• Korean Journal of Construction Engineering and Management
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• v.9 no.1
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• pp.96-106
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• 2008

The Korean Construction Industry significantly contributed to the Korean economic development not only by preparing the domestic infrastructure but also by successfully conducting various international projects. However, major incidents such as the collapse of Sung-Su Bridge and Sam-Pung Department Store along with stagnation of Korean Economy have raised questions about underlying systematic problems of the Korean Construction Industry. As a solution to resurrect the Korean Construction Industry, the Construction Management (CM) system introduced in late 1990's and increasingly utilized as an innovative delivery system. Despite of the fast growth of CM, the performance of CM has not been up to the hype and low CM fee has been identified as one of the main reasons of unsatisfactory CM performance. Therefore, this research attempted to propose ways of improving 'CM Fee Guidelines' published by Korean Ministry of Construction and Transportation by conducting a benchmarking study on Global Standards of estimating CM Fee. International organizations benchmarked in this research include CMAA, ASCE, DOL, DOE, etc. Various investigation and analysis revealed that Korean 'CM Fee Guidelines' need to significantly modified comparing to Global Standards. This research also tried to prepare recommendations to improve the CM deliver system focusing on the 'Method of CM Fee Estimation' and Selection of a CM firm as an owner's agent.

• Journal of Intelligence and Information Systems
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• v.25 no.2
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• pp.99-122
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• 2019

According to the recent IDC (International Data Corporation) report, as from 2025, the total volume of data is estimated to reach ten times higher than that of 2016, corresponding to 163 zettabytes. then the main body of generating information is moving more toward corporations than consumers. So-called "the wave of Big-data" is arriving, and the following aftermath affects entire industries and firms, respectively and collectively. Therefore, effective management of vast amounts of data is more important than ever in terms of the firm. However, there have been no previous studies that measure the effects of big data investment, even though there are number of previous studies that quantitatively the effects of IT investment. Therefore, we quantitatively analyze the Big-data investment effects, which assists firm's investment decision making. This study applied the Event Study Methodology, which is based on the efficient market hypothesis as the theoretical basis, to measure the effect of the big data investment of firms on the response of market investors. In addition, five sub-variables were set to analyze this effect in more depth: the contents are firm size classification, industry classification (finance and ICT), investment completion classification, and vendor existence classification. To measure the impact of Big data investment announcements, Data from 91 announcements from 2010 to 2017 were used as data, and the effect of investment was more empirically observed by observing changes in corporate value immediately after the disclosure. This study collected data on Big Data Investment related to Naver 's' News' category, the largest portal site in Korea. In addition, when selecting the target companies, we extracted the disclosures of listed companies in the KOSPI and KOSDAQ market. During the collection process, the search keywords were searched through the keywords 'Big data construction', 'Big data introduction', 'Big data investment', 'Big data order', and 'Big data development'. The results of the empirically proved analysis are as follows. First, we found that the market value of 91 publicly listed firms, who announced Big-data investment, increased by 0.92%. In particular, we can see that the market value of finance firms, non-ICT firms, small-cap firms are significantly increased. This result can be interpreted as the market investors perceive positively the big data investment of the enterprise, allowing market investors to better understand the company's big data investment. Second, statistical demonstration that the market value of financial firms and non - ICT firms increases after Big data investment announcement is proved statistically. Third, this study measured the effect of big data investment by dividing by company size and classified it into the top 30% and the bottom 30% of company size standard (market capitalization) without measuring the median value. To maximize the difference. The analysis showed that the investment effect of small sample companies was greater, and the difference between the two groups was also clear. Fourth, one of the most significant features of this study is that the Big Data Investment announcements are classified and structured according to vendor status. We have shown that the investment effect of a group with vendor involvement (with or without a vendor) is very large, indicating that market investors are very positive about the involvement of big data specialist vendors. Lastly but not least, it is also interesting that market investors are evaluating investment more positively at the time of the Big data Investment announcement, which is scheduled to be built rather than completed. Applying this to the industry, it would be effective for a company to make a disclosure when it decided to invest in big data in terms of increasing the market value. Our study has an academic implication, as prior research looked for the impact of Big-data investment has been nonexistent. This study also has a practical implication in that it can be a practical reference material for business decision makers considering big data investment.

