Abstract
The purpose of this research is to increase the performance of middle and small sized enterprises after the FTA implementation by conducting an empirical analysis on how company competencies affect SCM performance of port - related companies at Busan Port in Korea. In order to conduct this analysis, company competencies have been classified into three independent factors which are global, marketing and employee capabilities. Optimizing FTA opportunities and distribution competitiveness were classified as medium factors. After utilizing a structural equation for analysis, it was found that all three capabilities (e.g., global, marketing and employees) affect the SCM performance of companies through the optimization of FTA opportunities. It was also found that globalization capabilities affect SCM performance through distribution competitiveness but did not affect marketing or employee capabilities. Furthermore, the factors that directly affect SCM performance were marketing and employee capabilities. On the other hand, globalization capabilities had no effects. This study has significance in terms of determining the relationship between capabilities and SCM performance as well as understanding a company’s capabilities for improving the future performance of port-related businesses based in Busan port.
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