Korean Companies Research Articles

중간관리자의 리더역할 정체성과 부하역할 정체성이 임파워링 리더십의 적하효과에 미치는 영향에 관한 연구: 조절된 순차적 매개효과 분석

This study examined how the dual-role identities of middle managers, as both leaders and subordinates, influence their acceptance of empowering leadership from upper leaders and its transmission to subordinates. Specifically, it explored whether middle managers’ deference toward upper leaders mediates the trickle-down effect of empowering leadership and how leader-role and subordinate-role identities moderate this process. Survey data were collected from 174 executives (upper leaders), 174 team leaders (middle managers), and their 775 subordinates (team members) at Korean companies. The responses were all matched through the chain of command, while response anonymity and confidentiality were ensured. The results showed that upper leaders' empowering leadership was positively associated with middle managers' empowering leadership through their deference to upper leaders. The indirect effect was significant when subordinate-role identity was low and leader-role identity was high. Additionally, middle managers' promotability and leader effectiveness were sequentially mediated by their deference toward upper leaders and empowering leadership, with the indirect effects remaining significant under the same moderation conditions. This study highlights the pivotal role of middle managers' dual-role identities in moderating the trickle-down effect of empowering leadership. It deepens our understanding of how middle managers internalize empowering leadership from their superiors, transmit it to their subordinates, and enhance their promotability and leader effectiveness, ultimately benefiting the organization as a whole.

Export effects of overseas patent applications by Korean SMEs

ABSTRACT This study analyzed the impact of overseas patent applications by Korean companies, particularly focusing on small and medium-sized enterprises (SMEs), on their export performance, utilizing data from 1999 to 2019. We integrated the Documentation Database patent dataset from the EPO with the Korean financial dataset. The fundamental hypothesis of this study is that, unlike large enterprises (LEs), SMEs find the cost of filing and maintaining patents overseas burdensome. Consequently, they tend to file patents primarily in their key export markets rather than in major global markets, which implies that, in contrast to LEs, the patent applications of SMEs may positively impact exports only to the specific countries where they have filed. The key findings are as follows. Firstly, unlike LEs, SMEs tend to export specifically to the countries where they have filed. These results demonstrate how firms’ behavior can vary depending on the heterogeneity in firm size. Secondly, the effect of overseas patents filed by Korean SMEs is most pronounced for the ASEAN countries. Based on these insights, we recommend the implementation of policy measures such as providing financial support to cover the costs of overseas patent applications for SMEs.

Corporate social responsibility and firm performance: Evidence from Korea

ABSTRACT This study explores the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) in listed Korean companies over ten years. The results show a significant positive effect of CSR on CFP in the manufacturing sector, but no notable impact in the non-manufacturing sector. A detailed analysis identifies social contribution as the key driver of this positive effect, while the other CSR sub-categories play a minor role. Higher ownership by majority shareholders and treasury stock is associated with lower CSR. This research enhances understanding of the CSR-CFP link in Korea, offering valuable insights for insiders and investors in decision-making.

Determinants of Generative AI System Adoption and Usage Behavior in Korean Companies: Applying the UTAUT Model.

This study addresses the academic gap in the adoption of generative AI systems by investigating the factors influencing technology acceptance and usage behavior in Korean firms. Although recent advancements in AI are accelerating digital transformation and innovation, empirical research on the adoption of these systems remains scarce. To fill this gap, this study applies the Unified Theory of Acceptance and Use of Technology (UTAUT) model, surveying 300 employees from both large and small enterprises in South Korea. The findings reveal that effort expectancy and social influence significantly influence employees' behavioral intention to use generative AI systems. Specifically, effort expectancy plays a critical role in the early stages of adoption, while social influence, including support from supervisors and peers, strongly drives the adoption process. In contrast, performance expectancy and facilitating conditions show no significant impact. The study also highlights the differential effects of age and work experience on behavioral intention and usage behavior. For older employees, social support is a key factor in technology acceptance, whereas employees with more experience exhibit a more positive attitude toward adopting new technologies. Conversely, facilitating conditions are more critical for younger employees. This study contributes to the understanding of the interaction between various factors in AI technology adoption and offers strategic insights for the successful implementation of AI systems in Korean companies.

