A Study on the Mediating Effects of International Marketing Activities in the Relationship between R&D Capability, Network Capability and Management Performance in Korean Ventures

Abstract

The purpose of this study was to explore the relationship between R&D capability, network capability, international marketing activity and the effects on management performance in globalizing Korean ventures. Although previous studies have found that R&D capability, network capability, and international marketing activities affect management performance directly, there have been only a few studies which focus on the specific causal relationships among these potential variables in Korean ventures. Recently, with the global environment of competition becoming more complex and consumer needs becoming more diversified, even a corporation that develops an excellent product cannot achieve a high level of performance if the product is not combined with international marketing efforts, or the corporation does not make use of developed networking in its international marketing activities. This study, through the use of co-variance structural analysis, showed that while R&D capability and marketing activities directly affect management performance, network capability does not. In addition, R&D capability and network capability were shown to have a positive effect on management performance with international marketing activities working as a mediator. This result theoretically and practically implies that network capability has an effect on management performance when used in international marketing activities.