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.