An Analysis of Critical Factors Affecting the Success of Open Innovation Strategies in High-Tech Firms: The Case of South Korea

High-tech firms face constant innovation and challenges due to a rapidly changing tech environment. Open innovation strategies are an important solution for fostering rapid and efficient innovation by leveraging external capabilities. This study explores the critical factors that influence open innovation strategies in high-tech companies, assessing their importance and providing key insights for promoting these strategies. Through a comprehensive literature review and expert interviews, 16 key factors impacting open innovation were identified. A hierarchical research model was developed using the ser-M (subject, environment, resource, mechanism) framework, focusing on subject, environment, resource, and mechanism for a corporate strategy analysis. A survey and an AHP analysis were conducted with 30 participants, comprising engineers and open innovation experts, all with over a decade of experience in the field within Korean high-tech companies. The analysis focused on four critical elements: subject, environment, resource, and mechanism; subject emerged as the most critical factor for successfully implementing open innovation strategies. Specifically, the will of chief executives, the direction of decision-making, and technological environment changes were found to be significant contributors. The consensus between engineers and experts confirms that while environmental and resource factors are vital, strong leadership and effective decision-making are paramount for successful open innovation in high-tech companies.

The Effects of Supply Chain Alliance Orientation on Ambidextrous Innovation and Market Performance: A Multigroup Study of US and Korean Firms

This research explores the effects of supply chain alliance orientation on ambidextrous innovation and market performance with evidence from South Korean and US firms amid COVID-19. Three theories underpin the conceptual framework including the resource-based view, relational view, and ambidextrous innovation while psychosomatic items generate the variables: supply chain alliance orientation, exploration innovation, exploitation innovation, and market performance. Hypotheses are posed through a literature review. A multigroup analysis of 427 firms using MICOM with PLS-SEM is employed to reveal differences between South Korean and American companies. Here Korean firms generate ambidextrous innovation and market performance better than US firms. Mediation tests are also conducted. Implications are provided.

Research on Packaging Design Elements for Expanding Market Share of Fruit Juice Beverages in China

Purpose: By examining Chinese consumers’ preferences and needs in fruit juice beverage packaging design, this study provides scientifically grounded strategies and solutions for researching and developing packaging designs in the juice beverage industry. Research design, data, and methodology: This study systematically analyzes the packaging design of fruit juice beverages and introduces a demand evaluation methodology for fruit juice beverage packaging by integrating the Kano model and the Analytic Hierarchy Process (AHP). Results: Based on the calculation results, ‘Nontoxic’ and ‘Clear ingredient information’ were important in Must-Be Quality Element. ‘Portable’ and ‘Lightweight performance’ were the top 2 in One-Dimensional Quality Element. In the Attractive Quality Element, ‘Unique pattern’ was identified as the most important factor. Conclusions: The analysis results of this study suggest the importance of fruit juice beverage packaging design elements preferred by Chinese consumers and are expected to be used as reference material by Korean companies in the future when preparing plans to enter and expand into the Chinese beverage market.

Barriers to innovation and innovation performance: the mediating role of external and internal funding in Korean green companies

Barriers to innovation and innovation performance: the mediating role of external and internal funding in Korean green companies

Geopolitical risk and credit rating: evidence from North Korea’s threats

ABSTRACT We examine how geopolitical risk from North Korea’s threats affects South Korean firms’ credit ratings. North Korea’s threats, measured by the number of missiles launched, are negatively related to firms’ credit ratings. Employing a sample of South Korean public firms over the period 2012–2021, we find that the credit ratings of South Korean companies decrease with the number of missiles launched. Cross-sectional analyses indicate that the negative effect of North Korean risk differs depending on the firm characteristics. Specifically, firms with higher debt ratios are more significantly affected by North Korea’s threats. In addition, firms whose financial statements are audited by Big 4 auditors are associated with higher credit ratings than those by non-Big 4 auditors. Our findings contribute to the literature on geopolitical risk by identifying the effects of geopolitical risk on credit ratings.

