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Article

Eui-Bang Lee, Sang-Gun Lee and Chang-Gyu Yang

The purpose of this paper is to examine the purchase intention in the case of smartphone advertising, which is unlike any other advertising media.

Abstract

Purpose

The purpose of this paper is to examine the purchase intention in the case of smartphone advertising, which is unlike any other advertising media.

Design/methodology/approach

This study examines the characteristics of recent mobile advertisements such as brand attitude and context awareness value, which have not been considered in studies on non-mobile advertisements, to address purchase intention through smartphone advertisements using structural equation modeling.

Findings

The results are as follows. Together with entertainment, information, irritation, and personalization in non-mobile advertisements, timing and location in mobile advertisements are the main factors for establishing consumers’ purchase intention. Further, although mobile advertisements’ context awareness value strongly impacts consumers’ advertising attitude and brand attitude, purchase intention receives greater impact from brand attitude than from advertising attitude because the products/services lack feel and touch.

Originality/value

These results imply that contextual advertising and new technology enabling feel and touch for products/services can maximize the effect of mobile advertisements.

Details

Industrial Management & Data Systems, vol. 117 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Eui-Bang Lee, Jinwha Kim and Sang-Gun Lee

The purpose of this paper is to identify the influence of the frequency of word exposure on online news based on the availability heuristic concept. So that this is…

Abstract

Purpose

The purpose of this paper is to identify the influence of the frequency of word exposure on online news based on the availability heuristic concept. So that this is different from most churn prediction studies that focus on subscriber data.

Design/methodology/approach

This study examined the churn prediction through words presented the previous studies and additionally identified words what churn generate using data mining technology in combination with logistic regression, decision tree graphing, neural network models, and a partial least square (PLS) model.

Findings

This study found prediction rates similar to those delivered by subscriber data-based analyses. In addition, because previous studies do not clearly suggest the effects of the factors, this study uses decision tree graphing and PLS modeling to identify which words deliver positive or negative influences.

Originality/value

These findings imply an expansion of churn prediction, advertising effect, and various psychological studies. It also proposes concrete ideas to advance the competitive advantage of companies, which not only helps corporate development, but also improves industry-wide efficiency.

Details

Industrial Management & Data Systems, vol. 117 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Content available
Article

Yong-Ki Min, Sang-Gun Lee and Yaichi Aoshima

Starting from industry 4.0 in Germany and followed by the New Strategy for American Innovation in the USA and the smartization strategy in Japan, developed countries are…

Abstract

Purpose

Starting from industry 4.0 in Germany and followed by the New Strategy for American Innovation in the USA and the smartization strategy in Japan, developed countries are pushing nation-wide innovation strategies. Similarly, China is pursuing the Made in China 2025, and Korea announced the Manufacturing Industry Innovation 3.0 strategy. However, few researchers have identified the industrial structure that establishes the foundation of the 4th Industrial Revolution or have derived strengths and weaknesses to provide implications on policy formulation through quantitative comparison with developed countries. Therefore, the purpose of this paper is to analyze the spillover effect of the information and communication technology (ICT) industry (the foundation of the 4th Industrial Revolution) and machinery·equipment industry (the foundation of smart manufacturing through convergence with ICT industry).

Design/methodology/approach

This study examines the industrial spillover effects of the ICT industry and machinery·equipment industry in the USA, Germany, Japan, China and Korea by using the World Input–Output Table from 2000 to 2014.

Findings

The results showed that backward linkage effect of the ICT Industry are high in the order of Korea≑China>Japan>the USA≑Germany, and forward linkage effect of the ICT industry are high in the order of Japan ≑> the USA≑Korea ≑> China ≑> Germany. Backward linkage effects of the machinery·equipment industry are high in the order of China>Japan≑Korea>the USA>Germany, and forward linkage effects of the machinery·equipment industry are high in the order of China>Korea>Germany≑Japan≑the USA.

Practical implications

China and Korea encourage active government investment in ICT and machinery·equipment industries, especially the intentional convergence between ICT and machinery·equipment industries is expected be generate higher synergy. The “innovation in manufacturing” strategy in the USA that utilizes its strength in ICT services seems appropriate, whereas Germany needs to revitalize the ICT industry to strengthen its manufacturing industry. Japan’s strategy is to focus its ICT capabilities on robot sector. While the scope of innovation is limited, its synergy is worth expecting.

