Path-creating capability building and innovation in Korea's leading firms

Abstract

This paper evaluates the path-creating capability (PCC) of Korea's eight leading firms based on a model composed of 16 factors. The results reveal that among the 16 factors, creativity and basic research is the weakest factor. Moreover, the results of the hierarchical cluster analysis provide a basis on which to divide the sample firms into four types of PCC patterns. The first type is characterized as cooperators with suppliers and other firms on the periphery. The second type is the new technology learners emphasizing organizational learning of new technologies. The third type is R&D-production linkers, who excel at integrating R&D with other functions. Lastly, the user responsive type excel in their relationships with their consumers. This analysis has important implications for the leading Korean firms in terms of how to strengthen their PCC in the long term. © Beech Tree Publishing 2011.