기후변화 관련 보험섹터 대응에 관한 국제 규제 서설

The 2015 「Paris Agreement on Climate Change」 set forth carbon emission reduction targets by 2050. This landmark accord has catalyzed the formation and acceleration of concrete plans by international organizations, governmental bodies, and individual corporations. The insurance sector, in particular, has witnessed numerous countries enacting or planning legislation to align with these targets, implementing pertinent policies in response. As the proposition “Only One Earth” suggests, addressing the climate crisis necessitates the international community's unified objectives and coordinated efforts. In this context, various international organizations and initiatives have articulated numerous goals, standards, and implementation strategies. While most of these are predominantly voluntary, receiving endorsement from individual countries and insurance companies, there is a substantial possibility they will eventually be incorporated into domestic legislation or regulatory frameworks. Even before being legislated in each country, international organizations and major companies investigate, report, or disclose the participation status, level of participation, and compliance of individual companies. These international organizations and major companies analyze and evaluate the level of compliance to assess the value and reputation of the respective companies and determine whether they are suitable for transactions. Consequently, the recommendations and regulations of international organizations and initiatives often function as de facto norms. In the face of robust global trends such as ESG(Environmental, Social, and Governance), responsible investment, and the Sustainable Development Goals(SDGs), any country or insurance company exhibiting reluctance or passive engagement risks devaluation. Strategic, timely, and appropriate participation in these initiatives is imperative; however, the multifaceted nature and diverse approaches to addressing the climate crisis complicate decision-making processes. Additionally, existing initiatives may conclude, and new ones may emerge, further complicating the landscape. In the Korea Ins. L. J.(Vol.18, Issue 1, 2024.), I examined the “Net-Zero Insurance Alliance(NZIA)”, which was ambitiously launched in 2021 but encountered significant challenges due to warnings from several U.S. state governments. It was anticipated that the outcome of the U.S. presidential election in November 2024 would impact its trajectory. However, NZIA was unable to withstand the pressure exerted by Republican-led state governments and ultimately disbanded. On April 25, 2024, the United Nations Environment Programme Financial Initative formally announced the dissolution of NZIA and the establishment of the “Forum for Insurance Transition to Net Zero(FIT)”. The short-lived misfortune of NZIA, which included the participation of three Korean insurance companies, illustrates the necessity for prudent selection of international engagements. Simultaneously, regardless of the imperative nature of tasks essential for the survival of humanity, the stark reality of the international community is characterized by persistent obstruction and interference from vested interest groups. Consequently, addressing international regulations necessitates meticulous and strategic policy consideration. This paper provides a concise overview of the most pertinent and influential aspects of the insurance sector's engagement in the complex and diverse international activities aimed at addressing the climate crisis. Given the vast scope of this topic, certain areas remain unaddressed in this paper and will be supplemented in future research. Furthermore, subsequent publications will explore legislative and administrative responses by various governments, as well as the responses of individual insurance companies.

An Analysis of Conflict Patterns between Headquarters and Foreign Subsidiaries: Focusing on the Case of a South Korean Company's German Subsidiary

An Analysis of Conflict Patterns between Headquarters and Foreign Subsidiaries: Focusing on the Case of a South Korean Company's German Subsidiary

Perceptions of organizational politics and organizational commitment: role of personal motive and ability

PurposeThis study expanded previous studies on the relationship between POP (Perceptions of Organizational Politics) and OC (Organizational Commitment); and it examined the mediating effect of OCM (Organizational Concern Motive) and the moderated mediating effect of PS (Political Skills). Based on the uncertainty management and expectancy theories, the mediating role of OCM was assumed; also, the moderated mediating effect of PS was assumed, because of the effect of the POP on members' motives would vary depending on each individual's ability to respond.Design/methodology/approachTo collect the required data for analyzing the research model of this study, a questionnaire was conducted on employees of South Korean companies and institutions. To verify the hypothesis of this study, the measurement and hypothesized models were analyzed sequentially.FindingsThe results of this study indicated that the OCM mediates the relationship between POP and OC. Furthermore, the mediating effect of OCM is moderated by PS. Specifically the negative effect of the POP on the OCM was mitigated in the group with proficient PS.Research limitations/implicationsTo mitigate the negative effects of POP, this study suggests that managers should provide fair evaluation and reward based on performance, and consider PS as an important factor in employee selection and education/training.Originality/valueThis study is original in that it presents the mechanisms of both variables in terms of an individual's motive towards the organization. Furthermore, this study is valuable in that it suggests ways to mitigate the negative effects of POP through PS.