Originality/value

This study attempted to provide a theoretical approach to the determination of national policy strategies and provide practical implications for response to the impacts of the 4th Industrial Revolution, by comparing the inducement effects of ICT and machinery·equipment industries between major countries.

Details

Industrial Management & Data Systems, vol. 119 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Sang-Gun Lee, Silvana Trimi and Chang-Gyu Yang

– The purpose of this paper is to investigate how ICT service providers’ strategies affect customer migration.

Abstract

Purpose

The purpose of this paper is to investigate how ICT service providers’ strategies affect customer migration.

Design/methodology/approach

Using a simulation approach and the agent-based model, this research explores how an incremental technology affects customer migration and changes the market structure.

Findings

The authors found that a strategy of disruptive technology innovation not only helps a follower company increase its market share, but it also completely disrupts the market.

Originality/value

This study investigates customer migration patterns in the saturated mobile telecommunication market based on service providers’ strategies.

Details

Industrial Management & Data Systems, vol. 114 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Sang‐Gun Lee, Ming Yu, Changgyu Yang and Changsoo Kim

The purpose of this paper is to propose a model that predicts information communication technology (ICT) adoption in saturated markets, to analyze the shifting behaviors…

Abstract

Purpose

The purpose of this paper is to propose a model that predicts information communication technology (ICT) adoption in saturated markets, to analyze the shifting behaviors of the subscribers and to present the results.

Design/methodology/approach

By developing an expanded Bass model, the authors analyzed post‐adopters' switching behaviors in the mobile phone market, using the officially verified time‐series data for the number of mobile phone adopters in South Korea.

Findings

The results show that: the expanded Bass diffusion model can delineate the stream of post‐adopter's switching behaviors in saturated ICT markets; based on innovation value p and imitation value q, the authors conclude that customer immigrations during market saturated period are mainly caused by innovation effect, which is closely related to launching innovative products; and fast mover still has its imitation effect, which is closely related to first mover advantage.

Originality/value

The paper provides novel insights for the frame of practical strategies. To survive in a saturated market, late movers should continuously develop new and innovative products. In addition, fast movers should also develop innovative products to prevent customer immigrations, and they also should utilize their first mover advantage more efficiently, even in matured market.

Details

Industrial Management & Data Systems, vol. 111 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Chang-Gyu Yang, Silvana Trimi and Sang-Gun Lee

The purpose of this paper is to identify the structure of strategic investments and the effect of each investment category on business performance in two leading…

Abstract

Purpose

The purpose of this paper is to identify the structure of strategic investments and the effect of each investment category on business performance in two leading information and communication technology (ICT) countries, the USA and South Korea.

Design/methodology/approach

This is a longitudinal comparative study of the relationship between strategic investments and organizational performance of major telecommunication service providers (TSPs) in the two leading ICT countries, the USA and South Korea.

Findings

The study found that a sufficient amount of strategic investments in technological innovations is the driving force for TSPs’ business performance. However, strategic investment structures differ among TSPs, depending on their market position, whether the first mover in the market or a follower, and on their country’s market characteristics. Moreover, even though both countries’ TSP markets are oligopolistic in nature, the market is more saturated in Korea and thus competition appears to be fiercer there than in the USA. The stronger oligopolistic market in Korea has lead TSPs to compete primarily on their marketing strategies, while TSPs in the USA do so based on technological innovation.

Originality/value

The findings of the study shed new insights that can help both TSPs in developing their competitive strategies and government policy makers in assuring healthy competitive telecommunication markets in their countries.

Details

Industrial Management & Data Systems, vol. 116 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Sang M. Lee, Hong‐Hee Lee, Jinhan Kim and Sang‐Gun Lee

This paper seeks to understand effects of ASP utilization on organization performance measured in terms of satisfaction and educational effectiveness on the part of the…

Abstract

Purpose

This paper seeks to understand effects of ASP utilization on organization performance measured in terms of satisfaction and educational effectiveness on the part of the customer firm.

Design/methodology/approach

This study follows the positivist approach. After a research framework was developed and hypotheses defined, based on a thorough ASP literature review, data were collected from small firms which use ASP services. Results were discussed to suggest strategic directions of ASPs.

