A Study on the Main Factors for the Growth of North Korean Enterprises and Its Priority: Analysis Using Delphi and AHP

Heechan Kang; Jung-Hee Lee

doi:10.18107/japs.2019.26.1.001

To identify the main factors and its priorities for the growth of North Korea enterprises this study conducted Delphi method and AHP(Analytic Hierarchy Process). Through the Delphi 5 upper factors and 21 sub-factors were selected and those were used for the AHP analysis. The implications of the study are as follows. Firstly, improvement of environment and institutions should be prioritized for the growth of North Korean enterprises. In other words, the system in which ‘politics’ are involved in ‘management’ should be improved. The environmental· institutional factors surrounding North Korean enterprises are undermining their productivity, competitiveness, and potential. Secondly, North Korean enterprises have already significantly embraced market factors in their operations. In this context, both the <manager factor> and <management strategy factor> are important. Thirdly, securing capital is important. Fourth, the <organizational capacity factor> was the fifth priority among the five main factors. This indicates that North Korean enterprises currently place priority on securing investment and production rather than strengthening the competitiveness in the market, because the North Korean economy is still a ‘shortage economy’, and competition is not fierce.

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