ISSN : 1738-3110
Purpose - In this study, we discuss the current status and barriers of digital transformation focused on small businesses. More specifically, this study consists of two studies. The purpose of study 1 is to investigate the effect of digitization of small businesses on the sales of stores and the number of visiting customers. The purpose of Study 2 is to examine the status and obstacles of online channels use by small businesses. Research design, data, and methodology - In Study 1, we will examine the changes in sales and visitor numbers of stores that are rapidly adapting to digital transformation among small business. For this, we utilize the actual situation of store management survey conducted by the Small Enterprise and Market Service. Specifically, multiple regression equations were used to determine whether blogs and online shopping malls were operating, and the proportion of credit cards to sales as independent variables and sales and number of visiting customers as dependent variables. Next, in Study 2, we surveyed the 15 small business owners in the latest survey on the actual situation of store management survey conducted in 2015, and conducted an in-depth interview to examine the barriers to the use of online channels by small business. Results - As a result of study 1, it is found that the small business who run the blogs have higher sales and visits than the small business who do not. However, there is no difference in the sales and the number of visiting customers between the stores that operate the online shopping malls and those that do not. Second, the higher the proportion of credit cards, the higher the sales and the number of visiting customers. In study 2, we analyzed the barriers to the expansion of online channels by in-depth interviews. Interviews show that barriers to access to online channels are limited by search neutrality, high commission burden, and low bargaining power. These problems are caused by the insufficiency of small business compared to online and mobile portal and O2O platform vendors. Conclusions - This study suggests that small business who have difficulty in establishing direct online channels need digital transformation of small business. In addition, when using such an external platform, we have identified the problems that small business face.
Baker Tilly International (2014). Restaurant Benchmarks: How Does Your Restaurant Compare to the Industry Standard?. Baker Tilly Virchow Krause, LLP.
Bendoly, E., Blocher, J. D., Bretthauer, K. M., Krishnan, S., & Venkataramanan, M. A. (2005). Online/in- store Integration and Customer Retention. Journal of Service Research, 7(4), 313-327.
Berman, S. J., & Bell, R. (2011). Digital Transformation: Creating New Business Models Where Digital Meets Physical. IBM Institute for Business Value, 1-17.
Brynjolfsson, E., Hu, Y. J., & Rahman, M. S. (2013). Competing in the Age of Omnichannel Retailing. MIT Sloan Management Review, 54(4), 1-7.
Choi, H. S., & Yang, S. B. (2016). An Empirical Study on Influencing Factors of Switching Intention from Online Shopping to Webrooming. Journal of Intelligence and Information Systems, 22(1), 19-41.
Du, Y., & Tang, Y. (2014). Study on the Development of O2O E-commerce Platform of China from the Perspective of Offline Service Quality. International Journal of Business and Social Science, 5(4), 308-312.
Ghose, S., & Dou, W. (1998). Interactive Functions and Their Impacts on the Appeal of Internet Presence Sites. Journal of Advertising Research, 38(2), 29-43.
Grewal, D., Bart, Y., Spann, M., & Zubcsek, P. P. (2016). Mobile Advertising: A Framework and research Agenda. Journal of Interactive Marketing, 34, 3-14.
Grewal, D., Roggeveen, A. L., & Nordfalt, J. (2017). The Future of Retailing. Journal of Retailing, 93(1), 1-6.
Han, S. S. (2017). Effect on Brand Loyalty in Omni- Channel: Focus on Category Knowledge, Journal of Distribution Science, 15(3), 61-72.
Herhausen, D., Binder, J., Schoegel, M., & Herrmann, A. (2015). Integrating Bricks with Clicks: Retailer-level and Channel-level Outcomes of Online–offline Channel Integration. Journal of Retailing, 91(2), 309-325.
IDC (2015). Digital Transformation(DX): An Opportunity and an Imperative.
Jang, H. H., Kang, S. G., & Zhou, Y. (2014). A Study on New Consumption Behaviors in the Korean Online and Offline Retail Markets. E-Trade Review, 12(1), 29-51.
