• Title, Summary, Keyword: extra-firm relations

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Building Guanxi and Networks of Korean Foreign Direct Investment Firms in China (대중국 한국 투자기업의 꽌시 형성과 네트워크)

  • Choe, Ja-Yeong;Lee, Sung-Cheol
    • Journal of the Economic Geographical Society of Korea
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    • v.15 no.2
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    • pp.228-239
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    • 2012
  • Guanxi could be regarded as communities based on blood, regionalism, school ties centering on individual person. It has been used as a means of personal interests security and acquisition. What is more, it has formed a mode of socio-economic order, which is an inter-obligation relations based on mutual benefits. In practice, it is necessary to understand and accept guanxi in China, as it is a key factor to understand consumer patterns, inter-firm relations and extra-firm relations between firm and government. In this context, the main aim of the reserach is to identify the impact of guanxi on the business activities of Korean foreign direct investment firms in China by investigating their networks based on guanxi.

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Practice and Networks of Chinese Firms (중국의 기업 관행과 네트워크)

  • Choi, Ja-Young;Lee, Sung-Cheol
    • Journal of the Economic Geographical Society of Korea
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    • v.14 no.4
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    • pp.657-670
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    • 2011
  • China has gone through rapid economic growth due to transitional economies since 1978. In particular, Chinese transitional economies has led to fundamental changes in firms' activities under the socialist system. Nevertheless, Chinese firms have formed new industrial production organizations and spatial orders by sustaining personal networks based on existing traditional firm practice, which is called 'guanxi'. Therefore, the main purpose of this research is to identify the influence of personal networks, guanxi, on the business activities of Chinese firms by investigating the formation of guanxi mechanism. The main characteristics of guanxi represented in inter-firm relations are as follows. First, guanxi has played a role in facilitating inter-firm relations and business activities, because it has an inter-debt relations based on inter-reciprocal relations between firms. Second, Chinese firms has depended on posteriori guanxi rather than inherent guanxi by the internalization of personal networks through 'guanxi communicators'.Third, guanxi between firms and local government in extra-firm relations has been established to minimize risks from unstable legal regulations.

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Innovative Networks of Foreign Capital and Spatial Identity in the Post-socialist System Transformations: The Case of Korean FDI Firms in Shanghai, China (후기 사회주의 체제전환 하의 해외 투자 기업 혁신 네트워크와 공간 특성 분석: 중국 상하이 한국 투자 기업 사례 연구)

  • Kim, Boo-Heon;Lee, Sung-Cheol
    • Journal of the Economic Geographical Society of Korea
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    • v.12 no.4
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    • pp.421-437
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    • 2009
  • China has transformed her strategies for economic development from exogenous development founded on foreign capitals to endogenous development based on enhancing technology innovation capabilities since 2000. More specifically, Chinese business activities have coupled with new institutional settings which enable them to facilitate advanced technology and management methods. As a result, the characteristics of the spatial economy in China are likely to transfer from export-led developmental space to technology-oriented developmental space. In this context, this paper aims to identify the characteristics of technology-oriented space by investigating intra-, inter- and extra-firms relations of Korean FDI firms in Shanghai, China. In terms of intra-firm relations, Korean FDI firms adopted strategies for maximizing business efficiency and effectiveness by transforming their personal networks into formal networks. In terms of inter-firm relations, the distinction of Korean FDI firms' networks has been found in accordance with firm size, industrial sectors, ways of investment etc. Finally, Korean FDI firms has formal networks resulted from institutional involvement, as well as informal (personal) networks based on guanxi (inter-personal relations) in extra-firm relations. Therefore, two types of processes affecting the networks and institutional legacies of the Soviet system can be identified. First is the interaction of institutions and restructuring of pre-existing networks. Second is the insulated institutions and endurance of preexisting networks. And these two governance types have created regional economies which are embedded and over-embedded.

