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Vol.15 No.1

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Purpose - The purpose of the paper is to examine development strategy that Shanghai port has practiced, and to take out some productive implications to be applied to other port. Research design, data and methodology - The research methods to be applied is first to look into some development progress in terms of trade volumes, and then to review development strategy that is classified with two different aspects, and finally to identify implications. Results - Following the change of economic environment that China has joined to WTO, the way of doing business in Chinese economy has transferred to market economy more closely. Trade volume is higher than before and it attracts to build national infrastructure including port. Development strategy has to be needed to take care of newly faced economic situations, within two aspects, hardware and software approach. Both construction and management are answer to competitive port of Shanghai. Conclusions - From the development strategy of Shanghai port, hardware and software aspects should be emphasized, and it is evident that both trade volume of shipping market and the willingness of port authority have to be getting along with each other in development strategy.

Kim, Mi-Jeong ; Park, Chul-Ju ; Park, Jae-Sung pp.15-20 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.15
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Purpose - Other customers within the same service environment do influence a customer' attitude and behavior toward a service firm. Specially, other customers' misbehaviour and various service problems stemmed from them could make the other customers suffer some bad experiences. However, there are few studies to answer how the spillover effect of a service failure arisen from other customers' misbehavior. This study is aimed to examine how service failure due to the dysfunctional behavior of other customers has negative effects on customer evaluation with the service provider. Research design, data, and methodology - Data were collected from a survey based on consumers' retrospective experiences in airline service context. The hypothesized relationships were tested conducting structural equation modeling. Results - Our results show that the attribution of a firm responsibility for other-customer failure has a positive influence on customer's recovery expectation, in turn, it is negatively related to customer satisfaction. Furthermore, perceived service provider's efforts positively influence customer satisfaction. Conclusions - Although a service failure was caused by other customer's misbehavior, employees should be able to alleviate any bad feelings of the affected customers. Furthermore, service providers should provide proper recovery efforts for solving problems caused by the other customers for the wounded customers.

Kim, Bo-Suk ; Kim, Yeong-Ok ; Jung, Myung-Hee pp.21-30 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.21
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Purpose - These days, Korean society with more than 2 million foreigners has made multi-cultural society quickly. Multi-cultural society has become popular and anti multi-cultural phenomenon has grown up gradually against Korea's traditional habits. Research design, data, and methodology - European countries that were said to be multi-cultural society had suffered from terror, riot and other social conflicts. The study examined Koreans' racism and anti multi-cultural emotion to investigate the conditions and causes of anti multi-cultural emotion. Further, this study investigates a prevention of the worst case such as Norway terror and the countermeasures compared to each country's social customs. Results - Koreans are not generous to the foreigners. Foreign countries' cases after failures in multi-cultural society might give future implications on multi-cultural society in Korea. Conclusions - Korean society have not produced new one by introducing another races, nationality and culture not cognizing failure experiences of multi-culturalism like Europe. Nonetheless, Korean society shall not give up multi-culturalism. Korean society shall prepare for multi-culturalism society to lessen social conflict as much as possible and not to neglect anti culturalism emotion producing social conflict, and shall investigate the related causes to lessen anti multi-culturalism emotion and to integrate Korean style of multi-culturalism society for Korea as a tool of nation management.

Kim, Jeung-Eun ; Jo, Su-Jung ; Kim, Eun-Jeong pp.31-42 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.31
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Purpose - The multicultural society is a society where a variety of ethnic groups and cultures co-exist. Regarding Korean multicultural society, the public interest in the multicultural society and its problems are on a growing trend due to the increasing number of the multicultural families by international marriage and the foreign immigrant workers. Research design, data, and methodology - Models of the multicultural society policies have been divided into those of assimilation and multiculturalism, while they have been materialized into the models of discriminative exclusivism, assimilation and multiculturalism. Most countries are aiming at the model of either the multiculturalism or the assimilation focused on national managerial situations. Results - In the case of Europe where the multicultural society had been formed earlier than Korea, Islamic immigrants have been politically accepted in order for Europe to overcome the problem of population decrease caused by its low birth-rate. Also, in the case of the United States. Conclusions - Korean multicultural society policies are characterized mostly by supporting the multicultural families of international marriage. In this study, it is intended to present the characteristics of diversified immigrants and the possible directions of the polices on immigrant youth in accordance with each country's managerial policy.