• Korean Journal of Construction Engineering and Management
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• v.14 no.4
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• pp.24-34
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• 2013

Since 2004, the government decided to gradually introduce Actual Cost Data into cost estimate for improving problems of below-cost tendering and to reflect fair market price through competition and carry contract efficiently. However, there are many concerns that Actual Cost Data has not reflected real market price, even that has contributed to reduce the government's budget. General construction firm's burden for labor cost is imputed to specialty contractors and eventually it becomes construction worker's burden. Therefore, realization of Actual Cost Data is very important factor to settle this system. To understand realization level and make short term forecast, this paper drew construction group of which labor cost constitutes more than 95% of direct cost, and compares their Actual Cost Data with relevant skilled workers's unit wage and predicts using time series analysis. The bid price which is not be reflected market price accelerates work environment changes and leads to directly affect such as late disbursement of wages, bankruptcy to workers. Therefore this paper is expected to be used to the preliminary data for solving the problem and establishing improvement of Actual Cost Data.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.2
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• pp.177-188
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• 2021

On December 2015, Financial Supervisory Service(FSS) announced the four key thematic audit review areas, one of them is an appropriation of unbilled revenue. Accounting of unbilled revenue is intertwined with a percentage of completion, that is concerned about discretionary decision by manager. Therefore, if manager motivated by income-increasing manipulation is exaggerating percentage of completion, unbilled revenue is excessively recognized. This problem is caused the serious accounting issues(e.g., shock at a loss for 2013 fiscal year by some construction firms, malpractice of accounting in order-made production industry). Distrust of accounting was grown because the shipbuilding and construction industries successively went poor management and bad accounting of them is revealed. Those accounting issues were the trigger for problem recognition of unbilled revenue, they were background for the designation of appropriation unbilled revenue as thematic audit review areas by FSS. Therefore, this study verified effectiveness of thematic audit review by empirically analyzing whether designation of thematic audit review makes the firm increases conservative behavior. Conservative accounting is estimated by using Basu(1997) model. We analyzed the effect of the thematic audit review on conservative accounting of unbilled revenue by comparing with reflecting unbilled revenue or not. The sample for test consists of firm-years the manufacturing and construction industries from 2012 to 2017. The test results of this study suggested that the conservative accounting of unbilled revenue after designation of the thematic audit review was significantly increased. We also tested again by classifying whether or not it is construction industry. We found that construction industry is more conservative than the other industry only for the designated year of the thematic audit review, otherwise there was not any evidence for significantly increasing conservatism. This study contributes to the literature by empirically analysing relationship of the unbilled revenue to the thematic audit review from the perspective of the conservatism and verifying effectiveness of the thematic audit review.

• Korean Journal of Construction Engineering and Management
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• v.17 no.2
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• pp.3-11
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• 2016

CM at Risk has been introduced in Korea to keep up with the global standards of construction management and provide a higher quality of cm service in line with a rapid change of the construction industry recently. However, it is widely considered that more time would required to settle down the system due to a lack of understanding towards CM at Risk, shortage of reliability and low capability to manage and undertake CM at Risk. Therefore, this research is analyzed problems of contract types, open book policies, and contract conditions of 33 numbers of projects undertaken by a bespoke domestic construction management firm in this research. Moreover, this research is suggested a method to establish an open book policy of CM at Risk aiming a better customers satisfaction through staff training, simplifying and improving a payment system, and a way to settle down an open book policy by improving a performance management system on site. It's expected that this research will contribute to a more competitive system with more dominating the market and a differentiation of the service so as clients to rely more on the CM at Risk.

• Korean Journal of Construction Engineering and Management
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• v.10 no.5
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• pp.135-147
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• 2009

The world has witnessed the dramatic expansion of international construction markets during the last decades, particularly around the developing economies and energy resource-rich countries. However, despite the booming markets, the risks of emerging regions have also increased under the rapidly changing environments confronting the global contractors. Most of all, success in overseas business mainly depends on selecting the right market to enter. Accordingly, the right market selection requires global firms to carefully carry out the scientific market entry decision by evaluating country risks, market prospects, firm's capability, level of competition, and among others. This study aims at developing a market entry model by the use of real option analysis (ROA) and scenario planning, which addresses the corporate strategic flexibility against the uncertainties encompassing the overseas construction markets. Based on the suggested approach, global contractors are expected to make a better decision rather than a typically static approach in pursuing, postponing, or abandoning a prospective market to their capacity with a concurrent consideration of uncertainties as well as its option value.