Findings

The results show that when customer firms perceive good service at a reasonable fee, they exhibit a high level of satisfaction with the service provider. Customer satisfaction is found to be significantly related to organizational performance. Also, the education content of training programs significantly influences educational effectiveness, which in turn contributes to organizational performance by impacting customer service.

Research limitations/implications

The results of the study would help practitioners and researchers better understand ASP customers. The scope of this study is limited to leading IT adoption countries.

Originality/value

Based on the customer perspective, this paper delineates factors of ASP services that support small firms to be more successful.

Details

Industrial Management & Data Systems, vol. 107 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Sang-Gun Lee, Chang-Gyu Yang and Eui-Bang Lee

The purpose of this paper is to identify how adoption drivers change before and after key milestones of ICT product adoption (i.e. critical mass point (CMP) (adoption rate…

Abstract

Purpose

The purpose of this paper is to identify how adoption drivers change before and after key milestones of ICT product adoption (i.e. critical mass point (CMP) (adoption rate 16 percent), market saturation point (MSP) (50 percent) and new generation release point (NGRP)) based on actual subscriber data of the mobile communications industry that represents the ICT market, so that it has implications for the rejuvenation of ICT product adoption that has rarely been addressed in earlier studies.

Design/methodology/approach

This study examined the overall characteristics of ICT product diffusion by tracking the actual patterns of US and Korean mobile market subscribers using the Bass diffusion model.

Findings

This study found that innovation effects gain influences on ICT product diffusion after CMP, MSP and NGRP; imitators are becoming innovators by repeated rejuvenation experiences; and cultural differences have significant influences on imitators’ ICT product adoption, but not on innovators.

Originality/value

These findings imply that rejuvenation enabled by technology innovation is a key success strategy to dominate the ICT market where the number of innovators, who have strong desires for new generation products, is constantly growing.

Details

Industrial Management & Data Systems, vol. 115 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Changgyu Yang, Sang‐Gun Lee and Jaebeom Lee

Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better…

Abstract

Purpose

Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better understanding of entry barriers in the ICT market. The purpose of this paper is to examine the overall characteristics of these entry barriers and identify firms' strategies for achieving market dominance.

Design/methodology/approach

The authors examined the overall characteristics of these entry barriers and identified firms' strategies for achieving market dominance by tracking the actual patterns of firms' ICT market entry based on the Bass diffusion model.

Findings

The results indicate that the saturation of the ICT market reduced entry barriers, which strengthened the imitation effect. In addition, entry barriers were lower for ICT firms than for non‐ICT ones. Furthermore, entry barriers were higher for the manufacturing sector than for the service sector, indicating that the innovation effect was stronger for the manufacturing sector than for the service sector, whereas the opposite was true for the imitation effect.

Originality/value

These results suggest that those firms that are planning to enter or are already in the ICT market should develop better strategies for gaining a competitive advantage.

Details

Industrial Management & Data Systems, vol. 113 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Kyung Hoon Yang, Sang M. Lee and Sang‐Gun Lee

The aim of this paper is to find out: why some organizations adopt ICT later than the others, and whether organizations have different adoption strategies based on the type of ICT.

Abstract

Purpose

The aim of this paper is to find out: why some organizations adopt ICT later than the others, and whether organizations have different adoption strategies based on the type of ICT.

Design/methodology/approach

This paper is an empirical study of the ICT diffusion process between the early and late adopters of relational database and local area network.

Findings

The results of the study indicate that there are significant differences between early and late adoption organizations with regard to management characteristics such as the age and interests of the CEO and CIO, and also the adoption process such as the evaluation period and initiation time. However, no significant differences were found in organization resource or corporate strategy factors. Furthermore, the results of the study indicate that there are significant differences in organizational characteristics such as sales volume, organization slack and rewards between the two types of ICT.

Research limitations/implications

The sample size is relatively small. Replication of this study with additional organizations in the sample will allow stronger validation of diffusion theory.

Originality/value

It is believed that the results of the study will provide useful guidelines in strategy development for managing ICT diffusion by organizations and IT vendors.

Details

Industrial Management & Data Systems, vol. 107 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

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