• Title/Summary/Keyword: global management

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The Impact of ESG Frameworks on Economic Performance: The Mediating Role of Logistics Performance and Liner Shipping Connectivity (물류 성과와 운송연계성의 매개 역할을 고려한 ESG 체계가 경제성과에 미치는 영향 분석)

  • Park, Byungin
    • Journal of Korea Port Economic Association
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    • v.39 no.4
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    • pp.163-190
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    • 2023
  • Recently, a framework crystallizing as Environmental, Social, and Governance(ESG) has been exerting significant influence not only on corporate investment and management philosophies but also on national policies. This ESG framework is becoming an essential requirement for all organizations. It has become an obligation at the corporate and national levels, particularly in the maritime, port, and logistics sectors. Anticipating that the adoption and utilization of the ESG framework will reach higher levels when it becomes a necessity, this study utilized data from international organizations such as the United Nations Conference on Trade and Development(UNCTAD), the World Bank, and the World Economic Forum to analyze the impact of the ESG framework on national economic performance through the maritime, port, and logistics sectors using Partial Least Squares Structural Equation Modeling(PLS-SEM). The analysis revealed that while the ESG framework did not have a direct impact on the national economy, it manifested substantial indirect effects through maritime, port, and logistics sectors. Therefore, in these sectors, the establishment of the ESG framework should be recognized not only as an expenditure and obligation but also as a crucial investment that positively influences the national economic performance. The study's findings are limited by the absence of data beyond 2019 due to the impact of COVID-19. Therefore, it is anticipated that more accurate current effects can be ascertained when newer data becomes available.

Analysis of E-Waste Disposal Trends in a Security Perspective (보안관점의 전자폐기물 처리동향 분석 연구)

  • Juno Lee;Yuna Han;Yeji Choi;Yurim Choi;Hangbae Chang
    • Journal of Platform Technology
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    • v.11 no.6
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    • pp.56-67
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    • 2023
  • The increased demand for electronic components, spurred by the Fourth Industrial Revolution and the COVID-19 pandemic, has facilitated human life but also escalated the production of e-waste. Discussions on the impact of e-waste have primarily revolved around environmental, health, and social issues, with global legislations focusing on addressing these concerns. However, e-waste poses unique security risks, such as potential technological and personal information leaks, unlike conventional waste. Current discourse on e-waste security is notably insufficient. This study aims to empirically analyze the relatively overlooked trends in e-waste security, employing three methodologies. Firstly, it assesses the general trend in discussions on e-waste by analyzing year-wise documents and media reports. Secondly, it identifies key trends in e-waste security by examining documents on the subject. Thirdly, the study reviews national security guidelines related to e-waste disposal to assess the necessity of designing security strategies for e-waste management. This research is significant as it is one of the first in korea to address e-waste from a security perspective and offers a multi-dimensional analysis of e-waste security trends. The findings are expected to enhance domestic awareness of e-waste and its security issues, providing an opportunity for proactive response to these security risks.

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Development of an AI Model to Determine the Relationship between Cerebrovascular Disease and the Work Environment as well as Analysis of Consistency with Expert Judgment (뇌심혈관 질환과 업무 환경의 연관성 판단을 위한 AI 모델의 개발 및 전문가 판단과의 일치도 분석)

  • Juyeon Oh;Ki-bong Yoo;Ick Hoon Jin;Byungyoon Yun;Juho Sim;Heejoo Park;Jongmin Lee;Jian Lee;Jin-Ha Yoon
    • Journal of Korean Society of Occupational and Environmental Hygiene
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    • v.34 no.3
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    • pp.202-213
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    • 2024
  • Introduction: Acknowledging the global issue of diseases potentially caused by overwork, this study aims to develop an AI model to help workers understand the connection between cerebrocardiovascular diseases and their work environment. Materials and methods: The model was trained using medical and legal expertise along with data from the 2021 occupational disease adjudication certificate by the Industrial Accident Compensation Insurance and Prevention Service. The Polyglot-ko-5.8B model, which is effective for processing Korean, was utilized. Model performance was evaluated through accuracy, precision, sensitivity, and F1-score metrics. Results: The model trained on a comprehensive dataset, including expert knowledge and actual case data, outperformed the others with respective accuracy, precision, sensitivity, and F1-scores of 0.91, 0.89, 0.84, and 0.87. However, it still had limitations in responding to certain scenarios. Discussion: The comprehensive model proved most effective in diagnosing work-related cerebrocardiovascular diseases, highlighting the significance of integrating actual case data in AI model development. Despite its efficacy, the model showed limitations in handling diverse cases and offering health management solutions. Conclusion: The study succeeded in creating an AI model to discern the link between work factors and cerebrocardiovascular diseases, showcasing the highest efficacy with the comprehensively trained model. Future enhancements towards a template-based approach and the development of a user-friendly chatbot webUI for workers are recommended to address the model's current limitations.

