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The Human Resource Development in the Technology-Driven Small and Medium Size Firms A Case of Korean Small Firm , W Corporation
  • - Ryu Tae Soo (Hanyang University)
[Abstract]
The purpose of this study is to suggest the conceptual framework on the dynamic skill formation process based on the relevant environments. First of all, after categorizing the types of task in work-flow level such as regular maintenance task, nonregular maintenance task, regular improvement task, nonregular improvement task, this study identified conceptually how these types of tasks are related to the ways of individual learning(single-loop learning/double-loop learning vs OJT/OFF-JT).
And then, this study also tried to make an effort to apply above conceptual model to Korean context(e. g. Company W) for an external validity. Company E is well known for its innovative human resources management among Korean small-sized firms. This study shows that generally, Company E gained competitive advantage with the usage of similar way comparing with the dynamic conceptual model of skill formation process suggested in this study. Some implications on this research findings are also discussed.
The Effect of Management Control Systems and Expected Rewards on Implementing Quality Strategic ; Comparison Between Large Firms and Small and Medium Sized Firms in Korea
  • - Oh Won Sun (University of Incheon)
[Abstract]
This study examines the effects of management control and reward systems of large firms and small-medium sized firms in Korea on the implementation of those firms' quality strategies. The study uses causal modeling methodology. The analysis of this study incorporates the effects of uncertainty and organization-man level on quality strategies and the related management control systems.
Our tests provide the evidence that regardless of firm size their is strong positive relationships between the uncertainty of management environments and quality strategies. In both sized firms the organization-man level affects the quality strategies, but the relationships between the two is not statistically significant. In large firms the strength of quality strategies influences to the external and internal monitoring activities, but in small and medium sized firms there is no evidence that quality strategies affect external monitoring activities.
We also get the results that management control systems support the employees' expected rewards from attaining goals of quality strategies. These results imply that more desirable performance can be achieved when the quality strategies of the firms are adequately controlled by management control systems.
An Empirical Study on the Types of Technological Networking and Innovation Performances in Korean Small and Medium Sized Firms
  • - Kwak Soo II (Seoul National University)
  • - Chang Young II (Inje University)
[Abstract]
The business environments today is characterized by profound technological changes and enhances technological sophistication of products and processes. Consequently, technological innovation plays a key role in securing competitiveness, regardless of the type of industry a firm belongs to.
Recent theoretical and empirical literatures show that technological strategy and technology-oriented relationships constitute an important means for integrating complementary resources into a firm's innovation processes, thereby significantly increasing a firm's product and process innovation success.
This study primarily attempts to clarify the nature and types of technological networking by a relatively large scale quantitative data, especially from the Korean small and medium sized manufacturing firms in matured industries.
The results of the empirical analyses are as follows;
First, there are various types of technological networking in small and medium sized firms in matured industries, but the vertical networking patterns(relationships with suppliers and/or customers) are observed relatively smaller than the horizontal networking(relationships with other firms and/or external research units). Considering that the customers or suppliers of the SMFs in matured industries are mostly a large enterprise, the technological relationships between the large firms and the SMFs are so far inactive. This seems on of the critical constraints that hinder the SMFs' technological progress.
Second, the government's industrial policies for supporting the SMFs now concentrated on enhancing a firm's internal technological ability are needed to be changed to help and induce the effective technological networking with external partners.
Success Factors in Technology Import
  • - Byun Yong Hwan (Hallym University)
[Abstract]
This paper studied factors which affect successes in technology import in Korea. Data of 96 usable samples from electronic industry were gathered through mail survey. Average scores of satisfaction degree about results from technology import were used as dependent variables while 11 factors from 52 variables, which might aftet success in technology import, were used as independent variables:(1) market orientation, (2) donor's know-how and incentives, (3) market competitiveness. (4) overallmanagement resources, (5) recipient's negotiation power, (6) market size and growth, (7) technological capability, (8) technological resource compatibility, (9) support from CEO, (10) recipient's incentive and (11) production and technical newness. From the regression analysis, only (1) market orientation and (6) market size and growth showed significant relation with the success in technology import. ANOVA showed the two factors, however, were not well reflected in the real condition of technology import.
Proposal for Accounting Procedures and Tax Support System of Small and Medium Firms
  • - Oh Hyun Taek (Cheongju University)
[Abstract]
The purpose of this study is to propose accounting procedures and tax support system for small and medium firms. For this purpose, the accounting standards and tax support system regulations of Korea were compared with those of Japan and U.S.A And questionnaire was handed out to managements(or accountants) of small and medium manufacturing firms in Chung-buk area, and then they were analyzed and compared with previous researches.
The major results of this study are summarized as follows.