Kim, Byung-Kwan ; Lee, Seung-Yong ; Choi, Young-Keun pp.43-49 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.43
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Purpose - This study is to integrate organizational factors into UCD process. For this research purpose, we investigated the organizational factors which influence people behaviors in the context of user-centred design practice(UCP). And this study presents organizational culture, organizational learning and change management as the organizational factors. Especially, this study is to investigate how change management influences the relationship between the organizational culture/learning and UCD performance. Research design, data, and methodology - Using the survey methodology with a questionnaire, this study distributed the questionnaire to the experienced 112 practitioners of user-centred design practice in 52 Korean small and medium companies. The organizations differed in range and size from medium-scale, which is under 100 of employees, and to small-scale, which is from 100 to 500. Results - Organizational culture and organizational learning have positive effects on user-centred design practice performance as expected. And change management strengthens the positive relationship between organizational learning and user-centred design practice performance but has no effect on the relationship between organizational culture and user-centred design practice performance. Conclusions - This is the first empirical study of investigating and demonstrating some key organizational factors' relationships and UCD performance of an organization, which will support to institutionalize UCD within an organization, providing theoretical foundations.

Yang, Hoe-Chang ; Cho, Hee-Young ; Kim, Young-Ei pp.51-56 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.51
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Purpose - The study verified the effects of consumers' knowledge perception upon word-of-mouth intention and purchase intention of consumers who were exposed to a lot of information, and examined consumer's behavior from multi-dimensional points of view. Research design, data, and methodology - The study conducted the test of difference between consumer's cognition on importance and satisfaction of HMR product by gap of HMR (Home Meal Replacement) product for IPA analysis. The consumer's reliability and words-of-mouth were measured by the questionnaire method with 4 questions according to Likert 7-point scale. Conversion into z-score removed the difference of variables. Results - The causal relation model for importance, satisfaction and gap, not relying upon multi-dimensional scaling and others, could construct causal relation model to give implications. Difference (d) of the products could lessen consumer's reliability to increase consumer's knowledge perception, word-of-mouth intention, knowledge perception, and purchase intention. Therefore, enterprises should make an effort to lessen consumers' complaint for the products and to elevate consumers' reliability. Enterprises also try to give consumers exact information and to promote purchase intention. Conclusions - Difference (d) of consumers' complaint and/or disappointment decreased consumers' reliability to increase knowledge perception. Enterprises should supply consumers with products according to their requirements to minimize the gap and to give them proper information.

Byun, Yoon-Sang ; Park, Cheong-Yeul pp.57-70 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.57
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Purpose - This study examined the effects of CRM success factors on business performance and customer performance, and the effects on job performance and customer performance through internal member satisfaction by considering of technology, organizational environment and customer relationship factors in CRM success factors from banking sectors. Research design, data, and methodology - An online questionnaire was conducted to 251 employees in banking sectors. The data were analyzed by SPSS 22.0 and Amos 21.0. CRM success factors, internal member satisfaction, job performance, and customer performance were analyzed by descriptive statistics and Pearson's correlation analysis. The bootstrapping in structural equations was conducted to verify the mediating effect of internal member satisfaction. Results - Internal members' satisfaction had a positive effect on job and customer performance. It mediated the relationship between organizational environment, customer relationship factors and job performance. It also mediated the relationship between organizational environment and customer performance. Conclusions - If internal members' relationship with customers is improved by the members' satisfaction, customer retention, customer satisfaction, and work performance will be achieved. The stability and usability in CRM system support jobs effectively, but the internal members did not feel their job satisfaction. Thus, they did not show a positive effect on job and customer performance.

Kim, Jae-Yeong ; Im, Sang-Hyun pp.71-81 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.71
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Purpose - Consumers heuristically have a specific stereotype on the price level of individual retail format because each format provides them with a different level of purchase satisfaction and emotional benefits. However, if price image which is consumers' overall impression of the aggregate price level of a retailer does not match with their expectations, its price level would be perceived as unfair. It will eventually lead to dissatisfaction and decreased revisit intention. Focused on department store and discount store, this study was designed to verify whether the price fairness plays a role of mediating effect on two influential relationships between price image and post-purchase satisfaction, and price image and repatronage intention. Research design, data, and methodology - A main survey was conducted to 140 students and 128 effective responses were used for the related analysis. T-test, factor analysis, reliability test, and mediated regression analysis were performed. Six hypotheses were developed to examine the mediating effect of price fairness on the two influential relationships between price image and post-purchase satisfaction, and price image and repatronage intention. It was also examined whether the price image of two different retail format is formed differently or not. Results - People perceived the price images of the two retail formats differently. Overall price level of department store is much higher than that of discount store. Analysis results showed that price image did not solely have a significant influence on post-purchase satisfaction unless price fairness as a mediating variable is added. Price fairness turned out to be having a significant influence on relationship between price image and repatronage intention. It influences on repatronage intention directly and also via price fairness. Conclusions - Post-purchase satisfaction can be achieved only if people perceive the price image as fair no matter how the price level is high or low according to traits of retail formats. If they think it's not fair, they would disapprove of the rightness for the price image, and also express their dissatisfaction with it. Consumers willingly make repeated visits to a store if they are convinced of appropriate price level which is perceived as fair, and if they experienced a satisfaction with overall benefits a particular store offered.

