A Study on Factors Affecting Innovation Capability and Innovation Performance: Focused on SMEs Entering Overseas Market

The purpose of this study is to investigate the factors affecting innovation capability and innovation performance of midsize company entering overseas market. More specifically, in terms of managerial, organizational, and employee - level factors, we set leadership, operating system, and taking charge at work as variables influencing innovation capability and tried to understand the effect of innovation capability on innovation performance through empirical studies. In addition, we examined the differences in the influence factors on innovation capability and the effect on innovation performance in the home country and overseas countries. As a result of the empirical analysis, all of the influence factors had a positive effect on the innovation capability and the innovation capability had a positive effect on the innovation performance. The degree of influence was in the order of operating system, leadership and taking charge at work. In China, there is no significant difference in the order of operating system, leadership and taking charge at work. In the case of Korea, operating system and leadership have a positive effect, but the employee’s taking charge at work does not affect innovation capability. The results of this study are as follows. First, it is necessary to enhance innovation capability in accordance with local characteristics. In Korea, there are additional activities to induce employee’s taking charge at work is required for improved innovation capability and innovation performance.