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Analysis on the Formation of Dualistic Space and Networks of the Ceramic Industry in Icheon, Korea (이천 도자기 산업의 이원적 공간 형성 및 네트워크 분석)

  • Cheu, Giwan;Lee, Sung-Cheol
    • Journal of the Economic Geographical Society of Korea
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    • v.18 no.4
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    • pp.556-572
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    • 2015
  • Since the late 1990s dualistic spatial structure has been configurated in Icheon ceramic industrial space due to the articulation of transmitted ceramics space rooted from imitating the Goryeo and Joseon ceramics and contemporary ceramics space based on academic ceramic arts. Therefore, the main purpose of this paper is to identify the formation of dualistic space in Icheon by investigating the development paths of ceramic industry in historical perspectives and analyzing inter- and extra-firm relations in Icheon. The main results of this research are as follows. Firstly, the development path of transmitted ceramics has declined gradually, while the development path of contemporary ceramics has been embedded in Icheon region. Secondly, the research pointed out that networks of transmitted ceramics and contemporary ceramics are different in the perspectives of inter-firm and extra-firm relations. Thirdly, the government has played a critical role as a financial and administrative supporter and as a network broker between university and Icheon ceramic firms(mainly with transmitted ceramics) for technological cooperation and collaborative R&D.

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Theorizing the Transformation of Space Economy: Regulationist Perspectives on the Post-Socialist System Transformation (공간경제 전환의 이론화 : 체제전환에 대한 조절이론적 접근)

  • Kim, Boo-Heon;Lee, Sung-Cheol
    • Journal of the Economic Geographical Society of Korea
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    • v.11 no.1
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    • pp.24-44
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    • 2008
  • Regulation theories has paid little attention to spatial regulation processes, while it has focused on economic and social regulation processes. More specifically, there have been little researches on regulationist approach to the transformation of the post-socialist system in the context of the space economy. Therefore, the article has attempted to conceptualize the transformation of space economy under the post-socialist system in the light of regulation theories. The space economy could be regarded as the foundation of the reproduction of social relations. Thus, the transformation of post-socialist system has led to the fundamental changes in enterprise and industrial networks as well as social relations in spatial contexts. In this perspective, the research has attempted to identify 'the mode of enterprise regulation' regarded as a codified firm networks by investigating intra-, inter- and extra-firm relations associated with the transformation of post-socialist system. Also, it has intended to suggest three types of the space economy - (1) disembedded economies based on the isolated networks and dissolution of pre-existing networks, (2) embedded economies based on the interaction of institutions and restructuring of networks, and (3) over-embedded economies based on the insulated institutions and endurance of pre-existing networks-in accordance with the governance, institution and networks in the post-socialist system.

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The Relevance between Investor Relation and Book-Tax Difference Variability (기업설명회와 회계이익-과세소득 차이 변동성 간의 관련성)

  • Kim, Jin-Sep
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.18 no.11
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    • pp.637-643
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    • 2017
  • This study analyzed the Quality of Accounting Earning of Investor Relations(IR). For this, we utilized Book-Tax Difference Variability as the proxy of the level of the Quality of Accounting Earning. This study used 2,106 sample data from 2011 to 2016 on the listed firm on KOSPI(Korea Composite Stock Price Index). In short, the study results are as follows. Investor Relation(IR) has a negative relevance with Book-Tax Difference Variability, which agreed with the result of additional analysis using extra sample. According to these results, we can expect that Investor Relations(IR) firms will report more faithful Accounting Earning. This study makes the following fresh contribution to the field. The study result confirms how Investor Relation(IR) affects the Quality of Accounting Earning. We hope that this study will help the development of capital market.

Value Chain and Networks of Foreign Direct Investment Firms in Transitional Economies: Korean Textile and Clothing Foreign Direct Investment in Vietnam (전환경제하의 해외직접투자기업의 가치사슬과 네트워크: 대베트남 한국 섬유.의류산업 해외직접투자 사례 연구)

  • Lee, Sung-Cheol
    • Journal of the Economic Geographical Society of Korea
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    • v.10 no.2
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    • pp.93-115
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    • 2007
  • As strategies for creating profits are differentiated by the national economic system and development strategies related to firms' geographical scope, they depend on the spatial contexts and product characteristics. In this perspective, strategies for the profit creation of Korean textile and clothing FDI firms invested in Vietnam has involved in the geographical differentiations in accordance with the development path of transitional economies, changes in institutional environments and the characteristics of products. Therefore. the main purpose of this research is to identify the way in which they have their own identity in transitional economies by investigating business pattern, commodity chain and extra-firm relations, which are related to institutional dynamics in Vietnam. There are two main characteristics of Korean textile and clothing FDI firms in Vietnam. The first is that all business activities involved in the commodity chain of them from R&D to production is controlled by global retailer and distributors, which is the buyer-driven commodity chain and the typical commodity chain of the textile and clothing industry. The second could be defined as over- or unforced embeddedness into the institutional legacy of the Soviet system, because they have been incorporated into pre-existing networks based on reciprocal relations in Vietnam.

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