Seo, Dae-Sung ; Coo, Byung-Mo pp.83-93 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.83
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Purpose - After the transition, the development of defense industry in Eastern Europe has been regressed. Recently, they have internationally recognized that new products have been exported and contributed to the Innovation-Based Manufacturing of national economy such as unmanned reconnaissance aircraft, water purification technology, and mobile chemical laboratory, etc. The military forces in Eastern Europe are re-armed by the localization of self-produced munitions in their own defense industry, and then emphasize fostering their own defense industry. Thus, if they make a collaboration with other nations as a industrial cluster, it will gain a competitive edge on the defense industry. Research design, data, and methodology - The study was designed with the data of each national defense department. The research of the subject was reviewed before and after the transition. Thousands of workers have worked in defense industries before the transition, however, the defense industry and experts left after the transition. The Hungarian defense spending on GDP also dropped sharply from 1.72% in 2000 to 0.85% in 2013. But, due to the crisis in Ukraine and the crisis of Syrian refugees, the Viségrad Group (V4) member countries have also increased their interest in a defense and industries as well as the confidence in the EU and NATO. Results - On the whole, the joint of military training and purchase of defense materials were found in order to form the EU cooperative combat troops in CEE. There are the implementation of a joint manual plan for strengthening V4 security policy and the joint military exercises for V4 every year, and the others are electronic warfare and innovation of V4 national forces. Through such a performance analysis methodology, we found that the defense industry is developed through the national cluster cooperation among CEEs and spreading global distribution. Conclusions - Eastern Europe and Balkan countries have been looking forward to cooperating with the non-EU countries such as Korea and other defense industries. There are a lot of potential development into a new civilian cooperation defense industry for global-distribution. Thus, Korea should develop electronic commercial applications, not just as a weapon exporting region.

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Purpose - This study focuses on long-term orientation that can lead long-term partnership. A long-term orientation needs a trust and relation commitment between company. So in this study, the researcher conducts a dependent variable as a justice recognition and brand asset value to research model to find out casual relationship among quoted factors. Research design, data, and methodology - The focus of this study was employees who work in a liquor distribution company to figure out factors that effect on long-term relationship in b2b transaction. The development of the research model is based on the literature of the preceding research analysis of justice recognition, brand asset value, trust, relation commitment and long-term orientation. This study have constructs that defined operationally by previous studies, research model design that to figuring casual relationships among the quoted factors. From 2016 Sep. 1st to Oct. 30th, a questionnaire survey was conducted targeting employees who work in liquor distribution company. 176 survey data were used for empirical analysis to prove the research hypotheses. Results - The main results of this study's empirical methodology were as follows. First, procedural justice and interactive justice has a positive significant effect on trust and relation commitment. Also brand image, brand awareness and perceived quality has a positive significant effect on trust and relation commitment. Second, trust and relation commitment has a positive significant effect on long-term orientation. Every hypothesis adopted as the researcher designed for empirical study. Conclusions - Based on empirical results, this study confirmed that trust and relation commitment has empirical relationship with long-term orientation. Based on the analysis, the researcher provided managerial implication by setting 2 way path for making long-term orientation with business company. First path is procedural justice to relation commitment. It contains that procedural justice recognised while business transaction execution, consideration intension and relation development will happen in b2b. Second path is perceived quality to trust. It contains that the perceived quality recognised while business transaction execution, trust will increase rapidly. So when a business company wants to make a partnership, they have to consider procedural justice and perceived quality to make a long-term relationship.

