Corporate Competence and Business Performance: Focus on Korean Domestic Venture Companies in the Service Industry

Corporate Competence and Business Performance: Focus on Korean Domestic Venture Companies in the Service Industry

Purpose: This study empirically examines the relations among corporate performance, technology, and corporate capabilities for service companies to find factors that could affect the competitiveness of the service industry. Most study on technology in the service industry have been conducted in developed countries, and yet there exist not sufficient empirical reviews. Research design, data and methodology: This paper, using rare empirical data, examines Korea's service industry and aims to make an academic and managerial contribution to the understanding of the relation between corporate competence and performance. This study analyzes 567 Korean Domestic Companies in Non-manufacturing and Service Industry, using the 2020 Detailed Survey of Venture Businesses (2500) data. Frequency analysis, correlation analysis, and regression analysis are performed. Results: Results show, Hypothesis 1 that internal competence has positive influence on technological strength, is supported. However, Hypothesis 2 that technological strength mediates between internal competence and business performance, Hypothesis 3 that external competence has positive influence on technological strength and Hypothesis 4 that technological strength mediates between external competence and business performance are all partially supported/rejected. Conclusions: This study suggests that technological strength is an important factor that affects both market share and sales. And mediating effect of technology strength emphasized in market share. However, in managing sales, more cautious approach and a more detailed analysis are needed..