Innovation capability, marketing capability, and firm performance : a two-nation study of China and Korea.

This research empirically tests the effects of two critical organisational capabilities – innovation capability (IC) and marketing capability (MC) – on firm performance in two Asian nations: China and Korea. Drawing on institutional theory and the strategic-fit paradigm, we suggest that capability requirements may vary across different institutional environments for superior performance. Using data of 385 firms in China and 280 firms in Korea, this research finds that generally both capabilities positively influence firm performance; IC is more important in Chinese market, while MC is more vital for firms competing in Korea