Jung, Yeon-Sung ; Hong, Geum-Pyo ; Yi, Ho-Taek pp.105-114 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.105
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Purpose - Recently, domestic pharmaceutical market is growing steadily, but top-tier companies are concentrating on sales growth. In this market, SMEs, which account for more than 80% of the entire market, suffer from the problem of lower margins and increasing inventory costs. According to the government's policy changes related to pharmaceuticals, it is pointed out that the management of existing customers and the control of salespeople are important issues for pharmaceutical companies. This study investigates the effect of the control system on the salesperson in domestic pharmaceutical distribution channel on customer-oriented selling behaviors and sales performance. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 244 MR(medical representatives)'s responses which have currently relationship with doctors or pharmacists. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. Results - The authors find out the following results: capacity control, activity control, and self control have positive effects on customer-oriented selling behaviors and customer-oriented selling behaviors have a positive effect on sales performance. In addition, we present alternative model to check the direct effect between the control systems and the sales performance, but control system factors except self control have no direct influence. Conclusions - First of all, competency control and activity control increases the customer-oriented selling behavior of the salesperson. This means that the salesperson's sales skill, negotiation skill, customer access skill, presentation ability, monitoring, direction and evaluation are important and it is also important to control activities to check the number of visits to customers, report preparation, and customer service etiquette. Second, the fact that self-control of salesperson affects the customer-oriented selling behavior suggests that self-control is not controlled by external factors but rather establishes short/long-term goals. Therefore, it is important for sales organization to create an environment in which members can induce persistent incentives for self-control. Finally, output control did not affect customer-oriented sales behavior, which is less likely to form confidence or motivation to MRs when output control is perceived as a means of monitoring, supervising, or controlling rather than providing information to salespeople.

Lee, Woo-Joo ; Lee, Jong-Keon pp.115-121 https://doi.org/https://doi.org/10.15722/jds.15.1.201701.115
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Purpose - Although ensuring that all the organizational members know their roles exactly is an important part of managerial work, few studies address the role clarity in food manufacturing and distribution firms. Role clarity refers to the extent to which individuals clearly understand the tasks, duties, responsibilities, and expectations of their work roles (Hinkin & Schriesheim, 2008). The purpose of this study is to examine the effect of the role clarity on organizational commitment and the mediating role of creativity in the role clarity-organizational commitment relationship. Research design, data, and methodology - Data were collected from 297 employees in food manufacturing and distribution firms of Korea by self-evaluations questionnaires. The unit of the analysis for testing is an individual. We proposed four hypotheses: (1) <Hypothesis 1> is about the relationship between role clarity and organizational commitment, (2) <Hypothesis 2> is about the relationship between role clarity and creativity, (3) <Hypothesis 3> is about the relationship between creativity and organizational commitment, and (4) <Hypothesis 4> is about the mediating role of creativity. We conducted the hierarchical regression analysis for testing the main and mediating effects. Results - The results of the study indicated that the role clarity was positively associated with organizational commitment and creativity. Results also indicated that the creativity was positively associated with organizational commitment. Especially, the impact of the role clarity on organizational commitment was mediated by creativity. Conclusions - An important contribution of this study is extending prior theory on the relationship between role clarity and organizational commitment by shedding new light on assumptions regarding the mediating effect of creativity. The results demonstrate that the role clarity has an indirect effect as well as a direct effects on organizational commitment. Our research suggests important implications for organizations that pursue to stimulate their employees' creativity, emphasizing the importance of the role clarity. This study has several potential limitations. Maybe the most serious limitation is its cross-sectional study design. Another limitation is the use of employees' self-reports to measure the variables. In the future, researchers should employ a longitudinal study design and use diverse sources of data.

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Purpose - This research aims to examine the effect of e-business adoption on firm's growth and profitability in the distribution industry. The value added from the distribution industry acts as the cost of other industries. As the distribution industry develops, its stage becomes shorter and the distribution margin becomes smaller. Therefore, e-business is expected to have a different effect on the distribution industry than other industries. Research design, data and methodology - The previous research generally used e-business adoption as an independent variable and firm's performance as a dependent variable. This study elaborated the model using a dynamic panel model that includes the performance variable of the previous year as an independent variable. By employing system GMM (Generalized Method of Moments), the endogeneity problem in the dynamic panel model can be solved. For the analysis, I extracted the distribution companies as the raw data in the National Statistical Office's Business Activity Survey over the period 2006 to 2012. Results - The growth rate of firms adopting e-business was 0.299%p higher than that of the non-adopter. However, only ERP (Enterprise Resource Planning), KMS (Knowledge Management System) and SCM (Supply Chain Management) contributed positively to the growth rate. In the case of profitability, it was 0.04%p higher than the distribution companies that did not adopt e-business. ERP and LMS (Learning Management System) improve profitability, while SCM reduces profitability. Consequently, while ERP improves both growth and profitability, SCM improves growth but reduces profitability. In addition, KMS improves firm's growth only, and LMS does only profitability, showing that each e-business has a differentiated effect. Conclusions - Since the distribution industry has different characteristics from manufacturing and other service industries, the introduction of e-business may not guarantee the growth and profitability of distribution companies. Careful introduction considering the characteristics of the distribution industry is required. In particular, it is necessary to select an e-business meeting the characteristics and needs of a distribution company, and thereafter, it is required for the company's own efforts to internalize it within the system.

The Journal of Distribution Science