earticle

영어

Recently the car industry has been going into a period of great convulsion. To cope with the environmental changes in the car industry, car component manufacturers should maintain organic cooperative relationships with finished car manufacturers while making efforts to develop new products through unceasing research and development and technical innovation in order to secure continued competitive advantages. This study was intended to study on the effect of technical innovations through strengthening internal capacity of car component manufacturers. The results of tests of established hypotheses are summarized as follows. First, hypothesis H1. The internal capacities of businesses will positively (+) affect technical innovations. Second, hypothesis H2. Technical innovations will positively (+) affect the outcomes of innovation. Third, hypothesis H3. Internal capacities of businesses will positively (+) affect the outcomes of innovation. Based on the results of the tests of the established hypotheses, the practical implications as follows can be presented. First, in the car component industry, to secure continued competitive advantage, efforts should be made to strengthen businesses’ internal capacity. Second, along with the strengthening of businesses’ internal capacity, the businesses should also make efforts to achieve further technical innovation based on it. Also, small car component manufacturers should focus their efforts on product development and process innovation in order to enhance the satisfaction of finished car manufacturers.