- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Vol.14 No.4
Abstract
Purpose - The Education Ministry has plans to select top 10 percent academic journals among the domestic registration journals in NRF(National Research Foundation of Korea), and designate them as outstanding academic journals. To reflect this trend, KODISA has set its sights on paper publication rate and citation index with pushing forward globalism. First, this study will arrange the process of globalism and the current state of paper submission, and propose the direction of improvement in academic journals through understanding the characteristics of each major field. Research design, data, and methodology - KODISA has preceeded in examining and publishing research papers related to distribution field through indirectly or stimulating academic advancement. KODISA covers the whole fields in social science as well as in business administration and economics that associated with distribution field not limiting only within the range of distribution field. That is, the new subject that contributes to the progress in distribution field with original research can be a priority criteria in KODISA journal publication. Results - The major fields in papers published in KODISA can be categorized broadly as distribution field with economic and business administration point of view. Therefore, the distribution field with economic point of view includes the issues such as regulations, system, industry, market environment, distribution system, trade, and macroeconomics, etc. The business administration point of view in distribution includes distribution strategy, distribution organization, and distribution channel from the perspectives of the firm, etc. Conclusions - The aim of KODISA in 2020 is to be a global academic journal as SCI level of each journal in KODISA, JDS(Registration journal), IJIDB(Registration candidate), EAJBM(Registration candidate), JAFEB(Cabell's Registration journal). The KODISA journals have already settled as the largest academic society and journals of Korea in 2016 currently from humanities and social sciences area by the most gross in publication circulation, volumes, and types. Hereafter, KODISA will focus on the improvement for the objective indicators such as Impact Factor and Centrality index as qualitative growth as well as quantitative expansion. By doing so, KODISA will be a forum for developmental academic debate with attracting the world's greatest scholars' papers. Furthermore, they will be recognized journals and grow as the first-rate academic journals inside and outside of Korea.
Abstract
Purpose - This paper attempts to determine the importance of financial sustainability and the impact of Selling, General and Administrative Expenses (SG&A) on the financial sustainability of the IT industry. Research design, data, and methodology - Primarily the impact of SG&A expenditure on the sales revenue, assets, gross margins and profit is ascertained. After that the impact of SG&A expenditure, sales revenue, assets, gross margins and profit on the financial sustainability i.e., return on assets is worked out. Finally the impacts of financial sustainability i.e., return on assets on total enterprise value and market valuation multiples are found out. Results - The empirical result shows that SG&A expenditure most strongly impacted sales revenue, assets, gross margins and profit positively. Financial sustainability impacted in mixed manner with SG&A expenditure, sales revenue, assets, gross margins and profit. Assets and gross margins have weak positive impact on financial sustainability. Sales revenue has no impact on financial sustainability. Finally financial sustainability had moderate positive impact on total enterprise value and had no impact on market valuation multiples. Conclusions - SG&A expense has moderate positive impact on the financial sustainability and magnitude is very low.
Abstract
Purpose - This study examines how consignment and Vendor-Managed Inventory perform as supply chain collaboration programs. By using three key collaborative features, this study defines the collaboration programs and develops theoretical models of different supply chain systems. Research design, data and methodology - This study conducts sophisticated analysis on the supply chain systems by applying simulation modeling based on time-phased operations. The simulation model represents a two-stage supply chain system where a supplier sells a single item to a buyer, and it incorporates various operations. Results - In general, the simulation outcomes support that more advanced collaboration programs outperform less advanced ones. The analysis on the simulation outcomes identifies the significant value of information sharing in both collaboration programs. The specific conditions where the particular collaboration system outperforms the others are recognized. Conclusions - The outcome of this study supports that the supply chain system can improve its performance by having more collaborative features. This study provides business practitioners with guidelines to identify the circumstances that the specific collaboration program can fully exploit its advantages.
