This paper studies the performance of 118 major Korean construction companies between 1997 and 2003 to verify empirically the existence of a direct relationship between innovations of firms and their performance. This time period was selected because there had been a radical change in the market leadership of the construction industry due to the Asian Financial Crisis of the late 1990s. The AMOS analysis and the research demonstrated that innovation of a firm has an indirect relationship with its performance through mediating variables — firm product and process fits. While innovations of a firm are contingent to the external factors, product fit and process fit have direct impact on firm performance, suggesting that the product fit and the process fit are two significant indicators of the success or failure of a firm.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.