First, most small and medium firms do not utilize 'the special provisions for small and medium firms' because of deficiency in special knowledge and concern. Therefore, I think, the differential accounting standards for small and medium firms are not to be compatible. And it is necessary to develop and train the accounting program software for small and medium firms in order to utilize the general accepted accounting principles well. Besides, it is required to harmonize tax regulations with accounting standards for the relief of double endeavor in bookkeeping and tax reporting.
Second, it is turned out that most small and medium firms want to bring down tax rate instead of reducing or abolishing the tax support system. Especially, I guess, this result is due to the lower income of small and medium firms by a worse economic conditions after IMF's financial aid. Therefore, it is important to expand the carryforward method. And it is necessary to settle the tax support system considering firms' diverse conditions as the type of business organization, the firm size, and the commencement year etc.
The Relationships Between Technological Innovation and Its Determinants in Korean Small and Medium Firms
  • - Park Rho Yun (Sungshin Women's University)
[Abstract]
Technological innovation is increasingly identified as a mean of improving the competitive positioning of Korean small and medium firms. One factor known to be important in technological innovation is the influence of the CEOs. This study is to provide a better understanding of the relationship between personal values of the CEO and technological innovation. It proposes that the role of the CEO is important enough to be added to organizational and environmental variables in the equation that drives technological innovation. This study considers an integrated framework of potential influence on innovation, incorporating environmental, organizational and managerial variables.
Results suggest that CEO entrepreneurial value is positively related to technological innovation. Environmental characteristics and organizational capability exhibits no significant relationship with technological innovation. And CEO entrepreneurial value appears to be better predictor of technological innovation than either organizational capability or environmental characteristics.
These results provide new evidence in support of the strategic choice or upper echelons perspective. Our finding might encourage the continuation of theoretical and empirical research on strategic leadership and its impact on innovation.
A Study on the Effect of Chief utives Needs on Job Performance in Small and Medium Sized Firms
  • - Cho Im Hyun (Sejong University)
[Abstract]
Need is an important element that accounts for individual behavior. David McClelland divides man's higher level of needs into three kinds; need for achievement, need for power, and need for affiliation. The intensity of these three kinds of need is reflected in job performance. Many researches have indicated that high performance is achieved by one who has a high need for achievement. Need for power induces an individual to exercise power. An individual who has a high need for power seeks for leadership and influence upon others in performing his job. Researches have shown that some need for power is essential for managers' job performance. Some assert, however, that high need for power must be supplemented by some need for achievement or some need for power is essential for managers' job performance. Some assert, however, that high need for power must be supplemented by some need for achievement or some need for affiliation, that is, need for intimate relationship with others or for their affection.
But there is a diversity of opinion about whether high need for affiliation leads to high job performance.
This study aims to investigate, on these theoretical bases, how the need of chief exe cutives influences organizational performance in small and medium-sized firms of Korea. It has tried to investigate the influence of the three kinds of need on job performance, both respectively and in combination.
Statistics and analysis of data of need obtained through Thematic Apperception Test and data of job performance proved hypotheses.
Thus it can be concluded from this study that high need for achievement leads to higher job performance than the other needs.
Japanese Mainbank System and Korean Principal Bank System As an Industrial Policy Implementation Mechanism Changed Role of Industrial Policy After Liberalization and Internationalization of Financial Market
  • - Park Jong Chan (Korea University)
[Abstract]
This paper analyzes and modelizes the Japanese and Korean industrial policy implementation mechanisms which are based on the Japanese mainbank system and Korean principal bank system. Those industrial policy implementation mechanisms have worked well during the high economic growth era.
But the Japanese and Korean industrial policy mechanisms have not been working any more since the Japanese and Korean mainbank systems had collapsed due to the change of their companies' financing patterns from indirect financing to direct financing.
Now, because the old industrial policy mechanism does not work effectly any more, the Korean government needs new industrial policy tools based on the more indirect government intervention in the market utilizing tax and R&D support.
However, still the industrial policy mechanism which are based on the principal bank system could be used in promoting the small and medium size firms. In those industry, it is possible for the government to pick sunrise industry and lead funds to flow into active investments and R&D.
Justification of Establishment of Small Business Development Centers in Korea
  • - Park Choon Yup (Dongguk University)
[Abstract]
The purpose of this paper is to provide theoretical and empirical explanations justifying the need of special assistance to smaller enterprises in Korea. As a result of the arguments in this paper, Korean government has decided to establish Korean version of the Small Business Development Center of the U.S. In particular, 10 Korean SBDCs will be run in 1999. In theoretical analysis of Korean economy and the role of smaller enterprises, this paper brought it into light that smaller enterprises would play a very critical role in resolving the nation's number one socioeconomic problem, unemployment.
