Corporate Venture Capital and Its Contribution to Intermediate Goods Firms in South Korea*

Set by government, corporate, financial and individual sources, venture capitalists in Korea have adapted themselves to the new and uncertain venture capital market through stand‐alone and syndicated investments. The present study raises questions about whether various financial sources contributed differentially to their portfolio firms during the market boom of 2000. Results show that no single capital source showed better performance, and only corporate venture capitalists contributed to intermediate goods firms. The latter finding might reflect the unique ability of corporate venture capitalists to use vertical value‐chain linkages for their investments.     

Understanding Personal Web Usage in Organizations

Personal web usage, that is, non-work-related use of the Internet for personal purposes during work hours, is a pervasive behavior observed in the daily work environment. U.S. companies have implemented several countermeasures to cope with personal Web usage, but those measures have not successfully mitigated this behavior. Considering the significance of personal Web usage, we need to understand why personal Web usage is not alleviated in current organizations. The goal of this study is to present an empirical investigation of why employees continue personal Web usage based on an extended theory of planned behavior. We are particularly interested in how people's perceptions of moral dimensions contribute to personal Web usage, recognizing that our work environment becomes more Web-embedded. We conducted a field survey of 426 U.S. business professionals and analyzed the data by using partial least squares. As a result, we demonstrate that an individual's attitude, subjective norm, denial of responsibility, self-efficacy, personal computer availability, seclusion of office, and workload are significant factors affecting personal Web usage. Interestingly, current organizational preventive efforts (e.g., Web-based activity monitoring and filtering systems and policies) and moral obligation are not as significant as we originally expected. Key implications for theory and practice are discussed.     

Reputation and product tampering in service industries

This theoretical paper aims to identify the role of trust and reputation between consumers and firms when there is product tampering or other types of product liability. When product tampering occurs, trust implicitly built towards brand or corporation by consumers or customers can be dissipated. This article assesses the impact of quality uncertainty and measurement costs on the trust relationship between consumers and corporations. The ideas are also applied to the case of bank runs. Preliminary findings indicate that in cases where the trust between consumer and firms is strong, and there are high measurement costs and uncertainty, the reputational relationship between customers and firms can experience strong repercussions.     

Some Reflections on U.S. Treaty Commitments

Abstract

The world oil price has risen significantly since the late 1990s and reached a record high in 2008. The recent oil price hike raises concerns regarding the possible negative effects of the rising oil price on the economy as in the 1970s. We investigate the effects of the oil price hike on the Korean economy using a Bayesian dynamic stochastic general equilibrium (DGSE) model. We explicitly model the small open economy nature of the Korean economy and its oil usage and estimate the constructed model within a unified Bayesian framework. We also examine possible changes in the effects of world oil shocks on the Korean economy using counterfactual simulations. We find the adverse effects of world oil shocks as well as their importance in Korean business cycles have diminished due to reductions in the relative usage of crude oil in the economy, while world oil shocks themselves have changed relatively little over time.     

Employee emotional response toward healthcare organization’s service recovery efforts and its influences on service recovery performance

Previous studies on service recovery performance of frontline employees have focused primarily on the direct relationship with the organizational efforts for service recovery. However, based on the reformulation of attitude theory (appraisal-emotional response-behaviour), we believe that the emotional responses (work engagement and burnout) toward organizational efforts for service recovery of frontline employees mediate the relationship. Thus, the purpose of this study is to examine how healthcare frontline employees show their emotional response toward the organizational efforts for service recovery and it influence on actual recovery performance. This study uses two conflicting emotional responses, burnout and work engagement, to examine how employees react toward organizational efforts, helping better understand employees?? evaluations of the efforts. Research model and hypothesis were tested using a sample of frontline employees who perform none-clinical activities in hospitals. The results showed that teamwork and empowerment have positive effects on work engagement. In addition, customer complaint management, empowerment, and teamwork influenced negatively on burnout. Lastly, work engagement and burnout showed statistically significant impact of service recovery performance of frontline employees. Among the organizational efforts for service recovery, teamwork was the most important factor in improving frontline employees?? work engagement and lessened their burnout, respectively. Interestingly, customer service training had a negative effect on burnout. Besides, by comparing our research model to two alternative models, we confirmed the validity of the research model.     