Abstract
Purpose - This study purposes to analyze the impact of regional economic integration and macroeconomic on Indonesian FDI inflows. Research design, data, and methodology - Data were collected from bilateral relation between Indonesia and 21 home countries whose dominant share FDI to Indonesia from 2005 to 2013. Analysis method was conducted by panel gravity modeI to find the impact of regional economic integration and macroeconomic on Indonesian FDI inflows. Results - The empirical results show that GDP of the home country and Indonesia have a positive impact on Indonesia FDI. Distance and home country real interest rate have a negative impact on Indonesia FDI. Economic integration of European Union (EU) and Indonesia's cooperation with Japan in ASEAN-Japan Comprehensive Economic Partnership (AJCEP) have created impact of investment creation on Indonesia FDI, unfortunately, economic integration of ASEAN has created impact of investment diversion on Indonesian FDI. Conclusions - In order to increase FDI inflow to Indonesia, Indonesia government should improve the physical and social infrastructures to drive the productivity and economic efficiency. It will increase the GDP and also attract more investors. Low interest rate policy should be considered.
Abstract
Purpose - Recently, as Korean culture and economy develops, Seoul has become a world-famed city. In Seoul, many special grade hotels have been constructed in order to accommodate many tourists from China, Japan and many other Asian countries. And the hotels entered into competition among themselves. Thus many changes are accelerated due to their mutual competition and manpower problems. In this situation, the role of higher officers above all is thought to be very important in order to enhance the management result and to make preparations for the kernel ability of the organization. Research design, data and methodology - This study was intended to verify how the leadership of the higher officers based on trust affects the job satisfaction of employees of the organization. In order to achieve the purpose of this study, some study models and hypotheses have been established through theoretical examinations. The subjects of this study were centered on the constituents of C-Hotel, M-Hotel, and D-Hotel. 200 questionaries were distributed and 190 questionaries were collected and thus the collection ratio was 91 percent. 8 questionaries which were regarded to be insincere or hard to analyzed were excluded. Finally, 182 questionaries were used for analyzing the factors and trust. For the purpose of the verification of hypotheses, structural equation was used. In order to verify the mediating effect of trust between the relationship of emotional leadership and job satisfaction, 'Three-step Mediated Regression Analysis by Baron & Kenny(1986) was utilized. The four hypotheses for this study are as follows: First, emotional leadership will have a meaningful influence on trust in the affirmative. Second, trust will have a meaningful influence on job satisfaction in the affirmative. Third, trust will play a mediating role in the relationship of emotional leadership and job satisfaction. Result - First, the emotional leadership and trust was found to effect a positive effect. Second, the trust and job satisfaction was found on a positive effect on job satisfaction. Third, the emotional leadership and job satisfaction was found to positive effect on job satisfaction. Fourth, the trust in the relationship between emotional leadership and job satisfaction was found that the partial mediating effect. Especially, in the case of the business of hospitality, human services as well as material resources become its keynote, and we can safely say that the degree of dependence toward human resources is very high. Accordingly, the leaders should display their leadership on the basis of abundant emotional and intellectual faculties so that they can grasp, understand and admit the diverse views of value and emotion of the organization constituents and that they can form emotional leadership. On the basis of the analysis results of the verification of hypotheses, some suggestions and uppermost limit of this study have been presented for further study.
