Intangible Cost Influence on Business Performance of Wholesale and Retail Brokerage in Korea: Focusing on HRM, Marketing and CSR

KIM,, B. , & KIM,, B. (2022). Intangible Cost Influence on Business Performance of Wholesale and Retail Brokerage in Korea: Focusing on HRM, Marketing and CSR. The Journal of Distribution Science, 20(5), 119-127, https://doi.org/https://doi.org/10.15722/jds.20.05.202205.119

copy

Downloaded
Viewed

PDF Download

Abstract

Purpose: The purpose of this study is to analyze the Cost-Effectiveness Analysis (CEA) of wholesale and retail brokerage businesses in Korea. And give managerial implications and contribute to academics. Research design, data and methodology: This research empirically analyzes the relationship between expenses and business performance. As for business performance, this research considered two financial performances; sales and profit. As for antecedent variables, this research measured three cost investment expenses; human resource management (HRM), marketing (MKT) and corporate social responsibility (CSR). This research used frequency analysis, correlation analysis, stepwise regression analysis and curve estimation analysis. Results: The result shows that HRM and CSR positive significant influence on sales yet marketing negatively significant influence on sales. And for profit, HRM and CSR give a positive significant influence. However, marketing's influence was not significant. According to curve estimation analysis, the relation between individual cost and performance, best functional relation was all quadratic functions. Some results show ∩ shape and others show shape. Conclusions: Based on this study result, implications for practical management to Wholesale and Retail Brokerage companies in Korea. And the contribution to academics is expected. Also, based on the limitation of this study, future research is suggested.

keywords: Wholesale, Retail Brokerage, Business Performance, Sales, Profit, Cost Investment Expense, HRM, Marketing, CSR

Reference

Albertini, E., & Berger-Remy, F. (2019). Intellectual capital and financial performance: a meta-analysis and research Agenda. M@n@gement, 22(2), 126-249.

Andras, T. L., & Srinivasan, S. S. (2003). Advertising intensity and R&D intensity: differences across industries and their impact on firm’s performance. International Journal of Business and Economics, 2(2), 81-90.

Bansal, P. (2005). Evolving sustainably: a longitudinal study of corporate sustainable development. Strategic Management Journal, 26(3), 197-218. https://doi.org/10.1002/smj.441

Barnett, M. L., & Salomon, R. M. (2006). Beyond dichotomy: the curvilinear relationship between social responsibility and financial performance. Strategic Management Journal, 27(11), 1101-1122. https://doi.org/10.1002/smj.557

Berman, S. L., Wicks, A. C., Kotha, S., & Jones, T. M. (1999). Does stakeholder orientation matter? the relationship between stakeholder management models and firm financial performance. Academy of Management Journal, 42(5), 488-506. https://doi.org/10.5465/256972

Bublitz, B., & Ettredge, E. (1989). The information in discretion and accounting for research and development. The Accounting Review, 64, 108-124.

Chauvin, K., & Hirschey, M. (1993). Advertising, R&D expenditure and the market value of the firm. Financial Management, 22(4), 28-140. https://doi.org/10.2307/3665583

Corrado, C., Hulten, C., & Sichel, D. (2005). Measuring capital and technology: an expanded framework. measuring capital in the New Economy, studies in income and wealth 65, University of Chicago Press. https://doi.org/10.7208/9780226116174

Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58(4), 37-51. https://doi.org/10.1177/002224299405800404

10.

Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857. https://doi.org/10.1287/mnsc.2014.1984

11.

Flammer, C. (2015). Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach. Management Science, 61(11), 2549-2568. https://doi.org/10.1287/mnsc.2014.2038

12.

Graham, Jr. R. C., & Frankenberger, K. D. (2000). The Contribution of change in advertising expenditure to earnings and market values. Journal of Business Research, 50(2), 149-155. https://doi.org/10.1016/S0148-2963(99)00028-4

13.

Haskel, J., & Westlake, S. (2017), Capitalism without capital-the rise of the intangible economy, Princeton University Press. https://doi.org/10.1515/9781400888320

14.

Hirschey, M., & Weygnadt, J. J. (1985). Amortization policy for advertising and research and development expenditure. Journal of Accounting Research, 23(1), 326-335. https://doi.org/10.2307/2490921

15.

