Due to the environment changes such as decreasing and aging fishing population and increasing imported marine products, cultivation of fishery enterprises to lead the future fisheries has become an important issue. The changed environment in the fisheries led to not only the reduced the production because of degraded productivity of domestic fishery business unit but also the weakened price competitiveness in the domestic market because of increased imports of cheap marine products and thus has become threatening factor for fishing business. As such, this study intended to analyze the enterprises involved in coastal fishing near Busan and compare the enterprises with high business performance with those showing low business performance in order to deduce the success factors.
For that, the fishing village cooperatives were surveyed on 4 Determination factors of Competitiveness. The enterprises were divided into those with higher than average net profits and those with lower profits to evaluate the competitiveness using Poter’s diamond model, and the logistic regression was conducted between 4 Determination factors of Competitiveness and business performance.
Evaluation of competitiveness using the diamond model indicated that the enterprises with high business performance showed higher competitiveness index in Factor conditions, Demand condition, Related & support industry, Firm strategy, structure & rivalry, and 4 factors of competition.
The logistic regression analysis between 4 Determination factors of Competitiveness and business performance showed that the ship tonnage in Factor condition, unit price of caught fish in Demand condition, systematic sales in the (Related & supporting industries, and net profit to cost ratio in the Firm strategy, structure & rivalry had the positive (+) impact on business performance.
Following conclusion can be drawn from the study:
First, the cost should be more efficiently in order to improve the business performance. Second, having a venue of consignment sales near the village or portion of systematic sales can change the business performance.