Abstract
Purpose - The objective of this study is to investigate the dynamic relationships among Advertising Cost (AD), Newly Registered Users(NRU), and Buying Users(BU) of Social Network Game(SNG). SNG is getting pervasive mainly due to the rapid growth of mobile game and Social Network Service(SNS). It would be helpful for marketing researchers interested in SNG and related practitioners to understand the changes in AD, NRU, and BU with time as well as the effects on one another in mutual and dynamic way. Research Design, Data, and Methodology - Necessary data were collected from Social Network Game(SNG) company. AD, NRU, and BU are endogenous variables, but new event such as launching (event) and holidays(holiday) are exogenous dummy variables. Vector Auto regression (VAR) model is generally used to examine and capture the dynamic relationships among endogenous variables. VAR model can easily capture dynamic and endogenous relationships among time-series variables. Vector Auto regression with Exogenous variables(VARX) is a model in which exogenous variables are added to VAR. To investigate this study, VARX is applied. Result - By estimating the VARX model, the author finds that the past periods' NRU affect negatively and significantly the present AD, and past periods' BU have a positive and significant impact on the increase of AD. In addition, the author shows that the past periods' AD and BU have a positive and significant effect on the increase of NRU, and the past periods' AD affect positively and significantly BU. While the impact of AD on NRU happens after 3 or 4 days (carryover effect), that of AD on BU comes about within just 1 or 2 days (immediate effect). The effect of BU on NRU can be considered as word of mouth (WOM effect). Therefore, SNG companies can obtain not only the growth of revenue but also the increase of NRU by increasing BU. Through those results, the author can also find that there are significant interactions between endogenous variables. Conclusion - This study intends to investigate endogenous and dynamic relationships between AD, NRU, and BU. They also give managerial implications to practitioners for SNS and SNG firms. Through this study, it is found that there exist significant interactions and dynamic relationships between those three endogenous variables. The results of this study can have meaningful implications for practitioners and researchers of SNG. This research is unique in that it deals with "actual" field data and intend to find "actual" relationships among variables unlike other related existing studies which intend to investigate psychological factors affecting the intention of game usage and the intention of purchasing game items. This study is also meaningful by showing that the increase of BU can be a good strategy for "killing birds with one stone" (i.e., revenue growth and NRU increase). Although there are some limitations related with future research topics, this research contributes to the current research on SNG marketing in the above mentioned ways.
Abstract
Purpose - This article aims to explore the characteristics of disaster risk distribution information in China. Also, this research attempts to analyze the findings of risk communication using case study in chronological order in terms of social amplification of risk. To achieve the purpose, the paper reviews the trends and issues of risk communication in China, with an emphasis on examining earthquakes by a chronological approach. In these regards, we hope that some relevant findings from this empirical study with cases will be able to enhance national risk communication and provide implications in Korea as well. Research design, data, and methodology - The conceptual framework of this study is theoretically based on the risk amplification model, which describes signals about risk transmitted and processed by individuals and social groups. The social amplification of risk also reflects the interactions of social groups about disaster-related risk issues, which are potential amplifiers or attenuators of communication signals. The key concept of social amplification implies that the risks pertaining to natural disasters interact with social, psychological, institutional, and cultural processes in ways that can affect public perceptions of risk. SMCRE Model is methodologically employed to examine risk communication history of China with the focus on natural disaster. Four earthquakes are selected to figure out the chronological characteristics of risk communication since 1970s. He bei Tang Shan earthquake is selected as an example disaster before 1990's, while the earthquake in Yun Nan Jiang is explored for the case study of 1990's. The earthquake in Si Chuan Wen Chuan is also examined as a example disaster of 2000's. The recent earthquake in Si Chuan Ya An Lu Shan is selected as a case of 2010s. Results - SMCRE model in this case study is operationally defined as a methodology and applied to the four earthquakes occurred in China. SMCRE model describes the exchange of risk information and is also applied to all forms of communication between stake holders. Each factor of risk communication includes source, message, channel, receiver and effect. It is notable that a big progress has been made on disaster risk communication in China for the past 40 years. We also found that highly developed information technology has enabled Chinese society to better cope with natural disaster, leading to enhanced disaster risk communication. It is mainly found from case study that the disaster risk communication of China has been involved with political situation, which derived from the change of government for the past 40 years. Conclusion - From this historical research, it can be inferred that the policies and politics of Chinese leaders have had a more critical role to play in the process of source of risk communication than those of any other countries. The results of this paper also support that the effective risk communication involves not only the improved reliability of local government as a key factor of disaster risk communication, but also is accompanied by international cooperation for substantial collaboration with stake holders.