Development of Method for Selecting Anchoring Point within an Anchorage Using a Sampling-Based Exploration Algorithm (샘플링 기반 탐색 알고리즘을 활용한 정박지 내 투묘 지점 선정 방법에 관한 연구)

  • Hyukboem Ju;Daun Jang;Joo-sung Kim
    • Journal of the Korean Society of Marine Environment & Safety
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    • v.30 no.5
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    • pp.426-434
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    • 2024
  • In the global path finding of moving objects, the starting point and destination are essential prerequisites. In ship navigation, the potential destinations include not only docks but also anchorages used for various purposes such as waiting for ship entries and exits, and ship repairs. These anchorages are designed spaces customized to coastal environments, and to enable path finding, the destination can be considered the berthing location at which a ship anchors. Therefore, this study proposes a method for identifying berthing locations within these designated areas (anchorages) by exploring spaces not occupied by other ships, using sampling-based search algorithms such as PRM and computational geometry algorithms. Additionally, to validate the developed algorithms, simulations were conducted targeting No.11 anchorage in Mokpo Port, South Korea. The indicate that feasible berthing locations in unoccupied spaces can be identified. Additionally the results are expected to contribute to future ship decision-making and support anchorage management in vessel traffic services (VTS).

Developing Cyber Warfare of South Korea through Russia's Hybrid Warfare case (러시아의 하이브리드전을 통해 본 한국의 사이버전 발전방안)

  • Se Hoon Lee;Seung hoon Lee
    • Industry Promotion Research
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    • v.9 no.4
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    • pp.65-76
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    • 2024
  • Recent international conflicts have evolved into hybrid warfare, combining conventional military operations with cyber warfare, public opinion manipulation, and psychological warfare. Hybrid warfare involves the unpredictable use of various forces and strategies that blur the lines between war and peace, targeting the vulnerabilities of adversary nations. Among these, cyber warfare is a key tool used to incite social chaos, weaken the enemy's resolve, and achieve political and military objectives before physical military attacks take place. This paper aims to analyze the cyber warfare tactics employed by Russia before and after its physical military engagements, focusing on key cases such as the 2007 cyberattack on Estonia, the 2008 invasion of Georgia, the 2014 annexation of Crimea, and the 2022 war in Ukraine. By examining the methods, processes, and patterns of Russia's cyber operations in these conflicts, the study seeks to predict potential cyberattack scenarios by North Korea and explore cyber warfare development strategies suitable for the security context of the Korean Peninsula. Based on these analyses, the paper suggests strategies tailored to South Korea's current situation, which involves a continuous standoff with North Korea. Proposed measures include establishing a global cyber defense cooperation framework with the United States, countering public opinion and psychological warfare through social media, and enhancing national-level civil-military cooperation to prepare for cyber-electronic warfare.

Research Framework for International Franchising (국제프랜차이징 연구요소 및 연구방향)

  • Kim, Ju-Young;Lim, Young-Kyun;Shim, Jae-Duck
    • 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.

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Relationships Among Employees' IT Personnel Competency, Personal Work Satisfaction, and Personal Work Performance: A Goal Orientation Perspective (조직구성원의 정보기술 인적역량과 개인 업무만족 및 업무성과 간의 관계: 목표지향성 관점)