Competitiveness Strategy of South Korean Cosmetic Brands: Current Practices and Opportunities for Russian Cosmetic Brands

This study analyzes place, trends and competitiveness of the South Korean cosmetics brands to identify opportunities for the Russian cosmetics brands, whose country has suffered from a large trade deficit in the cosmetics industry despite the government’s vigorous attempts in implementing import substitution policies. We constructed the econometric models (with ordinary least square, weighted least square and robust least square estimators) of the cosmetics brands’ competitiveness by employing the endogenous factors of Porter’s diamond model, which are comprised of firm factor conditions, demand conditions, related and supporting industries, and strategy, structure and rivalry. From the regression analysis, it is revealed that the brand diversification, expansion of e-commerce sales and improvement of governance quality are factors that drive up sales revenues of a cosmetic company. The follow-up comparative analysis between Russian and South Korean companies allowed us to substantiate that the main factors causing the gap between Russian and South Korean cosmetic brands are e-commerce strategies and the efficiency of the governmental system. Russian cosmetic companies should construct stable global and domestic supply chain and expand contact points with foreign customers through big data analysis and development of customized product portfolio. Furthermore, the government is recommended to implement digital services and construct a data-sharing ecosystem to enhance efficiencies of the business process.

Examining the seniority-based pay system in Korean companies: current trends and its implications for Asian economies

ABSTRACT Human resource management, including the design and implementation of pay systems, is influenced by the specific national context in which it operates. Challenges often arise when HRM practices that have been established in advanced countries are transplanted to developing nations, as they may not fully align with the unique circumstances and cultural dynamics of the target country. Until the 1980s, rapidly growing South Korean companies embraced the seniority-based pay system (SPS) in order to encourage employee tenure. The 1997 IMF foreign currency crisis led to an effort to shift away from this model, which was seen as unrelated to job roles and performance, towards alternative systems. Despite two decades of reforming efforts, SPS pay still prevails, particularly among production workers at large manufacturing companies under trade unions. The workplace panel survey data provides evidence that the implementation of a SPS system does not display any significant negative impact on firm performance, as measured through various methods. As such, the question is not whether to abolish the old system, but instead how to accommodate the new system. The study emphasizes aligning pay systems with the nation’s history, culture and industrialization rather than imposing foreign models.

Productivity of the Korean Biopharmaceutical Industry: Exploring the Effect of Business Model and Open Innovation

The biopharmaceutical industry in Korea is considered a key strategic industry following the semiconductor industry. However, success in the biopharmaceutical industry depends on the outcome of research and development processes that require long periods and substantial investment, resulting in a success rate of only around 2.5%–4% for new drug development. Consequently, rational strategic choices, such as determining key capabilities to pursue business, deciding where to position within the value chain and identifying collaboration partners and strategies, are more crucial in the biopharmaceutical industry compared to other industries. In this study, we divided Korean biopharmaceutical companies into research and development groups and Integrated groups, which perform both research and production, and compared their productivity using the meta-frontier methodology to verify the significance of technology gap ratio (TGR) values between groups. We also investigated the influence of open innovation activities, including the type, partners and timing, on the TGR of each group with Tobit analysis. The investigation revealed that productivity and its influencing elements varied depending on the business model. This finding suggests that this information can be utilised to develop efficient industrial policies.

Panel Technical Efficiency of Korean Companies in the Energy Sector based on Digital Capabilities

Abstract Digitalization is a crucial driver of enhanced energy system efficiency, facilitating the energy transition and offering a gateway for technology companies to enter the sector. This study, employing stochastic frontier analysis as the chosen methodology, investigates the efficiency challenges faced by companies venturing into the energy industry with a digital technology focus. Our empirical analysis reveals a positive correlation between higher total assets and increased research and development expenditures, signifying the vital importance of talent acquisition and securing R&D funding. Additionally, it is noteworthy that smaller companies experienced a more pronounced negative impact of COVID-19 on their efficiency. These findings contribute to refining digitalization strategies in the energy industry, emphasizing the role of efficiency from a corporate perspective.

Strategies for Sustainable Management of Mineral Resources for Koreaʼs Major Battery Producers (LG Energy Solution, Samsung SDI, SK On)

The proliferation of global regulations concerning sustainability and environmental protection poses a significant challenge to maintaining corporate sustainability. Consequently, companies must strategically respond to navigate these regulations in their management plans. The objective of this research was to analyze how Korean companies(LG Energy Solution, Samsung SDI, SK On) are responding to sustainable mining and procurement and how they adopt environmentally friendly practices in their mineral supply chain for battery manufacturing. We also proposed new actions to enhance their management strategies for sustainable mineral resource management. Our observations indicated that companies should implement a long-term performance measurement throughout their mineral supply chain. Additionally, there is an urgent need to develop a more proactive environmental management plan when evaluating suppliers from mineral extraction to utilization, adhering to global guidelines such as OECD regulation. In addition to the widely adopted monitoring of greenhouse gas emissions, priority assessments must be undertaken concerning soil and water pollution, waste management, and biodiversity loss within the supply chain linked with climate change under the nature-positive concept. We recommended the establishment of a recycling system for battery waste(i.e., minerals), which is essential for a resilient battery supply chain.

