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Policy Resistance Case Study Focused on Government’s Intervention in the Conflict Between Big-Box Stores and Traditional Market in Korea Based on Systems Thinking Approach

Author

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  • Park Ryeong Ji

    (Business School, Ewha Womans University, Seoul, South Korea)

  • Chung Chang Kwon

    (Seoul School of Integrated Sciences & Technologies, Seoul, South Korea)

Abstract

Rapid expansion of big-box store in developing country caused typical archetypal change in market structure: Success to the Successful, because big-box stores armed with modernized infrastructure and management capability are absorbing the once customers of the traditional market like a black hole. Facing rapid change in market structure and surmounting pleas from traditional market merchants, government took an inevitable intervention with law regulating the big-box store’s business and improving traditional market’s competence building. Not so long, however, did government confront policy resistance from both sides: Still ongoing polarization of both side’s sales. This study articulates behavior over time of market structure with causal loop diagrams of which causalities are extracted from literatures. This study provides significant contribution to policy makers and traditional markets’ merchants in other developing countries like India and China, as well as Korea.

Suggested Citation

  • Park Ryeong Ji & Chung Chang Kwon, 2018. "Policy Resistance Case Study Focused on Government’s Intervention in the Conflict Between Big-Box Stores and Traditional Market in Korea Based on Systems Thinking Approach," Journal of Systems Science and Information, De Gruyter, vol. 6(2), pages 152-164, April.
    • Handle: RePEc:bpj:jossai:v:6:y:2018:i:2:p:152-164:n:4
    DOI: 10.21078/JSSI-2018-152-13
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    References listed on IDEAS

    as
    1. Cho, Janghee & Chun, Hyunbae & Lee, Yoonsoo, 2015. "How does the entry of large discount stores increase retail employment? Evidence from Korea," Journal of Comparative Economics, Elsevier, vol. 43(3), pages 559-574.
    2. Russell S. Sobel & Andrea M Dean, 2008. "Has Wal‐Mart Buried Mom And Pop?: The Impact Of Wal‐Mart On Self‐Employment And Small Establishments In The United States," Economic Inquiry, Western Economic Association International, vol. 46(4), pages 676-695, October.
    3. Srikanth Paruchuri & Joel A. C. Baum & David Potere, 2009. "The Wal-Mart Effect: Wave of Destruction or Creative Destruction?," Economic Geography, Taylor & Francis Journals, vol. 85(2), pages 209-236, April.
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