  • Heo, Myung-Sook;Cheon, Myun-Joong
    • Asia pacific journal of information systems
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    • v.21 no.4
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    • pp.63-104
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    • 2011
  • The study examines the relationships among employee's goal orientation, IT personnel competency, personal effectiveness. The goal orientation includes learning goal orientation, performance approach goal orientation, and performance avoid goal orientation. Personal effectiveness consists of personal work satisfaction and personal work performance. In general, IT personnel competency refers to IT expert's skills, expertise, and knowledge required to perform IT activities in organizations. However, due to the advent of the internet and the generalization of IT, IT personnel competency turns out to be an important competency of technological experts as well as employees in organizations. While the competency of IT itself is important, the appropriate harmony between IT personnel's business capability and technological capability enhances the value of human resources and thus provides organizations with sustainable competitive advantages. The rapid pace of organization change places increased pressure on employees to continually update their skills and adapt their behavior to new organizational realities. This challenge raises a number of important questions concerning organizational behavior? Why do some employees display remarkable flexibility in their behavioral responses to changes in the organization, whereas others firmly resist change or experience great stress when faced with the need to alter behavior? Why do some employees continually strive to improve themselves over their life span, whereas others are content to forge through life using the same basic knowledge and skills? Why do some employees throw themselves enthusiastically into challenging tasks, whereas others avoid challenging tasks? The goal orientation proposed by organizational psychology provides at least a partial answer to these questions. Goal orientations refer to stable personally characteristics fostered by "self-theories" about the nature and development of attributes (such as intelligence, personality, abilities, and skills) people have. Self-theories are one's beliefs and goal orientations are achievement motivation revealed in seeking goals in accordance with one's beliefs. The goal orientations include learning goal orientation, performance approach goal orientation, and performance avoid goal orientation. Specifically, a learning goal orientation refers to a preference to develop the self by acquiring new skills, mastering new situations, and improving one's competence. A performance approach goal orientation refers to a preference to demonstrate and validate the adequacy of one's competence by seeking favorable judgments and avoiding negative judgments. A performance avoid goal orientation refers to a preference to avoid the disproving of one's competence and to avoid negative judgements about it, while focusing on performance. And the study also examines the moderating role of work career of employees to investigate the difference in the relationship between IT personnel competency and personal effectiveness. The study analyzes the collected data using PASW 18.0 and and PLS(Partial Least Square). The study also uses PLS bootstrapping algorithm (sample size: 500) to test research hypotheses. The result shows that the influences of both a learning goal orientation (${\beta}$ = 0.301, t = 3.822, P < 0.000) and a performance approach goal orientation (${\beta}$ = 0.224, t = 2.710, P < 0.01) on IT personnel competency are positively significant, while the influence of a performance avoid goal orientation(${\beta}$ = -0.142, t = 2.398, p < 0.05) on IT personnel competency is negatively significant. The result indicates that employees differ in their psychological and behavioral responses according to the goal orientation of employees. The result also shows that the impact of a IT personnel competency on both personal work satisfaction(${\beta}$ = 0.395, t = 4.897, P < 0.000) and personal work performance(${\beta}$ = 0.575, t = 12.800, P < 0.000) is positively significant. And the impact of personal work satisfaction(${\beta}$ = 0.148, t = 2.432, p < 0.05) on personal work performance is positively significant. Finally, the impacts of control variables (gender, age, type of industry, position, work career) on the relationships between IT personnel competency and personal effectiveness(personal work satisfaction work performance) are partly significant. In addition, the study uses PLS algorithm to find out a GoF(global criterion of goodness of fit) of the exploratory research model which includes a mediating variable, IT personnel competency. The result of analysis shows that the value of GoF is 0.45 above GoFlarge(0.36). Therefore, the research model turns out be good. In addition, the study performs a Sobel Test to find out the statistical significance of the mediating variable, IT personnel competency, which is already turned out to have the mediating effect in the research model using PLS. The result of a Sobel Test shows that the values of Z are all significant statistically (above 1.96 and below -1.96) and indicates that IT personnel competency plays a mediating role in the research model. At the present day, most employees are universally afraid of organizational changes and resistant to them in organizations in which the acceptance and learning of a new information technology or information system is particularly required. The problem is due' to increasing a feeling of uneasiness and uncertainty in improving past practices in accordance with new organizational changes. It is not always possible for employees with positive attitudes to perform their works suitable to organizational goals. Therefore, organizations need to identify what kinds of goal-oriented minds employees have, motivate them to do self-directed learning, and provide them with organizational environment to enhance positive aspects in their works. Thus, the study provides researchers and practitioners with a matter of primary interest in goal orientation and IT personnel competency, of which they have been unaware until very recently. Some academic and practical implications and limitations arisen in the course of the research, and suggestions for future research directions are also discussed.

Service Quality, Customer Satisfaction and Customer Loyalty of Mobile Communication Industry in China (중국이동통신산업중적복무질량(中国移动通信产业中的服务质量), 고객만의도화고객충성도(顾客满意度和顾客忠诚度))