Key Factors Determining the Growth of Small and Medium Construction Firms of Korea
  • - Seo Bong Chul (Soongsil University)
  • - Kim Min Hyung (Construction £¦ Economy Research Institute of Korea)
[Abstract]
This paper aims to analysis key factors of the growth of small and medium construction firms in Korea. The results from a comparative study about the S&M construction firms of which relative rankings in the market continue to go higher with the other firms are as follows. First, the growing S&M construction firms are found to possess relatively stable organization structure and competitive advantages in terms of operating capacity and information management. Second, they are revealed to exercise a strong leadership to overcome their limitations resulting from the insufficiency of management resources and their initial organization structure.
Based on the results from the survey, the following management strategies are suggested to gain their competitive advantages. Assuming that they will develop management strategies, the entrepreneurship of the top managers must be shown. Most of all, the role of the top manager is the most important factor since most of the top managers for the S&M construction firms usually coincide with the owners of the firms.
An Comparative Study on the Development Process of Design In Method of Automotive Part Between Korea and Japan
  • - Kim Ki Chan (The Catholic University of Korea)
  • - Song Chang Seok (Hannam University)
[Abstract]
As a car is a systemized item that is an organic combination of 20,000 to 25,000 parts, the liaison between the parts producing activities of parts firm and the assembling activities of the automobile assembling firm is very important. Design-in System Method is a parts supplying method in which the automotive parts firm designs the details of parts based on the specification or the basic design as requested by the automobile assembling firm. Design-in System Method allows intentional and deliberate division of labor of the firms in automotive production and raises the overall efficiency of the automotive industry system. The automotive industry, especially being the cream of the machine industry, will become an opportunity to expanding the technology developing efforts of the countless small-medium parts firms. This method could often be found in the Japanese automotive parts industry after the war and is being considered the source of competitiveness of the recent Japanese cars. On the other hand, our automotive parts industry uses the detail-controlled parts method in which the firms manufacture parts based on the designs presented by the automotive manufacturing firms. However, this detail-controlled parts method is structurally limited in the active participation of the parts firm in designing parts. Therefore, the automotive firms nowadays are trying to change the quality of the automotive parts development and as an alternative plan, the implementation of Design-in System Method is being promoted.
This research tries to introduce the direction of the firms through an comparative study between Korea and Japan, centering on the designing activities in the process of developing automotive parts by empirical test.
A Study on the Development of Tax-Aid System for the Small Business in Korea
  • - Koh Sung Sam (Chung Ang University)
[Abstract]
It has been about one year since Korea concluded the agreement for an IMF's predicament ($58 billion bailout package) in the midst of a financial crisis. To a certain degree, the situation has improved. Because of the importance of small business firms in Korea, the creation of new business opportunities and maintenance of competitive position has emerged as a highly effective development of small business industry. Therefore legal regulations and rules are to be made to cope with conflicts between transaction parties. The purpose of this study is to investigate the nature and problems of current tax-aid system and provides the legal implications in Korea. This paper has identified the application of standards.specifications.profiles in many business context.
The following are the recommendations of this paper:Firstly, public authorities should establish an overall framework for tax incentive system which would encompass its different dimensions.
Secondly, public authorities should obtain effectiveness of incentive system and encourage industry activities in best practice and regulations.
Next, public authorities should encourage investment, venture capital, technology and human resource development, etc.
Finally, public authorities should encourage to educate managers of small business of how society's requirements can be assisted by technical tax incentive systems.
A Review of Studies on Women-Owned Business in Korea
  • - Chung Hi Sun (Duksung Womens University)
[Abstract]
This paper has reviewed recent research on the subject of women's business ownership in Korea. These recent studies have been conducted mainly in response to both a rise in interest in small business ownership and the large increase in the number of female self-employment. However, due to the paucity of basic statistics, our cumulative knowledge of female entrepreneurship still remains limited in Korea.
Nevertheless, the works reviewed in this paper exerted their best effort to establish the linkages between women's business ownership and the position of women in the overall labor market, and not to jump into the narrow subjects of motivations and barriers following the fashion of the United States and Britain.
These works, at the very minimum, have provided a background on which future research would be based in search of in-depth understanding of women's business ownership in Korea.
It is urgently requested that the government collect data and provide basic statistics for information for women-owned businesses through various statistical survey. On the basis of this research and the experience of other countries, several recommendations are also made in regard to the future direction in the area of women-owned business in Korea.
A Study on the Current Situation of and Policies for Korean Venture Capital
  • - Hur Nam Soo (Kyungnam University)
[Abstract]
This study examines the development process of venture capital in Korea and proposes some policies for the promotion of venture capital activities.
The lack of high risk-high return investment opportunities can explain why the venture capital industry is not active in Korea. Investment opportunities will be expanded of venture capital can be directed to finance the successful high-technology activities for venture business.
To foster venture capital in Korea, the following expansion are proposed at the strategy level. First, it is necessary to expand the foundation of management for venture capital. Second, the role of the Venture capital must be vitalization more than ever. Third, the considered of the effective in Korea venture capitalists including the related investors. Fourth, the KOSDAQ stock markets need to be the environmental development in order that the financing and harvesting of the ventures.