• Korean Journal of Construction Engineering and Management
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• v.18 no.5
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• pp.59-67
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• 2017

At the completion of the construction, various finishing processes are concentrated. This imposes a burden on the on-site manager and imposes on experience based quality control, thereby causing deviations in the quality of construction depending on supervisor or worker's individual competence. In addition, the information related to quality control is frequently scattered in various types of documents such as specifications and drawings, and checkpoints are frequently omitted. It is necessary to provide a tool that can effectively provide the practitioner before or during the inspection work by systematically storing the information related to the defect prevention and linking them in a mutually referential state. This paper proposes an quality inspection support model that can systematically store necessary information on activity or room basis for the quality check of the apartment house finishing work. Establish a defect prevention information base and a information nexus by linking specifications, design standards, checklists, regulations, defect cases, and drawings to the finishing process and the rooms. Based on this, information registration and search interface are presented. It can contribute to securing a certain level of construction quality or more by suggesting a frame that can be utilized by linking various defects prevention information with the focus on closing activity and room.

• Korean Journal of Construction Engineering and Management
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• v.20 no.1
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• pp.73-85
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• 2019

Since the beginning of a new century, many Korean construction and engineering companies are facing a very dynamic and fast changing business environment which includes severe competition, higher risk, economic depression, declining revenues and profits, etc. In order to cope with these challenges, they need to secure special capabilities to actively adapt to the paradigm changes. One of those capabilities could be project management capability which allows us to manage organizational resources dynamically and integratively based on project portfolio management concept. The objective of this study is to investigate how the dynamic capability of a project-based organization to control the resource affects the firm performance and the competitive advantages. Data was collected from the construction and engineering companies in South Korea by using survey questionnaire, and analyzed for empirical tests by using statistical methods such as structural equation modelling and path analysis. The results showed that the organizational resources, if they had the VRIN characteristics, would have positive impacts on creating the dynamic capabilities for project organization. In turn, the dynamic capabilities of a project organization would have impacts on improving business performance and creating competitive advantages. Also, it was found that the organizational resources may have direct impact on business performance and competitive advantages. The academic contribution of this study is that it attempts to integrate resource based view and the dynamic capability theory about creating competitive advantages for project based organization. This study also provided practical implications to the companies in construction industry by showing how to use organizational resources strategically to create competitive advantages.

• Information Systems Review
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• v.8 no.1
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• pp.241-263
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• 2006

Since 1995 many enterprises have introduced ERP to strengthen competitive power. However, enterprises that have introduced ERP for the first time have experienced various types of problems integrating them; to this day, there are only a few enterprises that have implemented ERP successfully. The main reason for the failures of successful ERP implementing is that enterprises frequently ignore and/or don't know how to systematically evaluate the construction process of ERP and busy finishing a phase without resolving problems before going on to the next phase. This research focused on the implementation process of ERP project to evaluate the process of ERP at each phase. As a result, we propose an evaluation model of ERP project as a tool to find critical problems at each phase and improve on how to resolve the problems found at each phase. This evaluation model makes it possible to introduce ERP successfully by presenting the basis of assessment which will be used by enterprises to minimize the trial and error of construction process of ERP.

• Journal of Korea Technology Innovation Society
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• v.11 no.4
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• pp.639-670
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• 2008

The BSC which was proposed by Kaplan and Norton, is being used as a general performance measurement tool in various firms and industries. BSC approach links strategic objectives with specific operation indices and it can efficiently evaluate the attainment of the goals of the firm. This study is a BSC based case of the government R&D institute which is staffed with knowledge experts in the research areas. In order to bring a major change to a public research organization and shape a strategy focused organization, it is essential to understand the proper methodology of the whole construction process of BSC from the mission of the institute through the establishment of vision and strategic direction, KPI building, and a strategy map set, to the implementation of the BSC monitoring system. By investigating the application process, in this research we intend to provides useful implications in the BSC construction process of public research agencies.