  • Zhang, Ruijin;Li, Xiangyang;Zhang, Yunchang
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.3
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    • pp.269-277
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    • 2010
  • Previous studies have shown that the most important factor affecting customer loyalty in the service industry is service quality. However, on the subject of whether service quality has a direct or indirect effect on customer loyalty, scholars' views apparently vary. Some studies suggest that service quality has a direct and fundamental influence on customer loyalty (Bai and Liu, 2002). However, others have shown that service quality not only directly affects customer loyalty, it also has an indirect impact on customer loyalty by influencing customer satisfaction and perceived value (Cronin, Brady, and Hult, 2000). Currently, there are few domestic articles that specifically address the relationship between service quality and customer loyalty in the mobile communication industry. Moreover, research has studied customer loyalty as a whole variable, rather than breaking it down further into multiple dimensions. Based on this analysis, this paper summarizes previous study results, establishes an effect mechanism model among service quality, customer satisfaction, and customer loyalty in the mobile communication industry, and presents a statistical test on model assumptions by using customer investigation data from Heilongjiang Mobile Company. It provides theoretical guidance for mobile service management based on the discussion of the hypothesis test results. For data collection, the sample comprised mobile users in Harbin city, and the survey was taken by random sampling. Out of a total of 300 questionnaires, 276 (92.9%) were recovered. After excluding invalid questionnaires, 249 remained, for an effective rate of 82.6 percent for the study. Cronbach's ${\alpha}$ coefficient was adapted to assess the scale reliability, and validity testing was conducted on the questionnaire from three aspects: content validity, construct validity. and convergent validity. The study tested for goodness of fit mainly from the absolute and relative fit indexes. From the hypothesis testing results, overall, four assumptions have not been supported. The ultimate affective relationship of service quality, customer satisfaction, and customer loyalty is demonstrated in Figure 2. On the whole, the service quality of the communication industry not only has a direct positive significant effect on customer loyalty, it also has an indirect positive significant effect on customer loyalty through service quality; the affective mechanism and extent of customer loyalty are different, and are influenced by each dimension of service quality. This study used the questionnaires of existing literature from home and abroad and tested them in empirical research, with all questions adapted to seven-point Likert scales. With the SERVQUAL scale of Parasuraman, Zeithaml, and Berry (1988), or PZB, as a reference point, service quality was divided into five dimensions-tangibility, reliability, responsiveness, assurance, and empathy-and the questions were simplified down to nineteen. The measurement of customer satisfaction was based mainly on Fornell (1992) and Wang and Han (2003), ending up with four questions. Based on the study’s three indicators of price tolerance, first choice, and complaint reaction were used to measure attitudinal loyalty, while repurchase intention, recommendation, and reputation measured behavioral loyalty. The collection and collation of literature data produced a model of the relationship among service quality, customer satisfaction, and customer loyalty in mobile communications, and China Mobile in the city of Harbin in Heilongjiang province was used for conducting an empirical test of the model and obtaining some useful conclusions. First, service quality in mobile communication is formed by the five factors mentioned earlier: tangibility, reliability, responsiveness, assurance, and empathy. On the basis of PZB SERVQUAL, the study designed a measurement scale of service quality for the mobile communications industry, and obtained these five factors through exploratory factor analysis. The factors fit basically with the five elements, indicating the concept of five elements of service quality for the mobile communications industry. Second, service quality in mobile communications has both direct and indirect positive effects on attitudinal loyalty, with the indirect effect being produced through the intermediary variable, customer satisfaction. There are also both direct and indirect positive effects on behavioral loyalty, with the indirect effect produced through two intermediary variables: customer satisfaction and attitudinal loyalty. This shows that better service quality and higher customer satisfaction will activate the attitudinal to service providers more active and show loyalty to service providers much easier. In addition, the effect mechanism of all dimensions of service quality on all dimensions of customer loyalty is different. Third, customer satisfaction plays a significant intermediary role among service quality and attitudinal and behavioral loyalty, indicating that improving service quality can boost customer satisfaction and make it easier for satisfied customers to become loyal customers. Moreover, attitudinal loyalty plays a significant intermediary role between service quality and behavioral loyalty, indicating that only attitudinally and behaviorally loyal customers are truly loyal customers. The research conclusions have some indications for Chinese telecom operators and others to upgrade their service quality. Two limitations to the study are also mentioned. First, all data were collected in the Heilongjiang area, so there might be a common method bias that skews the results. Second, the discussion addresses the relationship between service quality and customer loyalty, setting customer satisfaction as mediator, but does not consider other factors, like customer value and consumer features, This research will be continued in the future.