Abstract
Purpose - Over recent years, we have concerned about safety and quality on food products because of delivery complexity. The dependence of foreign food products escalate supply of products. And there are often negligent accident of marine and agricultural products. Therefore, the complexity increases the importance of safety on food and information quality for consumers. In spite of the interest augmentation of various interested parties, there is decrease in reliability and effectiveness, if it would be established without the right directivity. For the study, we tried to examine the first considerations the point of - view in service environment and information quality with accepting and diffusing the Traceability System. Then, we tried to verify the relationships between the factors of TS and the determinants of behavior decision. Next, we made efforts to find the mutual relationship among distributors, producers, consumers and the other prerequisite factors from the point of view in service environment and information quality in order to operate effectively the information perspective and system. Research design, data, and methodology - For the purpose of this study, the samples of consumers were targeted to Traceability System, and 661 people have been investigated. Through theoretical discussion of previous research, nine hypotheses were established, the influence of Continuous User Intention in TS. In order to test the hypotheses, a survey had conducted for 661 consumers as opinion leaders in their 20s-60s as data, and structural equation modeling was used. The difference analysis between Agricultural and Marine Products in TS; SPSS 22.0 and AMOS 22.0 were used for statistical analysis. Results - The major findings from this study were as follow; all factors of information quality excluding completeness and a social-impact had effects on the ease of use; all factors excluding understand ability in information quality and a social-impact had effects on the usefulness; completeness and social-impact had effects on perceived value; the ease of use had effects on usefulness and perceived value; usefulness had effects on perceived value and the intention of continuous use. From the results of different analysis, the CPLT(Completeness) factor has positive effects on Easy of USE and PV(Perceived Value) strongly in agricultural products. On the other hand, Social Duty has positive effects on Easy of Use strongly in marine products. Conclusion - In the age of information overflowing, TS will be a burden for users if it places too much emphasis upon accessibility. To accept and diffuse TS safely, therefore, Information System should be settled first into initial market formation. In addition, if TS elements are considered in conjunction with information factors and user environment, the acceptance and diffusion of TS would make synergy effect, even better. That is, this study contributes to the acceptance and diffusion of Traceability System. Accordingly, information quality will be settled into initial market formation. Also, social-impact element will be considered in conjunction with information quality's factors, and it will make synergy effect.
Abstract
Purpose - In recent years, management scholars have expressed growing interest in the concept of person-Job fit because of having many benefits for employees' attitudes and behaviors. The related research is needed to determine what specific types of fit are related to each other, and to get important individual outcomes. Person-job fit of employees in service organization plays an important role in company as well as person in service industry. Person-job fit, representing the consistency between person (service provider) and job (service provided to the customers), gives significant and positive effects on the attitude and behavior of service provider. On the basis of the study background, the purpose of this study is as follows. First, we would like to examine the effects of person-job fit of service provider on their emotional intelligence. Emotional intelligence is divided into four sub-factors such as self-understanding, understanding others, emotional utilization, and emotional regulation. Second, we would like to identify the relationships between job satisfaction and sub-factors such as self-understanding, understanding others, emotional utilization, and emotional regulation. Research design, data, and methodology - We performed structural equation model using Spss 18.0 and Amos 20.0 in order to verify the hypotheses. Subjects were golf service assistants who were high-touching service with high degree in interaction and long contact time with customers. 178 out of the total 200 surveys were used in evaluation from helpers of golf service working as full-time service provider after selecting two locations of golf course located near Busan. From the evaluation of reliability and validity with variables used in this research, they satisfied and confirmed certain standard. Results - The results are as follows. First, as the results of identifying the relationships between person-job fit and emotional intelligence of service provider, person-job fit did not have positive and significant effect on self-understanding. On the other hand, it affected positively and significantly other factors in emotional intelligence such as emotion to others, emotional utilization, and emotional regulation. Second, as the results of identifying the relationship between emotional intelligence and job satisfaction, sub-factors in emotional intelligence such as emotion to others, emotional utilization, and emotional regulation except self-emotion affected significantly and positively job satisfaction. However, self-emotion did not have significant and positive effects on job satisfaction. Conclusion - These results will be valuable and used for service providers. In addition, many service providers will recognize that person-job fit is very important to get a job. This research has a purpose on the assumption that appropriateness between individual and task in service industry shall act as major influence in emotional intelligence of service provider. Recognitive ability of service provider is also very important per characteristics of service, but emotional intelligence that interacts and connected directly with most customers can be a very meaningful factor as well. Emotional intelligence allows people to recognize, understand, and empathize the emotion of customers shall be a positive reinforcement for customers to evaluate the service ultimately.
