• Title/Summary/Keyword: regional competitive advantage

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The Effect of the Interaction with Innovation Intermediaries on Firm's Performance: Focusing on the Absorptive Capacity' Mediating Effect (혁신중개인과의 관계가 기업성과에 미치는 영향: 흡수역량의 매개효과를 중심으로)

  • Lee, Sunje;Jung, Sunyang
    • Journal of Technology Innovation
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    • v.25 no.4
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    • pp.313-340
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    • 2017
  • This paper explores the interaction between innovation intermediaries and firms' absorptive capacities and performance from the perspectives of regional innovation system and innovation cluster. This paper is an empirical study for drawing two research questions by examining firms in Daedeok Innopolis. First, does the relationship between firms and innovation intermediaries have a significant effect on the absorptive capacity and performance of the firm? Second, does absorptive capacity mediate the relationship between innovation intermediaries and performance of the firm? According to our analysis, innovation intermediaries have a positive effect on firms' absorptive capacity, as well as innovation and business performance of firms. Also the absorptive capacity plays a significant mediator role in this intermediation process. This paper implies that the firms could expand opportunities and build competitive advantage by fully understanding the innovation process and the interaction between innovation intermediaries and firms in this innovation process.

Case Study of Art Asset and Its Categories as Creative Place Asset (창조적 장소자산으로서 예술자산의 유형과 사례 연구)

  • Chung, Su-Hee;Lee, Byung-Min
    • Journal of the Economic Geographical Society of Korea
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    • v.17 no.1
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    • pp.28-44
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    • 2014
  • As the era of glocalization arrives, each area of the world with the uniqueness trying to enhance competitive advantage. In this context, the 'Art asset' should be understood as an independent 'Content' in terms of place marketing & creative regional regeneration. Especially in a place as a component of assets 'art' is recognized as an independent content & as a means for new areas of creative regeneration and the local economy will be discussed. To do this, place the property on the basis of a review of existing research on the concept of a new arrangement of art assets were classified by type and each of the cases examined. Ultimately, through the review of creative play area as a place of art assets and utilize the potential value of plce asset is the goal of this article.

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A Study on the Location Factors of Foreign Direct Investment Firms in Korea (국내 외국인직접투자기업의 입지결정요인에 관한 연구)

  • Lee, Ho-Yeong;Park, Won-Seok
    • Journal of the Korean association of regional geographers
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    • v.17 no.1
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    • pp.58-74
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    • 2011
  • This study analyzed and compared the importance and priority of location decision factors in Foreign Direct Investment Firms managing the manufacturing business in the nation's southeastern economic zone, and in expert group by using AHP analytical technique based on examining the location theory and the prior research of real estate for industry. Also, it analyzed difference in importance and priority for location factors by corporate scale, by business category, and by location type targeting only foreign direct investment firms, and offered references necessary for location decision-making. In addition, to elicit useful information for policy related to location decision factors for foreign direct investment firms, the implications were elicited by analyzing the results recognized between foreign direct investment firms and expert group on information elements regarding investment satisfaction, business bottlenecks, and location decision process. The considerable gap was indicated in importance and priority of location decision factors considered between the nation's foreign direct investment firms and real-estate expert group for industry. As a result of analyzing by reflecting the corporate characteristic variable in location assessment model unlike before, the importance of the competitive advantage factor and the business strategic factor was indicated to be very high.

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Geographies of Learning and Proximity Reconsidered: A Relational/Organizational Perspective (학습과 근접성의 지리에 대한 재고찰: 관계적/조직적 관점)

  • Jong-Ho Lee
    • Journal of the Korean Geographical Society
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    • v.36 no.5
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    • pp.539-560
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    • 2001
  • This paper aims to critically review the geographical literature on learning and proximity that stresses the role of the regions and geographical proximity in sustaining competitive advantage, and to conceptualize a relational/organizational perspective on the sources of knowledge and learning in the firm. In the first part of the paper, I argue that the geographical literature lacks the deliberate scrutiny of how learning occurs in the firm and where the sources of knowledge and learning come from. Secondly, I attempt to elaborate the concept of proximity through a relational/organizational perspective. Thirdly, I delve into how learning takes place and is realized in the firm through communities in the firm such as communities of practice, epistemic communities and task-force teams and how such communities in the firm generate knowledge and sustain loaming by drawing on relational/organizational proximity. This paper concludes by claiming that the sources of learning exist in organizational spaces, with complex geographies mobilizing distributed knowledge and competences and combining varied forms of knowledge beyond the simple demarcation of tacit and codified knowledge.

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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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