Imparting negative news to salespeople

Sales managers often are required to give negative information to their sales personnel. Perhaps the salespeople's territories will be reduced, their compensation or expense program decreased, or their positions realigned or eliminated. Although extensive research has examined delivering negative news to sales personnel, no empirical work has yet explored how that inimical information should be disseminated to sales subordinates. Scholars in organizational psychology argue that providing adverse news to employees using interpersonal sensitivity is advantageous for both the individual and the organization. To date, though, this issue has not been investigated in a selling context. Therefore, this article reports the results of an exploratory study that investigated factors that influence whether sales managers provide negative communication to salespeople in an interpersonally sensitive fashion. © 2011 Wiley Periodicals, Inc.     

Astroturfing Global Warming: It Isn’t Always Greener on the Other Side of the Fence

Astroturf organizations are fake grassroots organizations usually sponsored by large corporations to support any arguments or claims in their favor, or to challenge and deny those against them. They constitute the corporate version of grassroots social movements. Serious ethical and societal concerns underline this astroturfing practice, especially if corporations are successful in influencing public opinion by undertaking a social movement approach. This study is motivated by this particular issue and examines the effectiveness of astroturf organizations in the global warming context, wherein large corporate polluters have an incentive to set up astroturf organizations to undermine the importance of human activities in climate change. We conduct an experiment to determine whether astroturf organizations have an impact on the level of user certainty about the causes of global warming. Results show that people who used astroturf websites became more uncertain about the causes of global warming and humans’ role in the phenomenon than people who used grassroots websites. Astroturf organizations are hence successful in promoting business interests over environmental protection. In addition to the multiple business ethics issues it raises, astroturfing poses a significant threat to the legitimacy of the grassroots movement.     

Community Engagement: Exploring a Relational Approach to Consultation and Collaborative Practice in Australia

Community engagement is increasingly being employed by Australian organizations as a key strategy to incorporate representative community opinions into decision-making. This trend is reflected by Australian local and state governments legislating for community consultation in major infrastructure projects and the increasing role of public relations practitioners to manage these programs. This study explores community engagement founded on relational theory and proposed a typology of engagement employing a relational framework. An exploratory study of 20 Australian infrastructure projects with a mandatory consultation component is analyzed applying this framework. Results indicate little discrimination between the terms engagement, consultation, and participation; however, a range of tactics supported both collaborative and advocacy approaches. The implications for adopting a relational framework for community engagement programs are discussed.     

Interpersonal Relationship,Service Quality,Seller Expertise: How Important Are They to Adolescent Consumers?

Drawing upon social capital theory and psychosocial development theory, this paper argues that a true buyer–seller relationship is a key determinant of favorable consumer behaviors for adolescent consumers of hairstylist services. Other important determinants include quality of the service delivery process (i.e., service quality as measured by the five SERVQUAL factors) and quality of the core service (in this case, the hairstylist's expertise). A survey of 350 adolescent consumers confirms these predictions. It shows that a true interpersonal relationship negatively moderates the positive effects of service quality on consumer satisfaction with, and overall assessment of the hairstylist. This negative moderating effect is labeled resource substitution benefit and the argument made that this is the fourth social capital benefit. The theoretical and practical implications of these findings are discussed. © 2012 Wiley Periodicals, Inc.     

Firm size,age, industrial networking,and growth: a case of the Korean manufacturing industry

This paper investigates the roles of firm size, age, and industrial networking in determining firm growth. Analyses using the 2-year panel data of 7,889 Korean manufacturing firms between 1994 and 2003 confirm that firm size and age have significant negative effects on firm growth and significant positive impacts on firm survival. R&D and export activities are found to facilitate both firm growth and survival. The primary focus of this study is to examine the effects of industrial networking, such as subcontracting and clustering, on firm growth. The results show that subcontracting does not yield any positive effect for firm growth, but encumbers survival, which may be accounted for by the high subcontracting intensity among small firms. Clustering, on the other hand, is found to promote firm growth and survival. There is, however, little evidence that such a positive effect of clustering is derived from network externalities through cooperation and competition among firms in a cluster per se.