Internationalization, dynamic environments and new product development: An empirical investigation of Korean companies

Abstract

Purpose

The purpose of this paper is to explore when and how Korean firms learn from internationalization to develop new competencies to serve an international market.

Design/methodology/approach

This study adopted a contingency perspective to examine the relationship between organizational coordination and organizational implementation capabilities. A conceptual framework was tested based on data obtained from Korean firms.

Findings

The results suggested a discrepancy between the direct and indirect influences of internationalization. On the one hand, there is an inverted U-shaped pattern in the direct relationship between internationalization and organizational implementation capabilities; that is, high levels of internationalization may reduce organizational implementation capabilities. On the other hand, the evidence for a U-shaped moderation suggests that high levels of internationalization can help a firm become capable of amplifying the value of cross-functional coordination in organizational implementation capabilities. In addition, technological changes weaken the positive impact of organizational coordination on organizational implementation capabilities.

Research limitations/implications

Empirical research on the role of internationalization and dynamic environments in the context of new product development (NPD) affirms the importance of testing the curvilinear moderation beyond a linear two-way interaction.

Practical implications

The present study offers insights into the importance of high levels of internationalization in enabling Korean firms to create effective cross-functional coordination to serve an international market with new products.

Originality/value

This is the first review focusing on the role of internationalization in NPD.

Citation

Lee, K.B. and Choi, S.B. (2017), "Internationalization, dynamic environments and new product development: An empirical investigation of Korean companies", Journal of Korea Trade, Vol. 21 No. 3, pp. 224-255. https://doi.org/10.1108/JKT-11-2016-0041