Abstract
Purpose - As more consumers pursue high quality products at reasonable prices, Korean retail companies are increasing investment in expanding their outlet stores. Despite the growing importance of the outlet business, there has been very little empirical research on consumers' outlet shopping behaviors. This study aimed to investigate the relationships between consumers' perceived product value (performance quality, value for money, and social value) of outlet stores and overall shopping satisfaction and the effect of shopping satisfaction on outlet store loyalty. Research design, data and methodology - The authors developed a structural model in which performance quality, value for money, and social value of products are proposed to affect overall outlet shopping satisfaction, thus increasing customer loyalty. To analyze the research model, data were collected from 88 shoppers at suburban outlets. SPSS 21.0 and AMOS 21.0 were utilized to test the hypotheses. The unidimensionality of each construct was supported from the results of the reliability test with Cronbach's α and confirmatory factor analyses. Correlation analysis was performed and the results warranted the nomological validity of the measures. The fit statistics of the overall model analysis demonstrated an acceptable fit(X<sup>2</sup>(<sub>161</sub>)=171.651, p=.000; X<sup>2</sup>/df=1.546; GFI=.821, NFI=.879, TLI=.942, CFI=.953, RMR=.035, RMSEA=.079). Results - The findings are as follows. First, consumers' perceived value of product performance quality had a significant positive effect on overall outlet shopping satisfaction. Consumers, who evaluate performance quality of the product more positively, tend to express stronger satisfaction and happiness about outlet shopping experience. Second, consumers' perceived social value of outlet products influenced their overall satisfaction significantly. Consumers who believe that products of outlet stores enhance self-concepts are more likely to satisfy with outlet shopping experience. However, consumers' perception of outlet products on value for money was not found to significantly influence overall shopping satisfaction. Finally, overall shopping satisfaction had a significant and positive influence on loyalty. Conclusions - While outlet retailers have traditionally focused on promoting competitively priced merchandise, the results of this study suggest that customers' overall satisfaction with outlet shopping is influenced more by the non-price-related product values. In the context of an outlet shopping environment, performance quality and social value of the products were found to be more critical predictors of customer overall satisfaction. Therefore, it would not be efficient for outlet retailers to highlight economic value of their merchandise. Instead, they need to investigate the performance quality of the products regularly and try to deliver quality guaranteed goods to enhance customer satisfaction. Also, outlet retailers should differentiate their businesses by carrying more unique and prestigious brands and emphasize higher social value and symbolic meanings of their products. As competition among outlet retailers are getting fierce, retail companies need to focus on strengthening customer loyalty with a long-term perspective. With a deeper understanding of the relationship between consumers' perceived product values and shopping satisfaction, outlet retailers will be able to develop customer loyalty strategies effectively and to achieve competitive advantage.