A Methodology of Customer Churn Prediction based on Two-Dimensional Loyalty Segmentation (이차원 고객충성도 세그먼트 기반의 고객이탈예측 방법론)

  • Kim, Hyung Su;Hong, Seung Woo
    • Journal of Intelligence and Information Systems
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    • v.26 no.4
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    • pp.111-126
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    • 2020
  • Most industries have recently become aware of the importance of customer lifetime value as they are exposed to a competitive environment. As a result, preventing customers from churn is becoming a more important business issue than securing new customers. This is because maintaining churn customers is far more economical than securing new customers, and in fact, the acquisition cost of new customers is known to be five to six times higher than the maintenance cost of churn customers. Also, Companies that effectively prevent customer churn and improve customer retention rates are known to have a positive effect on not only increasing the company's profitability but also improving its brand image by improving customer satisfaction. Predicting customer churn, which had been conducted as a sub-research area for CRM, has recently become more important as a big data-based performance marketing theme due to the development of business machine learning technology. Until now, research on customer churn prediction has been carried out actively in such sectors as the mobile telecommunication industry, the financial industry, the distribution industry, and the game industry, which are highly competitive and urgent to manage churn. In addition, These churn prediction studies were focused on improving the performance of the churn prediction model itself, such as simply comparing the performance of various models, exploring features that are effective in forecasting departures, or developing new ensemble techniques, and were limited in terms of practical utilization because most studies considered the entire customer group as a group and developed a predictive model. As such, the main purpose of the existing related research was to improve the performance of the predictive model itself, and there was a relatively lack of research to improve the overall customer churn prediction process. In fact, customers in the business have different behavior characteristics due to heterogeneous transaction patterns, and the resulting churn rate is different, so it is unreasonable to assume the entire customer as a single customer group. Therefore, it is desirable to segment customers according to customer classification criteria, such as loyalty, and to operate an appropriate churn prediction model individually, in order to carry out effective customer churn predictions in heterogeneous industries. Of course, in some studies, there are studies in which customers are subdivided using clustering techniques and applied a churn prediction model for individual customer groups. Although this process of predicting churn can produce better predictions than a single predict model for the entire customer population, there is still room for improvement in that clustering is a mechanical, exploratory grouping technique that calculates distances based on inputs and does not reflect the strategic intent of an entity such as loyalties. This study proposes a segment-based customer departure prediction process (CCP/2DL: Customer Churn Prediction based on Two-Dimensional Loyalty segmentation) based on two-dimensional customer loyalty, assuming that successful customer churn management can be better done through improvements in the overall process than through the performance of the model itself. CCP/2DL is a series of churn prediction processes that segment two-way, quantitative and qualitative loyalty-based customer, conduct secondary grouping of customer segments according to churn patterns, and then independently apply heterogeneous churn prediction models for each churn pattern group. Performance comparisons were performed with the most commonly applied the General churn prediction process and the Clustering-based churn prediction process to assess the relative excellence of the proposed churn prediction process. The General churn prediction process used in this study refers to the process of predicting a single group of customers simply intended to be predicted as a machine learning model, using the most commonly used churn predicting method. And the Clustering-based churn prediction process is a method of first using clustering techniques to segment customers and implement a churn prediction model for each individual group. In cooperation with a global NGO, the proposed CCP/2DL performance showed better performance than other methodologies for predicting churn. This churn prediction process is not only effective in predicting churn, but can also be a strategic basis for obtaining a variety of customer observations and carrying out other related performance marketing activities.

A Study on the Profitability Enhancement of SI Business in Public and Finance Sector (공공(公共)/금융분야(金融分野) SI사업(事業)의 수익성(收益性) 향상(向上) 방안(方案)에 관한 연구(硏究))

  • Joo, Jeong-Soo;Jahng, Jung-Joo;Cho, Hurn-Jin
    • Information Systems Review
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    • v.12 no.1
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    • pp.165-188
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    • 2010
  • Recently public and finance SI (system integration) industry is called as 4D (difficult, dangerous, dirty, dreamless) industry because of low profit, overtime works and poor motivation of employees. Even some people think at SI industry to be a labor intensive industry instead of a high technology industry. The current study considers outside environmental change of SI industry as well as inside capability enhancement of SI companies. The study adopted action research method with the author's expertise and experiences as a head of a major SI company in Korea. The current research framework suggests 5 areas of profitability enhancement that offers propositions and implications. 5 areas of profitability enhancement are (1) policy improvement, (2) business portfolio innovation (3) sales capability reinforcement, (4) delivery capability reinforcement, and (5) cost management innovation. The five areas include 11 propositional factors and 21 implementation plans which were chosen from the profitability perspectives of SI companies.In order to successfully execute propositions and implementation plans of the framework, 3 years is needed and after 3 years profitability are expected to increase 10% higher than the current level. The framework, propositions and suggestions in this study are expected to offer a real contribution for SI companies that want to enhance competitiveness and profitability. Future extension of the current study to benchmarking the competitiveness and profitability between local companies and global companieswill bring a solid attention from industry and academics.