베이지안확률변경분석을 이용한 국내 철강기업의 에너지효율성 분석

Steel companies, due to their production processes, emit a large amount of greenhouse gases. Therefore, improving the energy efficiency of them is a very important issue in responding to climate change. The starting point for effective management of energy efficiency improvements in steel companies is the objective measurement of their energy efficiency. Previous studies primarily utilized traditional Stochastic Frontier Analysis to estimate the energy efficiency of steel companies. Meanwhile, Bayesian Stochastic Frontier Analysis, which incorporates Bayesian Inference into Stochastic Frontier Analysis, offers the advantage of more accurate and flexible estimates by considering the uncertainty of parameters. Despite the advantages, there has been no research applying Bayesian Stochastic Frontier Analysis to analyze the energy efficiency of Korean steel companies. This study is the first to apply Bayesian Stochastic Frontier Analysis to Korean steel companies, using the Gibbs Sampling technique to estimate the energy efficiency of 22 major Korean steel companies from 2011 to 2019. The key findings of this study are as follows: First, the overall average energy efficiency of steel companies is 0.5450. Second, from 2011 to 2013, the yearly average energy efficiency of the steel companies analyzed shows an improving trend, peaking in 2013, followed by a decreasing trend. Third, a comparison of average energy efficiency across individual companies reveals the firms with relatively high energy efficiency, exceeding 0.8

The Effect of KOL Marketing through Contents and Traffic on Chinese Consumers’ Purchase Intention and Brand Trust

Purpose - The purpose of this study was to analyze how the content and traffic of KOL marketing influence Chinese purchase intention and brand trust on products during KOL live streaming. Design/Methodology/Approach - Four hypotheses containing 10 segmentation hypotheses were developed. 120 valid questionnaire results from Chinese consumers using live streaming platforms like Douyin, Kuaishou, and so on, which conduct KOL marketing, were collected from the Wenjuanxing online survey and data tool from June to July of 2023. With Confirmatory and Regression Analysis to confirm hypotheses and result reliability, SPSS 24.0 was utilized to analyze the results. Findings - Results displayed that KOL content with diversity, good two-way communication, and verticality did occupy an important place in trusting brands and purchasing. Ads from KOLs seemed be the most efficient way to allow Chinese consumers to trust new brands and products. The significance of the traffic strategy could also been seen. Research Implications - Through the investigation, Chinese consumers are developing higher standard toward the content brought by different KOLs. Creativeness, uniqueness, and personalization will be the key to win trust and purchases. Abundant but popular keywords with good indexes should be embedded into dynamic and static ads, posts, and keywords lists to let consumers find what KOLs promote, and target consumer groups can be efficiently developed for Korean companies entering into the Chinese market.

Determinants Influencing Korean Agri- Food Companies’ Modes of Overseas Market Entry

Purpose - Faced with the constraints of a limited domestic market, the Korean agri-food industry necessitates regional diversification through the establishment of offshoring production subsidiaries. This study tests the validity of Root’s model of the determinants of offshoring and sequential entry to overseas markets on Korean agri-food companies’ offshoring of production subsidiaries. Design/Methodology – This study employs the convergent mixed-methods research design, wherein qualitative and quantitative data collection and analysis are conducted, then compared, before interpreting the data affecting Korean agri-food outward direct investment (ODI). Methodologically, based on Korean agri-food manufacturing company ODI data from the KOTRA, a survey was conducted to quantitatively analyze the factors influencing their selection of production subsidiaries for ODI. Findings – Though Korean agri-food companies also consider Root’s external factors when selecting overseas entry methods, the sequential entry route and selection model, factors theorized to influence Root’s overseas market entry method, were not found to be statistically significant. Instead, they tailor their market entry approach based on the type of investment and the operating objectives of the local subsidiary. This is attributed to Korean agri-food companies’ deviation from sequential entry routes when entering markets through ODI, as well as the determination of the form and type of investment of these overseas subsidiaries according to the purpose of their operations. Originality/value - This study distinguishes itself by employing a convergent mixed-methods design, which combines quantitative and qualitative analyses to identify the determinants of ODI market entry by Korean agri-food companies. Furthermore, it evaluates Root’s market entry model from the perspective of Korean agri-food companies.