Abstract
Purpose - This study investigates the improvement of rationalization of distribution structure in Korean diamond market. It also explores the international distribution of diamond and how the distribution of Korean diamond market system was improved. This study also for providing the evaluation method in case of purchasing diamond on the consumers. Research Design, Data, and Methodology - The research investigates how international diamond distribution market has been changed since 1933 by De Beers. The international Diamond rough stone has been deregulated in supply and demand by Debeers since July, 2000, therefore, the price maintenance policy of diamond market also has been changed. In the short term, the diamond price in market has been down, whereas, in the long term, the market share of Debeers has affected the high quality of diamond price in world market. Before 1985, both G color and VVS1 clarity were used as the level of percentages in the diamond certificate of authenticity in Korea. But, after 1985, the diamond certificate of authenticity uses Diamond Grading Report. Results - Between the 1970's and 1980's, Debeers had controlled about 80 percentages of international diamond supply market. But, Debeers share in diamond market fell by 60 percentages in 2000's. Debeers supplied 31%(4390 carets) of international diamond supply and 41%(39 billion dollars) in 2003. However, Debeers shares 50% of market shares in the diamond supply market by Alosa in Russia. In Korea, the diamond grading report system has been used since 1985. But, the diamond grading report system has price bubbles and much irrational parts in grading system methods. Conclusions - 4C, the grading system of diamond, is a method for comparing and evaluating diamond objectively. Diamond is graded according to its color, cut, clarity, and carat. The price of diamond is determined based on its each item. Consumers purchase diamond for the purpose of investment and wearing. In terms of investment, it is recommended to purchase diamond with color of D grade, cut with Excellent or Very Good Cut grade, Clarity of FL or IF, and more than 3 carat. As for wearing purpose, it is highly recommended for diamond to have color of F or G grade, cut of Excellent or Very Good Cut, clarity of VS2 or SI1, and more than 1 carat Before 2000, Central Selling Organization(CSO) distributed about 80 percentages rough diamond to world market exclusively by purchase, classification, assessment, and sales. After 2000, Dbeers diamond company looses slowly market shares, while Almosa diamond company etc. in Russia are taking over world market shares more and more. Debeers market shares have been falling over the years, and the international diamond markets are gradually growing by other international diamond companies. But, there is no change in Korean diamond market after 1980's. Korean diamond distribution needs to follow international level of Diamond Grading System. By using different grading systems with different panel members, Korean diamond grading system needs to follow international perfect grading systems to grow diamond markets and maintain within top 10 diamond markets countries.
Abstract
Purpose - A lot of preceeding studies have focused on the pains that might be felt in spending money, that is an important role in getting psychological safety. Money and social resources can be all for consumers, and they are likely to form a substituting relationship with one another. Being motivated by the idea that spending money for others can come with joy if one's objective is accomplished by social support, this paper aimed to explore the mediating role of the perceived money importance and gratitude in the relationship between social support and pleasure in spending for other-gift. Research Design, Data, and Methodology - In this empirical study, the experimental group is expected to receive social support while the control group is composed of those who are usually indulged in reminiscences of their sweethearts. From the college students, 160 experiment participants were selected and 80 participants of them were assigned to control group as well as to experimental group respectively at random. Empirical study for each of the two groups was performed respectively by means of questionnaire survey. Experimental group data and control group data were combined together to be used for testing hypotheses. Linear structural equation model in Amos was used to verify the hypotheses, and Bootstrap was also used to examine whether there were the mediating roles of the perceived money importance and gratitude or not. Results - From the empirical study, following conclusions could be drawn: First, social support of others makes one perceive the importance of money less; Second, social support of others makes one perceive gratitude to others; Third, less perceived importance of money and gratitude to others can make one feel pleasure in spending for other-gift; and Fourth, less perceived importance of money and gratitude to others can partially mediate the effect of social support from others on the pleasure in spending for other-gift. Conclusions - The outcomes of this study might offer theoretic and managerial implications as follow: Even though many hitherto studies have asserted that spending money usually comes with pains, this study discovered that social support might reduce perceived the importance of money but make others feel gratitude and, thus, one would feel joy in spending money to buy gift for others, and made a contribution to the progress of the theory of pleasure in spending for other-gift. This paper also made contributions toward the development of emotion marketing theory by showing that the effect of social support on the pleasure in spending for other-gift could be partially mediated by the perceived the importance of money and gratitude to others. Based on the above conclusions, it may be affirmed that marketers should help consumers perceive the importance of money less, and help feel gratitude to others by pointing up the support of others to consumers in an attempt to accelerate spending for other-gift.
