Differentiated knowledge service strategy by addressing the moderating effect of company growth stages on organizational performance: the case of South Korea

Abstract

ABSTRACT This study clarified the effect of knowledge services (KSs) on the business performance of firms in South Korea using partial least squares structural equation modelling (PLS-SEM). The moderating effect of company growth stages was analyzed using partial least squares multi-group analysis (PLS-MGA) analysis. The utilisation degree of KSs was selected as an independent variable, and the dependent variable was the degree of contribution to business performance. In addition, the degree of contribution of KSs to decision making was introduced as a mediating variable. Structural paths were analyzed according to the company growth stages of startup, growth, and maturity. It can be seen that KSs are more effective for firms in the startup stage than in the growth or maturity stage. PLS-MGA results indicated that the difference in path coefficients from KSs to decision making was statistically significant when comparing firms in the startup stage with those in the maturity stage. The other differences in path coefficients showed no statistical significance. It can be concluded that when considering the target of KSs, we should focus on firms in the startup stage more than in the growth or maturity stage to maximise the contribution of KSs to innovation or business performance.