The Relationship between Organizational Culture, Absorptive Capacity, and Performance of Korea’s International Logistics Service Providers: Verification of the Mediation Effect

With the advent of globalization - a 21st century phenomenon - many corporations have been developing inroads into overseas markets. As international competition continues to intensify, some companies and researchers have taken a profound interest in the social cognitions, reactions, backgrounds, and behaviors of members in organizations. In line with these tendencies, organizational culture, along with absorptive capacity, is becoming one of the decisive factors. This study aims to use empirical analysis to identify the relationships between organizational culture, absorptive capacity, and performance of international logistics service providers (ILSP) in Korea. The empirical research shows that (1) there is no direct relationship between the construct of power distance and performance; (2) absorptive capacity has no mediation effect on the relationship between the construct of uncertainty avoidance and business performance; (3) in the case of the constructs of masculinity and femininity and individualism and collectivism, there is a full mediation effect only on financial performance; (4) there is partial mediation between long-term orientation and non-financial performance. Overall, the results of this study suggest that managers of ILSP should bear in mind that the constructs of organizational culture have considerable influence over an organization s absorptive capacity and business performance. These firms should acknowledge these influences and apply appropriate strategies, focusing on known weaknesses, to effectively strengthen their competitive market positions and long-term survival and success.