Abstract
Purpose - As consumers' needs for purchasing fresh and safe food have been bigger in Korea, their interest in local food is also growing recently. So, the number of local food stores has been increased from 3 in 2012 to 103 in 2015. Local food stores should operate a business responding consumers' needs in order that local food stores are not to be a one-time fad. Therefore, the purpose of this study is to analyze the characteristics of consumers who use a local food store and provide helpful implications to design a strategy for sustainable growth of local food store. Research design, data, and methodology - In this study, Probit model was used for empirical analysis in order to examine the effect of purchase choice attributes of agricultural products, consumer's satisfaction, and their demographic factors upon the intention to use a local food store. After estimating coefficients of the probit model, marginal effects were calculated as a standard normal, and cumulative distribution is differentiated with respect to explanatory variables. To collect the data, questionnaire survey was carried out with the consumers using the local food store (Youngjin Nonghyup near to Jeonju city located in Jeollabuk-do). Result - The data analysis found that the more consumers are satisfied with local food store, the higher intention they have to use the local food store. In addition, it was known that the factors related to quality of agricultural products and shopping convenience among the purchase choice attributes have a considerable impact on the purchase intention of a local food store. In demographic factors, income was turned out to be an important factor affecting purchase intention of local food. Such a result supports the hypothesis that high income consumers are likely to purchase local food, which is based on the inference that consumers who have a high income tend to pursue wellbeing life. Futhermore, information delivery, through a reputable media source among general factors, was known to play an important role in forming an intention to purchase local food. According to the analysis of marginal effects, probability of purchase intention of a local food store is increased by 11.4%, if a monthly average income of a household is above 4.5 million Won(Korean currency). If purchasing satisfaction with local food stores is high, the probability of purchase intention would be increased by 24.1%. Likewise, such a probability goes up by 8.7%, 5.8%, respectively as an increasing one unit of quality of agricultural products and shopping convenience of local food stores, respectively. Conclusion - For attaining sustainable growth in a local food store, it is considered necessarily to establish a proper store operation system to meet consumers' needs, especially for quality and shopping convenience of local food. Moreover, as it was found that appropriate communication through media source has a positive effect on the intention to use local food store, PR activity seems to be necessary to expand the consumers' demands for local foods.
Abstract
Purpose - Value chain in agriculture refers to direct and indirect activities related to value-added process from raw materials to final products in agricultural industries. In recent years, value chain analysis has become more important in the area of agricultural development. This article reviews the concept and importance of value chain analysis in the context of agricultural development and attempts to suggest improvement strategies. Research design, data, methodology - A literature survey was conducted for value chain analysis for agricultural development. The case of agro-value chain in Cambodia was deeply analyzed based upon interviews with government officers and related experts. Results - It seems that agro-value chain in developing countries are not well developed and does not carry out appropriate functions, compared to developed countries. Because value adding facilities, such as storage, processing and packing plants, milling plants, and etc. are not sufficiently constructed, the quality of agricultural products is low. Especially developing countries may loose opportunities to increase value of their product by exporting their agricultural products as raw materials to neighboring countries. Value adding process is also mainly controlled by traders in local markets or wholesale markets in urban areas. Farmers therefore can get lower share of final value of agricultural products compared to the shares paid to traders. Lastly it is argued that governments of developing countries do not play an active role in developing value chains and do not carry out coordinating functions in an effective and efficient manner. Conclusions - The first step to improve agro-value chain in developing countries is to identify and analyze value chain structure of agricultural products and to make development strategies and implementation programs. For improving value chain of agricultural products in developing countries, it is required to provide not only plans for constructing hardwares, such as wholesale markets, storage facilities, processing and packing plants, and etc., but also plans for improving softwares, such as measures for improving product quality and safety, setting up grade and standard, providing market information, and nurturing producer cooperatives.