Jeong, I. J., Park, S. W., & Lee, M. W. (2003). A Study on Self-regulation for Improving Reliability of Internet Advertising. Bulletin, Brand Design Association of Korea, 11(4), 127-136.
Ji, S. W., Sun, X. Y., & Liu, D. (2014). Research on Core Competitiveness of Chinese Retail Industry Based on O2O. In Advanced Materials Research, 834, 2017-2020.
Kim, J, Y., Yoo, J. H., & Park, K. M. (2017). The Fourth Industrial Revolution and Digital Transformation: Risks and Strategies. Software Policy & Research Institute.
Kim, M. S., & Choi, J. H. (2016). The Fourth Industrial Revolution and Mastering of Industrial IoT· Industrial Internet. Korea Information Society Development, 28(12), 20-26.
Kim, M. S., & Son, K. N. (2017). The Fourth Industrial Revolution and Mastering of Digital Transformation. Korea Information Society Development, 29(3), 26-32.
Lee, C. S., Kim, Y. K., & Kim, S. H. (2017a). An Exploratory Study on Impact Factors to Food Cost of Small Businesses in Food-service Industry. Journal of Distribution and Management Research, 20(5), 101-111.
Lee, C. S., Kim, Y. K., & Kim, S. H. (2017b). Digital Transformation and Support Policy of Small Business. Winter Conference of Korea Research Academy of Distribution Information 2017.
Lee, D. K., & You, Y. Y. (2017). The Effects of Digital Transformation Intention of Small Traders in Domestic Traditional Industries. Journal of Society of Korea Industrial and Systems Engineering, 40(4), 67-77.
Lee, H. B., Lee, K. R., & Hong, M. K. (2015). How to Technically Differentiate Useless Advertising from Useful Information On the Internet?. The Korean Journal of Advertising, 26(5), 125-150.
Lee, H. S. (2012). Regression Analysis for Social Science Research. Seoul: Jyphyuntae.
Lee, S. B., & Son, Y. K. (2014). A Study on the State and Trend of Internet Advertising and Mobile Advertising in Korea: A Meta-Analytic Review. The Korean Journal of Advertising, 25(8), 179-211.
Lim, H. J. (2004). Study of practical use plan of Key Word Advertisement. Journal of Digital Design, 7(1), 101-109.
Moffat, V. R. (2009). Regulating Search. Harvard Journal of Law & Technology, 22(2), 475-513.
Oh, J. A. (2016). An Analysis on the Omni-Channel Strategy of Distribution Enterprise in Domestic and International. Journal of the Korean Institute of Interior Design, 25(5), 111-120.
Park, S. H. (2016). Effect of Omni-Channel Use and Customer-Brand Relationship. Journal of Distribution Science, 14(11), 129-138.
Piotrowicz, W., & Cuthbertson, R. (2014). Introduction to The Special Issue Information Technology in Retail: Toward Omnichannel Retailing. International Journal of Electronic Commerce, 18(4), 5-16.
Roh, H. S. (2017). Reviewing Keyword Advertising Cases -Focusing on Trademark Use and Responsibilities of Search Engines. Journal of Hongik Law Review, 18(2), 331-354.
Ryu, M. H., Kim, J. H., & Kim, S. C. (2015). Search Neutrality: Key Issues and Arguments. Information Society & Media, 16(3), 85-101.
Shin, S. M., Noh, H. B., & Park, S. Y. (2014). A Study of Present Status of Restaurant Franchise Owner- operators’ Use of Food Delivery App Service and Policy Exhortative Study on Optimum Level of Commission. Journal of Distribution and Management Research, 18(4), 41-50.
Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From Multi-channel Retailing to Omni-channel Retailing: Introduction to the Special Issue on Multi-channel Retailing. Journal of Retailing. 91(2), 174-181.
Yeom, M. S. (2015a). Inconsistency between Information Search and Purchase Channels: Focusing on the “Showrooming Phenomenon”. Journal of Distribution Science, 13(9), 81-93.
Yeom, M. S. (2015b). Understanding of Showrooming Behavior Based on the Theory of Reasoned Action. Journal of Channel and Retailing, 20(4), 79-103.