Benchmarking strategic core competencies of performance across Chinese and South Korean manufacturing companies

What is it about?

The predictive effect of core competencies and technology improvement through R&D of firm performance has been one of the major research issues in business and economic research regardless of organizational differences or national boundaries. The relationship between R&D and a firm's performance has been an enigmatic issue concerning the performance measures employed across different country settings. The present study empirically investigates the significance of the core competencies on various economic performance indices by utilizing accounting and market-based performance in leading Chinese and manufacturing manufacturing companies. Our study supports that R&D intensity and foreign trade activity through export is most likely to be significantly associated with the firm performance, particularly market-based performance across China and South Korea manufacturing companies. Nevertheless, the significance of other strategic core factors such as capital intensity, leverage, inventory turnover, labor productivity, administrative cost efficiency, and collection policy on performance varies depending on which performance measure is used.

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