Hunter, L., Webster, E., & Wyatt, A. (2005). Measuring intangible capital: a review of current practice. Intellectual Property Research Institute of Australia Working Paer, 14/04. https://doi.org/10.1111/j.1835-2561.2005.tb00288.x

16.

Jensen, M. C. (2002). Value maximization, stakeholder theory, and the corporate objective function. Business Ethics Quarterly, 12(2), 235-256. https://doi.org/10.2307/3857812

17.

Jeon, H. J., Kim, Y. M., & Youn, M. K. (2019). Effects of CSR activities on business performance of logistics firms. Journal of Distribution Science, 17(12), 23-32. https://doi.org/10.15722/jds.17.12.201912.23

18.

Job, F. O., & Adesina, O. (2018). Human capital expenditure and financial performance of quoted manufacturing companies in port harcourt. Journal of Accounting Research, 4(1), 1-10.

19.

Joshi, A., & Hanssens, D. M. (2010). The direct and indirect effects of advertising spending on firm value. Journal of Marketing, 74(1), 20-33. https://doi.org/10.1142/9789813229808_0013

20.

Jozef, G. (2018). Impact of intangibles on firm value: an empirical evidence from european public companies. Ekonomicky Casopis, 66(7), 665-680.

21.

Kim, J., & Choi, M. (2021). An analysis on the effect of intangible asset investments on the valuation of distribution compaines. Journal of Channel and Retailing, 26(1), 25-46. DOI: https://doi.org/10.17657/jcr.2021.01.31.2

22.

Kim, S. J., & Kang, S. A. (2014). Donation expenses and corporate value: a focus on the corporate governance structure. Journal of Distribution Science, 12(8), 113-121. https://doi.org/10.15722/jds.13.6.201507.19

23.

Lev, B., & Radhakrishnan, S. (2005). The valuation of organization capital- measuring capital in the New Economy, University of Chicago Press, 73-110. https://doi.org/10.7208/9780226116174

24.

Margolis, J. D., & Walsh, J. P. (2003). Misery loves companies: rethinking social initiatives by business. Administrative Science Quarterly, 48(2), 268-305. https://doi.org/10.2307/3556659

25.

Okwy, P. O., & Christopher, C. O. (2010). Human capital accounting and its relevance to stock investment decisions in Nigeria. European Journal of Economics, Finance and Administrative Sciences, 2(1), 64-76. http://ir.unilag.edu.ng:8080/xmlui/handle/123456789/2321

26.

Porter, M. E., & Kramer, M. R.(2006). The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92.

27.

Ryu, H., & Chae, S. J. (2022). The impact of COVID-19 on earnings management in the distribution and Service industies. Journal of Distribution Science, 20(40), 95-100. https://doi.org/10.15722/jds.20.04.202204.95

28.

Salman, R. T., & Tayib, M (2012). Intellectual capital measurement tools. International Journal on Social Science, Economic and Art, 2(2), 19-26.

29.

Shih, S. (2002), Growing global: a corporate vision masterclass, John Wiley & Sons.

30.

Surroca, J., Tribó, J. A., & Waddock, S. (2010). Corporate responsibility and financial performance: the role of intangible resources. Strategic Management Journal, 31(5), 463-490. https://doi.org/10.1002/smj.820

31.

Timotius, E., & Octavius, G. S. (2021). Global changing of consumer behavior to retail distibution due to Pandemic of COVID-19: a systematic review. Journal of Distribution Science, 19(11), 69-80. https://doi.org/10.15722/jds.19.11.202111.69

32.

Wang, T., & Bansal, P. (2012). Social responsibility in new ventures: profiting from a long-term orientation. Strategic Management Journal, 33(10), pp.1135-1153. https://doi.org/10.1002/smj.1962

33.

Wright, P. M., & McMahon, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295-320. https://doi.org/10.1177/014920639201800205

34.

Xu, J., Liu, F., & Chen, Y. (2019). R&D, advertising and firms’ financial perfromance in South Korea: Does Firm Size Matter?. Sustainability, 11(3764), 1-16. https://doi.org/10.3390/su11143764

바로가기메뉴

Article Contents

Vol.20 No.5

Intangible Cost Influence on Business Performance of Wholesale and Retail Brokerage in Korea: Focusing on HRM, Marketing and CSR

Abstract

Reference

The Journal of Distribution Science