for example, it underlines to submit to a project and builds an information network of subcontracting works. The system's original intention was that prevents shoddy and fraudulent constructions caused by low price subcontracting and precludes disturbances of fair trade by screening that whether it satisfies the conditions or not in advance. But, the criterion for the existing low price subcontracting has several issues having held up a true mirror to the real situation. It is arguable to discharge an important task with the primary purpose. This dissertation have researched the problem with a deposit of subcontract and the low price subcontracting basic rate are being used by the criteria for deciding whether it is a low price subcontracting or not, so showing the plan of reformation based on the findings, it wishes to contribute toward making the most of the system's essential intent.

• Korean Journal of Labor Studies
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• v.17 no.1
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• pp.177-208
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• 2011

This article examines that how in-house subcontract has been introduced and developed in metal industry in 1970s, focusing typical workplaces in steel industry. That was essential for the capital to insure control mechanism for large number of laborer because of mobilizing a large scale of capital in industrialization of heavy metal industry. In case of Pohang steel industry, this necessity was fulfilled by introduction and imitation of Japanese personnel management by being included of Japanese economic hinterland. This was embodied in both constructing internal labor market for regular workers and introducing in-house subcontracting system for contingent workers at workplaces. This was exceptional comparing in-house subcontracting system in Korean steel industry with in-house subcontracting system in advanced economies, because of disappearing in-house subcontracting system by making internal labor market. And this was closely linked by late development of Korea. Implications of Pohang steel company's case are as follows : first, late development effect in formation of employment system, second, in linking informality of Korean employment system. This implications mean that in-house subcontracting in steel industry is structured as mechanism for personnel management in large factory being influenced by industrialization of heavy industry. In this point, improvements which include wide economic solution beyond labor solution for present problem of in-house subcontracting system is desirable.

• The Journal of Industrial Distribution & Business
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• v.14 no.8
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• pp.27-35
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• 2023

The main objective of this study is to examine the impact of entrepreneurial orientation (EO) on small and medium-sized enterprises' (SMEs) performance in the context of subcontracting buyer-supplier relation. Specifically, we seek to examine whether the power dynamics between buyer and supplier either support or hamper subcontracting SMEs' ability to effectively pursue EO for enhancing their performance. Research design, data, and methodology: We collected survey questionnaires from Korean SMEs that are certified with Inno-biz by the Korean Ministry of SMEs and Startups. The collected data was analyzed using SPSS 26 and AMOS to create an integrated model. Result: Based on the analysis, our findings indicate that the proactiveness and innovativeness dimensions of EO have a positive effect on the SMEs' performance. However, the risk-taking dimension of EO has a negative effect on performance. Additionally, buyer dependency exhibit both positive and negative moderating effects on different dimensions of EO. Conclusion: For SMEs that rely heavily on a particular buyer in terms of sale, pursuing innovativeness dimension of EO could lead to positive performance, while pursuing proactiveness dimension of EO had a negative moderating effect on performance.

• Journal of Korean Institute of Industrial Engineers
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• v.35 no.1
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• pp.1-14
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• 2009

The efficiency of transportation requests fulfillment can be increased through extending the problem of vehicle routing and scheduling by the possibility of subcontracting a part of the requests to external carriers. This problem extension transforms the usual vehicle routing and scheduling problems to the more general integrated operational transportation problems. In this contribution, we analyze the motivation, the chances, the realization, and the challenges of the integrated operational planning and report on experiments for extending the plain Vehicle Routing Problem to a corresponding problem combining vehicle routing and request forwarding by means of different sub-contraction types. The extended problem is formalized as a mixed integer linear programming model and solved by a commercial mathematical programming solver. The computational results show tremendous costs savings even for small problem instances by allowing subcontracting. Additionally, the performed experiments for the operational transportation planning are used for an analysis of the decision on the optimal fleet size for own vehicles and regularly hired vehicles.