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The purpose of this study is to understand how employees of an organization build and maintain successful business relationships by analyzing major antecedents of relationship quality and relationship commitment.

In this study, the authors develop a conceptual framework and formulate hypotheses regarding the relationships between demographic homophily, interpersonal communication, trust and dependent variables of perceived relationship quality and relationship commitment. This paper tests hypotheses presented in this study with the help of a structural equation model, based on a data sample from South Korea.

Unlike common thinking, demographic homophily does not directly increase the perceived relationship quality. The authors find a significant direct effect of interpersonal communication on relationship commitment but no effect of commitment on perceived relationship quality. Both seem to play independent roles but are positively influenced through the emergence of trust.

By applying demographic homophily and interpersonal communication as antecedents and trust as mediator and main driver, the authors research effects on perceived intra-organizational relationship commitment and perceived relationship quality. In detail, the authors confirm the hypothesized centrality of trust in intra-organizational relationships between demographic homophily, interpersonal communication and dependent variables of perceived relationship quality and relationship commitment. Nevertheless, the authors surprisingly find neither significant evidence that demographic homophily increases the perceived quality of a relationship, nor does it lead to higher communication intensity directly, even in an environment (i.e. Korea), where it would be expected.

Based on the findings of this study, there are several practical implications. Understanding the interpersonal relationship characteristics in an intra-organizational setting enables managers to optimize organizational efficiency and effectiveness. Intra-organizational relationships between employees’ are highly dependent on mutual trust as an indicator for relationship quality and relationship commitment. Organizations can also benefit from the understanding of the mechanisms of demographic homophily and interpersonal communication for the establishment of interpersonal trust as well.

Research about the effect of demographic homophily and interpersonal communication and the central role of trust in an intra-organizational approach to business relationships on perceived relationship quality and relationship commitment is scarce. The mutual testing of the effects and interaction of established constructs like demographic homophily, interpersonal communication and trust on perceived relationship quality and commitment constitutes the main contribution of this study to the literature on management and business relationships. The insights of this study about interpersonal bonding help companies to establish long-term business relationships.

We examine whether the suitability principles hold for the mutual fund industry in Korea, by analyzing the dynamics and the characteristics of the multi-class fund flows. For 12-years from 2002 to 2013, the volatility of fund flows associated with A-class fund, which is more appropriate for long-term investments, is larger than that associated with C-class fund. Therefore, it can be interpreted that the suitability principles do not hold. To examine the empirical observation, we mainly focus on the role of the dollar cost averaging (DCA) style funds. We show that if we adjust for the effect of DCA funds, the suitability principles does not hold only before the 2008 financial crisis. Thus, we argue that individuals' irrational decision making is caused by heavy investments on A-class fund through DCA style types before the financial crisis. This leads to the observed violation of the suitability principles before the crisis. Our findings also suggest that after the financial crisis, the mutual fund industry in Korea becomes mature.

This study aims to examine how employees' perceptions of organizational actions, such as corporate social responsibility (CSR), affect their compassionate acts in organizations through employee perceptions of organizational justice and affective organizational commitment.

The employees from 87 firms in South Korea were surveyed using a self-administered instrument for data collection. Out of 400 questionnaires, a total of 253 usable questionnaires were obtained after list-wise deletion, for a 63.3 percent response rate. The firms belong to a variety of industries (banking and financial services, manufacturing, hospitals, education, etc.).

The results indicate that employees' perceptions of CSR positively relate to compassion at work through organizational justice perceptions (i.e. perceptions of distributive justice, procedural justice, and interactional justice), and affective organizational commitment, in a sequential manner, in addition to their direct effects on compassion at work.

This study sheds new light on both the compassion and the CSR literature due to its attempt to bridge the macro concept of CSR with micro research in compassion. This is, apparently, one of the first pieces of research in the management literature to specifically address compassion as a consequence of employees' CSR perception.

Competing in Emerging Markets; Internationalization of Service Firms; Global Marketing.

Senior undergraduate or graduate students in business schools.

Uber first entered the South Korean taxi hailing service in Seoul in September 2013. In March 2015, the company shut down its operations after being charged for operating an illegal service. However, in January 2016, Uber decided to re-launch Uber’s premium service, UberBLACK after working with the city government. Given the country’s unique characteristics, was the decision to re-enter the market justifiable? Would Uber’s new strategies including partnering with a local company be sufficient? How could Uber gain more market share against its local powerful competitors?

Outcomes This case allows students to understand the challenges of internationalizing services of a global company in an emerging market that has strong national cultures and domestic preferences. The students will learn how to analyze the country and industry external environment as well as internal resources and capabilities to formulate the appropriate market entry strategies and to effectively implement them. The students will also learn the critical role of host country government and how to manage its relationship, the first- and second-mover advantages/disadvantages and the sustainability of innovative business models.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy

The purpose of this paper is to investigate key critical factors for developing transit trade corridors (TTCs) in optimizing trade and logistics performance, taking into account economic, geographic and political concerns among countries in the Northeast Asia region, which have been dynamically developing TTCs to optimize trade and logistics performance in association with development of transport infrastructure in the Greater Tumen Region located in the Northeast Asia.

This research explores key factors affecting the TTC through a comprehensive literature review in tandem with expert survey. Factor analysis, both exploratory and confirmatory, is employed to further investigate the underlying factors affecting more efficient development of a TTC.

This research has drawn eight underlying factors affecting the design of a TTC: development and policy implications; safety, security and political concerns; environmental protection; financing and investment; soft infrastructure; hard infrastructure; geography and landscape; and corridor performance.

This paper has a limited geographical scope of the Northeast Asia. Therefore, more primary data collection would be useful in future work. Development of International trade corridor and TTC is critical in northeast Asia for moving goods through designated geographical paths. The key factors drawn in this paper contributes not only to promoting its related services and information (across borders) with the provision of policy support and related facilities for TTC but also to lowering logistics costs and improving trades in the northeast Asian region. As a result, the countries in the region will accelerate their regional economies in collaboration with international bodies and framework, such as UNDP, Greater Tumen Initiative and One Belt One Road Initiative.

The eight underlying factors the authors identified in this research will be valuable for policy-makers to design TTCs and consequently the research will contribute to regional economies in northeast Asia by establishing efficient trade and transport routes among the countries in the region.

Developing TTCs is a kind of platform and infrastructure to accelerate cargo movements and people movements in the northeast Asia. Users of TTCs will benefit their businesses thanks to an efficient logistics system and lower logistics costs, which result in promoting international and regional trade in the region.

There has not been any research done on factors to consider in developing TTCs in the world, whose consequence is no readily available reference that can support a systematic assessment and decision-making in development of TTCs. The findings of this research provide a helpful reference for policy-makers, potential users and developers of TTCs to refer in planning and developing them.